January 25, 2010
The National Post
Over 25 years, the government says the Koreans will deliver 110-million megawatt hours at these guaranteed prices, equal to 110-billion kWh. Based on operating assumptions for the wind-solar balance, that means the Koreans will receive about a guaranteed $25-billion from Ontario electricity consumers at an average price of maybe 23¢ per kWh. But the current price for new gas-fired power, with all costs accounted for, is maybe 12¢ or about $13-billion. Ontario, in other words, will pay about $10-billion or maybe even $12-billion in subsidy to the Korean consortium over 25 years, equal to about $4-billion in net present value.