Radical environmental cabal plots ‘green new deal’ for Canada

Once again Marc Patrone had me on as a guest on his Morning Show and the discussions were about the Strathmere Group members and their tremendous influence on the Justin Trudeau led government.

You can listen here to the Podcast at Sauga 960 AM for September 14, 2020 starting at 50.50 through to 01.04.02:

OR

here on NEWSTALK CANADA

Same suspects in Ontario green energy boondoggle now with Trudeau

Marc Patrone of Sauga 960 AM had me on his show to discuss what we may see when Trudeau delivers his Throne Speech before the end of the month. You can listen to the podcast starting  at 48:55 on September 8th and finishing at 1:01:26. Find it here under Marc’s show.

OR

Find it here at NEWSTALK CANADA

Marc Patrone Show: Will Trudeau/Butts radical environmental agenda derail over scandal?

Should you want to listen to the podcast of me on the Marc Patrone Show on NEWSTALK SAUGA 960 AM this morning (July 23, 2020) you can find in either on the podcast starting at 30.40 here:

Podcasts

or on the NEWSTALK CANADA website here:

Parker Gallant: Will Trudeau/Butts radical environmental agenda derail over scandal?

 

April 2020 Showered Ontario Ratepayers with More Costs than 2019

The IESO has recently released data consumption and costs for April 2020.  Needless to say, it brings ratepayers a continuation of bad news propagated by the previous Liberal government and their affection with renewable energy.

In line with the Covid-19 lock-down IESO reported grid connected Class A and Class B consumption fell this April from 10.683 TWh (terawatt hours) in 2019 to 9.781 TWh; an 8.4% drop.  The drop for Class A ratepayers (large industrial companies) was significant falling from 3.301 TWh in 2019 to 2.764 TWh in 2020 for a 16.3% drop (.537 TWh) whereas Class B (small/medium sized companies and residential) consumption fell from 7.382 TWh in 2019 to 7.017 TWh (.365 TWh), down 4.9%.

Despite the cumulative 8.4% drop in Ontario demand of .902 TWh however, the cost of consumption per MWh (megawatt hour) for both Class A and Class B ratepayers increased with the principal cause being a drop in the HOEP (Hourly Ontario Electricity Price) or “market price” and an increase in the GA or Global Adjustment.  Those events coincided with an increase in surplus generation exported to our neighbours at the HOEP price average of $5.78/MWh. Our “net exports” increased 662,000 MWh from 1,427,000 MWh to 2,089,000 MWh and the additional exports cost Ontario ratepayers about $75 million.  In April 2019 we exported 13,4% of what we consumed and in April 2020 it jumped to 21.4%.

Anyone involved in planning, no matter the industry, would suggest; IESO has done a horrible job of it! IESO presumably could however, turn around and suggest it was because of political interference by the McGuinty/Wynne governments their planning was obscured .

To a certain extent, many would be inclined to agree with the forgoing, as one particular type of generation played a major role in creating the expensive mess in Ontario’s electricity sector. It was mandated by the governing Liberals during their 15 years in power!  The particular generation causing most of the fiscal pain (in addition to solar) is of course industrial wind turbines (IWT) which are both unreliable and intermittent.  In both April 2019 and April 2020 wind generation drove up our costs of power and regardless of whether it’s accepted or curtailed, we are still obliged to pay for it.

Scott Luft tracks IESO data for wind and reviewing his spreadsheet for April 2019 indicates wind collectively (grid accepted, transmission accepted and curtailed) was about 1.453 TWh or 97% of our gross exports and in April 2020 wind (collectively) was 1.447 TWh and approximately 67.6% of our gross exports.

What the foregoing clearly shows is those bird and bat killing IWT were not needed and have damaged Ontario’s ability to both attract and retain our manufacturing base due to our expensive electricity prices.

IWT have been a detriment, not a benefit, to the province, including any notion they played a role in helping to close the coal plants!

As soon as this pandemic subsides the Ford government needs to focus their efforts on sorting out the electricity file to weed out expensive and wasteful renewable energy.

Interview on SAUGA 960AM Radio

I have been interviewed by veteran journalist and CRTC former Commissioner, Marc Patrone, the host of the Marc Patrone Show, from 9 AM to 11 AM weekdays on SAUGA 960 AM.  The interview; “Exposing the Green Scam” will be on his show tomorrow morning but I’m not sure when during those two hours.  I have tried to provide some history as well as some specifics on how we wound up with our very high cost electricity in Ontario.

I believe it will be also be available on the 960 AM podcast of his show later that day and also available on: NewstalkCanada.

Web link for SAUGA 960 AM is:

https://sauga960am.ca/timetable/event/the-marc-patrone-show/

The link for NewstalkCanada is:

http://newstalkcanada.wpengine.com/

Have a listen and take a break from the overly depressing Covid-19 news.

OPG’s Record Results for 2019

The Ontario Power Generation (OPG) announced their financial results March 12, 2020 for the year ended December 31, 2019 and the media appears to have been so focused on Covid-19 to even notice.  At first glance the $1,126 million of after-tax income reported appears to be less than 2018’s $1,195 million but the latter includes after-tax income of $205 million associated with the sale of the Lakeview Generating Station and unrelated to earnings from power generation.

Power generation was 77.8 TWh (terawatt hours) in 2019 versus 74 TWh in 2018 and gross revenue climbed by $485 million from $5,537 million to $6,022 million.  Payments, in lieu of taxes, were $190 million versus $141 million in 2019. All-in, the province will be able to include $1,316 million as revenue.  That, as Scott Luft points out, is a long way from covering the $5.5 billion in costs for the “Ontario Electricity Rebate”* (OER) for the upcoming March 31st year-end budget.

Noted in the financial report is the following: “The Enterprise Total Generating Cost (TGC) per megawatt hour (MWh) was $50.82 for 2019, compared to $53.24 for 2018.”  While it appears the claim in this statement is the cost of generating a MWh decreased on a year over year basis, OPG do not define what is included in the “TGC” calculation.  One should suspect a number of substantial costs, paid by ratepayers, are not included in the TGC!

This writer’s preference is to calculate the actual costs per MWh by simply dividing gross revenue by actual generation.  If one does that calculation for 2019 for OPG; the per MWh cost is simply $6,022 million (total revenue) divided by 77.8 TWh (generation reported).  Resulting from this calculation; the cost per MWh for 2019 was $77.40/MWh or 7.74 cents/kWh (kilowatt hour).  Ratepayers in the province would be happy if that was the average of TOU (time-of-use) rates, but ratepayers know, other factors played a role in increasing costs.  Wind and solar generation have driven prices up over the past 10 years by over 100% due to above market, contracted prices and the inability of wind and solar to generate power when it is actually needed causing us to export surplus generation for pennies on the dollar to our neighbours.

Looking back in OPG’s past is interesting.  If one reviews their financial statements for 2009 (the year the GEA was passed) the same calculation as noted above indicates a per MWh cost of $60.97 (6.1 cent/kWh). That means we have seen an increase of $16.43 per MWh or 26.9% over the 10 years!   Ontario’s inflation rate over those same 10 years was 17.97% so the cost of OPG’s generation over that time-frame was slightly above Ontario’s inflation rate.

While we can commend OPG for keeping their costs of generation at reasonable levels it is unclear why they suddenly went south of the border to acquire a string of hydro electric generating stations at a cost of C$1.12 billion. The acquisition of Cube Hydro (merged with Eagle Creek Renewable Energy) adds 627 MW of (mainly) hydro electric capacity but does absolutely nothing (on its surface) to benefit Ontario ratepayers.  As a provincial crown corporation their focus should be to ensure the delivery of cheap reliable power to Ontario ratepayers!

We ratepayers will need to keep our eyes fixed on OPG to ensure they don’t loose sight of their mission which is noted on their website as “ Ontario Power Generation’s mission is to provide low-cost power in a safe, clean, reliable and sustainable manner for the benefit of our customers and shareholder.”

*The OER replaced the Wynne led governments “Fair Hydro Plan” subsidizing rates for residential customers.

CanWEA and their many tipping points

Just a few days ago Robert Hornung, President of the Canadian Wind Energy Association, authored a post on the CanWEA website with the headline; “Ontario heading for a troubling investor-confidence tipping point.”  Hornung was alluding to the recent notice of cancellation of the Nation Rise industrial wind turbine project that had been under construction in North Stormont. The project had been ushered through the final approval process by the Wynne led government just days before the writ was dropped for the last provincial election. It was cancelled because it would cause serious and irreversible harm to the little brown bat (a species at risk).

What Mr. Hornung doesn’t seem to grasp was the “tipping point” for voters in the province was illustrated in the last provincial election when the ruling Ontario Liberal Party were tossed out, in large part, due to electricity costs more than doubling.  The rise in the cost of electricity, since the Green Energy Act was passed in 2009, was principally caused by above market wind and solar contracts handed out to mainly foreign companies.

An illustration of the above can be found by looking at just the December 2019 grid accepted and curtailed wind to see what it added to our electricity costs.  My friend Scott Luft uses IESO data to calculate grid accepted (TX) wind and estimates the distribution delivered (DX) as well as curtailed generation.  Along with that he records the market trading price or HOEP (Hourly Ontario Energy Price) when the wind is delivered.

For December 2019 TX and DX accepted wind was 1,504.3 GWh (gigawatt hours) and curtailed wind was 254.5 GWh.   At the price of accepted wind at $135/MWh and curtailed wind at $120/MWh, December’s wind contacts cost ratepayers about $233.5 million or 15.5 cents/kWh.

The likelihood of our exports for the month being higher than the accepted 1.5 TWh of wind is something, I would bet on, so we really didn’t need it.  What the market valued it at was (per Scott’s data) only 1.5 cents/kWh.  In other words, for every kilowatt hour of wind delivered it cost us 14 cents.  Now we should all see that as a “tipping point” and cancel even more contracts but that might prove upsetting to Mr. Hornung!

IESO just released their Annual Planning Outlook and it indicates: “There are enough existing and available resources to meet our needs for the next decade.”  The Outlook also links to a “Resource Adequacy” report that provides the seasonal effective capacity of all generation sources. Wind is rated at only 11% in the summer and 31% in the winter.  Typically, Ontario demand peaks in the summer so it is obvious IESO regard wind’s contribution during that high demand season as almost of no value. Even in winter peaks the 31% IESO suggests is their “effective capacity” is much less than wind generally provides during that season.  The reasoning behind the latter is its habit of generating power when it isn’t needed—in the middle of the night!  Mr. Hornung himself admitted the foregoing at their annual conference in Calgary when it was announced CanWEA will merge with CanSIA in an effort to somehow create synergy.

Hornung’s admission at their annual conference was no surprise to many but may have been one of the tipping points that may hopefully lead to more cancellations.  Those cancellations would save species at risk, reduce possible damage to aquifers, reduce health problems caused by the audible and inaudible noises emitted and save Ontario ratepayers hundreds of millions of dollars annually.

As far as Ontario ratepayers are concerned that would be a great “tipping point’!

Ecojustic, the ironic charity

The charity, Ecojustice Canada Society, claims, “everything starts with the law” but, certain events related to their involvement in recent court actions suggest what should be added to their statement is; “as long as it suits our views”!

Ecojustice recently noted on their website; “In about 48 hours, my colleague Harry Wruck and I will appear in the Supreme Court of Canada (SCC). We’re arguing that British Columbia has a right—and a constitutional duty—to protect communities and the environment from toxic diluted bitumen spills.”

So, in the above case they were arguing provincial jurisdiction should take precedent over Federal jurisdiction but only one month earlier their website had the following statement; “That’s why for the last year, we’ve helped the David Suzuki Foundation and the Athabasca Chipewyan First Nation participate as interveners in Ontario, Saskatchewan and now Alberta’s attempts to derail national-coordinated efforts to take action on climate change, including putting a price on carbon pollution.”

The argument they plan to make in the upcoming SCC cases, by supporting the Federal jurisdiction against the provinces, is of course related to the “carbon tax” implemented by the Federal government under the “Greenhouse Gas Pollution Pricing Act”.

In the latter case, perhaps, because they received “charitable” status, their aim is to protect that status by having others pay tax so they can remain tax-free.  Others of their ilk will be pleased to support them due to their ability to receive a tax receipt!

Those oxymoronic views entice you to examine Ecojustice’s CRA filings where one notes they (over the five years of financial reports) spent $3.658 million on fundraising activities and raised $1.806 million as a result.  Logic suggests by not spending money on fundraising activities they could have saved $1.852 million of tax-free funds which may have been useful for other court actions.

Also, over those five years, Ecojustice received almost $5.4 million in donations from other CRA registered charities including; the University of Ottawa, two Tides registered charities, the McConnell Foundation, Ivey Foundation, etc. and several were (surely a coincidence) also funders of the Ecofiscal Commission and the Pan-Canadian Expert Collaboration.  Of the total revenue ($30.895 million) reportedly received by Ecojustice over five years, 58% ($17.932 million) was expensed for compensation and 52.7% ($16.278 million) was reputedly allocated for “charitable activities”-like fighting for a carbon tax!

It is also noteworthy, despite Ecojustice’s many claims, they also fight on behalf of “species at risk” yet they’ve never intervened in any actions in Ontario in support of groups fighting the intrusion of industrial wind turbines (IWT) and the harm they cause to “species at risk” (birds, bats, turtles, etc).  Various nature groups in Ontario have fought IWT intrusion in front of ERTs (environmental review tribunals) and Ontario courts and not once has Ecojustice joined them.  One should wonder why?

Ecojustice supports continued implementation of a carbon tax in support of the Liberal, Federally imposed tax by working against the province’s elected governments.  The carbon tax will have no effect on the planet’s climate!  On the other hand, Ecojustice claim they fight on behalf of species at risk, but don’t defend those “species at risk” when  harmed by industrial wind turbines.

Truly ironic!

Ontario ratepayers and taxpayers pay up for Hydro One’s Niagara transmission line

The 76-kilometre Niagara transmission line, meant to strengthen power ties between New York State and Ontario, with a capacity to import/export as much as 800 megawatts of electricity has finally been completed.

Recently, information submitted to the OEB (EB-2018-0275) in a rate application stated: “The Project was originally approved by the Ontario Energy Board on July 8, 2005 pursuant to EB-2004-0476 but construction was halted in 2006 until earlier this year due to a third-party land dispute.

The Niagara transmission line was finally completed August 30, 2019, or over 14 years after construction started. It’s been a long road!

The decision and order from the OEB blessed the application (they generally do for Hydro One) noting; “Niagara Reinforcement Limited Partnership’s (NRLP) interim 2020 revenue requirement request of $9,389,914 is approved.”

The approval for NRLP rather than Hydro One is a reflection of well over a decade of negotiations to satisfy the Six Nations of the Grand River and, the Mississaugas of the Credit First Nation.  Contained in a note in the 3rd Quarter financial results of Hydro One, indicates a portion of the Niagara line was sold to them in the entity now referenced as NRLP. The pertinent part of the audit note stated:  “Hydro One Networks sold to the Six Nations of the Grand River Development Corporation and, through a trust, to the Mississaugas of the Credit First Nation a 25.0% and 0.1% equity interest in NRLP partnership units, respectively, for total consideration of $12 million, representing the fair value of the equity interest acquired.”  The Mississaugas also hold an option to purchase another 20%. NRLP was created for the sole purpose of allowing that to happen.

On November 5, 2015 an article headlined “Powerline to nowhere” on CTV, noted the cost of the line to that point was $100 million plus $54.5 million in interest payments (including $5 million in interest payments for 2016).  If one adds another $10 million in interest payments for 2017 and 2018 it appears the total cost of the Niagara line was in the neighbourhood of $165 million at a minimum.  In NRLP’s submission to the OEB the actual costs of the line were claimed to be $120 million, but it’s unclear if that included any interest. Either way the cost of the line was north of $165 million yet 25% of it was sold for $12 million which seems like a pretty good deal.  Details on the Mississaugas option were not disclosed.

It should be noted Hydro One had to seek an injunction in July 2019, after repeated attempts were made to block work on the transmission project.  They stated; “Work stopped again in January when members of the Haudenosaunee Confederacy Chiefs Council (HCCC) blocked access to the construction sites and issued a “cease and desist” order.  The CBC reported; “Hydro One’s statement of claim says the defendants “have a long history of organizing blockades, causing public disruption, breaching court orders” and interfering with land development and utilities as a tactic to negotiate compensation and other benefits to members of the Confederacy.”  The article also said: “The Six Nations and Mississaugas will have 45 per cent ownership* of the project, said Hydro One, and the project will create jobs and economic benefits.”  The injunction was granted by the judge in that appeal and as noted the line was completed August 30, 2019

The estimated cost of the line (north of $165 million) mentioned above has now been passed on to Ontario ratepayers via the OEB decision.  There were lots of other costs picked up by taxpayers in Ontario** and the rest of Canada as suggested in the partial list of material contained in the Chronology of Events at Caledonia in the former Federal Indigenous and Northern Affairs Canada Ministry website suggesting the other activities associated with the happenings in Caledonia also may have cost the Canadian taxpayers as much or more than the $165 million associated with the Niagara transmission line but that is for someone else to determine.

Conclusion

Perhaps we in Ontario should be grateful for the delay in completing the transmission line as it prevented the sale of even more of our surplus power from wind and solar etc. to New York for pennies on the dollar. The delay may have accidentally saved us ratepayers hundreds of millions of dollars due to the 14 years it took to complete.

*Acquisition details related to the Mississaugas’ 20% purchase option are not available but are believed to expire quickly.

** The Ontario government agreed to pay $20 million to residents and business owners of Caledonia who suffered through the native protest at a housing development in Caledonia.