Ontario hydro consumers pay billions extra

Ontario auditor finds hydro consumers pay billions extra for Liberal's decisions

Auditor general Bonnie Lysyk says electricity customers in Ontario have paid billions of dollars for the Liberal government's decisions to ignore its own planning process for new power generation projects.

The electricity portion of hydro bills for homes and small businesses rose 70 per cent between 2006 and 2014, which Lysyk said cost consumers $37 billion dollars in so-called Global Adjustment payments to generators -- and will cost ratepayers another $133 billion by 2032.

Ontario's guaranteed prices for wind power generators are double the U.S. average, while the province's solar power rates are three-and-a-half times higher.

Ontario's average annual electricity surplus between 2009 and 2014 was equal to the total power generation capacity of Manitoba, and in the next five years its base load generation will exceed Ontario's demand by an amount equal to Nova Scotia's power needs for five years.

The province paid $3.1-billion to power generators between 2009 and 2014 to produce excess power that was not needed, plus another $339-million to not produce power. The province also paid $32.6-million to exporters to take the province’s excess power of its hands and distribute it to other jurisdictions. 

Reference

CTV News

Globe and Mail