By Tom Millar
I read with interest the insert in my electricity utility bill; ‘Customers to receive 10 per cent rebate on electricity bills‘. Then I turned sceptical.
Bala Falls in the Muskoka Lake region being harnessed for hydro power. Image from a 1900 circa postcard of the falls.
One thing I’ve gotten to know is this truism; ‘There is not such thing as a free ride.’
When the going gets tough, Ontario’s Premier Dalton McGuinty rolls out imaginative machinations to cover the short falls in his ‘Green Energy’ policies. And it is not what I want to see play out. It will end with you and me paying much more of our hard earned dollars for electricity and in taxes in the years ahead.
Here is how McGuinty emulates ‘creative accounting’ to solve his problems at our expense. To incentivize private companies to build green electricity plants such as wind farms or small hydro generators, the prices paid for such electricity has been jacked up. The rates start at 13.5 cent per kilowatt hour for the Bala Falls generation plant project in the Muskoka Lakes area of the province compared to the 4 cents paid to Ontario Power Generation, soaring 340 percent. The electric power system in Ontario has been forced to buy high-cost energy from wind and solar producers at up to 80 cents per kilowatt hour, soaring 2,000 percent, whether or not the electricity is required to meet our needs. And these new Green Energy contracts escalate over time and are for long terms – 20 to 40 years.
These extremely higher priced Green Energy contracts are having the dramatic impact of increasing our electricity bill. To mitigate the electricity customer pushback, McGuinty politically intervened. He is providing a 10 per cent discount on our electricity bill that began this January and continues for five years.
The 10 per cent discount is branded by McGuinty as “substantial hydro relief” to the users of electricity. But it will cost our provincial treasury about $1.1 billion annually, or more than $5 billion. That’s the premier’s estimate.
To pay for this window-dressing discount, McGuinty must continually borrow money to finance the amount of the discount. With the cash from provincial debt financing, McGuinty is then able to make payments to those generating the electricity. He must do this so that the generators are made whole and paid the full amount and not the 10 per cent discounted electricity rate.
McGuinty is calling the tune for the Green Energy machinations but electricity users and taxpayers like us will be required to ante up for the steeply soaring costs. Eventually, there will be a double whammy to our wallets. When the 10% discount is discontinued in our hydro electricity bills, we will be paying more.
But it doesn’t stop there. The second whammy comes when our Provincial debt related to the “substantial hydro relief” to finance the 10 per cent discount starts to be repaid. The source of the cash to make the repayments will be from higher taxes payable by you and me. Or our Provincial Government of the day will cut services us, like health care.
There you have it, the McGuinty flim-flam about the high priced green electricity rates, 10 per cent discount and related $1.1 billion borrowings per year. You and I can see through this so-called “substantial hydro relief”. Let’s not be snookered about McGuinty’s Green Energy and his machination$, eh?!
Tom Millar is a resident of Etobicoke, Ontario who worked in Toronto as a chartered accountant.
(Visit Niagara At Large at http://www.niagaraatlarge.com for more news and commentary on matters of interest and concern to resident in our greater Niagara region and beyond.)
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We can’t forget tho, the huge debt we are already paying off for the enormous , close to $40 billion debt we inherited from the previous
governments (plural) reliance on nuclear power over the past 32 years plus. These are the debt charge we are paying each month. If we are ever to make the change to more sustainable , far less polluting, absolutely safer electricity sources than nuclear power, it is essential that we get a far greater buy in , not just from industries who make and install such systems (home grown and from abroad) but increasingly from individuals, . And, subsidies will be needed. The government’s tariff feed-in incentives to date have already been very successful , with too many applications, from farmers and others, to accommodate, particularly in south western Ontario where nuclear power has sewn up the hydro line allotment. New funds are also required to change our system from a one big centralized source, to a “distributed” system covering smaller areas with many sources hooked in, and to upgrade the hydro system e.g. to advance the system technologies so that we are not wasting power. I for one, don’t mind paying more for all the newer environmentally more sustainable and less damaging systems, as long as we don’t once more start walking down the old, cost-overrun, risk taking and radioactivity producing nuclear power route.
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Excellent answer, Gracia. We absolutely MUST incentivize alternate energy production, even more than we are doing now. And we must continue to incentivize conservation measures, which are even more cost effective. Our planet and our survival demand it. We can’t jump start and maintain alternate energy programs without the incentives.
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Alternative energy reality check…..Green energy like windfarms and the like are at least 20 times the price in utlitity bills of the next nuclear plant. And that factoid is McGuinty’s.
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McGuinty’s so called “Green Energy” is not really green at all. The purpose and intent of “Green Energy” is to protect the environment, not harm or destroy it. Do you know there are currently 19 run-of-river hydro electric dams going through the Environmental Assessment process right now in Ontario by Xeneca Power Development Inc.? There are also other companies building dams across Ontario. Most of these dams will be using “modified peaking” — this means holding back water from its normal flow in head ponds until those peak demand hours, when the water will be released causing water levels to change rapidly several times a day to meet peak demand. Water standing in head ponds will warm, creating problems with bacteria and algae, water rushing back into the riverbed will cause turbidity and stir up sediment and heavy metals on the river bottom, aquatic and plant life will be exposed, fish passage will be impeded, water quality will decline. Check out this article – http://www.hrwc.org/the-watershed/threats/dams/ where they are trying to repair the damage already created by hydro electric dams.
The other major problem is that Environmental Assessments are being fast tracked through the approval process to get this “Green Energy” up and running quickly. Do you want to see our beautiful Ontario rivers clogged up with these destructive dams?
Yet another problem is the Feed-in-Tariff program will make electricity unaffordable for a huge percentage of the population, and it will bankrupt our Province. Our future generations will be paying the debt that McGuinty is busily accumulating at lightening speed.
I used to think Nuclear Energy was harmful to the environment as well, but it was pointed out to me that it actually has an exemplary safety record here in Canada, and the technology is improving. And you might still think Nuclear Energy is harmful to the environment, but think what all these hydroelectric dams will do to our endangered and at risk species, think of what will happen to aquatic life, ecosystems, water quality and water levels within most of our Ontario rivers. What is the legacy we are leaving our children?
The Green Energy Act is providing a fast track approval process that doesn’t factor in the opinion of the people having to live with the aftermath, or the protection of the natural habitat and beauty of our rivers – these things are all expendable to McGuinty! I thought this was a democratic country, but McGuinty is taking all that away!
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Once alternate energy systems are mass produced, prices fall, jobs increase, pollution diminishes, health care costs diminish, emerging markets are strengthened, international reputation strengthens, dependance on dirty tar and petro dictators diminishes, “global weirdings” are possibly managed, world environmental crises are possibly managed. Long term planning is crucial and much more important than “buck a beer” mentality.
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Mind you, I wouldn’t rule out third generation nuclear power. We may have no alternative. Transitions to alternate energy sources are not progressing fast enough.
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There are degrees of environmental impact. Coal burning electricity plants damage the environment to a far greater degree than run of river hydro turbines. If these turbines help alleviate peak hour demand, and will ultimately contribute towards the closing of coal-burning facilities, then I see them as the lesser of two “evils” by far. The problem with the Global Warming crisis is that its catastrophic impacts are not concretely evident to everyone, so people misperceive it as not being an imminent danger, which in fact it is. Freidman, in his book, Hot, Flat, And Crowded regrets that we can’t be China (for one day only) and simply put all of these alternate sources in place right away to get the necessary job done. I empathize with his position.
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Exit questions: How many coal burning plants are there in Ontario? How much actual kWh come from coal burning generation compared to total generation?
But McGuinty talks like the whole of Ontario’s electricity comes from coal.
In the olde days, the teacher would wash the mouth out with soap for string-ing out tall tales like McGuinty does, right?
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Exiting question: How do river hydro turbines, small plants the size of 3.7 MW compared to the McGuinty cancelled 900+ natural gas turbine in Oakville, contribute to peak demand when the the spring run off occurs at a non-peak season?
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Nanticoke Generating Station, which feeds Southern ON grid, is the largest coal generating station in North America, delivering 3,640 MW. I’m assuming that’s a whole lot of Mega Watts
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I would think the river turbine systems are a good start, but relatively insignificant in power generation compared to natural gas. Apparently they can make small-scale power plants using natural gas that simultaneously produce heat and electricity, which is a more efficient use of natural gas. This info. comes from Clean Air Alliance
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MegaWatts is to horsepower as KiloWatt-hours is to mileage.
For a generating plant, MW gives you size but the key to measure the electricity generated and delivered to the grid, kWh.
At Niagara Falls, the third tunnel is being constructed. There is no change in the plant capacity but the kWh generated will increase from the third tunnel.
Also there is clean coal fired generation…..low sulphur coal, like from Alberta, and then placing scrubbers on the flues.
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Clean coal is an oxymoron, doesn’t exist, toxic Kool Aid
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Check out my article on this site titled,”Petro Power And The Power Of Corruption. ” Thomas Freidman’s book Hot, Flat, And Crowded, provides some awesome ideas.
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Mark, Tom is right, Nanticoke’s capacity does not mean it is being used. Four of it’s eight generating units will be decommissioned this year and the next four by 2015. Coal will be gone in Ontario soon and the replacent of its peaking power role in the grid will be combined cycle natural gas. Not run of the river plants, wind or solar.
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I am an advocate of actual green power, but we must recognize our technological limitations. Our quandary is shared by most of the world. Mindlessly supporting any project that calls itself green does not support the credibility of green power and our dream of sustainable and responsible energy. Green washing has become a fad. We are now seeing a backlash against green power because of a poorly implemented initiative pouring taxpayers money into private developers pockets for projects that should not had passed initial screening. At least we can give Dalton McGuinty credit for as least trying. I hope he continues to correct some of the errors.
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Bill, you speak with Wisdom and common sense! This rash of proposed run-of-river hydroelectric dams on several of our beautiful natural Ontario rivers are slated for “modified peaking”, and are not “Green”.
Check out the 2005 report, Evaluation and Assessment of Ontario’s Waterpower Potential, by Hatch Acres, prepared for the OPA & MNR. This report lists hundreds of possible dam sites – on some of the most beautiful rivers in the world, so these current proposals are only the tip of the iceburg. McGuinty’s agenda will bankrupt our province, destroy habitat, ecosystems, aquatic life, endangered species and species at risk. How is that “Green”???? The average person won’t be able to afford to use electricity, and the developers will be laughing all the way to the bank!
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Canada won’t feel the immediate effects of Global Warming as severely as, say, those in Africa, or many of the 2 billion or so people worldwide who don’t even have electricity. As Canadians we don’t see the immediacy of the crisis, so we continue to debate these issues as if we had time. We don’t. We need massive Research And Development, and mass subsidies, and mass experimentation with alternate resources. Failing that,we are basically suggesting that our lives are worth more than those who will be affected first. If we don’t act faster though, our kids and grandkids will not be appreciative. I would suggest more people read Storms Of Our Grandchildren by James Hansen.
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Back to the future….whooops, the topic at hand…..McGuinty’s Machination$. It’s not Green or not Green. It’s about McGuinty’s flim-flam way of trying to pull the wool over our eyes. For heaven sake, don’t be snooooookered by McGuinty!
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I am all for finding new sources of clean and renewable energy, however, the McGuinty approach is akin to the charge of the Light Brigade at Balaclava.
Ill conceived and poorly planned the escalating costs of electricity versus the benefit will add to existing mountain of power generation debt. Western governments have jumped onto the wind/solar bandwagon for the last decade producing less than impressive results other than “at least we’re doing something”. Naturally, the impetus for this is the carbon dioxide factor and speculative concern over global warming or its latest incarnation climate change. I’m not going to get into that debate, but can say with some degree of certainty that the hyperbole on either side of this argument is not solving the problem. Third generation nuclear and especially thorium reactors hold promise of providing the needed power without the inherent dangers of earlier nuclear technology. Combining this with selective hydro electric development that will be a compromise of conservation of natural heritage and power demands are suitable Canadian solutions.
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Right on, John, especially about the McGuinty way!
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I understand that one of the issues with nuclear is that it is very expensive, although the third generation plants are possibly less so.
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Renewable electricity sources are 20 times more costly than a new nuclear plant…..and that’s a McGuinty factoid.
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Third Generation nuclear might be part of the answer, but it’s a hard sell in this country.
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Current Conservatives have a horrible record for environmental issues, and it reflects badly on Canada internationally. Fossil Awards, Security Council exclusion etc.
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Certainly, we are being snookered by McGuinty et al. on the Health Care front. He’s not fooling me.
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My my my. “I don’t like this.” “I don’t want that.” “I’m not paying for this.” “I won’t support that.” Is it any wonder we suffer from corporate rapacity and political banality?
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Democracy in action. But Freidman’s right too: “China for a day…”
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When Dalton McGuinty put his one man wrecking crew, in charge of the Energy Plan, Mr George Smitherman the man who screws up everything he meddles in, E health, OlG with massive corruption and huge expense accounts, no wonder Toronto wouldn’t touch him with a ten foot pole.and went with Rob Ford, the rest of the world is looking at mini nuclear reactors the kind used in air craft carriers and submarines, they can be buried underground and added to as battery cells, some don’t use uranium but use Thorium, a safer and more plentiful fuel source.
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In some respects, this dicussion is a microcosm of our societal conversation, so I see it as important. I realize it has veered off topic somewhat from the “political machinations” theme, but regardless, here are some facts taken from the CCPA Monitor. Denmark generates 20% of its energy from wind power. Sweden generates 44% of its energy from windpower. Germany’s solar energy development has created about 300,000 jobs. And the best news yet: China is now the world’s biggest investor in renewable energies. Back to the theme of my articles: we’re way behind in the tech race for alternative energy sources, and further dependance on coal, tar sands etc. will be our biggest burden: short term gain, long term pain.
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first we don’t have an energy crisis , never had, but lets play anyway
here’s why we have been “not so truthfully told things”
Click to access btn4_1.pdf
Then just how IWTs have been working out
Click to access wind-report.pdf
Click to access What%20Went%20Wrong%20with%20Ontario%20Energy%20Policy2.pdf
what this is really all about..this cap and trade thing
Click to access Conning-the-Climate.pdf
For every job created in renewables as energy prices soar 2-5 jobs are lost.
Most renewable energy jobs in the EU are low paying jobs often short lived by the way.
It’s like this last job creation cliam we just heard about for last month
59,000 jobs created , sounds great right ?
Most are part time low quality jobs , ..ready for it ..due to the federal election..Ontario is hurting very badly folks.
Doom and gloom over CO2 emssions?
Why?
Canada contributes 3% of the globes CO2 emissions , 30% less than Germany leader in wind.
China and Germany emissions are 54% combined.
Since 2008 energy demnd in Ontario has dropped 25%
Since 2008 energy demand has dropped by 38% in the USA.
True reliablility with IWTs is at best 27% to stated capacity.
Require thousands of acres of unusable farmland.
700 people have lodged health complaints with the province , cows have had their hoofs zapped off due to stray voltage and as a large group..they don’t add character to a pristine rural setting.
But the best of all is developers make a lot of money…… worst scenario..you pay.
TOU smart meters are a camera looking back at you , they know when you wake up , when you go to work , when you come home , even what appliance you have. Their true purpose is to control your demand.
Electric cars will be like sailing ..you can drive when there is wind.
There is no energy crisis , and we in Canada are not destroying the earth.
A million gallons og rocket fuel to send a space shuttle up , the thrust is enough to cause an Japan has actually moved.
Yes , and we are causing it all aren’t we..by the way
IPC , run by Mike Crowley , former president of the liberal party of Canada , Al Gore was 5th largest investor in the chicago carbon exchange..then he made his movie.
Overpopulation
Deforestation
Crops for Biofuels
Do something about those 3 things and you can make a difference
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Many thanks, Ernest, for share, posting the links….thoughtful, worthwhile articles and commentary…….Tom
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