Mark Lamey
The Gazette
June 28, 2003

Temperatures in the 30s and high humidity meant money in the bank for Hydro-Québec this week, as the energy giant cranked up exports to heat-stricken Ontario and the U.S. northeast.

With air conditioners operating full tilt this week, Ontario was pushed to the brink of imposing brownouts or rolling blackouts to contend with surging demand for electricity.

Demand for power exceeded 25,000 megawatts on Thursday, forcing the province to supplement its energy supply with 3,500 megawatts of power bought from outside sources, including Quebec.

The timing is good for Hydro-Québec, which experiences peak energy demand during the winter when the vast majority of Quebecers rely on electric heating.

The utility can generate up to 36,000 megawatts of power, but usually requires between 17,000 and 20,000 megawatts of that to fill domestic needs during the summer.

The rest is sold on the spot market, where prices rise and fall hourly according to demand.

It’s a money maker, said Tom Adams, executive director of Energy Probe, a national consumer and environmental advocacy group that monitors the energy sector.

But exports could make even more money if Hydro tightened up its operations.

That would mean cutting off sales of cut-rate power to the province’s industrial sector and persuading consumers to use natural gas or oil for home heating, to ensure a steady supply.

"Ontario would be happy to pay good prices for Quebec hydro, if it could get a ready supply," Adams said. "Too much production is tied up with smelters who pay 3 cents a kilowatt hour, when the market rate is 6 cents."

There were days this week when Ontario paid as much as 50 cents a kilowatt hour for domestic production, Adams said.

"It is a huge commercial opportunity for Quebec, but the more money it throws away on baseboard heaters and smelters, the fewer commercial opportunities for exports there are."

Ontario Premier Ernie Eves said yesterday he plans to meet Premier Jean Charest in a bid to revive plans for a 1,200-megawatt line between the provinces.

The plan was shelved when Hydro-Québec said it was not sure it would be able to ensure a steady supply of surplus energy.