AMPCO Blog

Adam White, President of AMPCO, blogs about the latest trends in energy markets and advocates for energy policy that will ensure an affordable and reliable electricity system for Ontario.

December 2012


OEB Chair and CEO Rosemarie LeClair’s speaks at the Eggs n’ Icons Breakfast Series in Ottawa

 On December 7, 2012, Chair and CEO of the Ontario Energy Board (OEB), Rosemary Leclair delivered a speech at the Eggs n’ Icons Breakfast Series hosted by the Ottawa Chamber of Commerce and Ottawa Business Journal.

LeClair explored the need for regulators to be at the front of consumers’ interests. In order to do this, she says the top priority for the Board and others in the sector should be to close the gap between information and education.

LeClair believes regulators need to do more than inform consumers about bills and rate changes or answer questions. They need be proactive to help consumers understand the various elements and decision-making process of the organization.

She said the biggest challenge for the board is aligning different consumers interests with utilities interests while considering the overall public interest and the maintaining a long-term network.

The Board has been taking steps to ensure consumers’ interests are a priority. It has been working with other government agencies and utilities to organize how information is delivered to consumers and received from them. It is also reviewing application notices, online information and consumer outreach.

According LeClair, the new framework at the OEB is a performance-based approach to better deliver “value for money.” Utilities must meet end-user’s expectations for fair pricing and respond to their customers’ changing expectations.

The Board believes this new approach will help with energy literacy for consumers.

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October 2012


Contempt Debate Takes Over Queen’s Park

 It is an interesting time in Ontario politics with energy at the front and center of the debate.

Daily proceedings at the Ontario legislature were brought to a halt last week due to a contempt motion against Energy Minister Chris Bentley, a motion that took precedence over daily routine proceedings.

PC MPP for Cambridge Rob Leone brought forward the motion against Minister Bentley regarding the release of documents pertaining to the cancellation of two power plants in the Greater Toronto Area.

The Ontario government cancelled the Oakville power plant on October 7, 2010 and the Mississauga power plant on September 24, 2011. less than two weeks before Election Day in the province. The costs associated with the cancellations are significant: $190 million to Eastern Power for the Mississauga plant and $40 million to TransCanada for the plant in Oakville.

On May 16, 2012 the Estimates Committee requested documents on the cancellation of the power plants. Minister Bentley did not provide these documents.

Speaker of the Legislature Dave Levac on September 13 ruled that a prima facie breach of privilege was found. He said he would give the three parties in the legislature until September 24 to work out how to release these documents.

Minister Bentley released 36,000 pages of documents on September 24. Though the documents were released, the Opposition still moved forward with a contempt motion, as they believe not all the requested documents were released. Although is seems some documents were redacted, the Government disagrees and says they’ve done what was asked of them.

The Opposition parties, having the majority of the votes in the Legislature, voted in favour of the motion 53 – 50. The Standing Committee on Finance and Economic Affairs will now investigate and report back to the legislature on November 19, 2012.

The politics around this event is expectedly high. The tension in the legislature this last week did not go unnoticed. Media have been following this closely sharing their opinions such as Adam Radwanski’s take that the Premier’s indignation is only attracting more attention to the issue in the Globe and Mail and Christina Blizzard’s call for Premier McGuinty’s resignation in the Toronto Sun.

We await the findings of the committee, a committee with not only a significant task at hand but also an historical one. Never, in the history of the legislature of Ontario has an MPP been found in contempt.

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July 2012


AMPCO.org an Energy Resource for Ontarians

Summer is well underway and AMPCO has been busy ensuring our website is providing our members and Ontarians with the energy information they need.

We are updating our website with the latest information as a guide and resource for energy customers.

AMPCO’s Power Market Outlook has been updated with the latest data and analysis of our long-term forecast, for delivered electricity costs in Ontario.

Our popular Primer, Answering Customer’s Questions About Electricity In Ontario, is now available on the website with a more user-friendly online version coming this fall. The Primer will be updated continually to keep up with changes in Ontario’s electricity sector.

Our Regulatory Affairs section will continue to be updated as the cases we have been following move forward and new cases come about to report on.

Our Policy Briefs section includes an overview of the Ontario Government’s new Industrial Electricity Incentive program.

In addition to our media and news headlines section, we have added a Bulletins page for special reports and analyses of other jurisdictions’ policies and energy issues of interest to customers.

We will be updating AMPCO’s website throughout the summer and into the fall with up-to-date information for AMPCO members and Ontarians.

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June 2012


New Industrial Electricity Incentive Puts Surplus Power to Work

The Government of Ontario has announced a new industrial electricity incentive to use surplus power to attract new investors to the province to create jobs and foster economic growth. This is good news for Ontario. The risk and uncertainty of the forward cost of delivered power to industry in Ontario has provided a material impediment to new investment. By offering long-term rates, the government is removing that barrier.

Ontario experiences a significant number of hours where electricity system conditions reflect an increasing surplus of generating capability. In 2010 and 2011, on numerous occasions, these conditions gave rise to negative prices. These conditions also create operational challenges for the Independent Electricity System Operator. These challenges have led to discussions about technical opportunities to curtail nuclear, hydro and wind powered generators, with further talk about contract amendments and side payments.

The surplus power problem isn’t just limited to the few hours each year where negative prices occur. Ontario’s system load factor, currently at 69 percent, is projected to deteriorate over time. This will increase costs for all customers. The question of whether surplus power becomes a long-term problem all depends on the future demand for energy and the availability of base load generation. Unless something changes, Ontario may find itself in a position of surplus power for years to come.

We have recommended a policy approach that will:

(1) alleviate surplus base load generation by encouraging additional base load industrial demand,
(2) promote efficiency in the sector, reducing overall cost for all customers, and
(3) create opportunities for industrial investment and jobs.

Surplus base load generation is a big and growing issue in Ontario. While the solution is self-evident, Minister Bentley’s announcement is a sensible and well-crafted approach to engaging industrial investors in using the surplus power while we have it. The Ontario Government has made a significant move in the right direction.

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December 2011


Welcome to the new AMPCO website and blog

Today’s provincial energy policies – ranging from eliminating coal to creating a renewable energy industry in Ontario – have put electricity front and centre of the political landscape.

But with all of the political posturing, it can be easy to forget that our electricity system is a key input for the success of our major employers and industries. The economic engine of our province depends on sound energy policy and competitive power rates.

AMPCO’s goal is to ensure that the province’s electricity policy supports the economic success of Ontario’s large industrial companies.

We have launched our new website as a platform to tell this important story. It is the story of how we can build a stronger and more competitive Ontario by designing policies, rates and regulations that create an affordable and reliable electricity system.

On this site, you will find highlights of AMPCO’s sophisticated analyses – data that shows us how Ontario prices compares to other jurisdictions and where prices are going in the future.

We will keep you updated on the latest headlines and keep you informed of important policy developments and regulatory issues. This blog will give you the AMPCO perspective on the issues of the day.

Visit this site, follow us on Twitter and sign up for our RSS Feed. There are now more ways than ever to keep up to date on the energy file.

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