How to get those electricity bills down

(Or not make them worse)

In my volunteer work with Wind Concerns Ontario, a coalition of community groups, individuals and families concerned about the impact of industrial-scale wind power generation in Ontario, I was pleased to be asked by Global TV News to provide an opinion on what needs to be done to help the citizens of this province with their electricity bills.

Here is our contribution to the feature, published on Global’s website:

The following is by both Parker Gallant, a retired banker who now analyses Ontario’s energy sector and is the author of the blog “Energy Perspectives” as well as Jane Wilson, the president of Wind Concerns Ontario.

The Ontario government undertook its program to add renewable power without proper cost-benefit or impact analysis.

Now we have electricity bills that are the fastest rising in North America. The rich contracts awarded to huge corporate wind power developers are a factor.

Here’s what we suggest:

Immediately cancel Large Renewable Procurement (LRP) II that is currently “suspended.” With its target of acquiring 1,000 megawatts (MW) of more renewable capacity — it’s not needed and will further add to consumers’ power bills.

Cancel the five wind power contracts awarded in 2016 under LRP I and save electricity customers about $65 million annually or $1.3 billion over 20 years. Cancellation costs will amount to a small fraction of the annual cost. Cancelling approved but not yet built wind power projects and the new FIT 5.0 program will also save money.

Cancel “conservation” spending of $400 million annually. Ontario has already cut back on power use by more than 12 per cent since 2005 when consumption was 157 tWh to 2015 when it had fallen to 137 tWh. Do this and save immediately on electricity bills.

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The lesson of November 10: cancel the contracts Minister Thibeault

Ontario Energy Minister Thibeault: needs to look at reality for Ontario's electricity customers
Ontario Energy Minister Thibeault: needs to look at reality for Ontario’s electricity customers

November 12, 2016

November 10 appears to have set a record for both wind power generation and curtailment of wind power, based on data found on the IESO website.

The “average” household in Ontario (defined by the OEB) consumes 27 kilowatts (kWh) per day.   So with that in mind, the 50,000+  MWh of wind-generated and grid-accepted electricity on that day could have supplied 1.9 million households.  The 24,000 MWh of curtailed wind could have supplied another 900,000 households with their daily needs.

Imagine: over 60% of Ontario’s households could have had all their electricity needs met by industrial wind turbines for that day.

There is more to the story, however (there always is).

That generated and curtailed wind power represented a cost of just over $9.4 million; none of it was needed as IESO were busy exporting our surplus generation which averaged 2,628 MW per hour and for the day totaled more than 63,000 MWh.  According to the IESO daily summary we were paid $2.28 per MWh meaning gross revenue for those exported MWh generated only $144,000 or the equivalent of 2/10th of 1 cent per kWh. Meanwhile, those “average” Ontario electricity customers were paying an average of 11.1 cents/kWh.

It sure pays to be on the other side of the Ontario border!

November 10th serves as a perfect example of what’s happening to electricity customers in Ontario: that day, the government’s electricity policy shows we reward huge corporate wind power developers and it also highlights the intermittent nature of power generation from wind — it is out of phase with demand.

November 10 should be the basis of a message to the Minister of Energy, Glenn Thibeault on the Large Renewable Procurement (LRP) program: Ontario should cancel both the LRP I contracts awarded last April and cancel the now “suspended” LRP II process.  The Minister has already admitted our electricity supply is more than adequate for the next 10 years (“robust” in fact, he says) so acquiring more wind generated power (and solar) should be immediately suspended. It does nothing other than drive up the costs for “average” households.

The $9.4 million of ratepayer dollars handed out November 10 neither reduced emissions nor provided useful electricity. Time for a complete overhaul of electricity policy in Ontario, starting with those contracts and the LRP process.