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As cost pressures mount, Ontario’s wholesale power prices set to soar

Shawn McCarthy — Globe and Mail — January 30, 2013

Electricity consumers in Ontario face the prospect of soaring prices in the coming decade, a trend that would put additional cost pressure on power-hungry industrial users.

The cost pressures are rising at the province completes the closing of its coal-fired plants while its nuclear fleet faces further retooling and renewable power takes a greater share of the load. A new forecast by London Economics International predicts Ontario’s wholesale power price will jump by 74 per cent – to $55.80 per megawatt hour between 2013 and 2022 from $32. That figure does not include higher costs to distribute the power and for conservation and other demand-side programs.

Concerns about rising electricity prices will be one of the key economic challenges facing the incoming premier Kathleen Wynne as she prepares to assume power from the outgoing Dalton McGuinty. Ms. Wynne will have to take on opposition critics who have slammed the government for its election-related cancellation of a gas-fired power plant that result in $190-million in compensation payments to the plant’s financiers.

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2 Comments on “As cost pressures mount, Ontario’s wholesale power prices set to soar”

  1. BIX January 31, 2013 at 9:56 am #

    In 2011, $420 million tax payer dollars was shipped out of the province because of excess power caused by the “turbine affair”. In 2012, that figure ballooned to $742 million tax payer dollars because many more turbines had been added to the landscape. If Wynne doesn’t grow a spine in a hurray, more people in Ontario will either eat less or stay cold longer. Isn’t it more than shocking that the level of corruption within this government is more interested in lining pockets than stocking shelves? What’s worse, if there is something worse, is that the opposition won’t contact the real authorities to demand an investigation. Really does give you a heads-up on the wonderful world of politics.

    • Donna Quixote January 31, 2013 at 10:12 am #

      It truly is frightening. The entire situation. I don’t think any political party really works for their constituents anymore.

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