The Ontario Energy Board: Transparently Opaque!

Parker Gallant takes on the OEB over their jargon in presenting of rate hikes.

The Ontario Energy Board has an impressive Mandate which states; “The Ontario Energy Board oversees the province’s electricity and natural gas sectors through effective, fair and transparent regulation and in accordance with the objectives set out in the governing statutory framework.”

The foregoing evokes a warm and fuzzy feeling particularly where the OEB speak to “fair and transparent regulation” however the OEB’s current view of “fair and transparent” is not quite fair or transparent. A recent example of that is their announcement that time-of-use (TOU) rate increases would be “approximately $3.99 on the “Electricity” line, or about 3.3% on the total monthly bill, for a residential consumer with a typical consumption pattern who uses 800 kWh per month.”

If that “typical” residential consumer understands his bill he will discern that the “electricity line” typically represents about 45% of his bill with the balance (55%) made up of the “regulatory”, “delivery” and “stranded debt charges” That 3.3% increase is in reality a 7% increase in the electricity line and with the TOU rates reset every 6 months the 7% increase is a 14% annualized increase. The “trickle down” effect is also not dealt with in the OEB’s announcement as an increase in the “electricity price” increases the HST payment.

For the OEB to cite transparency in their “Mandate” then put out an announcement that seeks to trivialize or hide the actual increase indicates they are either being directed to do so or, their reputed transparency is Orwellian.

The OPA: Gone without the Plan

The OPA: Gone without the Plan

Today the Minister of Energy, Chris Bentley announced the merger of the OPA with IESO that will somehow save the ratepayers and taxpayers $25 million dollars in the electricity sector. To put that in perspective that would be about 10 days of gross revenue we will pay to Samsung when they have installed their 2500 MW of wind and solar generation and approximately .2 % of the approximately $15 billion gross revenue ratepayers make annually to ensure they can turn on their lights in the Province.

Ontario Merging Energy Agencies

Here’s the official words from the government.  

They didn’t note the global adjustment was $110 million higher than it had ever been before in March – which would make $25 million appear to be insignificant.

The release takes credit for benchmarking studies, which  I recollect as being demanded by the Ontario Energy Board, independent of meddling political intervention, years ago.

Ontario Merging Energy Agencies:

The new agency would eliminate duplication and save ratepayers up to $25 million a year.

It would allow for a more seamless and co-ordinated approach to planning as Ontario integrates new renewable energy projects into the grid and shuts down its last coal-fired plants by the end of 2014.

You could read the full release here

Ontario Liberals set to announce merger of energy-planning agencies

 Breaking News

Ontario Liberals set to announce merger of energy-planning agencies :

The Ontario government appears set to announce a merger of its two big energy-planning agencies.

Sources say that Energy Minister Chris Bentley, who has scheduled a press conference for Wednesday morning, will unveil a merger of the Ontario Power Authority and the Independent Electricity System Operator.

While the merger is likely to produce limited savings, it stands to have considerable symbolic value as Dalton McGuinty’s Liberals try to show their commitment to getting the province’s troubled finances in order.

read the article at the Globe and Mail site: