Insights
Regulatory/Market Insights
End of RPP Eligibility Can Be a Good Thing
October 2009
November 1 is scheduled to be the end of RPP eligibility for "designated consumers". On balance, this is a good thing for these customers. For many, the delay in leaving the RPP will have cost them significantly over the past few years. Read more >>
Ontario Green Power "Brand Management"
October 2009
The Ontario Government is changing the province's green energy landscape. The shift parallels the change in thinking of Stewart Brand, a long-time environmentalist, who now espouses government scale, top-down actions. Read more >>
Is Now the Time to Buy? - Let's Consider the Question
September 2009
With natural gas prices so low, many energy buyers may be asking if now is the time to buy. The question suggests a strategy based on market view and timing. A buying strategy that depends on locking in "at the right time" to save money is likely to be ineffective in the long run and could even be dangerous. Read more >>
Global Adjustment Costs: Changing the Allocation
September 2009
The Ontario Energy Board intends to change the allocation of Global Adjustment costs to raise the total cost of on-peak power as compared to off-peak power. The goal is to create an on-peak cost premium large enough to motivate changes to consumer behaviour. Read more >>
Speculators Play a Key Role in Commodity Markets
August 2009
It is possible the US Government will introduce legislation which would place restrictions on commodity market speculation. Other activities that benefit from speculation could be affected with unintended consequences. Read more >>
Global Adjustment: Change in Behaviour Has Implications for Hedging
August 2009
The nature of the contracts underlying the Global Adjustment is changing. The result is a change in the relationship between the Adjustment and spot prices. Decisions about hedging will become more complicated. Read more >>
New Upstream Contracting Requirements for Some Enbridge Customers
August 2009
Recently, the Ontario Energy Board directed Enbridge to put new interim requirements in place for agent-type direct purchase customers using Ontario T-service and Agency Billing and Collection. The requirements apply to upstream transportation arrangements. Read more >>
Greenhouse Gas Policies: Taking Centre Stage
June 2009
The reduction of greenhouse gas emissions has become a key international issue with numerous initiatives underway on several fronts. From international to regional efforts, there are some common themes emerging. Read more >>
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 >>
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 >>