The following is the entirety of a news release from Niagara-on-the-Lake Hydro Inc. (NOTL)
Shrewd observers may realize, at the end, this local distribution company (LDC) delivers power to it's typical customer far more economically than many Ontario LDC's.
It is clear why - perhaps consumers of other LDC's should send this to their LDC and the Ontario Energy Board to ask why NOTL is not one of many organizations publicly challenging the Energy Minister.
December 09, 2015 06:00 ET
NOTL Hydro Board challenges Minister of Energy to Debate
Niagara-on-the-Lake Hydro Provides 11 Recommendations on Reducing the Cost of Electricity
NIAGARA-ON-THE-LAKE, ON--(Marketwired - December 09, 2015) - The Board of Niagara-on-the-Lake Hydro would like to invite and challenge the Minister of Energy to a public debate on the historical, present and future plans on how to get the cost of electricity down and more manageable for the average consumer. Discussions and input from all interested parties are welcome.The recently released Report of the Ontario Auditor General (AG report) has highlighted significant mismanagement of the electricity industry in Ontario that has substantially increased the cost of electricity to our customers. To reduce the current and future cost of electricity, it is clear that immediate and drastic actions are required.
As a local electricity distribution company, Niagara-on-the-Lake Hydro deals directly with the electricity consumer and sees the challenges the high prices are causing. Niagara-on-the-Lake Hydro therefore recommends the following immediate actions to assist our customers.
- Immediately cancel the FIT and MicroFIT programs and immediately cease signing any new contracts. We cannot afford any more above market costs to be built into future pricing.
- Calculate and transfer the present value of the excess pricing in the existing FIT and MicroFIT contracts to the Ontario Electricity Financial Corporation (OEFC) in a manner similar to that done with Ontario Hydro and the Non-Utility Generation contracts at the time of the market opening. This would remove these costs from the current pricing.
- Re-instate the Debt Retirement Charge for residential customers. It was never right just to eliminate this for residential and not business customers. This charge will be needed to pay down the above excess pricing cost (Recommendation #2) for years and decades to come. Annual transparent reporting from the OEFC will be required to show how this new debt is being paid down.
- Stop all provincial Conservation and Demand Management (CDM) programs. This will save $300 million per year per the AG report. CDM Is not needed in a surplus environment and consumers will undertake their own CDM activities based on market prices.
- Review the pricing of exports. While we have no experience in this area other experts have suggested that better prices could be obtained on the excess generation we are forced to export through more pro-active management of this activity.
- Eliminate the Meter Data Management and Repository (MDM/R). This is a redundant service whose cost is part of the Wholesale Market Service Rate on the customer bill. Local distribution companies get the needed information elsewhere.