The premise of Greenpeace's position is that the Global Adjustment (GA) is the increase in electricity bills - with a figure from the OEB's Market Surveillance Panel's latest report. On page 59 the MSP report states 45% of the GA is attributable to nuclear units, and on the next page states 6 percent is attributable to 'renewable assets.' Stensil stupidly opens with "Nuclear has been responsible for 45% of recent increases on your electricity bill. Meanwhile, the impact of renewables on your electricity bill has been minor – about 6%."
The global adjustment (GA) is one component of the commodity charge on many bills in Ontario; the other being the Hourly Ontario Energy Price (HOEP). Because most supply is guaranteed a price in advance, much of it on a must-take basis, at the end of the month the difference between what was paid at the market, HOEP, price, and what was paid to suppliers, must be recovered from Ontario's consumers - the Global Adjustment is the mechanism to do this. But the total of HOEP recoveries, and GA recoveries, is what is relevant. As the first chart, of 12 month moving average show, the total value of the commodity charges from the entire market is currently a little over $10 billion - and less than it was at the end of 2005. The HOEP has been recovering a diminishing amount of that total, so the global adjustment is recovering more.
from the OEB, moved from $75.65 in April to $80.69 in May. The difference between the $66 and $76 is actually the point of the OEB report Greenpeace so deliberately misunderstands - it's about the cost to the rest of Ontario of the removal of Ontario's largest electricity consumers from the previous global adjustment model, which shrinks the denominator, and therefore inflates the rate, for the rest of the province.
Demand peaked in 2005, and when it started to drop, total pricing (GA plus HOEP) corrected and consumers benefited. When demand collapsed in 2008/09, pricing continued inflating, and that is because of over-contracting of supply. The contracted supply during this period is renewables and natural gas - the natural gas having net revenue requirement (NRR) requirement because they don't run as much as those in a competitive market would (they are to back up the renewables). During this period, it is the increased supply and decreased demand that not only has driven up prices, but prevented consumers from recognizing savings in reduced consumption (which is a bizarre thing for environmentalist to oppose, and something socialist should support).
The OEB article is about the shrinking of the group that the global adjustment is applied to. John Spears "You Pay higher hydro bills, big business pays less" dealt with the same OEB MSP report, and the cost impacts of the GA changes were best dealt with long ago by Aegent Energy Advisors -and also recently on this blog.
It isn't interesting that Greenpeace is afraid of big numbers - it's especially understandable given their inability to comprehend them.
It is disturbing that Ontario's traditional left-wing party has abandoned the lower income households in Ontario in order to wage Greenpeace's war on nuclear ... and truth.