RESIDENTIAL POWER RATES TO INCREASE AS MUCH AS 47% BY 2015

And most of it due to the Green Energy Act's Feed-in Tariff program so says a new report.

Ontario Electricity Total Bil Impact Analysis, August 2011 to July 2015 was prepared for the
Canadian Manufacturers & Exporters by Aegent Energy Advisors Inc.

It is available as a PDF on line here.

It is a must read.

For residential consumers they conclude:

Based on the forecast total unit cost increase and depending on the reference
unit cost, by early 2015, residential consumers would see their total unit cost
rise by 38% - 47% (over the significant increase already experienced in 2010).
This is equivalent to an average, annual, compounded increase of 6.7 - 8.0%
(again, over the significant increase already experienced in 2010).

For commercial consumers:

Based on the forecast total unit cost increase and depending on the reference
unit cost, by early 2015, non-residential consumers would see their total unit
cost rise by 47% - 64% (over the increase already experienced in 2010). This is
equivalent to an average, annual, compounded increase of 8.0% - 10.4% (again,
over the increase already experienced in 2010).

The cause of this increase is shown in the table on page 6 reproduced here:

Cumulative increase in Millions $	2011	2012	2013	2014	2015	% increase
Feed-In- Tariff (FIT)	481	963	1,444	2,646	3,848	700%
Renewable Energy Standard Offer Program (RESOP)	-	110	220	330	330	200%
Renewables (other)	-	7	36	66	96	1271%
Bruce Power (existing)	14	29	43	58	74	429%
Bruce Power (new)	-	377	404	443	461	22%
OPG	234	304	166	166	237	1%
Natural Gas	57	86	111	111	192	237%
Non-Utility Generators (NUGs)	94	197	158	258	170	81%
Conservation and Demand Management (COM)	105	187	226	265	267	154%
Transmission	189	299	505	704	1,012	435%
Distribution (non-Green Energy tlt)	80	163	206	249	293	266%
Distribution (Green Energy tlt)	156	310	465	615	759	387%
total	1,411	3,032	3,986	5,911	7,739	448%
The cumulative total dollar increase from 2011 to early 2015 is $ 7.739 billion. Note: The % increase was added, did not show in the original document.

Notice the Feed-In Tariff dominates the share of the increased costs of providing power. Include all costs of "green" energy combined and they take up 66% of the coming increase.



What is disturbing is this report claims, with justification, that demand will stay flat up and through 2015. So increased costs big time, more than $7 BILLION, but not more consumption.

Guess who is expected to pay for this.




With a 47-65% increase in power costs for business, that is going to drive business out of the province and at the same time increase the costs of every single item you buy that has this cost added in. Thus you, the consumer, are going to get a double whammy, as I predicted in the first month of this blog.