Cancel the contracts,…

Cancel the contracts, Minister Thibeault (we’re asking again)

It’s been quite windy the last few days in Ontario, as it often is in the fall. Temperatures have been mild, too — all that stacks up not only to a beautiful fall but a very expensive few days for Ontario’s electricity customers, already hard-hit by their power bills which are the fastest rising in North America.

Parker Gallant has done the analysis on a single day last week, November 10, which he says points out everything that is wrong with Ontario’s electricity policy. Too much power produced when we don’t need it means cheap exports to our neighbours and more expense for Ontarians.

Here’s an excerpt from his recent blog posting:

November 10th serves as a perfect example of what’s happening to electricity customers in Ontario: that day, the government’s electricity policy shows we reward huge corporate wind power developers and it also highlights the intermittent nature of power generation from wind — it is out of phase with demand.

November 10 should be the basis of a message to the Minister of Energy, Glenn Thibeault on the Large Renewable Procurement (LRP) program: Ontario should cancel both the LRP I contracts awarded last April and cancel the now “suspended” LRP II process.  The Minister has already admitted our electricity supply is more than adequate for the next 10 years (“robust” in fact, he says) so acquiring more wind generated power (and solar) should be immediately suspended. It does nothing other than drive up the costs for “average” households.

The $9.4 million of ratepayer dollars handed out November 10 neither reduced emissions nor provided useful electricity. Time for a complete overhaul of electricity policy in Ontario, starting with those contracts and the LRP process.

When the subject of cancelling contracts (which is government’s right) comes up, the immediate response from the influential wind power lobby is that to do so will incur lawsuits, and wreck Ontario’s reputation in the business/investment world. The fact is, anyone knows that building your business on a subsidy program is not good planning; it’s also true that the Ontario government included “off-ramps” in the latest contracts, so that it could change its mind if the power is not needed, and pay out the power developers’ documented expenses.

Here are the details for the five contracts awarded by the IESO last spring.

Project name Capacity MW 20-yr cost $ Max payout liability $

Otter Creek 50 218 million 500,000

Romney Wind 60 261 million 520,000

Strong Breeze 57 250 million 515,000

Eastern Fields 32 139 million 464,000

Nation Rise 100 436 million 600,000

Source: data from IESO contracts

So, in the case of Strong Breeze, for example, in the community of Dutton Dunwich which resoundingly expressed its Not A Willing Host status but got a wind power project anyway, the government could get out of a $250-million contract by paying, at most, $515,000. Similarly, Nation Rise, in another unwilling host community, could be cancelled for a maximum liability of $600,000 and save Ontario electricity ratepayers from having the $436 million cost added to their bills.

Let’s go farther! Among the projects with Renewable Energy Approvals (REAs) but not yet operating, are the much contested White Pines in Prince Edward County and the Windlectric project on Amherst Island, both of which are in legal battles and both are in danger of not meeting their contracted Commercial Operation date. Cancelling them would save a lot of wildlife and also save Ontario electricity customers almost $1 billion.

Mr Gallant says that November 10 is emblematic of what’s wrong with Ontario’s electricity policy; we add, why buy more power Ontario doesn’t need and inflict more damage on the natural environment and Ontario’s rural communities, when the answer is so simple.

Cancel the contracts, Minister Thibeault.

[Original Comment ID: 196585]