Insights
Electricity Insights
Do Price Spikes Really Affect Electricity Consumers?
March 2009
On Februart 18, 2009 Bruce Power had to take one of its generators offline, creating a supply/demand imbalance for a three-hour period. Over this period, prices averaged $1,030/Mwh with the peak being $1,891. Such spikes can often cause alarm but unless sustained, the impact is not as severe as one would expect. Read more >>
Larger Electricity Consumers Better Off Outside the Regulated Price Plan
January 2009
Larger electricity consumers should be happy they will no longer be eligible for the Regulated Price Plan as of May 1, 2009. Their cost of electricity will come down and their risk will be no higher than if they were still on the RPP. Read more >>
End of OPG Rebate Is Approaching - How Will Consumers Be Affected?
January 2009
The OPG Rebate is scheduled to end on April 30, 2009. When the rebate ends, consumers will see their net cost of electricity rise as will their exposure to spot market prices. Revisiting hedging strategies will be the order of the day. Read more >>
Don't Get Harpooned in a Retail Power Deal
September 2008
In the broad sales world, a "whale" is a customer that yields a high commission or margin. It follows then that one way for buyers (of anything) to minimize costs is to avoid getting harpooned. How can you avoid getting "harpooned" by an electricity retailer? Read more >>
Ontario's Near-Term Electricity Shelf Well-Stocked
September 2008
The supply-demand picture for electricity is a key consideration for those thinking about hedging their future price for power. For 2009, the Ontario picture is much more favourable than it has been in the past. Read more >>
OEB Consults on Low Income Energy Consumer Issues
September 2008
The Ontario Energy Board is consulting with stakeholders on issues concerning low income energy consumers and their use of natural gas and electricity. The discussion has attracted a broad range of interests including large-volume consumers. Read more >>
Day Ahead Markets
August 2008
While natural gas operates on a day ahead market, power market prices change every five minutes throughout the day. The timing difference between the purchase of gas and the sale of power can present a substantial challenge for power generators. Read more >>
Retail Electricity Contracts: Do They Reduce Risk?
July 2008
When entering into any fixed-price electricity arrangement, there are two primary factors to consider: price and quantity. Retail electricity deals are a common offering, often involving paying a fixed price on all of one's electricity consumption. Such deals can assist in managing price risk and possibly lower one's cost of electricity, but only if... Read more >>
Coal Replacement-Implied Carbon Cost
April 2008
The Ontario government has introduced legislation that all coal generation must be out of service by 2014. The shortfall in generation needed to serve Ontarians will be made up through conservation efforts and gas-fired, nuclear and renewable energy generation. With British Columbia's introduction of a carbon tax recently making headlines, how does Ontario's coal replacement initiative compare in its impact on consumers? Read more >>
Explaining the Global Adjustment, Part 2
April 2008
In a continuation of our article explaining the Global Adjustment and the role it plays in electricity prices, this month's article discusses the impact of conservation and demand management (CDM) on the Global Adjustment and ultimately, your electricity bill. Read more >>