CNSC Announces Decisions on the Pickering ‘A’ Environmental Assessment

CNSC News Release
CNSC News Release
February 16, 2001

Following public hearings held on October 5, 2000 and December 14-15, 2000, the Canadian Nuclear Safety Commission (CNSC) today announced its decisions on an environmental assessment of Ontario Power Generation’s proposed return to service of the four reactors at the Pickering ‘A’ Nuclear Generating Station. The environmental assessment was prepared in accordance with the Canadian Environmental Assessment Act (CEAA).

Environmental Assessment
The Commission, in making its decisions, considered the information contained in the environmental assessment Screening Report, in related submissions from CNSC staff, Ontario Power Generation, and intervenors at the public hearings held by the Commission, and in the comments received from the public throughout the year-long environmental assessment process.

The Commission decided that the proposed return to power operation of the four reactors, taking into account the mitigation measures described in the Screening Report, is not likely to cause significant adverse environmental effects.

The Commission also decided that public concerns expressed during the environmental assessment process do not warrant a referral of the project to the Minister of the Environment for further consideration by a mediator or review panel.

The above decisions on the environmental assessment do not permit the reactors to return to power operations. These decisions only permit the CNSC to proceed to consideration of the licence application under the Nuclear Safety and Control Act. The licence application will be considered under the CNSC’s normal public hearing process.

A Record of Proceedings, including the Reasons for Decision are available on the CNSC web-site at http://www.nuclearsafety.gc.ca or by contacting the CNSC.

The CNSC regulates the use of nuclear energy and materials to protect health, safety, security and the environment and to respect Canada’s international commitments on the peaceful use of nuclear energy.

Posted in Nuclear Plant Security | Leave a comment

Switchgrass

Catherine Clark, Producer
CBC-TV Marketplace
February 13, 2001

The big chill this winter is the cost of heating your home. The prices of natural gas, oil, electricity and propane have all skyrocketed. The financial strain has some homeowners looking at new ways to heat their homes. And if agricultural scientists are right, all you need to reduce your home heating bills is an acre of land.

The way energy specialist Roger Samson sees it, a long, straw-like grass could be the home heating fuel of the future. Switchgrass has no has no other known commerical use.

“We wanted something that even a buffalo wouldn’t eat,” Samson told Marketplace.

Switchgrass is native to North America. It grew on the great plains with the buffalo and it has a proven track record as an energy source.

In Iowa, a generating station uses the grass to power its plant. In Ottawa, a company has been experimenting with switchgrass to produce ethanol.

Now, with the price of fossil fuels going through the roof, agricultural scientists see switchgrass as a new way to heat your home…for less.

Samson has been studying switchgrass as a home heating alternative for ten years.

“It’s a plant that likes to hang around when times are tough,” Samson explains. “This plant has root systems that are eight to ten feet deep. It’ll take a drought, it’ll take flood. And it doesn’t require a lot of nutrients to grow.”

The switchgrass is made into pellets that are burned in stoves and furnaces to produce heat.

The plant is easy to grow but it’s not easy to burn. Unlike wood, switchgrass creates a sticky residue when it burns that gets in the way of the combustion process. It can’t be burned in a regular wood stove or furnace.

Mark Drisdelle’s Montreal company has developed a stove that will burn switchgrass pellets. But it costs about $3,000. He suggests the stove would pay for itself in three or four years because heating your home with switchgrass should cost about a third of what you’d pay for gas, oil or electricity.

Scientists say an acre of switchgrass made into pellets will heat an average Canadian home for a whole year. They also say there’s available land to produce enough of the plant to make it a viable heating alternative.

Mark Drisdelle’s business partner, Claude LaPointe, admits switchgrass is not for everyone. LaPointe heats his house with wood and switchgrass pellets. His electric furnace sits idle in his basement. It used to heat his 2,000 square foot Montreal home for $1,200 a year. The pellets heat it for $400 for the whole year.

“There is more work,” LaPointe admits. “I have to bring in the bags and load up the furnace every day or every second day, so there is a little inconvenience. The savings are there, but there is a little bit of maintenance.”

Roger Samsonsays switchgrass is for people who are concerned about their household budgets and are concerned about out of control energy costs. He calls it a new energy option that will become more efficient and more economical in time.

Visit the Marketplace website for more information, links, and video clips.

 

Posted in Renewables | Leave a comment

Conservation best way to save on heating bill

Ellen Roseman
Toronto Star
January 31, 2001

The cost of heating your home is going up sharply because of a shortage of natural gas.

Instead of paying $175 in January, the average household will pay $225, says Ian MacLellan, vice-president of Energyshop.com, an Internet-based information and comparison service.

You will see an increase in your next bill even if you opted for equal monthly payments. Enbridge Consumers Gas is passing on the higher cost now rather than making a one- time adjustment at the end of the heating season.

Only those who signed long-term gas contracts will avoid the hit.

About 1 million out of 2.5 million Ontario households are covered by long-term contracts. Most are paying in the range of 15 cents a cubic metre, MacLellan says.

Enbridge raised its price to 24.4 cents on Jan. 1. Last week, it notified the Ontario Energy Board that it will apply for another rate increase for all customers not on a fixed-price contract.

Should you sign up for a long-term contract today? It depends on how long you think gas prices will stay high.

If you expect the shortage to ease soon, Sunoco Inc. is your best bet with a three-year fixed rate of 26.9 cents.

Otherwise, you can lock in a five-year rate with Enbridge Home Services at 26.7 cents, Direct Energy Marketing Ltd. at 28.9 cents or Ontario Energy Savings Corp. at 30.5 cents.

“My recommendation is don’t sign now,” says Tom Adams, executive director of Energy Probe, speaking at a seminar this week sponsored by Enbridge.

“Gas is a highly cyclical commodity and we’re at a historical peak. According to the current futures market, traders are expecting a 50 per cent drop within the next 15 months.”

 

Rather than going out on a limb to guess where gas prices are heading, there are cheaper and easier ways to save money.

I’m not talking about high-cost solutions, such as replacing your furnace or installing energy-efficient windows, but things you can do for $100 or less.

Here are top tips from Mac- Lellan and Enbridge vice- president Janet Holder:

  • Set back the thermostat at night or when away from home. By lowering the temperature just 1 degree, you save 2 per cent of your annual heating bill. That’s an average $80 a year. 
  • Buy a programmable thermostat this winter and you can get a $15 rebate from Enbridge or Union Gas. These devices cost $50 to $100. With the rebate, your payback is about 1 year. 
  • Open the drapes when it’s sunny and close them at night. 
  • Check for air leakage, which can cause 30 to 40 per cent of your home’s heat to be lost. Use a candle or feather to check for drafts around windows, doors and baseboards. Caulk or weatherstrip the cracks. 
  • Seal electrical outlets and switches with foam gaskets. 
  • Heating hot water makes up 30 per cent of your bill. Lower the temperature setting on the hot water tank. It’s probably higher than you need anyway. 
  • Install low-flow shower heads and aerators on faucets. 
  • Put new washers in dripping taps. 
  • Insulate pipes leading from the hot water tank. Pipe insulation is precut and snaps into place. Put an insulating blanket on your hot water tank. 
  • Wait till you have a full load of clothes or dishes to wash before starting the machines. Wash clothes in cold water whenever possible. 
  • Clean or replace the furnace filter every three months during the heating season. Keep a log so you’ll know when it’s time. 
  • Buy an alarm that lets you know when the filter needs replacing. You can order one for $9.99 (U.S.) from www.improvementscatalog.com. Search for FilterTone.

Enbridge has an energy-saving kit with 4.9 metres of weatherstripping, light switch and electric receptacle gaskets, the rebate coupon for a programmable thermostat and a candle to help you find air leaks and drafts.

The kits are available free from Enbridge stores and municipal offices.

Finally, the federal government will send out $250 cheques to households and $125 cheques to singles, starting this week. It’s part of the promised relief for heating expenses announced last fall.

You’ll get help if you’re eligible for the January, 2001, goods and services tax credit. Make sure the Canada Customs and Revenue Agency has your current mailing address so you get your cheque as quickly as possible.

 

Posted in Natural Gas Utility Regulation and Commodity Deregulation | Leave a comment

Energy policy stymies $200-M project

Mac Trueman
St. John Times Globe
January 31, 2001

J.D. Irving Ltd. may place a $200-million Saint John construction project on hold because it looks like New Brunswick’s new energy policy doesn’t go far enough in deregulating electricity, says the company.

At first glance, the Irving company’s plan to build a 250-megawatt generating station on Bayside Drive seemed to have been made possible by the energy strategy Natural Resources and Energy Minister Jeannot Volpé unveiled yesterday.

The proposed natural gas-fired plant would supply electricity to the Irving Paper Mill, which company spokeswoman Mary Keith says uses more energy than all Prince Edward Island.

But to bring its energy costs below what the company is paying now to NB Power, Irving would have to build its plant 33 per cent larger than what the paper mill needs. The company would then have to sell its surplus power on the open market in the United States.

The good news for Irving is that Mr. Volpé’s new regulations will for the first time allow private companies in New Brunswick to generate electricity and sell it to other companies – and early news stories about that part of the policy had Ms. Keith expressing cautious optimism yesterday. Until now, companies had to consume their own generated power or else sell it to NB Power for a price equal to the power corporation’s own estimated cost in generating the same amount of electricity.

But buried in the 93 pages of Mr. Volpé’s document is a catch that has Ms. Keith’s company concerned, if not downright frustrated.

The transmission lines linking New Brunswick to neighbouring states and provinces may not be big enough to serve many of the customers and suppliers in this province who may want access to the open energy market, the paper suggests.

These lines are big enough only to let municipal power utilities in Saint John, Perth-Andover and Edmundston buy from the competitive market, it says.

“Making competition available to more customers is likely to be problematic until additional intertie capacity is built,” the document states. It goes on to say the province will direct NB Power to seek ways of expanding the capacity.

If that’s the case, Ms. Keith argues, then her company has permission to generate surplus electricity and sell it on the open market. It just can’t ship it.

“Under these circumstances, it’s very difficult to confirm to you at this point that we would in fact be in a position to build the proposed $200-million power plant, or to make long-term commitments to natural gas, which would fire that power plant,” she said.

“Permission to generate without the ability to transmit excess power to market is only half the solution,” Bob Youden, the J. D. Irving vice-president, added later in a press statement.

Closer to home than the U.S. eastern seaboard, Saint John Energy may be interested in buying some of Irving’s surplus power, power commission manager Richard Burpee said yesterday. But just how interested he becomes will depend on NB Power’s transmission fees, its contract-termination fees and what arrangements can be made for backup in case the Irving plant went down, he said. And many of these issues will be decided by the Public Utilities Board, not by the new policy, he said.

Energy Probe denounced Mr. Volpé’s paper yesterday as “loosey-goosey jargon” that doesn’t solve any of the province’s problems with its power needs or with NB Power.

“There is no sign that the government is even aware of the problems that NB Power faces financially and operationally,” said Tom Adams, executive director of the watchdog group.

“This is a corporation with massive, crippling debt load, that is fully intending to go out and increase its debt. It wants to repower Colson Cove, it wants to re-tube Lepreau, it wants to add transmission lines.

“All that stuff is going to cost a billion, maybe more. Where are they going to come up with the money? And while they’re at it, they’ve got Mactaquac falling apart. The concrete’s chemically unstable.

“This utility’s got a lot of issues. But instead of grappling with the issues, the government said we’re going to take all the hard questions and leave it up to the [Public Utilities Board] to talk about.”

He said that if Mr. Volpé had serious intentions, his first step would have been to “come clean on exactly what NB Power’s current situation is,” including a report on its liabilities and an assessment of its assets, so his new policy could “be grounded in a sense of reality about what we’re dealing with.”

Mr. Volpé’s plan states that all of the power corporation’s future capital expenditures must first pass “a market test.” That’s easy when a private company wants to test the strength of a new project it wants to develop. It makes an initial public offering, and the financial market decides the value. But Crown corporations like NB Power don’t do things like that.

He warned that Mr. Volpé’s plan to cap power rates will not control the power corporation’s spending, because a Crown corporation can make up for reduced earnings by simply borrowing more. Banks hold private corporations responsible for the money they lend them, he said. But with a Crown corporation, “lenders never ask what you are going to do with the money, because they know the taxpayer is good for it.”

 

Posted in New Brunswick Power | Leave a comment

Energy policy jumbled, contains no logic

Dave Francis
Moncton Times & Transcript
January 31, 2001

An expert on the Canadian electric power industry says New Brunswick’s new energy policy is a hodgepodge of ideas without a common thread of logic to tie them together.

“This is not a plan, this is just a grouping of ideas,” said Tom Adams, executive director of the Ontario-based electric industry watchdog group Energy Probe.

Adams spent much of yesterday reading the 100-page energy policy, and told the Times & Transcript it is one of the most confusing documents on energy he’s yet to come across.

“This is just jargon without the ideas behind them,” he said.

Adams’ biggest complaint about the provincial government’s new energy policy is that it contains no mention of NB Power, nor what the province intends to do with the Crown corporation or its $3-billion debt.

“It’s not a statement of policy,” he said. “It’s a list of questions.

“There are way too many unanswered questions.”

Adams has long said he was concerned upon hearing the government would release an energy policy that did not identify its future plans for NB Power.

“If this is a serious document it needs to have an assessment of NB Power’s position,” he said. “New Brunswick’s biggest problem (in the energy sector) is that NB Power is bankrupt. It’s not acting in a financially-responsible fashion.”

Premier Bernard Lord and Energy Minister Jeannot Volpe said yesterday they will reveal their plans for NB Power within the next year, but that the energy policy sets out a game plan to begin allowing competition in New Brunswick’s energy sector.

Adams, however, said that aside from failing to deal with NB Power, the energy policy is like a game plan without rules. It suggests that some large industrial companies in the province will be allowed to start generating their own electricity beginning in 2003, and even selling power if they can find a buyer. The problem, Adams said, is there are no concrete answers as to what fees NB Power will charge for use of its transmission lines, or what penalties companies will pay for opting out of the Crown corporation’s system.

It appears that many of the regulations and fees will be established either by a “market design committee” yet to be created by government, or by the provincial Public Utilities Board. But Adams said those details should have been included in the policy released yesterday, because for the PUB to come up with all of that by 2003 will be an almost impossible job.

 

Posted in New Brunswick Power | Leave a comment

Natural gas heating bills to rise by $55 a month

Michael Friscolanti
National Post
January 29, 2001

The cost to heat a home in Ontario with natural gas will jump by an average of $55 a month — and the increase could last from three to five years, an energy analyst says.

“That’s going to be a big shock to a lot of people,” said Ian MacLellan, the vice-president of marketing at energyshop.com, an independent information service for energy consumers, who added that about 500,000 consumers, including 250,000 in Toronto, will see the increase on their February bill.

“That’s a big chunk.”

Mr. MacLellan, one of seven speakers at a forum presented yesterday by Enbridge Consumers Gas, said other providers, such as Union Gas, will soon be forced to raise their prices, too.

The looming increase comes only days after provincial regulators in gas-rich Alberta approved a 50% fee hike.

Panellists at yesterday’s forum said the main reason for escalating gas prices is simple: high demand versus a depleting supply.

Natural gas prices have risen 63% during the past six months and Enbridge has had to shift that cost to consumers, said Stephen Letwin, the company’s vice- president of energy, distribution and services.

“One of the reasons natural gas prices have increased so dramatically is that more and more businesses and families are making natural gas their energy source, putting a strain on supply and driving costs up,” Mr. Letwin said.

However, unlike Mr. MacLellan, Enbridge officials would not speculate on what the increase might be.

A particularly cold winter has not helped to keep prices down either, said Marie Rounding, president and chief executive officer of the Canadian Gas Association, which represents the country’s major gas distributors.

“Increases for the rest of the winter will be dictated by weather,” she said, adding that a vicious cold spell could push prices higher.

But Ms. Rounding said natural gas prices tend to be cyclical, and that they should start to dip as companies increase natural gas production. But when that dip will begin is still questionable.

Ms. Rounding believes it will take between 12 and 24 months, while Tom Adams, the executive director of Energy Probe, a group that promotes resource conservation, said it could drop by 50% in the next 15 months.

In the meantime, Enbridge is trying to encourage customers to cut costs by offering a $15 rebate on the purchase of any programmable thermostat and a $100 rebate for people who switch to high-efficiency heating systems.

 

Posted in Natural Gas Utility Regulation and Commodity Deregulation | Leave a comment

Food banks across Canada brace for impact of soaring natural gas prices

James McCarten
Canadian Press
January 21, 2001

Food banks across Canada are bracing for an increase in the number of people on fixed incomes looking for help as a result of the soaring price of heating fuel. Seniors, the disabled and people living on social assistance are among those expected to feel the brunt of a doubling in home heating bills over the last two years.

“We have heard some anecdotal stories from food bank users who have expressed concern about the increase in fuel costs,” said Chris Slosser of Toronto’s Daily Bread Food Bank.

“The general increase in prices has been on people’s minds and certainly has affected their pocketbooks.”

It’s still too early to say just how many more people are being forced to turn to food banks as a result of the increased cost of heating their homes, Slosser said.

But it’s a well-documented fact that when people are forced in winter to choose between heat and food, they will typically sacrifice sustenance in order to stay warm.

Some 125,000 people were visiting Daily Bread during the first three months of 2000, but by the end of the year that number had climbed to 140,000, Slosser said.

“Often, people who are on fixed incomes have a choice to make: they either spend their money on housing costs or on food,” he said.

“Anything that is increasing the cost of housing is going to cut into the money that’s allocated for food.”

It’s much the same story in Winnipeg, where an anticipated increase has yet to manifest itself, said Susan Swatek, the local food bank’s assistant executive director.

“We know there will be an impact; there can’t possibly not be one,” Swatek said.

“We’re talking seniors, we’re talking people on social assistance, and everybody who’s currently using a food bank would also be experiencing those sorts of problems.”

The concerns are especially troubling for senior citizens, who can be more susceptible to the ill effects of a poor diet, said Shirley Dmytruk, president of the United Senior Citizens of Ontario.

Older people also have additional expenses such as regular medication which can also become too expensive when the cost of heat increases, Dmytruk said.

“It’s impacting on me right now,” said Dmytruk, who’s currently paying 62 cents a litre for heating oil, up from 51 cents last year, an increase that translates into $100 more per month on her bill.

“It’s just gone wild; it’s gone beyond belief.”

In Ontario, natural gas rates have increased 58 per cent since Sept. 1999, according to Enbridge Consumers Gas, the province’s largest natural gas supplier.

The increase is primarily the result of higher demand for natural gas across North America as burgeoning industries use the clean-burning fuel for manufacturing and the generation of electrical power, which is also in short supply.

The recent opening of the Alliance export pipeline has also depleted the Western Canadian supply of gas by shipping it to the U.S., removing a bottleneck that has historically kept the bulk of Canada’s supply north of the border.

Happily, there are early indications that natural gas prices will be back to more reasonable levels by next year’s heating season, said Tom Adams of Energy Probe, a Toronto-based energy watchdog.

“The futures market is throwing up an expectation that prices will drop by about 50 per cent in the next 15 months,” Adams said.

“That is not a guarantee that prices are in for a big plunge, but it certainly is a good indication.”

It stands to reason, then, that now is not the time for homeowners to lock into a fixed-rate contract, Adams added. Instead, stopping drafts, installing a programmable thermostat and donning a sweater are probably the most sensible tactics.

 

In general, the high cost of fuels of all kinds, including gasoline, have made life difficult for retired people who have moved out of the big cities, said Dmytruk, who lives north of Toronto, near Orillia.

“I moved up to the country because it’s not as expensive to live here,” she said.

“But then comes the $100 increase on my heating bill, which I thought I was going to be able to get by on by living up here.”

Governments are offering some relief. Ontario, for example, is offering its low-income residents $200 in energy subsidies, all Alberta taxpayers are getting $300 and the federal government has promised $200 to cover heating costs for people who now get the GST rebate.

Those kinds of breaks, while small, can make a major difference to the seniors living in cramped apartments who can’t afford such basic amenities as telephone service, Dmytruk said.

“A five-dollar bill saved for a senior is a lot of money sometimes.”

Many welfare recipients in Canada, most notably in Ontario, have seen their benefits cut in recent years without subsequent increases to offset the rising cost of living, said Julia Bass, executive director of the Canadian Association of Food Banks.

“In a large number of provinces, social assistance recipients in particular have not had a cost of living increase in a number of years.”


Some tips on how to make a home more energy efficient, from Enbridge Consumers Gas:

Upgrade your furnace: A furnace more than 10 years old is likely only 55 per cent efficient, which means it’s wasting nearly half of every heating dollar you spend.

Add a humidifier: Humid air is better at retaining heat than dry air.

Regular maintenance: Clean or replace the furnace filter at least once every three months throughout the heating season.

Lower the thermostat: Turning down the heat by three degrees C at bedtime and before the house is left empty all day can cut heating fuel use by as much as seven per cent. Programmable thermostats can make these adjustments automatically.

Clean house: Stop air leaks and drafts, improve air circulation by ensuring vents are not blocked by furniture or curtains, and clean heat register and cold air grills. Also close the chimney damper when not using the fireplace.

Fans: Ceiling fans keep the house cool in summer and push rising warm air away from the ceiling in winter.

 

Posted in Natural Gas Utility Regulation and Commodity Deregulation | Leave a comment

Ontario warned of energy crisis

Tom Blackwell
Ottawa Citizen
January 19, 2001

Toronto – Ontario is heading toward the kind of blackout calamity that’s hobbled California if the province doesn’t fix its flawed plan to deregulate electricity, a prominent analyst warned yesterday.

Government decisions have discouraged the kind of investment in new generation plants that’s needed to meet future demand from a booming economy, said Tom Adams of the consumer group Energy Probe.

“The lights aren’t going to go out in Ontario tomorrow,” he said, “but we need to make some important changes to our electricity deregulation to maintain our security. If we continue on the same path, we are going to be in trouble. We won’t have enough juice.”

Not everyone agrees.

The Ontario government and at least one other analyst insist the province is making progress to avoid the kind of mistakes the Golden State made with its deregulation program and has nothing to worry about.

“This is not California,” said Mike Krizanc, spokesman for Energy Minister Jim Wilson.

Mr. Adams can say that we are discouraging investment, but the thing is there are people who are coming here (to invest) and there are people looking at coming here.”

Mr. Krizanc said the province already has enough capacity to meet demand over the next 10 years. At the same time, companies have promised $3 billion in new generating facilities.

He also argued that other places, such as Pennsylvania and the United Kingdom, have had great success with deregulation, bringing consumers cheaper power prices and ample supply.

In California yesterday, another wave of rolling blackouts swept across the state as authorities struggled to contain their power supply disaster.

Gov. Gray Davis declared a state of emergency a day earlier. The crisis stems in part from the state’s four-year-old experiment with electricity deregulation.

By freeing wholesale prices but keeping caps on the price utilities can charge to consumers, the changes forced California’s two main electricity companies to near bankruptcy, leaving them without enough credit to buy the needed power.

The state has also suffered from a lack of new investment in generation, even as the demand has skyrocketed, Mr. Adams noted.

The investment climate in Ontario has also suffered because of government actions that include extending for four years the subsidized rates charged to several major power users.

The first new private power plant, in Sarnia, had to be scaled back because three of its proposed customers continued to get the discounted rates and had no incentive to buy from the new plant, said Mr. Adams.

Legislation that allows the government to roll back some electricity price increases, confusion about exactly when the market will be officially opened to competition and a moratorium on the sale of government-owned coal-fired plants have also dampened the investment climate, he claimed.

But California faced a number of unique problems, said David Drinkwalter, a consultant and former chief economist at Ontario Hydro.

As power demand exploded, several of its plants were taken off line for various reasons and few were added, partly because of environmental restrictions, he said.

“It is unlikely for us to experience the California problems,” said Mr. Drinkwalter.

“This province has sufficient generation plants today to cover demand for the immediate future and there are additional plants under construction.”

 

Posted in Reforming Ontario's Local Electrical Distribution Sector | Leave a comment

Increase in gas prices a boon to pellet firms

Gordon Hoekstra
Prince George Citizen
January 17, 2001

The Northern Interior’s third pellet plant is set to open before the end of the month in Vanderhoof, as investors try to capitalize on a renewable energy resource that’s already established in countries like Sweden.

There are already pellet plants in production in Prince George and Quesnel.

A partnership between L & M Lumber, Nechako Lumber and Norm Avison, the $6-million plant in Vanderhoof will employ a dozen people, and more jobs will be created in trucking and distribution.

“With the climb in natural gas prices, there’s been a dramatic change in the public’s view toward the alternative heating source,” said Avison.

“We hate to see it when you have natural gas prices this high, but it may be a catalyst to people examining pellet fuel,” he said. “It needed a little help. Maybe the (the high prices of fossil fuel) will get it rolling.”

The wood shavings and sawdust are pressed under high pressure and can be burned in specially-manufactured wood stoves, furnaces and boilers.

The addition of the wood pellet plant on the site of L & M Lumber and Nechako Lumber in Vanderhoof means that about 99.94% of the trees’ fibre is now being utilized, says Stewart Sinclair, who’s helping market the pellets worldwide.

“There are already well-established markets in Europe and especially Scandinavian countries, where pellet use is helped by the fact that it’s carbon neutral and does not add greenhouse gas emissions to the atmosphere,” explained Sinclair.

The Vanderhoof-based company will be trying to market its product into Europe, North America and Asia, Sinclair said.

Closer to home, the wood pellet industry is hoping to interest greenhouse growers of B.C. in using the alternative fuel.

“Markets here are just being born — it’s really quite exciting,” said Sinclair.

The plant will have a 100,000-tonne capacity, but is expected to produce 50,000 tonnes during the first year. Pellets are also marketed as pet litter and for use in animal stock yards.

 

Posted in Renewables | Leave a comment

You can’t beat gas bills

John Spears
Toronto Star
January 16, 2001

Turn down the thermostat, seal the cracks around the windows and be thankful you’re not in Alberta.

That’s about all homeowners can do in the short term if they heat with natural gas and are caught in the upward price spiral. Even those who have to replace their heating systems soon have no obvious alternative if they’re trying to flee the cost of gas.

“In terms of what do you do today, there’s not a lot you can do,” is the blunt assessment of Duncan Mathieson, oil and gas analyst with Scotia Capital Markets. “Go back to the 1980s. What did we do then? We insulated our homes, we made sure we weren’t wasting energy.” Tom Adams of Energy Probe agrees.

“You can fight back,” he says. “Arm yourself with a caulking gun. There’s no time like the present to get serious about energy conservation and home insulation. It can save you a ton of money right now.”

Gas has jumped to 24.4 cents a cubic metre in the Toronto area for homeowners. That’s up from 10.5 cents a cubic metre last winter, and as little as 6.6 cents in the winter of 1998.

Time to look elsewhere?

Well, consider heating oil. It retailed as low as 35.7 cents a litre last winter; now it’s at 57 cents. As for electricity, the other mainstream alternative, its future is cloudy.

Its price has been relatively stable since it soared 43 per cent between 1989 and 1993 – it even declined slightly. But local utilities are putting new rate increases through, egged on by the municipal governments that own them.

In addition, Ontario is set to throw the electricity market open to competition. But it hasn’t happened yet. One deadline for market opening has already passed last November.

No one knows when the market will be opened, or what will happen to prices if and when it finally does, but many observers predict price increases.

Historically, electricity has been a poor choice for home heating, notes Mathieson: “It’s never been a bargain to be on electric heating in Ontario.”

Add to that the capital cost of changing fuels – several thousand dollars for a new heating system – and switching for short-term gain gets even less attractive.

Mathieson says the price of natural gas makes the extra cost of high-efficiency furnaces an attractive proposition.

“If I were replacing a furnace, I’d be looking at high efficiency.”

Peter Dyne of the Consumers Association of Canada says you can fight market forces only for so long.

Governments and the gas industry did an effective job of selling gas heat over the past decade, and demand is pressuring supply. That’s not likely to change in a hurry, unless gas starts flowing in bigger quantities from such areas as the Arctic or the Atlantic offshore.

Consumers who signed long-term, fixed price contracts a couple of years ago are doing very well, Dyne notes.

But Adams says with prices at a peak, it’s probably not a good time to sign a long-term gas contract.

Enbridge Consumers Gas customers are paying less than the spot market price because Enbridge secured a good part of its winter supply months ago, at lower prices, says spokesperson Mike Campbell.

The utility that serves Alberta buys on the spot market, he says. Consumers without contracts are paying about 40 cents a cubic metre, he says. Enbridge’s current price is 24.4 cents.

Campbell says consumers have to take responsibility for getting the most out of their fuel. An old, badly maintained furnace won’t deliver peak efficiency any more than a badly tuned 20-year-old car, he says.

 

Posted in Natural Gas | 1 Comment