I've been writing on the costs of exports for over 4 years, primarily focused on analysis of data I've captured and/or queried. I've not been particularly entertained by doing it for about 4 years. January 2015 saw a record for net exports (exports less imports), and in the past it wouldn't have taken me long to run up a blog post saying so. In this post I'll use numbers, primarily on exports, to tell a story of influential people, and their suckers.
Maybe I'll get you to want a tax.
|IESO is the cheapest market around (unidentified grey bar is MISO)|
I've revisited data from the National Energy Board (NEB), and connecting figures uncovered there to previous work I've done, I'll explain an obscure but apparently growing profit centre designed into the IESO's operation of an electricity market.
DEFINITION OF 'ARBITRAGE'
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets...The IESO does not attempt to recover the full cost of supply in operating their market. In January maybe 38% of the costs of providing supply were recovered by selling at market rates, and that was better than they do most months.
To estimate the money involved from the arbitrage of Ontario's electricity, the value of the purchases on the Ontario market is needed, along with the value of the resale of that electricity in other markets. Fortunately, there's data to estimate both.