Ratepayers get Dinged Again for Nothing

Ratepayers get Dinged Again for Nothing

If the $43.4 million Ontario ratepayers and taxpayers paid for nothing Easter weekend wasn’t bad enough news, unfortunately, the bad news keeps on coming!

Monday April 13th added another big chunk of money to the coffers of generators (mainly those who own the industrial wind turbines [IWT]).  The wind was blowing when it wasn’t needed but IESO took 58,700 MWh of it, added it to the grid and also paid for another 20,800 MWh of curtailed wind with our dollars.  Together IWT, (grid accepted and curtailed) added $10.5 million to the costs of generating power for the day.

Total “Ontario Demand” was 313,295 MWh but IESO accepted 406,320 MWh (IESO refer to that as “Market Demand”) even though the additional 93,025 MWh wasn’t needed.  IESO sold off the excess generation via the HOEP (hourly Ontario electricity price) market and the maximum price they got for it was 0.00 cents/MWh.

The above easily demonstrates wind generation wasn’t needed. Grid accepted wind represented 62.4% of what was sold for -0.03 cents/MWh according to IESO’s Daily Market Summary, but it cost us $10.5 million.  As if to add to the grief, the additional 36,414 MWh we sold for nothing cost another $5 million, using IESO’s first GA estimate of $137.07/MWh for the month.  It’s also worth mentioning idling gas plants added approximately $3.2 million to the day’s costs to back-up wind and solar generation.

The total dollar amount of $18.7 million for another day of waste added $60/MWh to the costs of Ontario’s Demand of 313,295 MWh pushing costs close to $200/MWh or .20cents/kWh. We also probably got dinged for spilled hydro which would add further costs but IESO don’t disclose that information.

It’s time our current government recognized the catastrophe the McGuinty/Wynne governments created in respect to the electricity sector. I’m confident the ratepayers and taxpayers of Ontario would be delighted if the Ford government used their power to end this insane result of the Ontario Liberal’s Green Energy Act.

Fix it please as we taxpayers and ratepayers are tired of paying for NOTHING!

Author: parkergallantenergyperspectivesblog

Retired international banker.

2 thoughts on “Ratepayers get Dinged Again for Nothing”

  1. I agree Parker, the ratepayers and taxpayers of Ontario would be delighted if the Ford government used their power to put an end to the insanity. The ignorance on this issue is dominant and Premier Ford easily could be a very overdue breath of fresh air.

    The damage from the Green Energy Act is horrific. I think the waste is approaching $100 billion. A fiscal boondoggle of irresponsible spending unmatched in Canadian history.

    It started with shutting down coal…for no reason other than the fervid imaginations of some very few and very influential people. For jurisdictions without access to natural gas, coal is by far the safest, least expensive and quickest route to base load power for the grid. But try telling that to any of our academic, media and governing elites and they will perceive you as a conspiracy nut.

    Not only did these people shut down coal, they spent double digit billions refurbishing old nukes that should have been decommissioned, then unbelievably investing multiple billions in wind/solar parks along with the necessary conventional back-up and creating an almost daily requirement for excess “alternative” power to be sold to the spot market for a fraction. On top of all that…a carbon tax.…. $fiasco.

    All they had to do was hook up to the hydro power available from Quebec. By making gasoline and electricity more expensive these people think they can change the clouds, and they have the blessing from our educated, political and media elites.

    What a mess.

    Like

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