Last September the Ontario government announced that the Industrial Conservation Initiative (ICI) program will expand to include over 1000 more Ontario businesses. The ICI program was designed for higher usage manufacturers. For high usage manufacturers, it is a way to lower their global adjustment (GA) cost. The GA has ballooned to over $12 Billion per year and represent between 40-60% of a typical electricity bill. When the program was first introduced in 2011 the minimum peak requirement was 5 MW. A few years ago, the minimum was reduced to 3 MW and last October, amid the rising GA cost…
Large industrial gas users have an option to negotiate favourable rates in exchange for certain commitments such as the option to curtail. An interruptible gas delivery service contract allows gas flow to be interrupted at the option of the utility during periods of peak demand.
US natural gas in storage increased 30 Bcf to 4047 Bcf in the week ended November 11 said the EIA in their weekly storage report issued Thursday. This is an all-time high. The reported injection was above last year’s 26 Bcf build for the same week and above the 3 Bcf five-year average. Natural gas
On a Union Gas direct purchase contract, accounts must balance at least 3 times per year:
- At contract year end
- Winter checkpoint: February 28
- Fall checkpoint: September 30
Currently the Dawn storage facility in southwestern Ontario is near capacity (posted max capacity is 279 Bcf). This is causing the utility – Union Gas – to currently restrict activity. Typically storage injections and withdrawals occur seamlessly every day. Now however, only certain types of interruptible storage activity is allowed.
Your natural gas bill is going up by $66,000. If your business uses 2,000,000 m3/year, the new 3.3 cent cap and trade tax beginning January 1st, means your annual natural gas costs will be $66,000 higher in 2017.
“Ontario Government scraps plan for $3.8 Billion in renewable energy projects.” Ontario has had too much electricity generation for years. Wind and Solar projects, combined with a general oversupply of electricity, has led to an ever increasing Global Adjustment(GA). The GA may not go down to a reasonable level in the near future, but maybe it will stop its relentless pace upwards.
Hurricane season officially begins on June 1 and ends November 30. The Atlantic hurricane region includes the North Atlantic Ocean, Caribbean Sea, and Gulf of Mexico. The National Oceanic and Atmospheric Administration just released their hurricane forecast for the six-month season. It is expected that it will be a near-normal hurricane season with 4 to 8 Hurricanes, including 1 to 4 major hurricanes.
On May 1st time-of-use (TOU) Ontario electricity rates increased with on-peak now at 18 cents per kWh. According to a government spokesperson, the increase is due to a mild winter resulting in lower usage. Not a very good message to electricity users that are already paying a premium because of green energy initiatives. Although most businesses are not billed on TOU, similar price increases are occurring with Ontario businesses. While the electricity commodity price stays low, the overall bill is going up as other line items such as the GA increase.
I hope everyone can assist the people of Fort McMurray any way they can to help them get through this tragic event. The fires in Ft. McMurray are likely to expand into a weekend risk. The facilities being shut down are due to precautionary measures and not due to direct fire hit but will still
A recent news item by Forbes begins with the statement “Natural Gas Prices Should Double Over The Next Year”. The article makes some good points: Shale gas production has stopped growing and conventional natural gas has been declining for the past 15 years There are currently only 92 rigs drilling for gas compared to 1600