I was invited on the Marc Patrone Show on Sauga 960 AM today and the above title suggests some of the topics we covered. You can listen to our discussion on Sauga 960’s Marc Patrone Show starting at 1:03:25 of the podcast of his July 6, 2021 show by going here:
I was on Sauga Radio 960 AM at the invitation of Marc Patrone for his morning show on May 19, 2021. Our discussion was related to the cheap power we have been exporting to Michigan and other locations and Michigan’s threat to shut down Line 5.
You can listen to our chat starting at 1:22.18 of his show on the podcast here:
You can also listen to our discussions at NEWSTALK CANADA if you are a subscriber here:
Several days ago, a friendly contact alerted me to some facts about electricity generation on April 30th, 2021. He noted wind exceeded hydro in 5 of the hours and as much as 81% of wind generation was curtailed in a single hour. He also pointed out the HOEP (hourly Ontario electricity price) market price was zero or less for 22 out of 24 hours and the two hours it was positive it climbed all the way up to 41 cents per MWh* (megawatt hour)! The foregoing is a frequent occurrence in the Spring and Fall as Ontario demand is generally low and when the wind is blowing it must be both curtailed and exported.
With curiosity piqued it led to a review of IESO data for actual wind generation, its curtailment and exports for the day. As it turned out wind generation accepted into the grid by IESO was just shy of 56,000 MWh and curtailed wind was very close to 34,000 MWh. What that meant is owners of the approximately 4,800 MW of grid connected wind capacity will be paid $7.560 million ($135.00** per MWh) for the accepted wind generation and $4.080 million ($120.00 per MWh) for the curtailed wind. That implies the cost per MW of grid accepted wind generation was almost $208/per MWh versus about $56/MWh for hydro and $80/MWh for nuclear. It also appears nuclear was steamed off by Bruce Nuclear and we should suspect hydro was also spilled. Both of those are paid for so their costs would clearly be caused by wind’s propensity to generate power when it’s not needed.
To make matters worse IESO were forced to offer surplus generation via the market and needless to say our neighbours were happy to get it for free. We exported almost 68,000 MWh to our neighbours in New York, Quebec and Michigan presumably to avoid possible grid failure. The state of Michigan received 24,000 MWh for free. We basically supplied about 800,000 average Michigan households (approximately 20% of Michigan households) with free electricity for the day!
Ontario has been selling Michigan our cheap electricity exports for years and since we added intermittent and unreliable wind and solar to our grid the amount, we sell to them for pennies of its cost (what Ontario’s ratepayers pay for it) has increased.
Michigan should recognize what nice neighbours we are! Instead, Governor Whitmer wants to shut down the Enbridge Line 5 pipeline which supplies them, several neighbouring states, as well as Quebec and Ontario with oil for refineries, propane for winter heat, aircraft fuel, etc. etc.
Perhaps the time has come for Premier Ford to give Governor Whitmer a call and tell her if she shuts down Line 5, she will need to fire up more of those (current) 9,300 MW (approximate capacity) of coal plants Michigan has; versus Ontario’s zero coal plant capacity.
The time has come for Governor Whitmer to recognize and admit Michigan ranked # 8 in 2018 by the US EIA (Energy Information Administration) in respect to CO2 emissions from coal generation and 10th overall for total CO2 emissions. Once she solves that problem, she can consider shutting down Line 5!
*One MWh is equivalent to 1,000 kWh (kilowatt hours) or what an average Ontario household would consume in a month and a half.
**The contracts signed with those industrial wind generation companies also included a maximum COL (cost of living) allowance of 20% so were presumably paid more than the $135/MWh.