Ontario and California demonstrate there is no hope of a “Green Recovery” as PM Trudeau and Finance Minister Freeland believe

Shortly after Finance Minister Freeland and Prime Minister Trudeau touted how the planned recovery from the Covid-19 pandemic would be focused on the “Green Recovery” and “decarbonization” BNN/Bloomberg ran an online poll.  The poll asked only one question which was: “Do you agree with Chrystia Freeland about the need to decarbonize Canada’s economy?”  So far 70% of those responding to the poll said “NO”!  Perhaps those 70% have heard what recently happened in California where rolling blackouts occurred frequently as the renewable generation from wind and solar fell flat during a heat wave. Many will also be familiar with the Ontario “green energy” debacle led by the McGuinty/Wynne Liberal Premiers!

Hydro Quebec annually publish a Comparison of  Electricity Prices in Major North American Cities and the 2019 report suggests the average residential household in San Francisco paid CA31.11 cents/kWh and in Toronto 13.89 cents/kWh.  What the report doesn’t disclose is Toronto’s rate was heavily subsidized due to high residential rates created by the GEA (Green Energy and Green Economy Act).

Going back to 2003 when we lived in Toronto, Toronto Hydro supplied our electricity and in reviewing a bill from mid-July to mid-September of that year the all-in rate per kWh (inclusive of distribution charges, taxes, the debt retirement charge, etc., etc.); works out to 9.4 cents/kWh.

If I fast forward to our September 2017 electricity bill from Hydro One it works out to 13.73 cents/kWh. The foregoing makes it appear the increase in the average cost was perhaps less than the inflation rate, but one should recall just prior to that date the Wynne led government of Ontario passed the “Fair Hydro Plan” (FHP).  Examining our bill discloses it had been reduced by 34.7% due to the FHP.  Adding the FHP subsidy to the bill and recalculating the per kWh cost indicates it was actually 20.7 cents/kWh and would translate into an increase of 11,3 cents/kWh (up 120%) since 2003!

Finally, if I examine my most recent bill from Hydro One, on the surface it suggests the cost per kWh was up slightly from September 2017 to 14.97 cents/kWh for an increase of 9% in those three years. The bill however also discloses a hefty subsidy from the taxpayers and when included, the costs show the price to be 28.05 cents/kWh which is only slightly less than what those living in San Francisco were paying in 2019.  If you look back to 2003 when our residential rate was 9.4 cents the increase was 18.85 cents per kWh or 200% resulting in a tripling of the costs per kWh. That sure beats the inflation rate.

The blame for the tripling in costs can be laid on the doorsteps of the Ontario Liberal Party who were relegated to non-party status in the last election.  Voters, who are also ratepayers, showed their disdain for the GEA and its acquiesce to those, like Gerald Butts who controlled the OLP agenda!  Butts and his co-workers like Ben Chin convinced the McGuinty government of the impending doom of using fossil fuels and its reputed effect on “climate change” and the acquisition of wind and solar generation began.  The results were high rates which created a spike in “energy poverty” and subsequent job losses!

The Canadian Finance Minister, Ms. Freeland and her superior, Prime Minister Trudeau and the rest of his caucus should take a long hard look at what happened in California and Ontario before they endorse decarbonization or all of Canada will be on its way to ruin and perhaps “rolling blackouts” will be the result across the country.

Give the voters of Canada credit for recognizing a future disaster that will relegate Canada to the status of Venezuela should the Liberal Party of Canada push their “Green Recovery” agenda.

Pay close attention to the BNN/Blomberg poll!

Author: parkergallantenergyperspectivesblog

Retired international banker.

5 thoughts on “Ontario and California demonstrate there is no hope of a “Green Recovery” as PM Trudeau and Finance Minister Freeland believe”

  1. Hello Parker, a quick comment on the Hydro Quebec Comparison of Electricity Prices in Major North American Cities (you’re link isn’t correct – it’s at https://www.hydroquebec.com/residential/customer-space/rates/comparison-electricity-prices.html ).

    The 31.11 c/kWh rate for San Francisco is for a mythical customer using 1,000 kWh/month. There aren’t many of those as San Fransicso has had steeply increasing tiered rates for a long time, which is one way they incented owners of large homes to install solar panels. The average California residence purchased a little over 500 kWh per month from their utility last year (and San Francisco would be less that that), and at that consumption level the average all-in rate was about 18.5 cents/kWh USD. That’s similar to what our rate would be if not for the subsidy on the bill.

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    1. Scott, Thanks for showing the correct link. I suspect Hydro Quebec uses 1,000 kWh/month because home heating is predominantly electric and the Ivey School of Business in a 2019 report indicated: “On the other hand, the average Quebec household consumes more than double the amount of electricity at 1,550 kWh per month” so their intent was to meet in the middle for comparison purposes. Link is here: https://www.ivey.uwo.ca/energycentre/blog/2019/06/a-closer-look-at-hydro-quebecs-electricity-price-advantage-over-ontario/#:~:text=On%20the%20other%20hand%2C%20the,134%20m3%20per%20month.

      Liked by 1 person

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