Ontario’s $10-Million Monday Morning Hangover

Province forced to pay millions for expensive wind power on super-windy weekend


Toronto--- Ontario’s electricity ratepayers have a $10-million Monday morning hangover caused by first-to the grid rights for wind power under the Green Energy and Economy Act.

Figures from the Independent Electricity System Operator (IESO) recording wind power generation in Ontario from 7 PM on Friday May 10, 2013 (off-peak rates kick in for the weekend) through to midnight May 12, 2013 show that wind produced 58,165 megawatt hours (MWh) and beat their old hourly production record several times. The news might seem good for those interested in renewable power but it comes at a very stiff price, says Parker Gallant, vice-president of Wind Concerns Ontario. “That 58,165 MWh at $135 per MWh cost Ontario ratepayers $7,852,276,” he explains. “At the same time, because wind power has priority over cheaper forms of electricity production in this province, we had to export 127,361 MWh at $20.40 per MWh. Worse, Ontario Power Generation or OPG actually ‘spilled’ or wasted clean renewable hydro power---probably as much as wind produced. We could have generated the same amount of power from hydro as wind at a cost of just $1,186,500.”

Ontario’s Auditor-General has commented that wind power is produced out of phase with demand, and that the government never did a business case study for its renewable energy program. “This past weekend was quite the party for wind power,” says Gallant. “Unfortunately, Ontario electricity customers are stuck with a very large bill for power we didn’t really need.” NOTES: other effects of this past weekend’s “power party” § Ontario's trade deficit with the USA and Quebec increased by $5.2 million! § During that same period Ontario exported 127,361 MWh and at the average hourly Ontario energy price (HOEP) for those 54 hours of $20.40 per MW, which generated $2,598,164 in revenue. § A 900-MW gas plant (somewhere in rural Ontario) sat idle while we paid them a net revenue requirement (NRR) of approximately $15,000 per MW per month (pro-rated at 7.5% of monthly cost) for the weekend, paying the owners in excess of $1 million for no power! Wind Concerns Ontario is a coalition of community groups and individuals concerned about the environmental, health and economic effects of wind power generation in Ontario. Jane Wilson: wco.president@gmail.com Wind Concerns Ontario is a coalition of individuals and community groups concerned about the negative impacts on health, environment and the economy from industrial-scale wind power generation projects.

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