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.

November 2019 a reflection on the cost of reducing emissions in Ontario’s electricity system

IESO finally released the November 2019 Monthly Market Report in early January and compared with November 2018 overall costs (GA + HOEP) for Class B ratepayers was down slightly from $123.69/MWh to $120.54MWh (12 cents/kWh) or 2.8%. Falling exports of 975,600 MWh (down by 151,200 MWh or 13.4%) from 2018 resulted in Ontario experiencing a drop in overall costs despite the GA being slightly higher (98 cents/MWh) in 2019*.  The drop in exports resulted in ratepayer costs of $97.1 million versus $111 million in November 2018. Ontario ratepayers are obliged to pick up the GA costs**.

Intrigued by the marginal good news for November 2019 and the arrival of 2020, nostalgia overtook my brain waves!  A decade ago, I started my quest to explore the electricity sector in Ontario. My quest coincided with a high electricity bill and the passage of the Green Energy and Green Economy Act (GEA) in 2009.  The GEA passage led to the OPA (Ontario Power Authority) receiving directives from various Energy Ministers in the McGuinty/Wynne led Liberal provincial governments telling the bureaucratic experts how to run the system.  It was meant to signal the world; Ontario was a beacon in emission reductions.1 The ministerial directives were aimed at contracting for renewable energy (principally in the form of industrial wind turbines [IWT] and solar panels) and closing two coal power plants.  Due to above market rates offered to (mainly foreign) companies and the lack of a cost/benefit analysis rates skyrocketed as projects were commissioned.  The consequence of creating the highest electricity rates in Canada and the US resulted in total defeat of the Ontario Liberal Party in 2018.

Based on the “nostalgia” it is perhaps worth going back a decade to November 2009 and compare it with the one just passed.

All-in Generation Costs for November 2009:

The IESO Monthly Market Report for November 2009 indicated the weather over the month was warmer than normal whereas in November 2019 is was colder than normal and as one might expect the latter resulted in higher Ontario demand coming in at a daily average of 375,178 MWh versus 370,578 MWh in 2009.  The extra 138,000 MWh we consumed in 2019 would translate into higher costs even if the cost of generation had remained the same. The weighed average cost (GA +HOEP) for November 2009 was $68.39 MWh so the additional 138,000 MWh Ontario ratepayers consumed should have added approximately $9.4 million.  It is worth noting back in 2009 there was only one ratepayer class so the $9.4 million would have added 84 cents for each additional MWh consumed. The average household back then was consuming 800 kWh monthly.  The total consumption of 11.117 TWh (terawatt hours) by Ontario ratepayers in November 2009 had a cost of $760.4 million.

All-in Generation Costs for November 2019:

 So, ten years later in November 2019 the 11.255 TWh consumed by Ontario ratepayers cost considerably more than the $760.4 million suggested above.  The weighted average cost for this recent November came in at $120.24 for Class B ratepayers; an increase of $51.85/MWh or 75.8% for the 8.106 TWh they consumed.  For Class A ratepayers the ten-year increase was only $3.59/MWh or 5.2% for the 3.384 TWh they consumed.  Putting the foregoing in perspective if Class B ratepayers consumed 8.106 TWh in 2009 the cost would have been $554.4 million and in 2019 it was $974.7 million or $420.3 million more for just November!   For Class A ratepayers the increase would have been a much lower amount of only $12.1 million costing them $243.6 million versus $231.4 in 2009.

As one can deduce from the foregoing the $760.4 million all-in costs for one month of electricity generation in 2009 jumped to $1.218 billion (up $457.9 million) in the decade.  The jump of $457.9 million impacted Class B ratepayers (residential and small and medium sized businesses) to a much greater extent than Class A businesses and is only representative of one month.

What caused the jump?

The increased costs drove our average rate of 6.84 cents/kWh in November 2009 to 12.02 cents/kWh (UP 75.7%) in November 2019.  That increase is about four times the inflation rate and there are several reasons for the jump in costs.

One of the major causes of the increase was the addition of industrial wind generation and solar to our grid(s) over the decade.  Their intermittent and unreliable ability to generate electricity when needed meant back-up capacity (principally gas plants including the $1 billion to move two of them) was required. To top things off the intermittency of wind generation caused the market price (HOEP) to fall and the GA to increase.  The GA is not included in the sale of surplus electricity to our neighbours so we earn less for our exports to NY, Michigan, etc. but Ontario ratepayers must absorb the difference (the GA) in the contracted value and the HOEP market price.

A rough calculation of the additional losses on our exports in November 2019 versus November 2009 indicate it represents about $68 million of added costs.  Thanks to Scott Luft’s wind generation and curtailment files I was also able to calculate IWT generation costs which increased considerably from November 2009 adding $178 million to the increase. Those two additional costs of about $246 million represent about 54% of the $457.9 million increase. The balance of increased costs can be attributed to payment for additions in; solar generation, gas plants (idling costs), biomass, and some of OPG’s expenditures on Big Becky ($1.5 billion) and the Lower Mattagami ($2.6 billion) hydro projects.

If November’s comparison becomes a measure of how the GEA harmed our electricity sector by driving our electricity rates up almost 76% in the last decade we will be looking at total additional costs of around $5.5 billion in 2019 versus 2009. The $457.9 million is but one month of comparison out of the 120 months since the start of 2009 so the final number for the decade will probably be in the tens of billions of dollars to achieve those emission reductions sought by the governing Ontario Liberals.

*The GA or Global Adjustment rate for Class B ratepayers has been higher in 10 of 11 months in 2019 compared to 2018.                                                                                                    **Exports are sold at the HOEP (hourly Ontario electricity price) price via the market to traders who buy/sell our surplus energy to Michigan, New York, Quebec and other grid connected markets.

  1. The Ontario Energy Quarterly shows our CO2 emissions fell from 20 megatonnes at the start of 2010 to 2 megatonnes at the end of the 2019 second quarter.

More of CanWEA’s wind spin

Wind energy is “reliable and cost-competitive

Shortly after Ontario’s Ministry of the Environment Conservation and Parks revoked the REA (Renewal Energy Approval) for the North Stormont, Nation Rise wind turbine project, CanWEA (Canadian Wind Energy Association) reacted. They issued an apoplectic press release which beyond suggesting; the sky is falling, made the claim, wind energy is both “reliable and cost-competitive”!

Anyone who has taken the time to read any of my rants over the past 10 years will know I have pointed out the fallacies of CanWEA’s claims on numerous occasions with two recent ones pointing out wind’s tendency in Ontario to generate energy when it’s not needed.  That bad habit creates surplus generation that must be curtailed (and paid for) or accepted into the grid and then causes the HOEP (hourly Ontario electricity price) to fall. One should suspect those surplus MWh (megawatt hours) it generates causes IESO to sell off unneeded power to our neighbours in NY, Michigan, etc. at rock bottom prices.

Those two recent articles mentioned above highlighted five December days of additional costs of almost $40 million caused by wind generation.  That generation brought absolutely no benefit to Ontario ratepayers but we were obliged to pay the costs due to the generous contracts awarded after the GEA (Green Energy Act) was passed in 2009 by the previous Ontario led Liberal government.

Three more days of unreliable and costly wind energy:

The existing TX (grid connected) industrial wind turbines (IWT) operating in Ontario over December 30th and 31st along with January 1, 2020 were humming and collectively generated 155,228 MWh of grid accepted energy and their owners were also paid for 81,250 MWh (rounded) for curtailed generation.  The costs of the foregoing at $120/MWh for curtailed wind and $135/MWh for TX connected generation produced income of approximately $30.7 million for the owners over the three days or about 20 cents per kilowatt hour (kWh) accepted into the grid.  One should also assume OPG were obliged to spill water and were paid for doing so and the gas plants were paid to idle to back up both intermittent wind and solar. None of those costs are included in the 20 cents/kWh we ratepayers were forced to absorb.

Three days of exporting surplus for pennies:

The reference to selling our surplus generation for pennies is not an exaggeration as the average sales price over the three days was .39 cents a MWh.  Remember there are 1000 kWh in just one MWh!

IESO sold off 201,936 MWh* in three days for pennies while Ontario ratepayers picked up the costs of wind energy (grid accepted and curtailed) of 236,478 MWh.  Its not a stretch to note, without wind energy net exports would have been less and the HOEP would have been much higher than the average it achieved for those three days. The $78,755.00 at .39/MWh earned by IESO from the export of those 201,936 MWh fell very short of the cost to generate them! Using the all-in average Ontario commodity rate for 2019 of $111.80 MWh as estimated by my friend Scott Luft those exports cost us Ontario ratepayers in excess of $22.5 million.

Without the unneeded wind energy and its cost of $30.7 million, Ontario’s nuclear plants, running at their current capability level could have provided 834,000 MWh over three days. Hydro running at only 50% of its capacity could have provided a minimum of 282.000 MWh which collectively would have been more (1,116,000 MWh) than Ontario’s demand (1,052,000 MWh) over those three days.

The time has come for CanWEA to do an about face and admit:  wind energy is both “unreliable and costly”!

*What 2.7 million average Ontario households would consume in three days.

October, another month with climbing electricity costs

IESO just released their October 2019 Monthly Market Report and it contained more bad news for taxpayers and ratepayers in the province.  The all-in cost to Class B ratepayers, without inclusion of delivery and regulatory charges, produced a “weighted average” cost of $144.05/MWh or 14.41 cents/kWh for the “Electricity” line on your bill. The HOEP was $7.25MWh and the GA $136.80/MWh.

Consumption by Ontario ratepayers dropped by 366 GWh (gigawatt hours) or 3.2% compared to October 2018 but the cost per kWh jumped 1.03 cents/kWh (up 4.7%). Net Exports, compared to October 2018 were almost flat and totaled 1,405 GWh versus 1,381 GWh!  Our net exports in 2019 however cost us quite a bit more as the HOEP price was 7.25/MWh versus $13.84/MWh in 2018 and the cost to Ontario Class B ratepayers, reflected in the GA, came in at $136.80/MWh in 2019 versus $120.59/MWh in 2018.  The differences added about $26 million to the monthly costs raising our losses on net exports to $192.3 million in October 2019 versus $$166.5 million a year ago.

As if the foregoing wasn’t enough, wind generation, from both TX (transmission connected) and DX (distributor connected) sources and its curtailment for the month totaled 1,457 GWh as reported by my friend Scott Luft.  That means it was slightly more than our net exports.  At a price of $135/MWh for accepted generation and $120/MWh for curtailed generation the bill to ratepayers was $189.6 million and the dollar amount is very close to what we lost on our exports.  Ontario’s ratepayers were forced to accept those costs which for October generated an average of $192/MWh or 19.2 cents kWh. If one were to include costs for spilled hydro, steamed off nuclear along with gas plant backup, industrial wind generation costs would be even higher.

Now what was somewhat surprising for the month was not so much, the amount of the total GA of $1,209.6 million (it appears to be the 3rd highest since the GA was created) but the amount moved to the Variance Account (Ontario Fair Hydro Plan).  The amount moved to the Variance Account was only $159.1 and the lowest so far in 2019.  In September the GA was $1,082.9 million but IESO moved $493.2 million to the Variance Account.

There appears to be something amiss in the data used by IESO when executing the transfer to the Variance Account and it would be useful if they disclosed exactly where and how they messed up.

Transparency is something Ontario ratepayers and taxpayers should expect!

Pan-Canadian Expert Collaboration, Phase Four

As Yogi Berra once said, “it’s déjà vu all over again”!

My somewhat relentless review of the electricity sector started about 10 years ago as Ontario embarked on the unmitigated disaster that was the Green Energy Act and its focus on acquiring unreliable wind and solar generation. I was recently reminded; many of the ENGO names and individuals associated with my research back then are still around and have become more verbose. They are imbibing in more of the panic exercised years ago and using more tax dollars in the process. That conclusion was reached by researching the “collaborators” participating in the captioned, connecting names, reviewing websites and CRA’s Charities files to see where the money comes from and where it goes.  Those ENGO and individuals have moved on from renewable energy worship to “carbon tax” endorsement!

One example was one of those chosen as an expert collaborator highlighted in Phase Three.  MaRS Discovery District, a creation of the McGuinty led, Ontario Liberal ruling party. In 2014, MaRS received $26.7 million from the province and zero from the Feds. In 2018 the province gave them $31.7 and the Feds coughed up $2.9 million.  In other words, our tax dollars to them increased $7.8 million (29.2%) in four years.  Most readers will recall Ontario’s taxpayers bailed out MaRS failed real estate deal to the tune of $308 million. MaRS also receives revenue from other charities ($2.8 million in 2018) and hands out money to other charities such as Evergreen, (somewhere between $100/$500 thousand) one of the other “collaborators” in the P-CEC group.  MaRS also handed out grants to CEGN (Canadian Environmental Grantmakers Network), a Bruce Lourie creation renamed Environment Funders Canada. Lourie is President of the Ivey Foundation another “collaborator” in the P-CEC group.

From outward appearances the chosen ones are destined to tell PM Trudeau’s government and his new “Environment Minister”, Jonathan Wilkinson, how much to UP the “carbon tax”!  MaRS, as noted in Phase Three, also received grants from the Trillium Foundation (provincially owned) and were granted money from another McGuinty creation; Friends of the Greenbelt (FOTG)–funded by taxpayers and another member of Environment Funders Canada. FOTG hand out grants to ENGO’s such as Environmental Defence where Lourie once held a vaunted position. As an aside the CEO of MaRS earns a salary north of $350,000 annually-not too shabby for a registered charity!

Now let’s look at two more of the “collaborators” connected with the Ivey Foundation:

Evergreen and Future Cities Canada—a P-CEC “collaborator”

It’s unclear what Evergreen brings to the table as a collaborator as their focus for almost 20 years has been to convert an old brickworks plant into what is an urban farmer’s and garden market.  Their CEO doesn’t appear to have a degree related to “climate” issues but according to their filing with the CRA it appears he may be paid in excess of $250K per year. Evergreen have done a remarkable job at raising charitable funds over the years, so, maybe that is the key to being chosen.  Revenue in 2008 was $5.758 million and in 2018 was $21.762 million, an increase of 277% in only 10 years.  Their 2018 annual report shows they received over $1 million from both the Provincial and Federal governments and over $500K from the Trillium Foundation (Lourie was a former Director and Trillium are members of Environment Funders Canada). The J. W. McConnell Foundation is also included in the same contributing group as Trillium and also have been a major grantor to one of the Lourie creations (more on that one in the future) and are also members of Environment Funders Canada. They donated $1.1 million in 2017 and $775 thousand in 2018 to Evergreen. In reviewing the Trillium grants listing, it shows they have granted over $1.8 million over the past few years to Evergreen.  MaRS (another collaborator) is credited with donating somewhere between $50K to $100K in 2018 and the same in earlier years. The Ivey Foundation has granted them at least $60K in the past few years.

Adaptation to Climate Change Team (ACT), Simon Fraser University—a P-CEC “collaborator”

Often when researching individuals involved in predicting the end of the world due to “climate change” one finds the parties leading the predictions have little or no affiliation with the sciences needed to logically develop that line of thought.  In the case of ACT, it is led by Deborah Harford.  Ms. Harford is the Executive Director of ACT and her formal training indicates she holds an SFU “Bachelor of Communications and English, Communication and Media Studies”.  Ms. Harford is active in posting any articles favouring the concept of “climate change” as one would expect from her degree, but she posts none on the ACT website with a differing view. SFU prides itself on its affiliation with similar institutions including Clean Energy Canada (launched by Tides Canada) as they attract donations from charitable institutions such as the IVEY Foundation* (over $1 million since 2014), $900K from the McConnell Family Foundation, $2.3 million from the Trottier Family Foundation (another P-CEC “collaborator”!   Both of the latter are members of Environment Funders Canada.

Perhaps if one augments the perceptions of those handing out the grants, the money will continue to flow, to those who produce the prejudicial and supportive reports the grantor sought!  Just an abstract thought!

While Phases one through four of this series have raised the connection concept of the Ivey Foundation’s relationship with six of the P-CEC named “collaborators” there are a few more of interest. The tale of the tangled web will continue in the next Phase!

*A few hundred thousand dollars was also granted to Tides Canada.

Consuming less drives up costs for Class B ratepayers

The IESO (Independent Electricity System Operator) released their September 2019 Monthly Market Report last week.  Ontario’s total consumption was 10.319 TWh (terawatt hours).  Looking back as far as September 2010 for comparison (the year following enactment of the GEA) Ontario consumption in September 2019 was lower than every year since then.  Consumption by Class B ratepayers this past September was down 8.7% (690.000 MWh-750,000 average households’ annual consumption) from September 2018. Class A ratepayers also consumed less (102,000 MWh or 3%) compared to September 2019.

Consuming less means lower costs, right?

The foregoing question/assertion certainly applies to pretty well everything we consume, if the price remains stable.

Due to the perplexity of how the electricity system functions in Ontario consuming less has a limited ability to reduce our costs.  Each and every generation source is basically treated differently in respect to their rank; on access to the grid, pricing (guaranteed or set by the OEB), length of contract term(s), and their perceived effect on global warming!  Both solar and wind generation, as examples of the latter, are granted “first to the grid” rights meaning they rank higher than nuclear plants and hydro generation units.  Additionally, original contract(s) offered prices in 2010 guaranteed for 20 years with large solar at 63.5 cents/kWh and wind at 13.5 cents/kWh along with a 20% guaranteed escalation clause related to increases in the cost of living (CoL).  At the same time IESO must contend with a trading market referenced as HOEP (Hourly Ontario Energy Price). IESO buys or sells generation based on shortages or surpluses to our grid connected markets such as New York, Michigan, etc.   What the HOEP values generation at and what we pay for it via those contracts evolved into what is known as the GA (Global Adjustment Mechanism) ie; contract value minus HOEP = GA.  Contracting for unreliable intermittent generation like wind and solar has made Ontario a supplier of cheap power for Michigan, NY, Quebec and other connected markets as the GA is not a part of the HOEP sale price.

As noted, Class B ratepayers consumed 8.7% less power in September 2019 versus 2018 and IESO reports our all-in cost (GA+HOEP) was $136.97/MWh versus $115.78 in 2018 for a jump of $21.19/MWh or 18.4%!  In the case of Class A ratepayers, because the HOEP fell from $29.94 in 2018 to $14.34 in 2019 they saw a reduction in their cost per MWh falling 7.7% from $77.70/MWh in 2018 to $71.73 in 2019.  The methodology of Class A pricing results in Class B ratepayers paying more of the GA when the HOEP is lower.

The next question one should ask is why is the HOEP lower if we consume less?

That question is related to facts such as, wind and solar generation get “first to the grid” rights.  As noted, September was a low consumption month as are most spring and fall months but that is when wind (in particular) generates the bulk of its power and is surplus to our needs.  The result is IESO is obliged to accept it and sell via the HOEP market or curtail it, which we also pay for.  IESO will also steam off nuclear or spill hydro both of which we also pay for.  When they are selling off the surplus our neighbours may not need the power but if it is really cheap, they will snap it up.  In September, as an example TX (transmission connected) and DX (distribution connected) wind combined was (according to my friend Scott Luft) 948,951 MWh including 141,485 MWh of curtailed wind.  Together the costs of unneeded generation was $126 million. The accepted wind generation was HOEP valued at less than $7.4 million adding $118.6 million to the GA pool. As it turned out accepted wind represented 75.7% of our net exports of 1,067,040 MWh and 50.9% of our total exports of 1,586,880 MWh in September. We clearly didn’t need wind generation in September nor since we started handing out those contracts!

To make the foregoing much clearer a read of Scott Luft’s recent post provides an excellent review of how much wind (accepted and curtailed) he calculated, was not exported.  It is truly shocking to see it is less than 10% in each year going back to 2006. Using September’s costs as the base to calculate how much it has affected ratepayers and taxpayers in Ontario for its output (over 37 TWh) since 2006 is a simple task.

Shockingly it represents a pocketbook cost of over $5.5 billion.

The electricity sector has taken $5.5 billion from the pockets of Ontario’s ratepayers/taxpayers just for wind related contracts.  The $5.5 billion could have actually been used to provide things like; better health care, tax reduction, infrastructure investments, electricity price reduction or flattening which would have attracted investments and created jobs.  Instead, we allowed our provincial government to hand out lucrative contracts to foreign wind and solar developers.  Many of those who rushed here to obtain those contracts have taken our money and sold their projects to our government pension funds and left Ontario for “greener” fields!

What the above shows is the Green Energy and Green Economy Act was a disaster for Ontario and will continue to negatively affect us until the contracts expire or our current government acts to cancel or amend them!