Oakville Power Plant Cancellation $40 Million

So the Oakville power plant cancellation is only going to cost $40 million, way less than the Mississauga cancellation and will be located near Bath. In case you are wondering where Bath is, it is close to Kingston, near Millhaven Maximum Security. So much for Dalton McGuinty's earlier promises to ignore NIMBYism.

Here's an article from the National Post about the cancellations and at the end, mentions the problems of Ontario producing too much power, but guaranteeing prices to renewables:

The Independent Electricity System Operator said two weeks ago that “more than 3,000 megawatts (MW) of capacity will be added to the grid” over the next 18 months. Half of that will be renewables, which by early 2014 will bring the total of wind and solar capacity in the system to 4,800 MW. But the IESO also said that total energy consumption is “forecast to remain flat in 2012 before shrinking slightly in 2013,” due to a weaker provincial economy, conservation initiatives and other factors.

he province pays $135 per megawatt of wind energy, as mandated by the Green Energy Act.

The combination of increased supply and reduced demand means that Ontario will export more electricity, which would be a fine development if the province was recouping its investment. But it is not and it’s not close. On Monday, a breezy day in which wind energy accounted for a relatively robust 1,456 MW of capacity at 6 p.m., Ontario was exporting more than 1,700 MW, at market prices, at the exact same time. The province pays $135 per megawatt of wind energy, as mandated by the Green Energy Act. The market price of electricity at 6 p.m. on Monday: $16.50 per MW. This isn’t an anomaly, either. In July, for example, Ontario was exporting an hourly average of more than 1,300 MW. The average market price for July was about $33 per MW.

Watch for high global adjustment charges on your hydro bill in the fall.