The Politics of Power

I’ve written previously about the Ontario government’s Green Ontario Fund ($377 budget), and the accompanying lame* approach to this energy conservation initiative. While I applaud the plan to devote carbon-pricing revenues to energy conservation, I think our governments, national and provincial, are way too timid in their approach.

As an example*, I got a quote to install a new gas furnace ($3,000+); the Green Ontario rebate is $500. This old house could benefit from upgraded insulation in the walls – rough estimate up to $15,000 – possible rebate $1,280, based on total square feet. Still, $200 million more is allocated to school retrofits and $85 million for social housing upgrades.

It’s obvious that countries with greater exposure to solar radiation have recognized that sunlight is literally gold. India and Australia, for instance, are making massive investments in solar energy and battery storage solutions. Canada’s weak and haphazard approach means that we will be importing this technology for decades, as we have already with wind power.

One project that I’ve just read about emphasizes the difference. South Australia, which is already the location of the world’s largest grid-storage battery installation, courtesy of Elon Musk, is proposing an even more spectacular solar project – Continue reading


Councillor Seeks InnPower Sale

UPDATE: One councillor, Richard Simpson, supported Mr. Daurio’s motion (below). Deputy Mayor Dollin suggested he was making the motion for ‘his friends’ at Alectra – an accusation Mr. Daurio attributes to the fact that he relied on financial figures provided by Alectra. Dollin also suggested that a $25 million charge was made to Barrie when joining Alectra – something Mr. Daurio describes as “an opportunity for Barrie to invest in the purchase of Brampton hydro and earn an additional $5m annually in interest and dividends forever!”. Daurio contends that “Alectra had promised a 14% rate reduction, and interest and dividends and other savings of $4m annually, while InnPower promised a rate increase and little/no dividends for  the next 6 years — a loss to Innisfil of $8m annually, and $48m over the next 6 years.” Under existing procedural rules, the subject will not be revisited at Council for a year.

This Wednesday, June 7, Councillor Stan Daurio is moving a motion at Innisfil Council “that the Board of InnPower be requested to explore options to sell or partner with Alectra and/or other utilities…”.

The saga of missteps at InnPower is already well known: an ill-fated attempt at joint ownership with Edmonton-owned Epcor Utilities Inc.; an overly ambitious investment in new facilities based on the assumption of leasing space to Epcor; an urgent need for alternative InnPower financing when the deal collapsed; a six year suspension of dividend payments to Innisfil; loans from the Town and Simcoe County plus an application for a rate increase to cover the cost of mandated expansion of service to newly designated urban areas.

In light of the current popular uproar over electricity rates, Councillor Daurio argues it would be more beneficial to sell our local utility to Alectra, which was formed from the merger of municipally-owned Enersource, Horizon Utilities and Powerstream plus the acquisition of Hydro One Brampton as of February of this year. Headquartered in Mississauga, Alectra’s service area encompasses 1,800 square kilometres and serves nearly a million customers in 15 communities from Alliston to St. Catharines and Hamilton to Vaughan. Alectra is now “the second largest municipally-owned electric utility by customer base in North America”.

Councillor Daurio puts the minimum value of InnPower at $40 million (2015 estimate) and expects a dividend return of 4.4 to 4.5% or $1.8 million annually. Additionally, the former Powerstream told Council in 2015 that a merger would lower electric bills in Innisfil by $23/month. This would be equivalent to savings of $4.4 million annually for 16,000 Innisfil households.  Continue reading

Our Electric Future – Renewable

It should be pretty clear by now that every aspect of life will be increasingly electrically driven in the near future. We’re not just talking about automobiles (there are something like 52 different models of electric and hybrid vehicles offered now). We might be plugging in toilets like the Propelair system ( now being sold in Britain that uses water and compressed air for a 1.5 L flush. Computers and 3D printing are making huge advances in manufacturing: “In the next five years we will see what was seemingly science fiction-type research quickly make its way into mainstream processes in almost every industry.” (The Great Disruption, R Smith, D Free, 2016) So it is equally important that our electric resources be as affordable as possible.

Various missteps have led us to the situation where the delivery of electricity is more expensive than the power itself. While public outrage has grown over the cost of electricity in Ontario, there are conflicting ideas about how to correct the situation. The Ontario government is reconsidering how it buys electricity by becoming “technology agnostic”, i.e. not favouring any particular technology. It also has doubts about time-of-use pricing. Ontario’s Energy Minister went on to say:

People should have the flexibility to sign up for electricity plans that better suit their needs just like they can shop around for different telephone and Internet service plans”.

Wait! What? The people who brought us the useless basic ‘skinny’ cable TV packages and the world’s most expensive mobile phone rates are the model for future electric supply? Mobile phone and internet packages are like a corn field maze – it may look like a lot of choice, but in the end there is only one way out! That’s because these plans are not consumer driven but profit driven. ‘Bundled’ services show the price of everything, but not the price of anything. More reason for us to worry about the ongoing sale of Hydro One into more private ownership.  Continue reading

Recent Innovations, Both Near and Far

I like to read about innovative projects being initiated in other jurisdictions. It’s encouraging to hear about progress toward technological change that will reshape our world not too many years from now. Some of the surprising innovations include cars that drive themselves, building structures that power themselves, and roads that illuminate themselves.

A recent article about the Canada West Foundation (CWF) focused on achievements in these Canadian cities: Continue reading