Ontarians Generosity was Again in Evidence on May 16, 2023

Well once again Ontario ratepayer’s and taxpayer’s generosity was in full swing as those IWT (industrial wind turbines) were in full motion throughout the day.  IESO forecast they would generate 60,760 MWh or about 52% of their capacity (enough to supply over 2 million average Ontario households) but accepted 51,130 MWh meaning about 9,630 MWh were curtailed.

The cost of the foregoing at $135/MWh for what was accepted was $6,902,550 plus another $1,155,600 for the curtailed power at $120/MWh bringing the total cost to $8,058,150 for the IWT output. The big problem with yesterday’s IWT output was; we didn’t need it as demand throughout the day was less than what our baseload (nuclear and most hydro) provided and peak demand only reached 14,757 MW at Hour 21.

What the foregoing resulted in was seeing all that surplus generation exported while driving down the market price (HOEP) which averaged only $3.40/MWh over the day.  As a result, IESO data disclosed our net exports (exports minus imports) to Michigan, New York and Quebec were 57,732 MWh. Going further, the IWT accepted generation of 51,130 MWh represented 88.6% of what we gave away. If we included the IWT curtailed generation those IWT could have generated 105% of what we sold off for pennies of their guaranteed “first-to-the-grid” costs.

The results from having those IWT generate their intermittent and unreliable power is costs to Ontarians for just yesterday’s unneeded generation was just shy of $7.9 million.

The above clearly shows how layering unreliable and intermittent generation like wind and solar drives up the costs of our energy consumption.

Despite the obvious there clearly is no intention IESO will reduce those costs as a Press Release from them yesterday illustrates they are going to add yet another layer.  They announced the “largest energy storage procurement ever in Canada“ and the bulk of it will be battery storage allowing the IWT owners to double down on the revenue grab from us ratepayers.  Those battery storage systems will allow them to buy their intermittent wind generation (we are obliged to purchase) for the cheap market price and sell it back into the grid at higher prices when the wind isn’t blowing or the sun isn’t shining. 

We should all wonder; when will commonsense ever return or is this meant to drive more of us into “energy poverty” to save the world from “global warming”!

PS: The overnight temperature in most of Southern Ontario in mid-May was around zero (0) degrees Celsius which suggests we may have solved the UNIPCC crisis!

Wimpy Wind Once Again Demonstrates its Unreliable Nature

Ontarians should be thankful Sunday March 12, 2023, was both a weekend day and also kind of an early spring day which contributed to a relatively low electricity demand day.  Ontario’s peak demand came at Hour 19 (hour ending at 7 PM) and was only 17,614 MW. While the below screenshot of IESO data shows (at the top) the output of all electricity sources at 8 PM the coloured graph ends at Hour 20 and it shows the peak hour occurred at Hour 19 and at that hour all those IWT (industrial wind turbines) generated was a miserly 244MW or 5% of their capacity and 1.4% of peak demand.

Now squint at the coloured graph above and focus on the green, yellow and red lines at the top which are respectively IWT, solar and biomass generation to recognize why they can’t ever hope to replace flexible natural gas (dark blue), hydro (light blue) or nuclear generation (orange).

Over the full 24 hours of the day total wind generated was 7,215 MW which represented 6.13% of their capacity and at their low point at Hour 15 they only managed to generate 163 MW (3.3% of their capacity). At Hour 1 (ending at 1 AM) they hit their high for the day generating 484 MW (9.9% of their capacity).

Ontario’s natural gas plants stepped up to meet our needs yesterday generating 43,653 MW or six (6) times what those IWT generated. What the foregoing makes obvious is that Ontario would need another 29,400 MW of IWT capacity to replace what our gas plants generated in addition to the 4,900 MW of existing grid connected capacity.  Adding that capacity to the grid would also increase the need to upgrade the transmission system and both of those additions would drive up the cost of energy further.

As yet another addition to the foregoing Ontario would need a minimum of approximately 7,500 MW of BESS (battery energy storage systems) with the capabilities to deliver stored power to replace what those gas plants generated.  That 7,500 MW of battery storage would need to store their power in the days before the wind disappeared and it wouldn’t happen if the wind wasn’t blowing. 

Blackouts would be the alternative to the above.

Now try to imagine how much more IWT generation coupled with BESS units we would need on a hot summer day when demand peaks at over 22,000 MW!  

Quebec Electrification may Prove Costly and Create Blackouts

An article from March 2022 cited a Hydro Quebec strategic plan they had just released and it forecast they would need 100 TWh (terawatt hours) annually of additional energy in order to meet Quebec’s net-zero emissions target by 2050.

To put context on that 100 TWh; it currently represents about 50% of generation Quebec Hydro annually distributes to Quebec ratepayers and grid connected export markets! If one does the math the annual generation of 100 TWh would require about 11,500 MW of new generation (baseload) capacity running at 100% and that is, coincidentally, more than double the capacity of Churchill Falls (5,428 MW) which is owned by Newfoundland & Labrador (N/L).  The existing contract between the two provinces for the power generated at Churchill Falls expires in 2041 and currently costs Hydro Quebec a very low $2.00 per MWh or $2 million per TWh.  The $113 million Hydro Quebec paid N/L in 2021 suggests Churchill Falls supplied them with 56.5 TWh hours or about 25% of what Hydro Quebec distributed in 2021 and around 30% of Quebec ratepayers total demand!

We should guess N/L will be looking for much higher rates for any future contracts come 2041 or instead will run transmission lines to Nova Scotia, New Brunswick and/or to New England to achieve a much better return and perhaps help pay those cost overruns for the Muskrat Falls project.  The foregoing would raise Quebec’s needs to over 150 TWh by 2050 or at the very least drive up their energy costs!

Hydro Quebec’s 2021 annual report indicated they sold 210.8 TWh of which 35.6 TWh (63% of Churchill Falls generation) were exported to New England, New York, Ontario and New Brunswick.

In respect to the Ontario/Quebec relationship; Ontario will try to supply power to Quebec in the winter (Quebec’s peak demand period) whereas Quebec will try to supply Ontario in the Summer which is generally when peak demand occurs.  The agreement between Ontario and Quebec is referenced as the “Seasonal Capacity Sharing Agreement.“ As an example, Ontario, using natural gas generation, recently supplied Quebec with power during the cold snap. We should wonder how importing generation from natural gas plants will help Quebec meet its “net-zero” target or Ontario’s by generating fossil fuel power to supply Quebec?

Hydro Quebec issued a press release in November 2022 forecasting by 2032 they will require an additional 25 TWh principally to support the transition to electrification for transportation, building conversion, green hydrogen production, battery production, etc. etc. The press release suggests: “The anticipated growth takes into account significant energy efficiency efforts that will make it possible to curtail 8.9 TWh by 2032. Hydro-Québec programs such as the Efficient Heat Pump Program for residential customers and the Efficient Solutions Program for business customers will help optimize electricity use.“ They will also seek a “demand response” of 3,000 MW during the coldest winter days from those labeled as “various customer segments”.  The release also indicated they have put out a call for tenders including; “one for 300 MW of wind power and the other for 480 MW of renewable energy—are already underway“, and “Two more, for 1,000 MW of wind power and 1,300 MW of renewable energy, respectively, will be launched in the next few months, and others will follow in the coming years to meet the needs“.

We should find it odd Hydro Quebec would believe 1,300 MW of wind and 1,780 MW of renewables (solar?) will be sufficient to provide them with the 25 TWh they forecast needing by 2032 due to their intermittency and unreliable nature but perhaps they are really counting on the 3,000 MW of “demand response” to keep the lights on and households warm during cold winter days. We should also wonder where the other 75 TWh they will need by 2050, will come from?

They shouldn’t count on Ontario being able to supply them as the Ford led government here in Ontario is on the path to also achieve the same “net-zero” target our Energy Minister, Todd Smith, asked IESO to achieve via his October 7, 2021, letter to them.  While he has subsequently backtracked somewhat on the foregoing in his October 6, 2022, directive it nevertheless may detract from attracting new generation as the following sentence from his directive implies: “New build gas facilities will be required to submit emissions abatement plans to IESO as part of their future contractual obligations, including considerations for operating in special circumstances such as emergency events, if applicable.

Ontarians and Quebecers should wonder; in the future, will those emergency events include us sending our natural gas generation to help them keep the lights on and their households warm during winter cold snaps in Quebec and will they be able to supply Ontario with power on those very warm summer days when our peak demands occur?

No doubt by the time the foregoing potential problems become a regular occurrence our current group of politicians will have retired from politics and be living on nice taxpayer funded pensions so will not care about the consequences of their failed policies.

We voters should find a way to make elected politicians responsible for their ineptitude but perhaps that is far too much to hope for, just as “net-zero” is simply “wishful thinking” if we want reliable and competitive power prices!  

Investigative Reporting by a Toronto Star Journalist is Disinformation

Recently invited to be a guest on Zoomer Radio, I agreed, and was informed I would be joined by Bryan Purcell, VP of Policy and Programs at The Atmospheric Fund. TAF is a “not-for-profit” company with almost $100 million of “restricted funds” that have been provided by the City of Toronto, the Province of Ontario and the Government of Canada and appears to have 30 employees.  They use the revenue generated from the funds ($7.1 million in their 2020 and $1.2 million in 2021 financial reports) and other revenue (minimal) to provide grants described as: “has the potential to generate large-scale carbon reduction in the GTHA“ (Greater Toronto Hamilton Area).

The planned discussion/debate was to be in respect to a Toronto Star article posted November 30, 2022 titled “Ontario’s new gas plants will cause your hydro rates to rise, report says” and presumably for Zoomer’s audience to hear competing views on the content in the article from yours truly.

Shortly before the program was to start the Auditor General of Ontario released her annual report so I, and presumably Bryan Purcell, were informed the discussion was cancelled as the host wanted to cover the AG report due to it’s significance in detailing how the AG viewed Premier Ford’s led financial management over the prior year.

The TorStar article was written by Marco Chown Oved* who identified himself as a “Climate Change Reporter” in the article heading! On his LinkedIn profile, he identifies himself as an “Investigative Reporter at Toronto Star”! The TAF representative, Bryan Purcell, also scheduled to be on the radio program, is quoted in the article and on his LinkedIn profile states he is a: “Environmental Professional focused on Climate Change mitigation“ but his qualifications suggest he is stretching the truth.

Below we will examine some of the claims made in the article based on the report prepared by Power Advisory, which we assume TAF paid for with our tax dollars!  The report’s author from Power Advisory was Travis Lusney, whose LinkedIn profile discloses he was the Senior Business Analyst at the OPA (Ontario Power Authority). In that former position he states he; “Managed analysis and implementation of procurement policy. Focused on the Feed-In Tariff Program with emphasis on pricing, connections and stakeholder engagement.“  Hmm, one should wonder if Mr. Lusney, was at least partially responsible for the cost of electricity in Ontario jumping by over 100% due to the FIT contracts to wind and solar proponents which paid them as much as 82 cents/kWh for rooftop solar. Perhaps we should take his recent report to TAF with the proverbial “grain of salt”, or should we simply shrug it off based on the “investigative journalism” claims of Marco Chown Oved, the Toronto Star reporter?

Claims from the article:

Rather than relying on natural-gas-fired generation to meet growing electricity demand, Ontario’s cheapest and most reliable options require new wind and solar,

It is unbelievable the “investigative journalist” didn’t bother to do a little research work on the foregoing claim as he would quickly discover wind and solar are not the “cheapest and most reliable”. Had the author simply bothered to look at the February 2022 report of the FAO (Finance Accountability Office of Ontario) he would have discovered they have driven up the cost of electricity to the point where taxpayers are forced to absorb a cost of “$38.6 billion (32.7 per cent) to move most of the cost of 33,000 renewable energy contracts with wind, solar and bioenergy generators from all electricity ratepayers to the Province.“  Had he also bothered to just examine a few days of IESO data he may also have discerned wind and solar’s bad habits of generating power when it’s unneeded and failing to deliver power during “peak hours” on cold winter days and hot summer ones. Recent examples of unneeded power generation occurred December 2nd and 3rd when IWT (industrial wind turbines) operated at 76% of their rated capacity whereas on December 7th and 8th they operated at a miserly 8.5% of their rated capacity. In the first instance the IESO were forced to sell off that power for pennies of it’s cost and in the latter case natural gas and hydro ramped up to prevent blackouts such as those that occur in California and elsewhere around the world where wind and solar are a large part of electricity grids.

People, governments and businesses are switching en masse to electricity as a power source for cars, heating and heavy industry in an effort to lower carbon emissions and avoid the worst effects of climate change.

Once again, the Toronto Star’s “investigative reporter” obviously did not do any research, or he would have discovered the “en masse” switch is not happening to any great extent without government grants, and they obviously must be higher or people won’t switch.  In the case of EV penetration a very recent article from mid November pointed out EV sales in Canada were low during the first 6 months of 2022 stating:  “Based on average new vehicle registrations, the EV total would have to grow from 55,600 to about 480,000 over six months to hit that 60 per cent target.” The 60 per cent target is for 2030 and the 2035 target is 100 per cent. The Federal government also hand out grants for heat pump conversions as well as interest-free loans of $40K but once again reviewing government statistics the conversion rate is not happening. A StatCan report notes heat pumps as a primary heat source have only grown from 3% in 2013 to 5% in 2019 and forced air furnaces have only declined by 1% from 53% in 2013 to 52% in 2019. Funnily enough, electric baseboard heaters over the same time frame fell from 28% to 26%. The actual data easily demonstrates the “en masse” switch the author suggests is a fallacy!

The report says Ontario needs to start making significant investments in its grid, especially considering the lengthy timelines required to build the transmission, generation and storage required to simultaneously meet demand and reduce emissions.

Hydro One just received approval from the OEB (Ontario Energy Board) for a rate increase for planned capital spending on their transmission system.  The spending appears to represent about $7.5 billion over the next five years.  Spending of that amounts suggests the investment is “significant” and a little research by the article’s author would have disclosed that!  No investigative integrity is apparent!  

“It’s very clear that if we’re going to go to net-zero, renewables are going to be part of the mix,” said Travis Lusney, the report’s author and director of power systems at Power Advisory. “How far you go is dependent on a lot of factors, even outside of the electricity sector.”

Well, it is apparent Lusney has a love affair with renewables as his prior role at the OPA (Ontario Power Authority), created by the McGuinty Government handed him the power to construct the mess of the electricity sector in Ontario that (as noted above) the FAO stated in his February 2022 report will cost taxpayers $38.6 billion.

“The report finds that a 97 per cent non-emitting grid can be achieved by building new transmission lines, solar and wind generation as well as energy storage facilities. This would allow the grid to reduce its dependence on natural gas to a few peak demand days in mid summer.”

It is worth noting the report fails to mention Ontario’s electricity grid is already over 92% “non-emitting” and fails to include a cost/benefit analysis to achieve the additional 5% emissions reduction it seeks. The report in the three scenario’s recommends adding as much as 12,700 MW of wind capacity, 5,500 MW of solar capacity and 3,900 MW of storage capacity. The report goes on to suggest those wind turbines, solar panels and the storage capacity be spread throughout the province. The report then forecasts due to the spreading it would require as much as an $8.4 billion spend on the transmission system in order to get the power to where its needed. In summary the Power Advisory report recommends  spending billions of dollars to achieve a 5% reduction in emissions in Ontario’s electricity system.  As outlined above it is very unlikely those new facilities coupled with the additional wind, solar and storage capacity and their associated costs would reduce electricity prices! Instead those costs would drive up prices much as they did in the past with a much smaller capacity addition of renewables. Nevertheless, we should be pretty sure Power Advisory would love the foregoing to happen and Travis Lusney would surely rise in the ranks of his employer, Boston Advisory, who would stand to benefit from the money stream generated by assisting applicants seeking contracts from IESO. 

“In each scenario, hydro prices will be lower than they would be if the province goes through with its plan to build new gas plants, the report concludes, mostly because gas is expected to get more expensive, a rise that will be exacerbated by the increase in carbon tax. Meanwhile, prices for wind and solar, which are already cheaper than natural gas, are expected to fall.”

First off, one should wonder how each scenario will cause “hydro prices” to be lower but perhaps they were actually suggesting “electricity prices” will be lower? Past and current experience in Ontario due to wind and solar generation have actually caused “hydro spills” meaning OPG are paid to simply spill water over dams without running them through the turbines. Ratepayers, however pick up the costs of those spills and for the past several years their costs have been substantial. The spills by OPG are almost always caused by unneeded wind generation as their contracts give them “first-to-the-grid” rights . On the statement, “prices for wind and solar” are expected to fall” is also far from the truth.  As one example an article last month about Vestas, the world’s largest wind turbine manufacturer, stated: “Vestas has raised prices more than 30% in the past year to help stem losses.“  It should also be recognized gas prices would fall if our abundant supplies in Saskatchewan and Alberta had more pipelines available but the Federal government has done everything in its power to prevent that from happening.

As the foregoing once again suggests; the Toronto Star, their reporters, and other MSM companies simply accept what they are told or read and fail to do any research to determine if they are providing facts or fiction. In this case it seems obvious it is the latter and reporter Marco Chown Oved should immediately rewrite his LinkedIn memes as it doesn’t suggest he is a “investigative reporter”!

* Marco Chown Oved’s LinkedIn biography brags about how the CAJ (Canadian Association of Journalists) were so enthralled with an article he wrote about “climate change” they blessed him for writing it. Perhaps they will do so again for this diatribe of BS as the MSM seems to have abandoned publishing the truth and the CAJ has endorsed their abandonment!  This is what Marco Chown Oved has on his LinkedIn site: ”Awarded the inaugural Environmental and Climate Change Award from the CAJ for my feature on heat waves in Montreal, a part of the Toronto Star’s Undeniable series on climate change.”

Once Again, Ontario Ratepayers and Taxpayers are Being Told to Hand Over More Money

A recent rate application before the OEB (Ontario Energy Board) brought back memories of when Bob Chiarelli was Ontario’s Minister of Energy and when queried about the costs of cancellation of the planned Oakville TransCanada gas plant stated:  “It’s less than a cup of Tim Hortons coffee a year“!

What brought the foregoing to mind was an OEB application from Wataynikaneyap Power LP for transmission rate increases that (it appears) would apply to all of Ontario’s ratepayers not just those 16 First Nations and their 14,000 residents that will eventually be connected to the power grid.

The announcement made in March 2018 with great fanfare by Ontario Premier Kathleen Wynne and Federal Minister of Indigenous Services, Jane Philpott, concerned a $1.6 billion dollar Federal Government grant to build an 1,800-kilometre transmission line(s) to connect those 16 communities. The application submitted to the OEB seeks .20 cents monthly from all Ontario’s residential ratepayers which equates to $2.40 annually so is very close to the cost of an extra-large “timmies”. Over the 40-year estimated life of the transmission lines the total amount paid by all residential households would be approximately $400 million for this application which is a lot of “timmies” coffee. We should suspect the cost will increase as the transmission lines reach further to connect with the 14 other First Nations.  Oh, and an unknown portion of the .20 cents will go to Hydro One. 

The OEB also recently ruled on a significant application from Hydro One related to both their transmission and distribution connected customers. The OEB labeled it as; “the largest and most complicated rate case to come before the OEB.“ The reasoning behind the foregoing comment was because it was “a combined proposed revenue requirement of approximately $20 billion and a proposed investment plan of about $13 billion over the 2023-2027 rate period“ The result of their review and ruling is; all ratepayers will see an increase in rates associated with transmission costs and those who are Hydro One distribution customers will be slapped with an additional rate increase.  

The bill impacts noted by the OEB stated “on the transmission portion of the application, it is estimated that for a typical Hydro One residential customer with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $0.69 per month“. Once again that doesn’t sound like much and will amount to only $8.28 annually but with 4.2 million households it totals around $35 million for the year and over five years becomes $175 million without factoring in the costs to businesses and other large consumers. 

The rate increase for Hydro One’s distribution customers approved was; “ for a typical residential distribution customer of Hydro One with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $2.43 per month or 1.5%.“ For a residential customer consuming 750 kWh monthly the annual cost comes to $29.16 but will be more for businesses, farmers and other larger consumers.  For the approximately 1.4 million Hydro one residential customers alone the costs will be north of $41 million annually and for businesses will be much higher than the $29.16 for the “average” residential customer. 

As is obvious from the OEB announcements electricity rates are going up but, those increases are not because Ontario has added new generation it’s simply to help build new transmission lines to First Nations, upgrade existing ones and their associated infrastructure for the planned “full electrification” of the electricity sector. One should wonder is it meant  to ensure you will be able to charge your EV during our cold winter days.

Hydro One customers may well be forced to reduce their “timmies” intake over the upcoming years!

Why Wind and Solar Owners Love Energy Storage

Yesterday, November 26th, 2022, demonstrated why Ontario’s numerous contracted wind and solar owners are so excited about the Ontario Minister of Energy’s objective to secure 1,500 MW of storage capacity be it pumped hydro or BESS (battery energy storage systems)!

Both IWT (industrial wind turbines) and solar panels generated lots of unneeded electricity over the day based on IESO daily generation report and it was more than they tell us: the reason why, is there are approximately 600 MW of IWT capacity and 2,200 MW of solar capacity that are DER (distributed energy resources) so those are not reported by IESO as their minimum reported capacity per generation source is 20 MW and DER’s generation is used by local distribution companies to supply power to communities they serve.  They also include other generation sources such as small, hydro, natural gas, and biomass!

The day was atypical of Ontario’s spring and fall demand as reflected by the fact Ontario’s peak demand was a relatively low 16,345 MW and it occurred at Hour 18 (hour ending at 6 PM).  Throughout the day the wind was blowing and resulted in IESO forecasting IWT would generate almost 76,600 MW but they only reported about 70,500 were accepted into the grid suggesting 6,100 MW were curtailed.  The foregoing translates to a cost of $732,000 for curtailed generation and $9,518,000 for the grid accepted generation. This resulted in an average cost per MWh (megawatt hour) of $145.39 for IWT generation.

Over the day the HOEP averaged only $7.84/MWh and for hours 12 to 15 was $0.00/MW.  In those 4 hours we saw our neighbours in Michigan, NY and Quebec receive 7,314 MW at zero cost which is about what 813 average Ontario households would annually consume and what 243,000 households would consume daily. If those MW we gave away were generated by ground mounted solar (contracts pay them $440/MWh) the cost would have been $3.2 million and if IWT generation the cost would be about $987,000!

Now, it is worth reflecting on how IWT and solar owners could further benefit from those low HOEP market prices.

If the BESS or pumped hydro storage units are owned by the same companies who generated that surplus power for which they were paid either $440/MWh or $135/MWh (sold for 0.00/MWh) turned around and simply scooped that power up via a licensed electricity trader and stored them they could simply hold them until the price jumped the next day or two. 

All those “storage owners” would need to do is check the weather forecasts to see if the sun will shine or the wind will be blowing in the next day or two.

As it turns out today (November 27th, 2022) is a perfect example of how they could increase their revenue at the expense of Ontario’s ratepayers.  Today the wind is not blowing much, and the sun isn’t shining throughout the province. At Hour 7 AM today the HOEP jumped to $69.25/MWh and since then, has averaged $62.25/MWh meaning those 7,314 MWh at zero cost if sold back would have generated $455,297.  The foregoing would simply add to the revenue those solar panels and IWT generated yesterday at the expense of Ontario’s ratepayers.

It should be recognized yesterday could have allowed them to generate a lot more revenue via storage as the example above only reflected the four hours of $0.00/MWh whereas the overall average for the full 24 hours was a paltry $7.84/MWh or 0.078 cents/kWh.

It seems obvious the IWT and solar generators recognize the unique ability to reach even deeper into Ontario ratepayers’ pockets but what is not obvious is if our Minister of Energy, Todd Smith and the IESO will prevent them from doing so. 

Based on the directive to obtain “a minimum of 1,500 MW of storage” it appears the politicians and bureaucrats may well allow them to do exactly what those IWT and solar owners are hoping for and planning to do!

IWT with “First-To-The-Grid” Rights Demonstrate the Best They Can Do is Wimp Out

August 23, 2022 once more demonstrated IWT (industrial wind turbines) inability to produce power when it is actually needed. The day produced a peak demand hour close to being in the top 10 hours so far in the current year reaching 21,075 MW at Hour 17.  We should surmise many of the Class A electricity customers fired up their gas generators to take advantage of their status and achieve the rate reductions that come with reducing their power draw as the Class A status allows.

At hour 17 the market price of power or HOEP (hourly Ontario energy price) saw IESO buying and selling power at $159.41/MWh via the intertie markets.  They were selling to Michigan and New York states while buying power from Quebec to ensure reliability over the grid. The exchanges at that hour resulted in a negative flow of 61 MW meaning we imported slightly more power than we exported.

The IWT at hour 17 generated 465 MWh which was just shy of their peak for the day of 519 MWh at hour 16 and represented 2.2% of demand but their capacity is over 15% of Ontario’s total grid connected capacity. At the hour when those IWT were demonstrating their unreliability our natural gas plants produced 4.926 MWh or 23.4% of demand with nuclear and hydro producing almost all of the balance.

The only positive thing about the failure of those IWT to produce power when it’s needed during peak periods is that we generally sell our surplus power for higher prices unlike the Spring and Fall when demand is low but generation from IWT is much higher than summer months. During those months IWT are frequently producing so much surplus power we curtail them and pay $120/MWh for those happenings.  At the same time the HOEP is at low prices so what is actually accepted on the grid is sold to Michigan and NY for pennies of their actual cost.  Both of the foregoing events simply drive-up costs to Ontario’s Class B ratepayers which are the small and medium sized businesses and residential ratepayers. In the meantime, large public entities such as universities and hospitals (many of whom are also Class A ratepayers) dependent on tax dollars are unaffected as they fire up their gas generators so it’s simply another cost to ratepayers and taxpayers.

The foregoing IWT failure is almost a daily event during summer days and highlights the fact once the Pickering nuclear plant is shut down (2025) our natural gas plants will be called on to continually generate power. Without any additional reliable power added to the grid in anticipation of that closure, Ontario’s energy security is at risk.

The question on our minds should be; when will the Ford led government do something that ensures Ontario’s businesses and households will have secure electricity sources that are capable of generating power 24 hours a day and 365 days a year and pass regulations to curtail our subsidies to IWT?

Wind Missing When Needed

Following is a screen shot taken on the IESO website and the HOEP (hourly Ontario energy price) shown on it is a reflection of what Ontarians would experience on a regular basis should our natural gas plants shut down as pushed by the OCAA (Ontario Clean Air Alliance).  The combination of the HOEP and the GA (Global Adjustment) comes to $293.49/MWh or 29.3/cents per kWh and getting close to what many European countries pay due to their move to renewable energy.  It should be recognized the 29.3 cents doesn’t include distribution or other costs so my guess is the all-in cost would be up around what residential ratepayers in Germany are currently paying. Germany is now firing up their coal plants in order to survive the upcoming winter as their gas supplies have been severely impacted by the Russia/Ukraine war and Russia has reduced the transmission of natural gas via their pipelines.

Most European counties anticipate electricity shortages over the next two years so we should expect the same here in Ontario should we shut down our gas plants as desired by the OCAA and the 33 municipalities who have endorsed their closure.

Industrial wind generation’s peak on August 2, 2022 came at the hour ending at 1 AM when they produced 1,927 MWh (39.3% of their capacity) but at the hour ending at 6 PM when peak demand hit 20,561 MW they managed to only generate 258 MWh or 5.2% of their capacity. Hour 4 when peak demand was lowest for the day at 13,796 MW and could have been easily supplied by nuclear and hydro but, wind turbines ran at 26.2% of their capacity generating 1,283 MWh when it wasn’t needed.

The ups and downs of wind generation were particularly visible this day demonstrating their inability to deliver power when it was actually needed. 

The time has come for the politicians and the eco-warriors citing the purported benefits of those industrial wind turbines to acknowledge their uselessness and how they do nothing more than add costs to our electricity and tax bills and must be backed up with natural gas plants!

Four Years Later and I Repeat: “If I were Ontario’s new Minister of Energy …”

Back on May 30, 2018 an article I penned, just prior to the last provincial election, listed ways in which the incoming ruling party could reduce electricity costs by $2 billion annually.  Electricity costs had more than doubled in Ontario under the reign of the McGuinty/Wynne led Liberals due to their enactment of the GEA (Green Energy Act) when George Smitherman was the Minister of Energy.

Ontario’s voters were expected to respond when casting their vote in early June 2018 and they did!  The ruling OLP (Ontario Liberal Party) were decimated turning them into what many referred to as the “mini-van party”.

My prior advocacy work had focused on the “electricity sector” and the cost of wind and solar generation. My efforts included frequent dialogue with the Conservative appointed “energy critics” so, at that time, I and many Ontario ratepayers in rural and urban communities had hopes the Doug Ford led Ontario Conservative Party would deal with the mess the Liberals had created. Potentially the savings would have amounted to around $8 billion over the past four years.

The Ford led government based on a recent report from the Ontario Financial Accountability Office seems to have simply transferred $6.9 billion in electricity costs for the 2021-2022 year and $118 billion to taxpayers over 20 years, even though taxpayers are also ratepayers!  In quickly reviewing recently released platforms for the OLP, the NDP and the recent OPCP budget it sure appears they all have plans aimed at “global warming” and want to spend billions continuing the push to jump on board with “The Great Reset” advocated by the WEF and our Prime Minister, Justin Trudeau.

The only dissenting voice amongst the political parties seems to be the newly formed “New Blue Party” whose “BLUEPRINT” states they will take “down wind turbines to reduce electricity costs”!

Following are the recommendations put forward in the article four years ago and I will leave it to the reader to pontificate as to whether or not, any of them were acted on!

“Green Energy Act

Immediately start work on cancelling the Green Energy Act

Conservation

Knowing Ontario has a large surplus of generation we export for 10/15 per cent of its cost I would immediately cancel planned conservation spending. This would save ratepayers over $433 million annually

Wind and solar contracts

I would immediately cancel any contracts that are outstanding but haven’t been started but may be in the process of a challenge via either the ERT (environmental review tribunal) or the court system. This would save ratepayers an estimated $200 million annually

Wind turbine noise and environmental non-compliance

Work with the MOECC Minister to insure they effect compliance by industrial wind developers both for exceeding noise level standards and operations during bird and bat migration periods.  Failure to comply would elicit large fines. This would save ratepayers an estimated $200/400 million annually

Change the “baseload” designation of generation for wind and solar developments

Both wind and solar generation is unreliable and intermittent, dependent on weather, and as such should not be granted “first to the grid rights”.  They are backed up by gas or hydro generation with both paid, for either spilling water or idling when the wind blows or the sun shines.  The cost is phenomenal.  As an example, wind turbines annually generate at approximately 30 per cent of rated capacity but 65 per cent of the time its generation is at the wrong time and not needed. The estimated annual ratepayer savings if wind generation was replaced by hydro would be $400 million and if replaced by gas in excess of $600 million

Charge a fee (tax) for out of phase/need generation for wind and solar

Should the foregoing “baseload” re-designation be impossible based on legal issues I would direct the IESO to institute a fee that would apply to wind and solar generation delivered during mid-peak and off-peak times.  A higher fee would also apply when wind is curtailed and would suggest a fee of $10/per MWh delivered during off-peak and mid-peak hours and a $20/per MWh for curtailed generation. The estimated annual revenue generated would be a minimum of $150 million

Increase LEAP contributions from LDC’s to 1 per cent of distribution revenues

The OEB would be instructed to institute an increase in the LDC (local distribution companies) LEAP (low-income assistance program) from 0.12 per cent to 1 per cent and reduce the allowed ROI (return on investment) by the difference. This would deliver an estimated $60/80 million annually reducing the revenue requirement for the OESP (Ontario electricity support program) currently funded by taxpayers

Close unutilized OPG generation plants

OPG currently has two power plants that are only very, very, occasionally called on to generate electricity yet ratepayers pick up the costs for OMA (operations, maintenance and administration). One of these is the Thunder Bay, former coal plant, converted to high-end biomass with a capacity of 165 MW which would produce power at a reported cost of $1.50/kWh (Auditor General’s report) and the other unused plant is the Lennox oil/gas plant in Napanee/Bath with a capacity of 2,200 MW that is never used. The estimated annual savings from the closing of these two plants would be in the $200 million range.

Rejig time-of-use (TOU) pricing to allow opt-in or opt-out

TOU pricing is focused on flattening demand by reducing usage during “peak hours” without any consideration of households or businesses.  Allow households and small businesses a choice to either agree to TOU pricing or the average price (currently 8.21 cents/kWh after the 17% Fair Hydro Act reduction) over a week.  This would benefit households with shift workers, seniors, people with disabilities utilizing equipment drawing power and small businesses and would likely increase demand and reduce surplus exports thereby reducing our costs associated with those exports. The estimated annual savings could easily be in the range of $200/400 million annually

Other initiatives

Niagara water rights

I would conduct an investigation into why our Niagara Beck plants have not increased generation since the $1.5 Billion spent on “Big Becky” (150 MW capacity) which was touted to produce enough additional power to provide electricity to 160,000 homes or over 1.4 million MWh.  Are we constrained by water rights with the US or is it a lack of transmission capabilities to get the power to where demand resides?

MPAC’s wind turbine assessments

One of the previous Ministers of Finance instructed MPAC (Municipal Property Assessment Corp,) to assess industrial wind turbines (IWT) at a maximum of $40,000 per MW of capacity despite their value of $1.5/2 million each.   I would request whomever is appointed by the new Premier to the Finance Ministry portfolio to recall those instructions and allow MPAC to reassess IWT at their current values over the terms of their contracts.  This would immediately benefit municipalities (via higher realty taxes) that originally had no ability to accept or reject IWT.

If one does a quick addition of the foregoing one will see the benefit to the ratepayers of the province would amount to in excess of $2 billion dollars which co-incidentally is approximately even more than the previous government provided via the Fair Hydro Act.

Hmm, perhaps we didn’t need to push those costs off to the future for our children and grandchildren to pay!

Now that I have formulated a plan to reduce electricity costs by over $2 billion per annum I can relax, confident that I can indeed handle the portfolio handed to me by the new Premier of the province.”

Grand Delusion: The Liberal Government’s Proposed “Clean” Electricity Standard

The captioned is a slightly edited version of the paper that Robert Lyman and I wrote on behalf of the CCMBC (Coalition of Concerned Manufacturers and Businesses of Canada) in response to the Federal Governments paper: “A Clean Electricity Standard in Support of a net zero electricity sector”.

The article is posted on the C2C Journal a great online publication that was founded in 2007.

I would encourage you to visit the site and either read or reread the report as the edited version has pictures and graphs that bring the report to life.

Find it here:

Grand Delusion: The Liberal Government’s Proposed “Clean” Electricity Standard