ONTARIO ELECTRICITY RATES
Ontario electricity rates have been in the news in recent months. The Ontario Chamber of Commerce has stated that high electricity rates will cause businesses to close in the coming years.
Throughout the past decade, Ontario’s electricity rates have increased significantly to become the most expensive jurisdiction in North America. One of the main drivers for this increase was caused by eliminating one of the least expensive sources of electricity generation, coal. At the moment, Ontario is the only jurisdiction to fully eliminate this form of generation and as a result of this, significantly more expensive sources of electricity such as wind, solar, and biomass have been added as replacement. This September, Ontario’s government has made a decision to invest in refurbishing the aging nuclear plants. Starting with Ontario Power Generation Darlington units in September 2015 and then in August 2016, Bruce Power nuclear units will be taken offline in tandem. Other more costly sources of generation will be required to fill the supply void of these nuclear plants, thus, continuing to put upward pressure on the Hourly Ontario Energy Price (HOEP).