Ontario consumers pay millions to subsidize electricity exports

[Locutus]

Cool.


Ontario consumers have subsidized out-of-province electricity buyers to the tune of $1.2 billion over the past three years, says a newly released report.

That’s about $2.50 a month on a typical household hydro bill.

It’s time everyone paid the true cost of Ontario’s power, argue Greg Baden and Lucia Tomson in the paper published by the Council for Clean and Reliable Electricity.

Baden and Tomson are with the energy consulting firm BECL and Associates Ltd.

The two argue that it’s time for export customers to start paying the “global adjustment,” a fee that is an increasingly large factor in Ontario electricity bills.

The issue has also been flagged by Ontario’s auditor-general.

The global adjustment is charged on top of the market price for electricity in Ontario. But it’s charged only inside the province, not on power exported to neighbouring states and provinces.

It is imposed to make up the difference between the market price, and the usually higher price paid to electricity generators that have separate contracts with the Ontario Power Authority

Close to 80 per cent of the power generated in the province is covered by non-market contracts.

The price paid to private generators is almost always higher than the market price. Because the low market price doesn’t bring in enough money to cover the contract prices, Ontario customers are charged an extra fee – the “global adjustment” or GA – to make up the difference.

It’s calculated monthly, and is charged only to Ontario customers – not to out of province customers.


more


Ontario consumers pay millions to subsidize electricity exports - thestar.com

 

[CDNBear]

Why can't I get my hydro tab subsidized?

 

[damngrumpy]

Imagine, that, the government actually subsidizing exports, those politicians keep saying
they are for Canada to progress and have international markets that benefit Canadians.
After that they subsidize power exports so foreign companies and compete with out interests.
Do I feel hypocrisy here?

 

[SLM]

Why can't I get my hydro tab subsidized?

Because you, like me my friend, have been McGuinty-ized.

Which is just a fancy way of saying screwed over.

Imagine, that, the government actually subsidizing exports, those politicians keep saying
they are for Canada to progress and have international markets that benefit Canadians.
After that they subsidize power exports so foreign companies and compete with out interests.
Do I feel hypocrisy here?

Government? Hypocrisy? Say it ain't so!

 

[WLDB]

Hmm. Maybe I'll move across the river. Rent in Gatineau is half of what it is in Ottawa. Cheaper hydro would be nice too.

 

[CDNBear]

Hmm. Maybe I'll move across the river. Rent in Gatineau is half of what it is in Ottawa. Cheaper hydro would be nice too.

The night life in Hull is way more fun.

 

[Cabbagesandking]

As always the superficial and knee jerk is the judgement. It is not so simple. The excess comes because of the Feed in Tariffs and their success in increasing generation from renewables. To achieve the benefits of those renewables and generate the volume of demand necessary to gain that volume and thus bring down the prices of wind and solar there will be this temporary extra cost.

What will happen, and is, happening, is that this volume enables the shutting down of coal fired plants. Ontario, though a little behind Germany, is finding the same success. Within a few years the generation of electricity will be independent of coal and cheaper than traditional sources.

 

[WLDB]

The night life in Hull is way more fun.

Ha. My room mate went home with a tranny in Hull and didnt find out til the pants came off. It was quite amusing.

 

[taxslave]

Must be an extension of the dutch disease Mulcair was claiming. AKA poor or no business skills. Only a government would buy high and sell low and claim it was doing a good thing.

As always the superficial and knee jerk is the judgement. It is not so simple. The excess comes because of the Feed in Tariffs and their success in increasing generation from renewables. To achieve the benefits of those renewables and generate the volume of demand necessary to gain that volume and thus bring down the prices of wind and solar there will be this temporary extra cost.

What will happen, and is, happening, is that this volume enables the shutting down of coal fired plants. Ontario, though a little behind Germany, is finding the same success. Within a few years the generation of electricity will be independent of coal and cheaper than traditional sources.

Always out of touch with reality aren't you.

 

[Cabbagesandking]

Must be an extension of the dutch disease Mulcair was claiming. AKA poor or no business skills. Only a government would buy high and sell low and claim it was doing a good thing.



Always out of touch with reality aren't you.

Rather foolish response when I just gave you the reality. Buying high, as you call it in your limited understanding is creating the product; selling low is developing the volume of production required to make the product much cheaper. The same highly successful strategy that Germany employed to where the renewable input is now the cheapest source - and emission free.

 

[beaker]

Rather foolish response when I just gave you the reality. Buying high, as you call it in your limited understanding is creating the product; selling low is developing the volume of production required to make the product much cheaper. The same highly successful strategy that Germany employed to where the renewable input is now the cheapest source - and emission free.

BC is doing a similar job with the energy contracts the government has forced on BC Hydro, with wind, biomass, and hydro power developers. Energy from these companies is more expensive than Hydros existing system. Then if there is a surplus being generated in BC, Hydro is expected to sell that excess at a loss. There has also been some talk that there are actual firm electricty export contracts somehow based on these alternative energy suppliers output.

I agree that the concept is the best course of action as we try to get away from the big destructive energy forms of the past. BBBBBBBBUT when our government took these kind of transactions out of the public view, ordered it through cabinet, and focussed on other large, expensive, and destructive alternative energy options, they lost my support. I'm really glad to hear that there is some research going on in Ontario that is looking at how this is turning out. I have heard similar critiques here in BC, and I hope it becomes more of an election issue. Not just the agreements and the energy forms but the provincial arrogance in setting rates and quantities while bypassing its own Utilities Commission.

 

[L Gilbert]

Why can't I get my hydro tab subsidized?

Good question. We did it here. We built our own hydro and solar generation and we sell power to the local power company. Good subsidy.

 

[Machjo]

Imagine, that, the government actually subsidizing exports, those politicians keep saying
they are for Canada to progress and have international markets that benefit Canadians.
After that they subsidize power exports so foreign companies and compete with out interests.
Do I feel hypocrisy here?

Either hypocricy or just plain ignorance.

Honestly, electricity ought not to be subsidized in the least. If you have to raise social security benefits for the poor to compensate, fine. But electricity should not be subsidized since then it encourages irresponsibile use of it.

 

[CDNBear]

Good question. We did it here. We built our own hydro and solar generation and we sell power to the local power company. Good subsidy.

We aren't allowed to build wind towers on our property, or put solar panels on our roof.

It's against town ordinances.

As always the superficial and knee jerk is the judgement.

That's a nice new disclaimer. It would be even better if it adhered to proper sentence structure.

As always you miss the point, while you stay glued to the notion that everyone should pay more just to live, while we go green.

I hope we all make out OK, during the transition.

The seniors on fixed incomes in my neighbourhood, are dropping like flies. Hydro bills they can't afford, an ever increasing property tax, fuel costs going through the roof.

They keep getting forced to sell homes they've owned since they were younger than me, or were owned by their parents.

The worst part is, they keep selling to people like you.

 

[taxslave]

Rather foolish response when I just gave you the reality. Buying high, as you call it in your limited understanding is creating the product; selling low is developing the volume of production required to make the product much cheaper. The same highly successful strategy that Germany employed to where the renewable input is now the cheapest source - and emission free.

You really need to seek help dealing with your constant projecting your mental issues onto others.

 

[Cabbagesandking]

You really need to seek help dealing with your constant projecting your mental issues onto others.

Try reading it again, Think hard and, if you are still struggling with the rather simple concept, ask questions. Preferably of someone more accustomed than I to dealing with grade schoolers.

 

[CDNBear]

Try reading it again, Think hard and, if you are still struggling with the rather simple concept, ask questions. Preferably of someone more accustomed than I to dealing with grade schoolers.

It's funny you should say that.