Friday, April 13, 2012

Electricity Exports Benefit Generators - not families

As the government loses control of electricity pricing, the Ministry of Energy continues to put out a monthly press release on exports that would make Baghdad Bob blush.
2012: 2nd highest year for volume, lowest revenue in 5 years
April 12, 2012 1:00 PM
Ontario's electricity market generated over $14 million in March by exporting electricity to other states and provinces, bringing total net export revenues to over $55 million this year.
This revenue helps Ontario:

Keep costs down for families
Build and maintain a clean, reliable and modern electricity system

Following the reference to the data that is the basis of their claim, it is based on 0.9 TWh of exports, which would be 1.6 cents/kWh (and that is exaggerated due to rounding).  This is far below the rate net exports claimed in previous years, and far below the rates we pay generators to produce the exported power.

The rate for Ontario's businesses will rise to around 7.8 cents/kWh for March 2012.   5 times what export customers paid.
Looking at the historical data from the IESO, since 2005 the McGuinty government has been helping Ontario's families by jerking up rates in Ontario while dropping the rates for export customers.

Rate caps didn't allow the charges in 2003-04
The press release from the ministry of misinformation notes that "Since 2006, the electricity market has generated $1.8 billion through net exports compared to 2002 and 2003 when Ontario paid $900 million to import power."  We did pay to import power as the McGuinty Liberals were elected the first time, and it was more expensive than our domestic supply.
But not as expensive as the cheapest procurement contract this government has signed since 2008.

Ontario's energy policies continue to raise rates within Ontario, while dropping them outside of Ontario.

Ignoring the issues causing that to happen will not make them go away.


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