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Expect More Costly Surplus Power Exports: MPP Thompson


(Queen’s Park) – The energizing of a new transmission line from the Bruce Peninsula to Milton will only lead to more surplus power in Ontario being sold at a loss, says Lisa Thompson, MPP (Huron-Bruce)

“This line will accommodate more expensive wind power energy that we don’t need on the grid at this time,” said Thompson.

“This means even more periods where we’re producing surplus power, which we know we will end up selling at a loss to Quebec and the United States,” said Thompson.

The Auditor General revealed in his most recent report that we lost $1.8 billion selling off our unused power to the US and Quebec.

“Sadly, businesses in these jurisdictions will then use that cheap power to compete even harder against their counterparts in Ontario, which will result in more jobs going to Quebec and the US,” said Thompson. “We have already seen this with the recent announcement that GM will move production of some of their best selling models to the US where power is cheaper.

Much of the power that will feed into this transmission line is the most expensive power we produce – wind and solar power that costs two to 10 times the cost of producing that energy thanks to the province’s overly generous Feed-in-Tariff (FIT) subsidies. The above-market prices are locked in for 20 years under contracts signed by the province with wind and solar producers. The province wants to increase the capacity for wind and solar from the current 1,700 megawatts to 10,700 megawatts by 2015.

“With regards to surplus power, it is the one thing the Auditor General tells us is driving up hydro rates for Ontario families and businesses is soon going to get six times bigger,” said Thompson.

“This development enables Dalton McGuinty to make you pay even more for your electricity.”

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