Another Day and those IWT Cost Ontario Ratepayers North of $11 Million

A quick look at IESO data for November 27^th, 2023 indicated IWT (industrial wind turbines) were forecast to generate 95,884 MW (81.5% of capacity) but only 86,920 MW were actually accepted on the grid by IESO. That suggests almost 9,000 MW were curtailed. Over the many years we have had those IWT operating here in Ontario they always generate 29/31% of their capacity annually, on average, so they were obviously humming on the 27^th!

So, one should wonder, was the generation needed?  As it turned out most of it wasn’t needed as IESO was busy selling off surplus power with 51,871 MWh going to our Quebec, Michigan, and New York neighbours over the day. The average sale price was $23.25/MWh (2.3 cents/kWh) so the sale of the surplus power only generated $1,229,250.

If one, then looks at the cost of the IWT generated and curtailed power the math discloses; with the accepted IWT power receiving $135/MWh and curtailed power $120/MWh the total cost to Ontario’s ratepayers of its generation was $12,809,880.  If we then logically, conclude, IWT generation was 100% of what was sold to our neighbours or caused other cheaper generation such as hydro or nuclear to be exported the net cost to Ontarians was $11,580,630 ($12,809,880 minus $1,229.250).

What the foregoing implies is; the remaining IWT generation of 33,949 MW was what Ontarians consumed!  Calculating the cost per MWh of the above turns out to be $341.11/MWh ($11,580,630 divided by 33,949 MWh = $341.11) or slightly over 34 cents/kWh.

Ontario Electricity Rebate Jumps

The day’s cost of $11.5 million occurring over a full year would add about $4.1 billion annually to the cost of electricity. Coincidently that $4.1 billion is about the anticipated $4.1 billion increase recently allocated to Ontario taxpayers under the OER (Ontario Electricity Rebate). The increase went into effect November 1^st, 2023 as the Ford government increased the OER from 11.7% to 19.3%. and that is expected to increase the full annual costs of the OER from $6.3 billion to about $10.4 billion.

We should all wonder why Premier Ford and his Minister of Energy, Todd Smith, don’t simply take away the “first-to-the-grid” rights of those IWT to stop this wasted spending?