Ontario’s First Year of Cap and Trade

On January 1st of this year, Ontario’s Cap and Trade program came into effect. Cap and Trade is a government-mandated, market-based mechanism to help mitigate climate change by setting a hard cap on greenhouse gas emissions while allowing businesses flexibility in terms of how they meet their caps. Those companies that reduce greenhouse gas emissions

Ontario Natural Gas Consumers the Winners in Pipeline Battle

  Big changes are happening in the way Ontario consumers purchase natural gas. Due to increased competition and lower pipeline tolls, natural gas producers from Alberta and the US are competing to provide bargain prices to the Ontario market. Natural gas production in Alberta has traditionally been transported by way of the TransCanada PipeLines Limited (TCPL). But with shipping options increasing, all Ontario and Quebec utilities are

Mid-Sized Ontario Businesses Have An Opportunity To Cut Their GA Costs

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…

Curtailment Season In Ontario Begins

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. 

Dawn – Natural Gas Storage Gateway To North America

On a Union Gas direct purchase contract, accounts must balance at least 3 times per year:

  1. At contract year end
  2. Winter checkpoint: February 28
  3. 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.

Renewable Energy Projects Cancelled

“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 Begins June 1

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.

Peak Electricity Prices Rise in Ontario

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.

Incredible fire destruction in Fort McMurray

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