Wind Lobby group advertises false information!…….Here’s the REAL facts!

Posted: July 2, 2013 in Uncategorized

Ontario’s Electricity prices are astronomical and are going even higher due to the fraudulent Green Energy supply that is being touted as “affordable and competiitive” by CANWEA, Candian Wind Energy Association across Ontario through radio ads where they say that Windfacts.ca is the place to go for the TRUTH on Wind Turbine produced power. Once at their site  you may even notice they call these monstrosities “Windmills”!

If that isn’t being disingenuous I don’t know what is!

Here is their section on “Affordability” and then followed by the latest TRUE report on why your Hydro Bills are nauseatingly high and beyond the ability for most people to pay any more.

My question is: “Isn’t there a LAW against False Advertising?…….if there is, why isn’t it being applied here to the fullest extent of that LAW”?

FALSE CLAIMS

AFFORDABILITY

  • While all new sources of electricity generation will cost more than current sources of supply that have been built and paid for decades ago – wind energy is more cost-competitive than new installations of coal with carbon capture and storage, small hydro, and nuclear power.
  • The fuel that turns the turbine blades is free; this means that once a wind farm is built, the price of electricity it produces is set and remains at that level for the entire life of the wind farm.
  • Traditional sources of energy are open to extreme price volatility, so the long-term cost-certainty and stabilizing effect of electricity rates from wind farms provide important protection for consumers.
  • The cost to build wind energy continues to decline, with dramatic drops over the past three years while significant efficiency gains are being realized in modern technology and siting.
  • Wind projects have very short construction periods and can be deployed quickly with positive impacts delivered to local communities.
    • There is an urgent need to invest in new electricity generation and infrastructure after decades of underinvestment. According to the Conference Board of Canada, $347 billion in investment in Canada’s electricity system is required between now and 2030 – and all of these costs will be passed on to consumers.
    • According to the Ontario Energy Board, 45 per cent of the increase in Ontario’s global adjustment since 2006 is due to nuclear power, while only 6 per cent of the increase is due to renewable energy.
    • At its current rate of 11.5 cents per kWh in Ontario, wind energy is cost-competitive with all other new sources of electricity generation. Published reports peg nuclear’s all-in cost at anywhere between 25-28 cents/kwh.

THE TRUE STORY

Today’s Forecast: Record High Electricity Prices

The Independent Electricity System Operator (IESO) just released their “2nd Estimate” of the Global Adjustment (GA) for the month of June and it was a new record; topping out at $719.9 million or $79.12 per megawatt hour (MWh). Equivalent to 7.9 cents per kWh and added to the Hourly Ontario Energy Price (HOEP) of 2.4 cents per kWh means the cost of generating a kWh of electricity in Ontario for June averaged 10.3 cents a kWh or 2.1 cents per kWh over the current average time-of use (TOU) electricity rate of 8.2 cents. That 2.1 cent jump, if carried through to the fall when the Ontario Energy Board announce their next TOU prices (effective November 1, 2013) will mean Ontario’s ratepayers will see the price per kWh jump by 25.6% and add $288 annually to the average ratepayers bill to accommodate the increased GA. Ratepayers should also expect their delivery rates to increase but that forecast will be left for another day.

To put the June 2013 GA total of $719.9 million in perspective it topped out at $135.1 million (23.1%) higher than June 2012 and the GA per MWh of $79.12 came in at $15.01 per MWh (23.4%) higher than IESO had forecast only 30 days earlier at the start of June 2013. The GA for June 2013 was 45.9% higher then the June 2012 GA of $54.22.

IESO’s forecasting is assumed to be based on; history of demand patterns coupled with generator capability (most power in Ontario is contracted for at set prices) and weather forecasts from Environment Canada and others. For the past year IESO’s estimates also include their own weather forecasting; as it relates to wind generation.

The latter was the subject of what IESO refer to as SE-91 (Renewable Integration) a “stakeholder” engagement that looked at the vagaries of intermittent renewable energy and how best to integrate it into the grid to ensure stability. The concept was; if IESO could forecast production from those sources (wind and solar) which are weather dependent then they could better schedule peak generators such as; coal, hydro or gas or could curtail, dispatch off or constrain production from wind generators and Bruce Nuclear. The initial focus on wind production and the concept presented was that wind developers would be required to erect meteorological towers at their cost. These “stations” would allow IESO to electronically tap into the data to determine just how much power might have been generated and pay the developers for the constrained power. 

While the concept (payment for dispatching off) was accepted by CanWEA (representing the wind developers) they were not prepared to pay the estimated cost ($300,000 per development) for the meteorological towers and strenuously objected. The eventual agreement reached was; ratepayers would be stuck with the costs of those stations which is now presumably, part of the GA. It is worth noting that Tom Adams and the writer both objected to the concept of handing that cost to the ratepayers but our objections were ignored.

Now with the latest data highlighted above and the knowledge that implementation on wind forecasting commenced in the fall of last year and further confirmation; via an APPrO (Association of Power Producers of Ontario) article that IESO will shortly start paying for “dispatched off” wind production this writer’s concern is that IESO’s forecasting abilities may be out significantly and perhaps as much as 20/25%. If the recent June forecasts are an example of their forecasting abilities the differences could annually represent hundreds of millions of dollars taken from the pockets of ratepayers for not producing power and the knowledge that ratepayers are also picking up the costs of that forecasting is of concern.

According to an article appearing in the Toronto Star, “The IESO had estimated that coping with surplus power production [related to renewable energy] will cost Ontario’s power system up to $200 million a year if market rules don’t change.” Somehow those rule changes, now blessed by the various parties, are expected to save ratepayers $200 million a year but IESO don’t elaborate how that will happen. The only logical explanation is that IESO anticipate either less negative pricing hours, ie; paying purchasers in NY and Michigan, etc. to take our surplus power or they anticipate the “dispatching” capability will somehow drive up the HOEP and reduce the amount going into the GA pot. In either case the conclusion(s) are unknown and are merely forecasts by IESO and therefore should be of concern based on the hit and miss of their recent forecasts.

The concept of proper forecasting along with transparency from IESO should also be of concern to Ontario’s ratepayers based on a very recent article that appeared in the Toronto Sun wherein Bruce Campbell the new CEO of IESO was quoted as follows:

“Over the past six or seven years, Ontario has beefed up its electricity exports and made $5-$6 billion selling excess electricity, says IESO President and CEO Bruce Campbell.

The foregoing flies in the face of the 2011 Auditor General’s report which clearing stated:

“Based on our analysis of net exports and pricing data from the IESO, we estimated that from 2005 to the end of our audit in 2011, Ontario received $1.8 billion less for its electricity exports than what it actually cost electricity ratepayers of Ontario.”

Perhaps the Osgoode trained lawyer who took over from Mr. Paul Murphy should spend more time researching actual events rather then trying to impress either the new Energy Minister, Bob Chiarelli or the Sun’s reporter before handing out information that has been disproven by Ontario’s Auditor General and many others.

The concept of paying for “dispatched off” power for the next 20 years seems to be aimed at ensuring that Ontario’s electricity prices will continue to set records regardless of whether IESO improve their forecasting ability. Ontario is already paying for idling gas plants and steamed off nuclear while Ontario Power Generation is spilling cheap hydro. We seem to be paying several times over for that kilowatt of power all because of the penchant of wind and solar to produce power at times we don’t need it and now we ratepayers are even paying for meteorological stations that ensure those wind developers are fully paid for power they might have generated!

The time to “cut and run” from any more industrial wind production is now, unless the desire of the Liberal Party is to ensure Ontario remains # 1 in electricity price increases for years to come!

Parker Gallant
July 1, 2013

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Comments
  1. Anonymous says:

    Excellent article parker! We continue to dump excess across the tie lines due to the poorly integrated mix of generation, and that is not efficient, and co$tly to ontario citizens.
    It also creates a situation where our front line folks at the IESO spend 40% of their time on nightshift managing this distraction!!

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