While You Were Sleeping, Quebec, Michigan and New York Raided Your Piggy Bank

The IESO reports from Midnight to 7 AM on June 7th indicate over those seven hours they sold off Ontario’s surplus generation* to our neighbours in Quebec (7,178 MWh), Michigan (6,849 MWh) and New York (3,114 MWh) for an average price of $1.25/MWh generating a pitiful $21,426  for those 17,141 MWh.  Ontario’s electricity demand during the bulk of those hours was in the 12,000 MW range which it frequently experiences during nights in the Spring and Fall months.  

As the foregoing suggests we didn’t need any other power beyond what nuclear and hydro can easily provide yet those wind turbine contracts give them “first-to-the-grid” rights and even pay them for curtailed power!

As it turned out, a large part of the 17,141 MWh sold off during those seven hours to our three neighbours were related to how those IWT (industrial wind turbines) were operating! IESO had forecast IWT would generate 13,481 MWh during those hours but they only accepted 8,068 MWh and curtailed 5,413 MWh.

The above exercise meant just the IWT cost was $1,738,740 and coupled with the cost for the other exported generation (9,073 MWh) at an average cost of $116/MWh (the latter includes about $30/MWh paid by Ontario taxpayers) brings the total cost to $2,791,200 or about fifty-three cents for each of the 5.3 million Ontario households.

While 53 cents per household is only 7.6 cents per hour; if it happened for the 8760 annual hours per year it would amount to over $600.00 per Ontario household and be a major hit to the 50% of families who are only $200.00 away from being able to pay their bills!

The time has come for the re-elected Ford led Government to do something about this mess and stop the continued bleeding of our after-tax dollars for this fictional “non-emitting” generation harming those 5.3 million Ontario households.

*Low demand coupled with nightly IWT generation drives down the market price referenced as the HOEP (hourly Ontario energy price) forcing ratepayers to pay for the difference between the contracted price and the market price.

Author: parkergallantenergyperspectivesblog

Retired international banker.

2 thoughts on “While You Were Sleeping, Quebec, Michigan and New York Raided Your Piggy Bank”

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