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Wednesday, August 24, 2016 • Lucknow Sentinel 15
Ontario electricity has never been cheaper, but bills have never been higher
Ross McKitrick
Special to Postmedia
You maybe surprisedtoleam
that electricity is now cheaper to
generate in Ontario than it has
been for decades. The wholesale
price, called the Hourly Ontario
Electricity Price or HOEP, used
to bounce around between five
and eight cents per kilowatthour
(kWh), but over the last decade,
thanks in large part to the shale
gas revolution, it has trended
down to below three cents, and
on a typical day is now as low as
two cents per kWh. Good news,
right?
It would be, except that this is
Ontario. A hidden taxon Ontar-
io's electricity has pushed the
actual purchase price in the
opposite direction, to the high-
est it's ever been. The tax, called
the Global Adjustment (GA), is
levied on electricity purchases
to cover a massive provincial
slush fund for green energy,
conservation programs,
nuclear plant repairs and other
central planning boondoggles.
As these spending commit-
ments soar, so does the GA.
In the latter part of the last
decade when the HOEP was
around five cents per kWh and
the government had not yet
begun tinkering, the GA was
negligible, so it hardly affected
the price. In 2009, when the
Green EnergyAct kicked in with
massive revenue guarantees for
wind and solar generators, the
GA jumped to about 3.5 cents
per kWh, and has been trend-
ing up since — now it is regu-
larly above 9.5 cents. In April it
even topped 11 cents, triple the
average HOEP.
So while the marginal pro-
duction cost for generation is
the lowest in decades, electric-
ity bills have never been higher.
And the way the system is struc-
tured, costs will keep rising.
The province signed
long-term contracts with a
handful of lucky firms, guaran-
teeing them 13.5 cents per kWh
for electricity produced from
wind, and even more from
solar. Obviously, if the whole-
sale price is around 2.5 cents,
and the wind turbines are guar-
anteed 13.5 cents, someone has
to kick in 11 cents to make up
the difference. That's where the
GA comes in. The more the
wind blows, and the more tur-
bines get built, the bigger the
losses and the higher the GA.
Just to make the story more
exquisitely painful, if the HOEP
goes down further, for instance
through technological innova-
tion, power rates won't go down.
A drop in the HOEP widens the
gap between the market price
and the wind farm's guaranteed
price, which means the GA has
to go up to cover the losses.
Ontario's policy disaster goes
many layers further. If people
conserve power and demand
drops, the GA per kWh goes up,
so if everyone tries to save
money by cutting usage, the
price will just increase, defeat-
ing the effort. Nor do Ontarians
benefit through exports.
Because the renewables sector
is guaranteed the sale, Ontario
often ends up exporting surplus
power at a loss.
The story only gets worse if
you try to find any benefits from
all this spending. Ontario
doesn't get more electricity
than before, it gets less.
Despite the hype, all this tink-
ering produced
inkeringproduced no special envi-
ronmental benefits. The prov-
ince said it needed to close its
coal-fired power plants to
reduce air pollution. But prior to
2005, these plants were respon-
sible for less thantwo per cent of
annual fine particulate emis-
sions in Ontario, about the same
as meat packing plants, and far
less than construction or agricul-
ture. Moreover, engineering
Farmers welcome rains; more needed
Rob Gowan
Owen Sound Sun Times
The weekend rains that hit
Grey -Bruce over Aug. 13-14
have manylocal farmers breath-
ing a sigh of relief, but much
more is still needed to bring the
area's waterways backup.
The Grey Sauble Conserva-
tion Authority declared a Level
1 drought on Friday, Aug. 12,
2016, which comes with a vol-
untary request that people
reduce their water use by 10 per
cent, and that remains in effect.
"It is really the first rain we
have gotten in August that has
been any significant event, so it
would be nice to get four inches
in total in August," said John Bit-
torf, the water resources coordi-
nator with the Grey Sauble
Conservation Authority. "That
would take us out of the level."
The GSCA's Low Water
Response Team requested that
the conservation authority
declare the Level 1 low water
condition statement on Friday
after much of the area received
below average rainfall over the
last four months.
The Level 1 conditions exist
when precipitation for the last
three-month period falls below
80 per cent of average or stream
flows fall below 70 per cent of
the lowest average summer
flow. The main reason for the
level 1 condition was that pre-
cipitation was consistently
below the 80 per cent threshold.
While stream flows were not
below 70 per cent, they were
dropping quickly, according to
the statement
Bittorf said the rain on the
weekendhelped, though it didn't
bring the streams up much
"The rain more or less
soaked into the ground because
the ground was so dry," said Bit-
torf. "Any areas that we had
larger systems might have got
direct rainfall on it"
Bittorf said rainfall amounts
on Friday and Saturday varied
across the GSCA's watersheds
— which include the Sauble,
Sydenham and Beaver River
systems across much of cen-
tral Bruce and northern Grey
counties.
"We had anywhere from a
half an inch to an inch -and -a -
half throughout our watershed;"
Bittorf said.
Meanwhile, the area's farm
field greened up almost instan-
taneously after the rains fell on
Friday and Saturday.
studies showed that improve-
ments in air quality equivalent to
shutting the plants down could
be obtained by simply complet-
ing the pollution control retrofit
then underway, andatafraction
of the cost. Greenhouse gas
emissions could have been net-
ted to zero bypurchasing carbon
credits on the open market,
again at a fraction of the cost.
The environmental benefits
exist only in provincial
propaganda
And on the subject of envi-
ronmental protection, mention
must be made of the ruin of so
many scenic vistas in the prov-
ince,
rowince, especially long stretches of
the Great Lakes shores, the once -
pristine recreational areas of the
central highlands, and the for-
merly pastoral landscapes of the
southwestern farmlands; and
we have not even mentionedyet
the well-documented ordeal for
people living with the noise and
disturbance of wind turbines in
Les Nichols, president of the
Bruce County Federation of
Agriculture, said on Monday
that in the Formosa area where
he lives they received about
two -and -a -half inches of rain,
which definitely helps some of
the com and soybeans.
"There were some com fields
that were really past helping
very much, but a lot of the com
and even more so for the soy-
beans it definitely helped," said
Nichols. "It is still not going to
be record yields, but they
should be improved:'
Nichols said every day they
didn't receive rain, the crops
their backyards. We will look in
vain for benefits in Ontario even
remotely commensurate to the
damage that has been done.
The province likes to defend
its disastrous electricity policy
by saying it did it for the chil-
dren. These are the same chil-
dren who are now watching
their parents struggle with
unaffordable utility bills. And
who in a fewyears will enter the
workforce and discover how
hard it has become to get full
time jobs amid a shrinking
industrial job market
Electricityis cheaper to make
than it's been for a generation,
yet Ontarians are paying more
than ever. About the only
upside is that nine other prov-
inces now have a handbook on
what not to do with their elec-
tricity sector.
Ross McKitrick, Professor of
Economics at University of
Guelph, is Research Chair, Fron-
tier Centre forPublic Policy.
were looking worse, so the rains
fell in the nick of time, though it
would have been nice to receive
it sooner.
"The crops certainly aren't
going to be what they could
have been as they were off to a
really good start," said Nichols.
"It looks like they had capacity
for record yields, but it certainly
reduced those and we won't
know just how much until the
combines get there:'
Ray Robertson, executive
director of GreyAgricultural Ser-
vices, said the second cut of hay
is done and it was very thin, but
there could still be athird cut
Marking your milestones.
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ALLEN
My sincere thanks to Lucknow Fire Depart-
ment, Wingham paramedics, doctors,
nurses, and CCAC nurses after my surgery
and medical distress. Excellent professional
care and response. Your prayers, cards,
visits and phone calls made my recovery
much easier. Thanks to all & especially
nurse Win. -Karen
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In Memoriams
In Memoriams
KIRKLAND
In loving memory of David Kirkland who
passed away August 17, 2013.
Memories are a gift from god
That death cannot destroy.
They never wear out,
They never get lost
And can never be taken away.
To some, you may be forgotten,
To others a part of the past,
But to us who loved you and lost you,
Your memory will always last.
You left us so suddenly,
But you left us memories
We are proud to own.
-Forever loved and sadly missed by wife
Betty and family
Skelton Memorials Inc.
www. s keltonme mortals. ca
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