Lion Electric, King of the EV Jungle Grants?

A recent article in the Financial Post titled: “Lion Electric posts profit as sales and subsidies pick up speed” was eye-catching simply for it’s inference on how it was worded, and suggesting “subsidies” played a role in it posting a profit. The article went on to quote their chief executive as follows; “We delivered the highest quarterly number of vehicles ever with 105 deliveries in Q2,” said Marc Bédard, Lion’s chief executive. The article went on to state: “The good fortune is set to continue, at least for the next little while. As of Aug. 4, the Quebec company’s order book was flush, with 2,357 vehicles valued at $575 million and 226 charging stations representing $3 million.”

Curiosity piqued, a look at how Lion Electric’s stock has performed on the TSE was a must and as it turned out the price over the past year fell from $18.47 CAD a share on August 9, 2021 to a close of $6.95 CAD on August 5, 2022 for a drop of $11.52 (-62.4%) a share over the past year.  Hmm, wonder why, as one would assume a company roaring to a profit would attract investors but that doesn’t seem to be the case for Lion Electric?  Maybe it’s not the king of the school bus and truck EV jungle?

Taxpayer subsidies

An article two weeks before the above article appeared in the FP and headlined “Lion Electric CEO predicts Ottawa’s new EV-truck subsidy will boost demand”.  The following quotes from the article might explain (partially) why Lion suddenly achieved profitability!  The article stated:“Stacking the Quebec subsidy of $144,000 on top of the federal grant would result in a total rebate of nearly $250,000 on the Lion6 model, putting it on par, price-wise, with a comparable diesel-powered truck.” And a further sentence said: “Similarly, stacking the Quebec rebate of $200,000 on the federal grant for the Lion8T would result in a total rebate of $350,000, making it just slightly more expensive than its non-electric competitors.”

An article two weeks before the above article appeared in the FP and headlined “Lion Electric CEO predicts Ottawa’s new EV-truck subsidy will boost demand”.  The following quotes from the article might explain (partially) why Lion suddenly achieved profitability!  The article stated:“Stacking the Quebec subsidy of $144,000 on top of the federal grant would result in a total rebate of nearly $250,000 on the Lion6 model, putting it on par, price-wise, with a comparable diesel-powered truck.” And a further sentence said: “Similarly, stacking the Quebec rebate of $200,000 on the federal grant for the Lion8T would result in a total rebate of $350,000, making it just slightly more expensive than its non-electric competitors.” 

Yet another article appearing in e-magazine Sustainable Bus in March 2022 was about how the Quebec government was investing $18 million into 120 school buses and stated “The subsidy for each bus is worth $150,000. The government’s plan is to electrify 65 per cent of its school buses by 2030.”  It also noted: “Quebec announced last year that the government will fund the majority of the $5 billion purchase of electric buses with $3.65 billion of the contract supplemented by the federal government”! If one goes back to examine the 2nd Quarter results for Lion you note the 105 deliveries consisted of 90 school buses and 15 trucks generating revenue of US $29.5 million  and if we use the $150K per school bus grant and $300K per truck grant the government subsidies amount to approximately CAD $15 million representing approximately 40% of gross revenue in the quarter. Without those subsidies the “operating loss” would have amounted to CAD $43 million!  With those kinds of subsidies, we shouldn’t be surprised Lion is receiving more orders.

Source of Grant Money

As noted above the grants to Lion are sourced principally from the Federal taxpayers with additional funds provided by Quebec taxpayers but in the latter case we should probably surmise it also is funded in large part via those same Federal taxpayers via the “equalization” payments the Federal government pass out.  As noted in the undated letter from Finance Minister Freeland sent to the Quebec Minister of Finance, Eric Girard, Quebec will be handed $13.666 billion or 62.35% of the total equalization payments to the five provinces who receive them, for the 2022-23 year.  Surely that kind of a handout goes a long way to allowing the Province of Quebec to be able to provide grants without tapping into their own tax revenues!

School Bus Orders

One of the largest orders received by Lion for those electric school buses came from First Student a company whose head office is in Cincinnati, Ohio with operations in the US and seven of Canada’s provinces.  Back on May 17, 2021 a press release they issued announced the “largest zero-emission school bus order of 260 buses”.  Assuming the Quebec government handed out the $150K per bus would suggest $39 million will go or has gone to Lion Electric for those buses. 

Another order for Lion’s buses came from Transdev Canadaa public private transport company limited with a Board of Directors and jointly owned by the Caisse des Depots Group (66%) and the Rethmann Group (34%) a German family owned company.  It should be noted CDPQ is the Quebec version of the Canada Pension Plan so they invest the contributions of all Quebec taxpayers to the plan. The order from Transdev Canada was made in early July for another 30 Lion electric school buses in addition to the 27 previously ordered and reputedly already in service.  So, at the $150K per school bus handed out by the province another $8.6 million will find its way into the Lion Electric bank account and future recipients of CDPQ pension payments should cross their fingers those school buses will be as efficient as those fossil fueled ones or Transdev might turn out as a negative investment.

It seems obvious that Lion Electric has twigged the politicians into being convinced electrifying everything is the way to go and will create jobs and benefits to the Quebec economy (possibly via Quebec Hydro for charging those buses)?  As a result Quebec politicians have somehow decided they need to hand out taxpayer funded grants to save the world from “climate change” while picking what they consider new technology and the companies that will benefit!  As an observer over several decades, I am skeptical politicians have ever been able to pick winners but have often picked losers’!

My vote for “King of the EV Grants” goes to Lion Electric!

June 4th; Just Another day of Generosity by Ontario ratepayers and taxpayers

Well, once again, Ontario’s electricity generators were producing power we didn’t need. Nevertheless, the ratepayers and taxpayers of Ontario were obliged to give it away to our neighbours in Michigan, Quebec and New York.  This is a regular occurrence during the Spring and Fall seasons as demand is generally at the lowest levels for us but the GEA (Green Energy Act) imposed by the Liberal government during the McGuinty/Wynne years declared wind and solar generation were the future so they gave them contracts with very high rates and “first-to-the-grid” rights!

Ontarians have been paying the price for over a decade and despite the fact Liberals were found guilty of their stupidity on the electricity file and booted out of power, the current and recently reelected Ford led Conservative Party has done nothing to change things over their prior four years of power!

So, Saturday the fourth of June was simply another example of how the mess continues!

Peak demand in Ontario occurred during the 18th hour and peaked at 14,437 MW. Nuclear and hydro alone at that hour generated 14,631 MWh so wind and solar were not needed but those damn contracts stand in the way. At that hour wind was operating at 16.9% of their capacity and they could have peaked at 45% of their capacity at 1 AM but IESO (Independent Electricity System Operator) had them curtail 1,200 MW. 

IESO were busy selling off our surplus power throughout the day to our neighbours and did so with slightly over 24,000 MWh to Michigan, 22,300 MWh to Quebec and about 12,000 MWh to NY!  That power was sold at the astronomical (sarcasm intended) average HOEP (hourly Ontario energy price) of $6.34/MWh.

What the preceding tells us is we are giving Michigan and New York, clean green power to help then keep energy costs low and reduce their emissions. Quebec benefits by not using their hydro generation which they have presold to US States like NY under lucrative contracts.  No benefit for Ontario’s ratepayers or taxpayers as the following outlines!

If we simply assume the approximately 58,000 MWh, we exported earned us only $368,000 (58,000 MWh X $6.34/MWh), we should consider what it cost us!

The mix of electricity sold presumably included wind generation (26,000 MWh including curtailed), solar, hydro, nuclear and perhaps even a little natural gas. The minimum cost was approximately $116/MWh based on the GA (Global Adjustment) estimate by Scott Luft and the 2nd estimate by IESO for May and includes the $30/MWh taxpayer subsidy. Using the $116/MWh the cost of those exports becomes $6,728,000 and including the 4,900 MWh of curtailed wind total costs rise to over $7.3 million.  So, for what cost Ontario ratepayers/taxpayers $7.3 million we received less than $400K.

What the foregoing points out to the politicians in charge is that there is something inherently stupid with the way our electricity system is managed. We changed the political parties once because of the electricity file but the Ford government simply shifted a large part of the costs to the taxpayers so it was hidden from sight.

Perhaps the next election will be focused on the provincial debt and include the costs the Ford led government hid inside our Provincial debt.

If they actually do something to sort out the mess created by the Liberals it could reduce the provincial deficits by $6.9 billion as reported by the FAO of Ontario assuming they can keep electricity costs flat, perhaps by taxing the intermittent and unreliability of that expensive and harmful wind generation.

Only time will tell!

Bruce Power took their Four “A” Units offline and no one Noticed

The OCAA (Ontario Clear Air Alliance) has been pushing the closure of Ontario’s nuclear plants for years in addition to their more recent effort to gain municipal support for the closure of our gas plants.  They continually suggest the closure of both will not cause problems as we will get all the power those units now produce from Quebec’s excess hydro which is an outright lie. Quebec is a winter peaking province and pushes their residential and businesses to conserve power during that season.  No doubt the OCAA will renew the claim with Bruce taking all four of their “A Units (3,144 MW capacity) offline as part of the requirement to do its Vacuum Building Outage. That will allow OCAA to suggest they weren’t missed! 

The VBO is a regulation as noted in the Bruce press release: “All four operating units must be shut down once every 12 years to allow for inspections and maintenance to the vacuum building.”  The units will come back on line before “summer peaking season” to ensure Ontario has the electricity supply needed.

What is interesting about the units being taken offline is to look at Hour 18 (hour ending at 6 PM) on May 12th!  That time reflects the “peak demand” hour for the day with it reaching 17,179 MW for a five-minute segment.  At that hour nuclear generated 6,758 MW, hydro 6,176 MW and natural gas plants 3,666 MW.  From the three renewables IESO report; solar contributed 97 MW, biomass 50 MW and those IWT (industrial wind turbines) 866 MW so collectively they provided 5.9% of peak hour needs.

Now try to imagine the blackouts we would experience without nuclear and gas or what Quebec might have provided to replace the 57% of generation those two sources did!

As a matter of interest, the IESO “Intertie report” disclosed Ontario even exported 1,408 MW to Michigan and imported 500 MW from New York.  Quebec supplied 115 MW (less than solar and biomass combined at that hour)!  Those imports and exports traded at an average rate of $81.06/MWh which is much closer to their actual cost than when the wind is blowing hard during low demand hours and days driving down the HOEP (hourly Ontario energy price)!

So, Mr. Gibbons, Chair of the OCAA, the “cheap and abundant” hydro you told us Quebec would supply if we shut down our nuclear and gas generation never appeared at Hour 18 so what makes you believe we would be able to do without Ontario’s nuclear and gas generation?  You seem intent at wanting to cause widespread blackouts throughout Ontario!

The time has arrived for the OCAA and its supporters to back off from their spurious claims!

Eye Catching Happenings, a Look Around

Item 1: Ontario Working to Secure Clean, Affordable and Reliable Electricity

When discovering Minister of Energy, Todd Smith, had asked OPG to “Investigate New Hydroelectric Opportunities”, it immediately had yours truly paraphrasing the Britney Spears song, “Oops, they did it again”!  The January 20. 2022 press release announced he had “asked Ontario Power Generation (OPG) to examine opportunities for new hydroelectric development in northern Ontario.”  If Minister Smith had dug though some of the files prior ministers had left behind, he would have discovered that an investigation had taken place before as Hatch Ltd completed one titled “Developing Hydroelectric Potential in Northern Ontario”.  The report even had the following quote from Bob Chiarelli, former Minister of Energy: “Our 2013 Long-Term Energy Plan expands the target for waterpower to 9,300 megawatts and establishes a priority for connecting remote communities. This report helps identify opportunities for hydroelectric projects that can help Ontario be ready to generate power when and where we need it.”  Ontarians know; that never happened!

It sure appears for some reason the current Minister is pleased to hand out our tax dollars to repeat the same review which serves to only further delay the potential to increase Ontario’s hydroelectric power.

Item 2: India’s solar irradiance 7 per cent below long-term average

The foregoing article from a few days ago stated:  “In what could have significant ramifications for productivity and returns from solar power projects in India, a latest study has found solar irradiance over the country over the past ten years was 7 per cent below long-term average.” What that suggests is generation from the 49.3 GW (gigawatts) reportedly in place in India at the end of 2021 will not deliver the generation anticipated because of those damn clouds. To make matters worse, another article, indicated India has recently experienced several very high demand periods which came close to breaking the record set in 2021. The article goes on to suggest India could face “widespread blackouts this summer”. The issue of energy security seems to be spreading further afield beyond countries who have adopted the “net-zero” COP-26 mantra.  It’s a bit of a surprise that India is facing those blackouts as they have targeted solar as their principal renewable source coupled with nuclear power. Additionally India did not commit to net-zero by 2050 at COP-26 but have instead said they “will aim” at 2070 as the year they consider it as possible.

Item 3a: McMaster University looks to install four gas-powered generators on Cootes Drive

A couple of weeks ago I penned an article pointing out the fallacies of the ICI (Industrial Conservation Initiative) program and how taxpayer funded institutions, such as York University, are taking advantage of it to the detriment of small and medium sized companies and their status as Class B ratepayers. On the same day the article was posted another article came to my attention from the Hamilton Spectator which was about McMaster University’s plan to install four gas-powered generators specifically aimed “to reduce the university’s energy costs” under the ICI program.  Curiosity piqued led to the examination of expenditures in their financial statements but I first looked at the budget expenditures by the Ontario Ministry of Colleges and Universities and noted those expenditures for the 2019-2020 year were just north of $6.655 billion.  Looking at York University’s financial statements disclosed for the 2017-year expenditures on “Taxes and Utilities” were $33.3 million and those had declined to $23 million for their 2021 year-end suggesting the installation of two gas-generators may have saved them $10 million annually.  Looking at McMaster’s financials discloses their “Utilities and maintenance” in 2017 were $38.6 million and for their 2020 year-end showed a small increase to $38.7 million. Presumably by installing four gas-powered generators they too will be able to reduce those costs utilizing the ICI program.  It seems there is no end to the taxpayer funded bureaucracies need for more and more taxpayer and ratepayer dollars.  The time has come for the Ontario Minister of Energy to kill the ICI program and stop the continual pocket picking of us taxpayers/ratepayers.

Item 3b: Phasing out gas plants by 2030

So, while 32 municipalities have teamed up with Jack Gibbons and the OCAA (Ontario Clean Air Alliance) insisting Ontario phase out all the gas plants by 2030; they are ignoring bureaucracies in their backyard who are installing gas-powered generators. Both Toronto and Hamilton have signed on despite the universities in their municipalities installing those gas-powered generators to reduce their energy costs. That seems extremely ironic as the gas generating plants provide back-up power for that intermittent and unreliable wind and solar generation whereas these gas generators have the sole purpose of reducing energy costs. It is also fascinating to note who some of those who donate to the OCAA are too, as they include none other than George Smitherman who when Minister of Energy during the McGuinty era brought us the GEA (Green Energy Act) which he promised would only raise rates by 1%.  Another supporter of the OCAA is Peter Tabuns of the NDP who supported Smitherman and the GEA. The supporters also include renewable energy companies and their founders as well as individuals like Mark Winfield of York University and Glen Estill, past president of CanWEA (Canadian Wind Energy Association) etc. etc. Those profiting from wind and solar seem happy to donate to help Gibbons continue his false premise that wind/solar and Quebec will supply all the electricity we need!

Item 4: Ottawa reveals its latest plan to plant 2 billion trees by 2030

No doubt many Canadians will remember when our PM Justin Trudeau, met with Greta Thunberg on September 27, 2019 before they marched in the “climate” rally in Montreal and then shortly after the march promised he would plant 2 billion trees in the next 10 years.  An article in the CBC dated December 21, 2021 indicated two years after the promise only 8.5 million trees had been planted so at that rate it would take 470 years before they were all planted rather than the 10 years he promised Greta. Not to worry though as the intention is to speed things up by using our tax dollars to get the annual planting up to levels of 320 million annually by 2025 and spending up to $355 million per year. We should find it amazing that a teenager without any scientific training has so much influence on politicians such as Trudeau that he commits to spend $3 billion of Canada’s tax dollars just so he can get a photo op with Greta and later one with him actually planting a tree. 

Conclusion: Climate Science is Unsettled

One hopes the foregoing demonstrates the ineptitude of our political leaders in respect to their worries about “climate change”!  Their worries have been imposed by guiding lights such as Greta Thunberg, Jack Gibbons and results in those politicians refusing to give up on the “net-zero” push despite the many qualified individuals such as Steven E. Koonin, telling us “Climate Science” is Unsettled!  

Over the Top: The WEF and Canadian Banks, Hydro-Quebec and Canada’s Minister of the Environment

Digital identity is all the rage amongst banks around the world and the WEF (World Economic Forum) is pushing for its adoption having recently released a 46 page report with the concept covering not just financial services but pretty well every interface mankind has. It is alarming to watch Neil Parmenter, President and CEO of the Canadian Bankers Association in a short YouTube video, he appears to have done on behalf of the WEF! In the video he pushes the concept: we should trust our banks to maintain the security of our “digital ID”!  

Canada’s banks recently displayed their position by doing absolutely nothing to push-back when the Trudeau led government enacted the Emergencies Act and instructed the banks to freeze any account that had contributed funds to the Truckers Convoy! They did what they were told to the detriment of thousands of Canadians who had simply stood up to protect their basic rights by donating a small portion of their earnings.  Now, try to imagine what might happen if we are all impregnated with a “digital ID”?

Shopify, Royal Bank pledge to be some of the first buyers of energy from Warren Buffett’s Alberta wind project

The captioned article appeared in the Financial Post a few days ago and should strike all who read it as a wimpy pledge! The article stated: “Shopify Inc. and Royal Bank of Canada, the country’s largest technology company and lender, respectively, said this week they had signed a “purchase power agreement,” or PPA, that commits them to buying 90,000 KWh of electricity annually from the Rattlesnake Ridge Wind Power Project, which is located southwest of Medicine Hat.” To put the foregoing in perspective the current average price per kilowatt hour (kWh) in Alberta is about 11.3 cents/kWh so this commitment represents a cost of around $10,170 dollars or just over $5K each.  Pretty sure multi-billionaire, Warren Buffett’s Berkshire Hathaway Energy Inc., who are constructing the 130 MW (megawatt) IWT (industrial wind turbine) farm are not as excited about this as the RBC or Shopify. As it turns out the 90,000 should have referenced MWh (megawatt hours) rather than kWh. The 90,000 MWh would represent about 26% of the probable full annual output of the IWT generation from it meaning the three companies (Bullfrog Power was also a signatory to the agreement) would be paying somewhere in the neighbourhood of $3.4 million each.

One should assume when the wind isn’t blowing those three companies will happily accept gas or coal generation to ensure they can keep the lights on.  The hypocrisy is mind blowing and presumably is a result of the continued push by the Trudeau government and his Minister of the Environment and Climate Change, Steven Guilbeault who is determined to eliminate the use of fossil fuels completely!

For industrial Promotors, no more all-you-can-eat buffet at Hydro-Quebec

An article published in Le Journal de Montreal in mid-January carried the following (translated): “In a letter obtained by Le Journal , the state company warns one of them that although it still has a “significant volume of electricity”, the reception of an “exceptional quantity of projects” forces her to review her ways of doing things, even to choose the projects she can supply in the future.’’  The article went on to note: “The energy transition, the sudden interest of companies in green energy has caused demand to explode, justifies Maxence Huard-Lefebvre, director of communications for the state-owned company. And today’s projects have nothing to do with those we received before. Their energy needs are quite different. Result: in its “pipeline” for the next few years, Hydro-Quebec would have projects totaling “more than 10,000 MW of power”. However, such power represents neither more nor less than 25% of Hydro-Québec’s total capacity (40,000 MW) in the province. “It’s too much, slice (said?) the spokesperson for Hydro-Quebec. Even if we wanted to, it would be impossible to support all these projects

What the foregoing suggests is Hydro-Quebec has reached the end of the line for being able to supply “green” emissions free hydro as they have long-term commitments to supply several New England states as well as their own population.  To add fuel to the proverbial fire one should note Statistics Canada reported in 2020 Quebec accounted for almost 50% of all EV registrations in Canada, no doubt due to the $8,000 grant they offer coupled with the Feds $5,000 grant.  Those EV will require charging particularly during the cold winters (Quebec’s peak demand season) when Ontario is frequently called on to supply power to Quebec.

Ontario’s approach to tackling climate change ‘disappointing’: environment minister

The captioned was the headline in the National Observer’s article on March 16, 2022 and carried the following quote from Minister Guilbeault: “I believe that every level of government in Canada needs to do their fair share when it comes to climate change and the climate crisis, and frankly, when you look at what Ontario’s been doing, it’s been disappointing, and I’m not the only one who’s said that,”.  The National Observer is a left-wing anti-fossil fuel periodical that regularly receives government handouts which from what I was able to find has amounted to at least $368,000 according to the Government Grant website.  

The remark from Guilbeault is humorous should one first read Lorrie Goldstein’s article in the Toronto Sun on March 16, 2022.  It outlines how Ford is sucking up to the Trudeau Liberals by kowtowing to their whims including their reaction to the Trucker’s Convoy and the “Emergencies Act”; mirrored by the Ford government.  Ford also praised the Liberals for how they dealt with the pandemic and are jointly aligned on the fight against Michigan’s Governor Witmer in her efforts to shut down Line 5.  All those kudos from Ford heaped on the Trudeau minority Liberal Government apparently are not enough based on Guilbeault’s disappointment.  Is Guilbeault unaware, Ontario has one of the cleanest electricity grids in the world and how their taxpayers and ratepayers are paying dearly for wind and solar generation?  Is he not aware Ontario’s Minister of Energy seems to be pushing for closure of our gas plants, giving EV owners cheap charging rates, etc. etc.?  Perhaps he is ticked that over 60% of Ontario households use natural gas as their heating source but that is not something most households can afford to change.

Summary

Hopefully the foregoing demonstrates the mess created by eco-warriors and their infiltration of Federal and Provincial governments to the detriment of Canadian households who must bear the brunt of their push to eliminate fossil fuel use in the crazed objective to reach “net-zero” where we will all be “digitally identified”! 

Time to reclaim our independence and reject the WEF’s Great Reset!

Ontario Peak Electricity Demand Without Gas Plants

No Problem, Simply Plug in Your EV

Curiosity piqued today about Ontario’s “peak demand” yesterday due to the cold weather!  Reviewing IESO data at hour 18 (ending at 6 PM) indicates the January 24th peak was an average of about 21,260 MW.  While searching data on the IESO website it led to the discovery of a letter Jack Gibbons, CEO and Chairman of OCAA (Ontario Clean Air Alliance) had sent to IESO dated June 17, 2021 pushing their agenda to shut down those gas plants.

The letter was humourous as it displayed the way eco-warriors think.  Here is one message from the letter Gibbons believes will work in the event Quebec has no surplus hydro to sell us and/or the wind is not blowing or the sun isn’t shining during one of those “peak demand” hours or days!

One of Gibbons recommendations to eliminate gas fired generation during peak winter and summer hours was:

We can harness our electric vehicles’ (EVs) batteries to provide power to the grid during peak demand hours. According to Ford, its new F-150 Lightning pick-up truck can provide 9.6 kW of power to the electricity grid. Currently, Ontario has 9 million vehicles. If we have 1 million EVs by 2030, they could provide up to 9,600 MW to our grid during our peak demand hours.

Hmm, wonder how that would have worked at hour 18 yesterday?

At that hour our source of electricity came from: nuclear 10,721 MW, gas 5,866 MW, Hydro 5,143 MW, wind 847 MW solar 1 MW and biomass 62 MW.

At that hour wind and solar were operating at about 16.9% of their capacity which wasn’t enough to even supply Quebec’s needs.

At that hour we were exporting (not importing) 1,381 MW to Quebec because their demand was high.

At that hour OPG’s Pickering Nuclear Plant (scheduled to close in 2025) was generating 2,534 MW.

The OCAA under Gibbons is suggesting we would have no problems because all those “electric” F-150 trucks would be fully charged in -25 C weather.  One hopes when the team at IESO read Gibbon’s letter and the above paragraph they burst out in laughter. 

One should wonder if Gibbons bothered to actually do some research as he would have discovered; “As of October 2021, there are 66,757 EVs registered in Ontario” Gibbons should perhaps set up a Ford dealership and get busy selling 933,000 (at a minimum) of those trucks.  He should perhaps also consider the fact not everyone can afford the $58,000 cost and the 370 km limited range which will be considerably less on one of those -25 C days in our Canadian winters! Gibbons and the “charity” he runs apparently want to see Ontarians freeze in the dark as blackouts arrive when those damn batteries don’t deliver those “KW of power” he promised!

The OCAA is Seeking Future Blackouts for Quebec in the Winter

The Ontario Clean Air Alliance (OCAA) under Jack Gibbons was busy throughout 2021 making the rounds of various cities and municipalities throughout Ontario convincing them they should tell the Ford government to close all the natural gas plants in the province.  A total of 32 cities and municipalities joined hands with Gibbons thanks to inept (the only descriptive that made sense) councils and told the government of Ontario to shut those gas plants.  Gibbons somehow convinced them Quebec has a huge surplus of hydro generation that will easily replace those gas plants when our power demand needs them.  Apparently, none of those councils bothered to investigate Gibbons claim.

Gibbons bio indicates he is an “economist” and reportedly “studied economics at the University of Toronto (B.A.), Queen’s University (M.A.) and the University of British Columbia“!  We should have serious doubts about his claim based on the rhetoric associated with his push to close the gas plants. Gibbons comes across like a pitchman selling snake oil in the 18th and early 19th centuries.

If any of the mayors or council members bothered to do even a little research they would have discovered Quebec’s peak demand occurs in the winter.  Hydro Quebec encourage their ratepayers to use less power during the December to March period as 61% of households use electricity to heat their homes versus only about 17% in Ontario.

If the Ford led government in Ontario responded to the OCAA desires the results would have a negative effect on households in both provinces but in particular Quebec due to their peak winter demand*. 

A recent four (4) days of cold winter weather in both Ontario and Quebec dispel the “Gibbons/OCAA” notion!  Ontario was called on to provide considerable power to Quebec over those four days and without the availability of our natural gas plants (most of which were built to back up intermittent and unreliable wind and solar generation) our ability to provide that power would have been close to NIL as our Ontario demand was also relatively high.

Over the four days commencing January 13th through to January 16th we exported just over 106,000 MWh (megawatt hours) to Quebec for an average of 1,104 MW/hour and the peak day was the 16th with an average of 1,410 MW/hour.  Over those four days Ontario’s gas plants generated just over 395,000 MW so we were able to provide our neighbours with what they needed (27% of our gas plant generation) to keep those electric furnaces and baseboard heaters operating so they would avoid blackouts and freezing households.  We provided those 106,000 MW at an average cost of less than 5 cents/kWh based on the HOEP prices over those four days so their cost didn’t drive up Hydro Quebec’s energy prices whereas Ontario’s ratepayers lost money on every kWh exported.

Carbon Credits please

Perhaps Hydro Quebec should either provide Ontario with “carbon credits” or pay the Federal “carbon tax” for the power supplied, allowing us to recover some of the costs for that natural gas generated power to keep them warm. Unfortunately, Ontarians should doubt that will ever happen!

* In Québec, peak periods occur during winter because so many of us heat our homes with electricity.