Cost to consumers of government energy policies for one month reaches $1 billion
TORONTO, Nov. 5, 2014 /CNW/ – The Ontario government’s policy of pursuing “renewable” sources of power at a premium and selling off surplus at a loss has resulted in a record-breaking month of expenses and losses for Ontario’s power consumers.
In a document prepared by former bank vice-president and Wind Concerns Ontario executive Parker Gallant and energy analyst Scott Luft, figures from the Independent Electricity System Operator (IESO) show that the Global Adjustment for Ontario power customers hit $1 billion.
The Global Adjustment is the difference between market rates for electricity, and what the government pays power generators. In the case of wind power, which has first right to the grid in Ontario, Ontario is buying high and selling low, says Gallant. “In the spring and fall every year, demand for power is low, but wind production is at a high—that is the problem with wind power: it is produced out-of-phase with demand. Because of the contracts the government has with the developers, we pay top dollar for the power and when we don’t need it, sell for bargain-basement prices. We pay about 13.5 cents per kilowatt hour for wind, and sell it off far below that; in October it was below 0.7 cents.
“This is economic disaster for Ontario,” Gallant adds.
Consumer power bills rose again on November 1st, and the government will also launch its new procurement process for wind and solar this month.
Wind Concerns Ontario has been opposed to the development of large-scale wind power in Ontario’s communities in part because it is an expensive yet unreliable source of power. The record-breaking October figures should spur the government to halt its wind power program, says president Jane Wilson. “Any decision to approve one more wind farm, or to launch the new procurement process for more contracts this month as planned, is completely unsupportable,” she says. “Wind power doesn’t work, and Ontario can’t afford this experiment any longer.”
Ontario has contracts for 43 wind power projects not currently operational, which will cost consumers $16 billion over the next 20 years.
SOURCE Wind Concerns Ontario
For further information: Parker Gallant: 416-282-9372/Scott Luft: 647-872-9613/Jane Wilson: 613-489-3591 or 613-725-7120, [email protected]