mknox
Well-Known Member
Just playing devils advocate here, but where is the incentive for the utility to want to balance their load when they can just pass the costs on to us and make more money during On Peak hours by raising prices?
Technically, there is no reason, but politically, there is a huge one. The majority (but not all) of Ontario's generation fleet is owned by Ontario Power Generation (OPG) whose sole shareholder is the Province of Ontario. OPG maintains nuclear and hydro for baseload generation, and uses gas peaker plants (often under contract to the IESO) to handle the spikes... and those spikes are getting much more severe as intermittent solar and wind becomes more prevalent. As you can imagine, it is very expensive to build a power plant that only runs a few hours a year, and those costs would get passed on to consumers in the commodity charge. There is also an impact on transmission and distribution assets which have to be built to carry the highest peak demand, even if it only occurs for one hour a year. It is much less expensive to fund Demand Response programs than to build expensive plants that sit idle for most of their lives.
- - - Updated - - -
However, the utility has to purchase that power from the U.S. at a very high rate. So it would be advantageous to them to not have to purchase electricity during very high usage.
Not so much any more. Ontario has been in a surplus position for some time now such that our exports are often sold when there is already a glut and prices can get very low. This is an interesting site if you're interested in Ontario's supply mix.
- - - Updated - - -
Isn't growth good for a business?
Sure, but do you want growth in the building of traditional power plants or do you want it in the development of Smart Grids, battery storage, renewables, conservation and the like?