October 2014: Ontario’s breath-taking, record-breaking month for electricity bills
Wind power significant in surplus power sell-off
Special report by Parker Gallant and Scott Luft
New figures reveal that in October, the Ontario government paid $1 billion more for electricity than the electricity market value of that power. Numbers released by the Independent Electricity System Operator (IESO) show the Global Adjustment for the month of October topped $1.0 billion for the first time ever. This estimate exceeds the September estimate by more than $200 million.
The record-breaking month will eventually affect all electricity users, but the immediate direct impact is on any electricity user holding a retail contract. In November, they will be charged an additional 10.1 cents per kWh on top of their contracted price, likely in the range of 4 – 6 cents per kWh. For an average household using 800 kWh per month, this would mean an extra charge of $80. For industrial or agricultural users, the added cost would be much higher.
The situation has developed as a result of Ontario’s rush to incorporate renewable energy in the form of wind, solar and biomass into the grid without proper planning on how this new capacity would align with demand. The result is that during the spring and fall seasons, when demand is lower, IESO has a surplus supply capacity of over 100% during many hours of the day. Through the Global Adjustment fund, Ontario’s electricity consumers pay contracted generators to idle or curtail generation of thousands of megawatts. (Continue reading here…)
This is closer to the truth than the Liberals think…