All County, All the Time Since 2010 MAKE THIS YOUR PRINCE EDWARD COUNTY HOME...PAGE!  Thursday, November 26th, 2020

Wind companies to fight $100M change that saves electricity users $225M

An interesting news item can be found at http://www.power-eng.com/news/2013/02/02/wind-solar-companies-to-fight-100m-change-nl-proposal-will-save-all-electricity-users-225-million-a.html  the gist of which is that, after a two year consultation, the Independent Electricity System Operator (IESO) has decided to change the “rules and regulations” and actually save Ontarians hundreds of millions of dollars. The economic conclusion of this issue is that spending $100M on wind actually costs taxpayers $225M!

Predictably, the wind companies are not happy, and matters are now reaching a climax as the wind energy lobby “appeal” is imminently scheduled.

This all started 4 November 2010 with consultations known as SE-91 (please see  http://www.ieso.ca/imoweb/consult/consult_se91.asp and has resulted in changes to administrative rules which affect not just wind energy, but nuclear energy, markets and transmission; it’s a bit technical, but for the details please see http://www.ieso.ca/imoweb/news/newsItem.asp?newsItemID=6308

The numbers are perhaps suspect; given an inevitable amount of bureaucratic and lobby obfuscation, there is a possibility that the savings to Ontario consumers are better represented by a cumulation of the quoted figures, i.e. a total of $325M — as the wind industry will not be given $100M and consumer invoicing will decrease by $225M. However, it is also unclear whether the $225M takes the “multipliers” (line losses, retired debt, etc) into account in which case the net effect on the Ontario economy could be substantially greater.

But the situation is very complex. Given the number of government players, NGOs, QUANGOs, and industrial and private business entities, predicting the outcome of the appeal is troublesome. While on the face of it, the new rules are a no-brainer (don’t pay grossly over-market prices when there is no demand, just to sell wind energy out-of-Province at a loss, or even pay New York to use Ontario energy to maintain grid stability), there is a potential argument that this is an end-run around the “spirit” of government policy.

Whatever the outcome, at least one “agency” appears to have taken the taxpayers to heart. Kudos to the Independent Electricity System Operator.

Paul Adamthwaite,  Picton

Filed Under: Letters and Opinion

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  1. Doris Lane says:

    Paul
    Great article–we do not need wind energy–we pay New york to take our access power, We charge consumers more money all the time. Along with that the government pays off shore companies big subsides to come here and build wind farms.
    The taxpayer keeps getting hit more and more for everything.
    It is coming to the point that all the taxpayer will be able to do is pay taxes and will not have any money left for personal things.
    it has been reported that stores etc are laying off employees. Why because after taxes people have no money for other things.

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