Ontario Electrical consumers are paying “out-of-Province” electrical bills!

Posted: July 27, 2012 in Uncategorized

Check your Hydro Bill this month and look at your “Global Adjustment Fee” very closely! This amount includes the cost of “PAYING PEOPLE TO TAKE OUR POWER”!

There is no easy way to explain this except to say that while we pay ever increasingly high electricity rates here at home, and in some cases so unrealistic that people can’t afford it any more, at the very same time Ontario is EXPORTING power to the U.S. and neighbouring Province Quebec for not only FREE but throwing in a bag of our cash to take it!

This is the “McGuinty Way” of managing our energy sector!

When he says he wants “Ontario to be the Number One Renewable Energy provider in North America”, he backs that up by saying: “please take our excess electricity and if you do we’ll pay you to take it”!

If there was ever a time in Ontario’s history to call for a Public Inquiry on this absolute stupidity, NOW is that time!

Ontario consumers pay millions to subsidize electricity exports

John Spears, July 26/12 The Spec

Ontario consumers have subsidized out-of-province electricity buyers to the tune of $1.2 billion over the past three years, says a newly released report.

That’s about $2.50 a month on a typical household hydro bill.

It’s time everyone paid the true cost of Ontario’s power, argue Greg Baden and Lucia Tomson in the paper published by the Council for Clean and Reliable Electricity.

Baden and Tomson are with the energy consulting firm BECL and Associates Ltd.

They argue that it’s time for export customers to start paying the “global adjustment,” a fee that is an increasingly large factor in Ontario electricity bills.

The issue has also been flagged by Ontario’s auditor-general.

The global adjustment is charged on top of the market price for electricity in Ontario. But it’s charged only inside the province, not on power exported to neighbouring states and provinces.

It is imposed to make up the difference between the market price, and the usually higher price paid to electricity generators that have separate contracts with the Ontario Power Authority.

Close to 80 per cent of the power generated in the province is covered by nonmarket contracts.

The price paid to private generators is almost always higher than the market price. Because the low market price doesn’t bring in enough money to cover the contract prices, Ontario customers are charged an extra fee — the “global adjustment” or GA — to make up the difference.

It’s calculated monthly, and is charged only to Ontario customers — not to out of province customers.

It used to be a trivial amount.

But with the burgeoning of power contracts in Ontario, the global adjustment has grown by leaps and bounds. It’s now a far bigger component of the typical hydro bill than the market price.

How much bigger? The average market price for energy so far this year has been 2.06 cents a kilowatt hour; the global adjustment has been 5.34 cents a kilowatt hour.

The export subsidy is a small slice of the global adjustment — just over 0.3 cents a kilowatt hour (kwh). Still, it adds up: On a typical monthly bill of 800 kwh, it works out to about $2.50.



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