Insights
Electricity Insights
Ontario's Electricity Policy Environment Eerily Similar to TOPGAS Era
May 2011
In the early 1980's, the interplay of high energy prices and a slowing economy resulted in more gas supply being offered to TransCanada PipeLines by Alberta producers than was needed by TransCanada to satisfy demand. TransCanada's obligation to take the gas or pay for it anyway led to TOPGAS. Elements of Ontario's current electricity policy environment seem eerily similar to the TOPGAS era. Read more >>
Wind and Nuclear Power: As Different as Chalk and Cheese
April 2011
The March 11 earthquake in Japan and the subsequent nuclear disaster have catalyzed opposition to nuclear power generation in many jurisdictions, including Ontario. Some commentators have suggested nuclear power should be replaced by a more benign source, such as wind. But wind and nuclear power are as different as chalk and cheese, and not practically interchangeable. Read more >>
Life on the Margin: What Generators Need to Know
March 2011
Ontario's natural gas and electricity markets are both complex and volatile. This poses a challenge for operators of natural gas-fired power generation facilties. Whether you are a district energy operator or your institution or industrial operation has embedded generation, your operating economics depend directly on what is happening in the natural gas and electricity markets relative to one another, hour by hour. This is a daunting task. Read more >>
Changes to Allocation of Global Adjustment Will Increase Costs for Most Consumers
January 2011
The bills we pay for electricity in Ontario are comprised of several cost components. One of the most significant is the Gobal Adjustment, a component that is opaque, complex and not well understood. Most consumers are not aware that changes have been made January 1 to how the cost of the Global Adjustment will be allocated to different consumer groups. The change will increase electricity costs for most consumers. Read more >>
Who Does What in the Electricity Industry?
January 2011
The composition of Ontario's power sector is a complex mix of investor-owned and publicly-owned corporations, unregulated generators and retailers, regulated utilities, and government agencies. It's sometimes hard to tell the players without a program. Read more >>
Ontario Clean Energy Benefit: A Short-Term Conservation Killer?
November 2010
The new Ontario Clean Energy Benefit is to provide direct relief from rising electricity prices by providing residential consumers, small businesses, and farmers with a credit equal to 10% of their total electricity bill. But how might the Benefit affect electricity consumption? Read more >>
You're Approaching an Electricity Cost Iceberg - What Should You Do?
April 2010
Over the next 18 to 24 months, the cost of electricity in Ontario is set to rise rapidly. As the electricity cost iceberg approaches, it is essential that consumers understand the hazards so they can navigate safely. Read more >>
Beware the Electricity Cost Iceberg
March 2010
The Ontario Government's recently announced green levy of $4/year is only a small part of the total increase that typical residential consumers will see on their electricity bills by the end of 2011. It is just the tip of an approaching iceberg. Read more >>
Changing Nature of Electricity Demand in Ontario
March 2010
As economic conditions improve, it is uncertain whether demand for power from the industrial sector in Ontario will return to pre-recession levels. It is anticipated that the commercial and residential sectors will become the predominant consumers of power. What might be the impact of this shift? Read more >>
Global Adjustment: Problem or Symptom?
February 2010
More and more, customers are realizing that while hourly electricity prices have been fairly low since March 2009, the total energy price on their bill - hourly spot price plus the Global Adjustment - has stayed the same or has been rising. This raises a question about whether the Global Adjustment is the problem or a symptom of larger problems. Read more >>