Paid to use Ontario Surplus Electricity


Ontario's surplus power giveaways could be nearing end

The days when customers in New York or Quebec get paid to use Ontario electricity may be drawing to a close.
The Independent Electricity System Operator will consider halting the practice when its board meets next week should save Ontario electricity ratepayers — who now collectively pick up the bill for the payments — about $10 million a year.

While out-of-province customers will no longer enjoy the "negative prices," big industrial customers inside Ontario would still be able to use the better-than-free power when it's available.
"This rule would eliminate those negative price exports, so in essence you're not paying someone else to use your power.
Paying customers to use power sometimes happens when Ontario Has surplus power.Nuclear power plants and some of the big hydro-electric stations tend to churn out the same amount of power all the time, no matter how low demand falls.
The market price can collapse to zero — and occasionally below — which means some customers are getting paid to use power.
The give-away prices are not enjoyed by Ontario  household consumers 
who either continue to pay the regular price, or whatever price they have contracted for with a retailer.Give the hard pressed Ontario Taxpayer a  break ------- heaven's no that would be heresy.
The cost of paying some customers to take the surplus power is added back into the system through the "global adjustment." It's a surcharge that's included in the regulated price, but added as an extra to the bills of customers who have retail contracts.

The proposal to cut off negative prices for out-of-province customers was hotly debated on an advisory panel to the IESO. In fact, it voted narrowly to continue the practice, warning that ending the payments could lead to even bigger power surpluses.
Bigger surpluses could force some nuclear reactors to shut down to keep the system in balance. Once shut down, it takes a reactor several days to restart. That can lead to shortages and higher prices if demand rebounds quickly. Rebound where? Ontario's manufacturing has been in the dumpster for a long time. People are moving out of the Province not into it. So where is the rebound?

Staff at the IESO rejected the advisory panel's advice, and have recommended ceasing the practice of paying customers outside Ontario to soak up surpluses.

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