Insights
Regulatory/Market Insights
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 >>
Natural Gas Market's Response to Fukushima
April 2011
Examination of the price behaviour of natural gas futures contracts since the March earthquake in Japan provides insights into how markets respond to these kinds of crises. Market participants seem to be increasingly of the view that gas supply and demand conditions a few years from now will be tighter and prices higher. Read more >>
Oil and Natural Gas Prices: How Are They Related?
March 2011
Prices for crude oil and natural gas have diverged since 2009 to the point where the ratio between oil and natural gas near-month prices is about 25 to 1. The recent relationship between oil and natural gas prices reflects important differences in the two commodities. 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 >>
TransCanada's Interim Tolls Proposal Signals Potential for Major Change
January 2011
In December, TransCanada PipeLines filed an application with the National Energy Board seeking approval of interim tolls for its Canadian Mainline and its Alberta system. The NEB did not approve the specific tolls proposed for the Mainline, deciding instead to make the 2010 tolls interim as of January 1. Although TransCanada's preferred option for interim tolls was rejected, the filing signals the potential for major change in the way Mainline tolls are determined. 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 >>
Who Does What in the Natural Gas Industry?
November 2010
The natural gas marketplace combines a volatile commodity market with an array of regulated utility services and contracts delivered through a complex supply chain. Understanding who the players are in this market helps energy buyers meet the unique challenges of natural gas procurement. Read more >>
Hallowe'en Agreement - Trick or Treat for Today's Consumers?
October 2010
Twenty-five years ago on October 31, the federal government and Alberta, British Columbia, and Saskatchewan announced the Agreement on Natural Gas Markets and Prices. This Hallowe'en Agreement initiated the deregulation of prices and the move toward a free market for the commodity. Did it result in a trick or treat for today's consumers? Read more >>
Benefits of Quebec Shale Gas for Ontario Not a Certainty
October 2010
Shale gas in Quebec has the potential to further diversify and bolster supply for Ontario and lower costs for consumers, but it's not a certainty. Read more >>