No surprise in higher electricity rates

08bryce_1-popupPeter Epp, Sarnia Observer
Given the Ontario government’s management of its energy assets over the past 10 years, nobody should be surprised with the announcement that electricity rates will be rising by 42% over the next five years.

The Liberals are in the process of closing its coal-fired electricity plants – plants that burned one of the cheapest fuels available – while using the authority of the Green Energy Act to permit the rapid development of wind and solar projects. The energy produced by these projects are environmentally sustainable and benign, but their owners/operators are paid large sums of money by the Ontario Power Authority… large sums when compared to the cost of burning coal.

And here’s something equally troubling. The electricity generated by wind turbines is actually quite small – an estimated two-tenths of 1% of Ontario’s power. Given the miniscule amount of electricity generated by wind turbines, and the high cost associated with its generation, it’s not surprising to learn that Ontario’s green energy projects actually cost $1.2 billion more than the value of electricity they generated in 2012. Wind turbines might be an environmental asset to the province, but from a financial perspective they continue to be a liability.

With that type of situation it’s not difficult to understand that something has to give, and that something is the cost of electricity. It’s going up. And, to borrow a phrase from the Friendly (and possibly the Green) Giant, it’s going waaaay up. Read article

3 thoughts on “No surprise in higher electricity rates

  1. A session on the LTEP (Long Term Energy Plan) Fascinating stuff… seriously!

    Master links with Bios here:
    http://theagenda.tvo.org/episode/197895/ontarios-current-politics

    Last night, TVO’s The Agenda with Steve Paikin, had a panel discussion on Ontario’s “current” situation and the Long Term Energy Plan announced on Monday. While most of the panel played nice, there are some very interesting comments particularly from Universuty of Toronto’s Don Dewees (“I was never in favour of the Green Energy Act”) and the Ontario Society of Professional Engineers’ Paul Acchione, who said Ontario is committing suicide economically with its energy policy.

  2. Better Farming, Dec.4,20133
    http://www.betterfarming.com
    Companion article to the one on FITs:
    “Ontario’s revamped energy plan has ag focus”
    Reduction in smog days in Toronto & Ottawa from 50-60 days per year to 2 days.
    This 2013 plan will have wind, solar and bioenergy 80% in place by 2016.

    Perhaps the smog reduction is due to the loss of manufacturing in Ontario?
    2016 in now only two years away.

    The greenhouse interests are also pushing their energy agenda and this industry relies on cheap migrant labour. By the time the dust settles in Essex county after the Heinz closing there won’t be much industry left in the county.

    Most people don’t understand the economic damage that has been done and will be done to Ontario economy by high energy costs including vehicle fuels.

    Today gasoline was $3- $3.10/gal. in Michigan but diesel was still about $4/gal while here it was ~ $1.25/liter which is ~ $5.00/gal. People living near the border can cross and save $40.00 on a tank of gas.

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