Why Politicians should never be in charge of anything Part 56C

https://grantcoulson.files.wordpress.com/2014/04/incentiveseverywherepicturecorrect1.jpg?w=444&h=288 

  Do not think about, write about or deal with  human behavior without determining the effects of incentives.

     Wherein we see how political management of electricity generation, mixed in with Global Warming hysteria and panic about “Peak Oil” has studded the landscape with over (when they’re finished) 6000 windmills which will never return their “investment” value.

Hydro export costing Ontario customers: NDP
By Antonella Artuso, Queen’s Park Bureau Chief

TORONTO – Ontario hydro customers each paid hundreds of dollars last year to export electricity at a loss to other jurisdictions, NDP energy critic Peter Tabuns says.

The NDP estimate that exported excess electricity cost ratepayers just over $1 billion or about $220 for each customer.

“We’ve done the math,” Tabuns said Monday. “We found that last year Ontario subsidized power to people in the United States and Quebec and Manitoba to the tune of over $1 billion. That’s the equivalent of cancelling two gas plants.”

Ontario usually sells its electricity for about three cents per kilowatt-hour, but pays the generator of that power about eight cents per kilowatt-hour, he said.

“You tell me how that’s a profit,” Tabuns said.

Beckie Codd-Downey, a spokesman for Ontario Energy Minister Bob Chiarelli, countered exports reduced costs for hydro customers by $300 million in 2013.

The Ontario government has invested in electricity generation for peak periods — such as cold snaps in winter and heat waves in summer when power use soars — and exports the extra electricity when it’s not needed to offset costs, she said.

“Since 2006, Ontario’s net revenue from electricity exports has been over $2 billion,” Codd-Downey said in a statement. “During the five years of NDP government, hydro rates skyrocketed and they abandoned long-term energy planning.”

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      This reminds me of Grace Allen’s track bookkeeping. She went to the track with two wallets. One had $400 dollars, the other was empty. When she returned from the track the money wallet would be empty and she’d have $135 in the previously empty one. “See,” she would say, “I made $135 at the track.”

The NDP says that the Liberal government is not factoring in how much it cost the system to produce the exported electricity.

Ontario has signed costly deals with private power companies that have created a glut in supply that must be exported at a lower price than the generation cost, Tabuns argued.

Premier Kathleen Wynne said her government inherited an electricity system from the Progressive Conservatives that was in a “shambles.”

Since 2003, the Liberals have been making investments in generation to stabilize the electricity grid and weaning the system off coal power to improve air quality, she said.

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   Ontario has the highest electricity rates in North America. If the Elite weren’t managing things for us, where would we be?

   They also pay these heavily subsidized producers money not to generate electricity which isn’t needed.

     These same jokers also upgraded  the emissions-scrubbing of a coal-fired generator to the tune of one billion dollars and then shut it down.

Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Days of Songs and Mirrors: A Jacobite in the ‘45.”
Cui Bono–Cherchez les Contingencies

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