There’s lots of talk show and media chatter out there about Ontario’s electricity system – unfortunately lots of misinformation too. A good new “Backgrounder-January 2107” put out by Environmental Defense Canada presents original research done by Power Advisory LLC.
http://environmentaldefence.ca/report/ontarios-electricity-system/
Its key points include:
1. Renewables solar and wind make up a SMALL share of global adjustment on electrical bills -12 %
2. Costs of renewables have been dramatically overstated. Nuclear accounts for 43 % of the defiled Global Adjustment. For supply certainty there will always be a global adjustment as fixed price contracts provide financial certainty for businesses to build capital intensive power plants. The balance is how much supply certainty do we need? OPG’s refurbished nuclear rate application at 15 cents per kWh will be future headache.
3. Ontario electricity rates are high but on a par with many peers. If your residence or business has natural gas service the mix of gas heat and electricity are on par. However, if you don’t have natural gas service, the cost of electric resistance heat (like electric baseboards) can be stratospheric like five to six times higher. Rural Ontario is particularly vulnerable.
Manitoba and Quebec are the lowest cost priced jurisdictions. Their delivered cost is less than Ontario’s off peak supply rate of 8 cents per kWh. Ontario does have big land borders with Quebec and Manitoba – physically easy to build grid interconnects – not so politically easy.
4. The coal phase out and clean energy transition has saved Ontario money overall. Conservation has also worked – consumption is down, and newer equipment is more energy efficient even if you don’t try to save on electricity. A new current technology refrigerator uses some $50 of electricity a year; the beer frig uses some $250 of electricity.
5. Costs for nuclear generated electricity are going up. Cost for renewables are going down. OPG’s own projection shows nuclear prices will peak at 16.8 cents per kWh. (if there is no cost overrun on the Darlington plant refurbishment). New wind is under 9 cents; solar is around 16 cents and dropping fast.
What can you do other than getting an extension cord to Manitoba or Quebec?
If you are a business, research options like Combined Heat Power (CHP). Works if you have a year round power and heat load and a natural gas connection. Many hospitals have CHP which delivers electricity for about 8 cents a kWh. CHPC is coming, the last C is cooling and most businesses have a year round heat or cooling load. Use the IESO/and your utilities conservation grants to study your usage. Particularly examine the energy efficiency of compressors, air conditioning and refrigeration systems and motors. Web based sub metering is an inexpensive way to look at electrical consumption by the minute, by circuit.
In the home look for savings by changing equipment such as;
1. A ductless air source heat pump to replace electric resistance heat – a 65 % saving and you don’t need a window air conditioner.
2. An electronical commuted motor (ECM) to replace an older analog motor in the forced air furnace – a potential $600 a year saving. An ECM variable speed pump and motor on hydronic heating is an equally good investment.
3. Weatherization – stop the involuntary loss of heat or cooling by stopping air leaks.
For the seasonal cottager start researching going off grid. Hydro One’s move to all fixed distribution residential rates means that seasonal cottagers will be paying for the electrical distribution system whether they are using power or not. The phase in is happening over 11 years.
Bob Fisher
Executive Management & Corporate Development
Visit osborne-group.com for other ideas and opinions from our Principals on a range of topics. Their views are their own and do not necessarily represent The Osborne Group’s perspective. The Osborne Group provides interim executive management, consulting and project support across all sectors and over a broad scope of service areas.
