hydro

Friday August 4, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday August 4, 2017

Don’t be shocked by the arrival of electric cars

When future generations glance into history’s rear-view mirror, they might agree the summer of 2017 was the beginning of the end for gasoline-powered vehicles and the start of the electric-car era.

In the space of just a few weeks, Tesla’s Model 3, the company’s long-awaited mass-market electric vehicle, began rolling off the assembly line to the delight of 373,000 eager buyers who had made $1,000 deposits, while Volvo signalled all of its car models launched after 2019 will be either electric or hybrid. Just months earlier, BMW pledged it would electrify each and every one of its makes and models by 2020. British and French governments announced in July a ban on the sale of gasoline- and diesel-powered cars by 2040. Yet the shift could happen sooner, according to Dutch bank ING. It predicted all car sales in Europe would be electric vehicles in less than two decades.

Based on what’s happening this summer, the question is no longer ‘if’ electric vehicles will take over the world’s roadways but ‘when.’ And that’s good news.

Transitioning from vehicles fuelled by gasoline or diesel to ones powered by electricity is a major strategy in fighting the greenhouse gas emissions wreaking havoc with the Earth’s climate. The shift would also end the exhaust pollution that chokes big cities.

The dawn of the electric-car era also shows how industries responding to market demands can work co-operatively with governments toward a shared and desirable goal. Until now, the major roadblocks to electric car sales have been the vehicles’ cost, their limited range and lack of recharging stations. Each of these barriers is being knocked down as automakers build more affordable electric vehicles with cheaper batteries and the ability to drive farther before a recharge.

Governments are doing their part by subsidizing electric vehicles — the Ontario government offers buyers up to $14,000 — and installing recharge stations — Ontario committed to 500.

There is a long journey ahead. Only a small percentage of vehicles run on electricity. Of the nearly two million vehicles sold in Canada in 2016, only 11,000 were electric. But the change is coming fast. Governments can assist more by ensuring there are enough recharging stations and, even more important, that the electricity grid can handle the coming surge in demand.

The average electric vehicle uses a load equivalent to what an entire household does each day. While the Ontario grid can handle the increase in demand for the one million electric vehicles the government wants on the roads by 2025, local utility companies fear the system could be overloaded in urban areas where demand is especially high.

And those one million electric vehicles would represent just 12 per cent of the number of cars on Ontario’s roads. Yes, a transportation revolution is racing our way. Governments can help most by ensuring there’s enough energy to keep it running. (Hamilton Spectator Editorial) 

 

Thursday May 25, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 25, 2017

Hydro rate-cut will ultimately cost $21B, watchdog warns

March 2, 2017

Short-term gain on your hydro bill could translate into long-term fiscal pain.

The Liberal government’s “Fair Hydro Plan,” which lowers electricity bills by 25 per cent, will ultimately zap Ontarians to the tune of $21 billion over the next three decades, the province’s budget watchdog has found.

In a 15-page report released Wednesday, Financial Accountability Officer Stephen LeClair said the scheme will cost the province $45 billion over the next 29 years while saving ratepayers $24 billion for a $21-billion net expense.

November 22, 2016

But LeClair warned his estimates are only applicable if “the province is able to achieve and maintain a balanced budget over 29 years.” The cost of the subsidy could balloon to between $69 billion and $93 billion if the government has to borrow to pay for it.

Finance Minister Charles Sousa balanced the books last month after nine years of deficits.

The average monthly hydro bill of $156 per household will drop to $123 once the 25-per-cent cut takes effect next month.

Recent public opinion polls suggest the Premier Kathleen Wynne’s Liberals appear to be benefiting from the forthcoming lower electricity prices, as two recent surveys show they are closing the gap with the front-running Progressive Conservatives.

Both the Tories and Andrea Horwath’s New Democrats oppose the Liberals’ rate-cutting measure. (Source: Toronto Star)

Ottawa Citizen, May 26, 2017

 

Monday March 27, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Monday March 27, 2017

Hydro rates shock Ontario Premier Kathleen Wynne’s approval rating

Ontario Premier Kathleen Wynne has seen a historic slump in her job-approval ratings as Ontarians continue to fret over increased hydro bills and the sale of the Hydro One utility, says new polling by the Angus Reid Institute released Friday.

With a 2018 election looming, the provincial Liberal Premier has the endorsement of only 12 per cent of voters, down from a 41-per-cent approval rating just 18 months ago, the Angus Reid Institute survey revealed.

The institute’s executive director, Shachi Kurl, said Ms. Wynne has sunk to depths almost never seen among provincial premiers in recent history, with only former British Columbia premier Gordon Campbell dropping below 10 per cent before he resigned in November, 2010.

“There is no way to sugar-coat this, it’s not a good situation for the Premier,” Ms. Kurl said. “But clearly, based on what we’re seeing and hearing, there may be some continuing belief that the Premier herself, or the party can turn things around” before an election that is scheduled for June, 2018.

In surveying premiers’ approval ratings, the Angus Reid Institute polled 5,404 Canadians, including 804 Ontario residents. The survey was conducted between March 6 and March 13, just after Ms. Wynne’s government announced it would reduce hydro rates by an average of 25 per cent for households, and more for people in rural areas and small towns that were hardest hit by rate hikes over the past decade.

“I would suggest people really hadn’t had the opportunity to absorb whether or not they feel this is something that will credibly give them some relief, and whether or not it is enough at this stage,” Ms. Kurl said.

“You can reach a point with the electorate where a level of cynicism or a level of hardening sets in and no matter what is done, there’s no turning things around.” (Source: Globe & Mail) 

 

Friday March 10, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 10, 2017

All parties should lay out their plan for hydro

Next year’s provincial election could be called the hydro vote. Of course there other issues — the length of the Liberal party’s rule, the economy, and others. But nothing resonates with Ontarians right now like hydro rates.

It’s understandable, even though some of the hyperbole being bandied about is over the top. So is laying all the blame at the feet of the Liberals when the Progressive Conservatives also played a role in setting the table.

But whether you agree with the weight being attached to energy as an election issue or not, it is what people are talking about. That’s why the Liberals have finally moved on plans to reduce bills. According to Alectra Utilities, Hamilton ratepayers will get a bigger than average break on their bills, with residential fees set to drop 27 per cent, and small business rates 28 per cent. That’s not insignificant.

The Liberal plan, though, is something like remortgaging your house. The money will be paid back over a longer period of time, so the resulting interest payments will end up costing more. Does that really matter to people if their bills go down? We’ll see.

NDP leader Andrea Horwath won’t be outshone. She has put forward a plan she says will save up to 30 per cent on bills and doesn’t involve remortgaging the house. The plan would allow consumers to opt out of time-of-use pricing, cap profits for private power producers supplying the grid and return Hydro One to full public ownership by buying back shares. This plan will appeal to many, especially since the partial privatization of Hydro One is widely opposed.

But wait, say the Liberals and other skeptics. The money from privatization is being used to fund health and education among other key areas. If that money is used to buy back shares, it will be at the expense of those other priorities. Now the NDP plan doesn’t sound quite so solid.

At least the two parties are putting out (relatively) clear messages. And by getting her party’s oar in the water on the most significant issue of the election, Horwath automatically positions the NDP as a credible alternative, on this matter at least.

Patrick Brown, come out, come out, wherever you are. The Progressive Conservatives have yet to outline in detail what they’ll do on energy. Perhaps because there is still a lot of time left. Perhaps because it’s a sticky issue for them, too. After all, it was Brown’s party that initiated the last attempt to privatize, which blew up in their face. And it’s going to be difficult for a party that believes in privatization to argue for making Hydro One public again. Then again, who would have predicted that the PCs would favour a carbon tax and support a modernized sex education curriculum. So who knows what they might have up their sleeve? They’d be smart to get at least some cards on the table soon though. (Source: Hamilton Spectator Editorial) 

 

Thursday March 2, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday March 2, 2017

Premier Kathleen Wynne to cut hydro rates by 25 per cent

Premier Kathleen Wynne will slash electricity rates by 25 per cent this year, the Star has learned.

In a dramatic move to be finalized at cabinet Wednesday, Wynne’s government is poised to unveil sweeping measures to rein in the soaring hydro bills that currently have the Liberals’ popularity plummeting.

August 17, 2016

Sources say the massive reduction in rates will come mostly by “smoothing out” the financing costs of electricity generation contracts over longer periods.

It’s the equivalent of refinancing a mortgage to enjoy lower payments over a longer time on nuclear reactors, natural gas-fired power plants, and wind turbines.

Wynne’s office refused to confirm details of the 25 per cent solution Tuesday night.

But cabinet ministers are expected to approve the plan during a noon cabinet meeting at Queen’s Park with an announcement coming as early as Thursday.

The 25 per cent reduction includes the 8 per cent rebate of the provincial portion of the harmonized sales tax that took effect on Jan. 1.

While the provincial Liberals have not convinced Prime Minister Justin Trudeau to eliminate the 5 per cent federal share of the HST on hydro bills, they have found other savings.

“We’re taking it to the next level,” Energy Minister Glenn Thibeault told the legislature during Tuesday’s question period.

“We do recognize the system that we built — eliminating coal, rebuilding the grid — that cost billions of dollars. We know that cost actually came at the expense of many families,” he said. (Source: Toronto Star)