Zap! Your hydro bill's going up

Antonella Artuso, Queen’s Park Bureau Chief
Toronto Sun
September 22, 2010


The Ontario Energy Board thinks you’re not paying enough for hydro so it’s yanking another $60 out of your wallet.

Ontario hydro ratepayers — already hammered by the HST, time-of-use pricing and rate hikes — will pay an added $240 million a year, the Ontario NDP says.

Officials at the provincial crown agency — whose salaries are paid for through hydro bills — decided earlier this year that utilities should be able to boost their rate of return to 9.85% from 8.39%.

The OEB says that the increase shouldn’t be more than $1 per month for most residential customers, tucked into the delivery charge on the bill.

NDP Leader Andrea Horwath called Premier Dalton McGuinty on the carpet in the legislature Thursday, demanding to know why ratepayers should have to cough up even more of their stretched dollars to boost profits for the utilities.

“Ontario families are scrambling to deal with sky-high hydro rates. Does the premier think it’s fair to actually ask consumers to pay even more just to ensure healthy profits for hydro utilities?” she said.

Because utilities are a monopoly, the OEB determines how much profit is required to attract investors, appease shareholders and permit investment in infrastructure and then balances that against the interests of the ratepayers who pick up the tab.

Prof Gordon Roberts, of the York University Schulich School of Business, who made a submission to the OEB on behalf of Pollution Probe, recommended a lower rate.

“It’s generous,” Roberts said. “Clearly, if the answer comes out on the generous side (for utilities), it’s less fair for the ratepayers.”

Energy Minister Brad Duguid said the rate of return allows these companies to reinvest, ensuring the province can keep the lights on.

“Local distribution companies are private companies — they have shareholders,” Duguid said. “The Ontario Energy Board determines what the appropriate rate of return is for them. That’s always the way it’s been and that’s the way it is now. We don’t influence that.”

Lawrence Solomon, executive director of Energy Probe, agrees that the OEB has an obligation to ensure utilities have enough funds to invest.

“I think the NDP is pointing their guns at the wrong target … not blame the regulator that’s really doing its best to adjudicate really an impossible situation,” Solomon said.

He expects the Dalton McGuinty government to do everything in its power to depress rate increases at least until the next election.

But Ontario’s already higher hydro bills will double or triple within the next couple of years unless the McGuinty government stops overpaying for wind and solar and rethinks its pledge to abandon cheap, efficient coal plants, he said.

“In the U.K there’s a term that’s become a household term — it’s called fuel poverty,” Solomon said. “They now need subsidies to make their energy payments and we are headed in the same direction.”

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Horizon seeks hefty hike

(Sept. 28, 2010) Lawrence Solomon, executive director of Energy Probe, says these hikes are only the first of many to come if the government doesn’t drop its plan to close down coal-fired generating stations in favour of expensive wind and solar projects. Continue reading

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

A Liberal power surge: Blizzard

(Sept. 25) The root of Ontario’s ever-escalating fuel is the government’s “obsession to prematurely retire Ontario’s coal plants,” says Energy Probe’s executive director Lawrence Solomon. Continue reading

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Lawrence Solomon: Radiation’s benefits

(Sept. 25) Will a gamma ray a day keep the doctor away? A new book says low-level radiation may prevent cancer. Continue reading

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Radiation’s benefits

Lawrence Solomon
Financial Post
September 25, 2010

Will a gamma ray a day keep the doctor away? A new book says low-level radiation may prevent cancer

‘There is no safe level of radiation.” For the last 30 years, my colleagues and I at the Energy Probe Research Foundation have held that view, and espoused it through books, media appearances and presentations to regulatory bodies, helping in no small measure to tighten Canada’s radiation standards. The science on radiation as published by official bodies, we knew, made clear that any dose of radiation, no matter how small, carries with it an additional risk of contracting cancer. The upshot was a better-safe-than-sorry stance: Don’t frivolously accept X-rays; take special care in disposing of smoke detectors, worry about routine releases of radiation from nuclear facilities.

This stance is now reeling. Low levels of radiation, science is increasingly telling us, are not only safe, they are actually healthful. It may be more prudent to worry about getting too little radiation than too much.

The latest book to question the conventional wisdom on radiation comes from Springer-Verlag, a venerable academic science publisher whose stable of writers over the years has included some 150 Nobel laureates. Springer’s book is not for the pop-cure reader, as attested to by its $240 price tag and its intimidating title, Radiation Hormesis and the Linear-No-Threshold Assumption.

The title, however technical, tells the tale of a controversy of immense implications. Hormesis describes something that does harm in large doses but good in small doses. We are all familiar with such hormetic relationships, even if we don’t use the term — we need various vitamins and minerals for our survival, including ones with scary names such as arsenic, but if we overdose on some, we can suffer disability or death. The trick is to get enough to avoid a deficiency in a substance we need, but not so much that it will poison us. An even better trick is to identify the ideal dose — to be able to max out on our intake of vitamins, say, while avoiding any harm. This trick — understanding when we are getting too much of a good thing — is the essence of the rapidly growing scientific inquiry into hormesis.

The other head-scratching term in the book’s title — linear-no-threshold assumption, or LNT for short — refers to the assumption that radiation is an exception to the hormesis rule, and that radiation can never be a good thing. Unlike other substances, which have a threshold between a good dose and bad, the conventional wisdom has assumed that radiation has no threshold — every dose is bad, and the bigger the dose, the badder it gets, in a straight line relationship.

This is the linear-no-threshold assumption, with “assumption” an all-important word that needs to be taken literally. While no one disputes that high doses of radiation cause harm, no one has proof that low levels cause harm. Surprisingly, the scientists and government bodies that adhere to the LNT assumption will tell you that no proof of harm at low levels is even possible because the risk is too low to measure statistically. In the absence of proof, they say, the only prudent course is to play it safe by assuming that low levels of radiation cause harm.

But is it safe to assume that humans, who evolved in a radiation-rich environment, and who live in a world that continually bombards us with natural, background radiation, would be better off by curtailing our exposure to radiation? “Literally millions of lives are less healthy because they have been convinced that living in radiation-deficient environments is healthy; lives are lost in not implementing effective low-dose radiation therapy to treat cancer; lives are lost out of fear of diagnostic radiation that saves lives,” writes Charles Sanders, the book’s author and a participant in radiobiological research over half a century.

Mr. Sanders makes his case for the robustness of hormesis research by citing hundreds of studies — this heavily footnoted scientific text does not make for easy reading. For those readers not interested in ploughing through descriptions of studies that often infer the effects of radiation — it would be unethical to deliberately expose a large healthy population to radiation for the sake of an experiment — the book’s real-life scientific studies will more than suffice.

Take the case of “an almost perfect study in a human population that demonstrates the highly significant protective effects of near-continuous exposure to gamma radiation.” This case involved more than 180 apartment buildings that had been constructed in Taiwan in the early 1980s using recycled steel that was subsequently discovered to have been contaminated with radioactive cobalt-60. The 10,000 people who were housed there received large doses of radiation over a period of nine to 20 years that, according to LNT theory, should have led to a total of 302 cancer deaths over the 1983-2003 period studied, 232 of which would have been ordinarily expected had no radiation exposure occurred, with the additional 70 stemming from the exposure. To the researchers’ surprise, however, only seven cancer deaths were found, 225 fewer than would have been expected had the buildings been free of radiation. Instead of radiation increasing the death toll by 30%, it may have reduced the death toll by a staggering 97%.

The number of birth defects among children born in this radioactive environment also confounded LNT theory. Instead of the 48 defects expected, just three occurred.

Mr. Sanders’ book deals primarily with health issues: leukemia as well as cancer of the breast, lung, liver, and central nervous system; birth defects; the immune system; inflammatory diseases; and longevity (one of several studies that he cites shows an increased average lifespan of 10.4 years among Americans). But he also touches on other matters of immense importance, such as the cost to society of dealing with perverse regulations — a cost that could amount to trillions of dollars — and the politicization of science. The LNT camp has been trying to discredit hormesis by stifling debate, rather than by conducting peer-reviewed counter studies.

Mr. Sanders’ book is not the first to deal with radiation hormesis and it won’t be the last — research in this field has been increasing at an exponential rate and can only grow unless it can be disproven. The safest course for society is to get on with the research.

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Zap! Your hydro bill’s going up

(Sept. 23) Ontario’s already higher hydro bills will double or triple within the next couple of years unless the McGuinty government stops overpaying for wind and solar and rethinks its pledge to abandon cheap, efficient coal plants, says Lawrence Solomon, executive director of Energy Probe. Continue reading

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

Denmark’s famed wind industry nothing but hot air

Few countries capture the imagination of wind power enthusiasts better than Denmark. Supporters of wind power simply point to the statistics, which paint the country as a model “green” economy where wind mills supply 20% of its electricity, while supporting a thriving industry that employs thousands of people.

But those “facts” don’t appear to add up. While wind mills do generate a sizable portion of the nation’s electricity needs, most of the electricity produced is given away to neighbouring countries (Sweden, Norway and Germany) for free. That’s because wind mills tend to produce much of their electricity at night, and since there is no way to store large amounts of electricity (except for hydropower), the energy is shipped off to Denmark’s neighbours.  

Coal and other traditional sources of electricity often meet the day-to-day needs of the Danish economy.

Sweden and Norway are biggest beneficiaries of such as system. Both of the countries rely primarily on dams for their power, which allows them to simply take the green handouts from Denmark when they’re on offer, and then sell Denmark power when needed. They benefit twice over from Denmark’s obsession with wind.

According to one specialist, the truth is that Denmark actually receives about 7 per cent of its electricity from wind—not 20 percent as the country and wind supporters often claim.

This situation would likely be humorous if it wasn’t so expensive for Danish citizens—who pay some of the highest electricity rates in Europe. According to Alyden Donnelly, Danish rate-payers pay over CAD$0.46/kWh for electricity in part to generate more than CAD$0.10/kWh in subsidies for Danish wind companies.

And the oft-quoted “green” jobs are failing to materialize. Donnelly rightly points out that the last 12 wind turbine manufacturing and/or assembly plants constructed by "Danish" companies have been built outside Denmark—including five in North America. Denmark has been a net importer of wind power technology for at least 3 years.  

Danish citizens also appear to be tiring of the whole charade, as earlier this year, a new national anti-wind body, Neighbours of Large Wind Turbines, was formed. To date, more than 40 civic groups have become members.

"People are fed up with having their property devalued and sleep ruined by noise from large wind turbines," the association’s president, Boye Jensen Odsherred, told the Daily Telegraph. "We receive constant calls from civic groups that want to join."

Ontario: take note.

Energy Probe is a keen supporter of renewable energy. We believe renewable energy has the ability to diversify our electricity supply, while allowing for more decentralized sources of power for consumers. But we’re not in favour of throwing massive subsides at forms of energy that are not technically or economically feasible.

Read the previous gangrene economy report, "A line in the sand: wind power’s ill effects," here. 

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Are you frying your eggs at 4 a.m. yet?

Lawrence Solomon
Financial Post
September 17, 2010

Ontario Premier Dalton McGuinty is under fire for forcing smart meters onto the province’s electricity customers.

The meters make no economic sense for consumers, critics point out, costing consumers far more than can ever be offset through lower power bills.

The meters, in fact, make perfect sense when understood from Mr. McGuinty’s viewpoint, despite a total price tag estimated to run as high as $10-billion.

Mr. McGuinty isn’t in this for the money — if he was, he wouldn’t be closing economical coal plants while sinking cash into money-losing ­nuclear plants and money-losing long-distance transmission lines to carry power from money-losing industrial wind farms. These and his other money-losing initiatives will cause Ontario’s power prices to double or triple should he get his way.

No, Mr. McGuinty is in this to transform the province’s power system to make it coal free and reliant on nuclear and wind power. Money is no obstacle to him but Ontario citizens and businesses are, because they don’t behave as he’d like them to — and as his technologies of choice need them to behave.

Nuclear power, for example, is a technology that needs to run 24/7 for reasons of safety as well as economics. Nuclear can’t ramp up to meet the peak needs of Ontarians at, for example, 7 am, when people wake up and turn on their toasters, and nuclear can’t power down at 3 am, when most people are asleep and most factories lie idle.

This operating characteristic of nuclear power poses no problem for Mr. McGuinty during the day, when Ontarians consume all the nuclear power available to them. But it can be a problem big-time in the middle of the night when no one needs the excess power, not even customers in the United States, not even for free. To deal with Ontario’s unwanted nuclear surplus, the provincial power system at times even pays customers to take it off their hands — the more of this off-peak power they consume, the lower their power bills will be. At other times, the power system will spill water at hydroelectric facilities, rather than having them generate hydro power, in order to keep those nuclear reactors running.

Wind turbines create a similar off-peak problem for Mr. McGuinty. Like nuclear plants, power from wind turbines can’t be dispatched to ­customers when customers need it — the wind has a mind of its own. To make matters worse, the wind tends to blow best overnight, when it’s least needed.

Because Mr. McGuinty can’t retool his favoured technologies to get them to conform to the schedules of Ontarians, he has decided to retool Ontarians to get them to conform to the operating schedules of his technologies. This he is doing by punishing people and businesses who consume power at inconvenient times through high rates, to cajole them into shifting their usage to lower-cost off-peak periods.

So far, the punishment — a mere doubling of peak rates compared with off-peak — hasn’t been severe enough. Too few people are frying their eggs before 7 am — the time at which the punishment starts — and too many are cooking their dinners at 7 pm — smack dab during the peak punishment period. Mr. McGuinty’s solution? “We’ve got to make sure the differential between peak and off-peak is significant, so significant that it motivates people,” he explained this week.

By fiat, not by any rule of economics, Mr. McGuinty has decided that off-peak power users should be paying less, meaning that everyone else will necessarily need to pay more.

In this grand exercise to restructure the province’s power system, the Ontario citizen is a means to an end — making Ontario safe for nuclear and wind power.

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Lawrence Solomon: Are you frying your eggs at 4 a.m. yet?

(Sept. 18) Instead of retooling the technology, retool the people. Continue reading

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Lawrence Solomon: Chilling evidence

(Sept. 17) Two years ago, William Livingston and Matthew Penn of the National Solar Observatory in Tucson, in a controversial paper that contradicted conventional wisdom and upset global warming theorists, predicted that sunspots could more or less disappear after 2015, possibly indicating the onset of another Little Ice Age. Continue reading

Posted in Climate Change, Global Cooling | Leave a comment