Are Ontarians Subsidizing Exported Power?

June 2009

Ontario Power Authority contracts with base load generators can contribute to low spot prices. When spot prices are low, exports tend to be high. Subsidies to generators, who directly or indirectly drive exports, range from $3 - 8 million per month, per 100 MW of output. Read more >>

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LNG Imports Grow in Time of Supply Surplus: Why?

June 2009

As the recession continues and natural gas prices remain low, one may question why there is a growth in liquefied natural gas imports by the US - particularly with supplies already exceeding demand. Read more >>

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How Energy Buyers Can Better Enjoy Their Vacation

May 2009

For energy buyers, it can be a stressful return from summer vacation to find that an increase in prices has dashed all chances of meeting the natural gas budget. Before leaving the office for a well deserved holiday, it's worthwhile for energy buyers to add a review of their company's energy hedges and risk profile to their to-do list. Read more >>

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Ontario's Green Energy Act: A Major Shift

May 2009

The Ontario Government's stated intention of the Green Energy Act, 2009 is to encourage the development of renewable energy sources and a culture of energy conservation. The initiatives outlined in the Act and intended to achieve these objectives represent a major shift in policy. This shift has given rise to considerable debate and this is likely to continue. Read more >>

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Coal Phase-Out: What's the Net impact on Costs?

May 2009

Generation supply contracts falling under the Global Adjustment will moderate the net impact of spot price increases arising from the phase-out of coal-fired generation. Over 70% of spot price changes will be dampened. Once coal is completely phased out, the net impact of a $6 to $13/MWh spot price increase will be $2 to $3/MWh on the bottom line. Read more >>

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Coal Phase-Out: Its Impact on the Global Adjustment

April 2009

Natural gas-fired generation plants have the same attributes as coal-fired generation facilities and so will be counted on by the Ontario Power Authority to replace coal. The estimated impact of almost 6,500 MW of natural gas-fired generation replacing an equivalent amount fo coal-fired is an increase of approximately $6/MWh in the Global Adjustment. This is in addition to the effect of the phase-out on spot market prices. Read more >>

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Negative Hourly Electricity Prices - Who Pays in the End?

April 2009

The Ontario electricity market has seen negative hourly spot prices before, but the notable feature of recent experience is how often they occurred from March 28 to April 17. Although persistent negative or otherwise low prices may appear to be a bonanza, they may lead to increased costs for consumers in the longer-term. Read more >>

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Impact of Coal Phase-Out on Ontario Consumers

March 2009

Ontario Power Generation's almost 6,500 MW of coal-fired generation is scheduled to be phased out by the end of 2014. The impact on electricity consumers will be driven by a number of factors. The first is an upward pressure on spot prices as a result of coal-fired generation being replaced with natural gas-fired generation. Read more >>

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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 >>

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Decline in Drilling and Demand Recovery: How Will They Impact Prices?

March 2009

Typically there is a lag in drilling activity relative to movements in natural gas prices. Current levels of drilling activity may not be sufficient to accommodate the expected increase in demand when the economy recovers. What will be the effect on prices? Read more >>

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