On Wednesday, Nov. 21, the Toronto Star featured a story regarding the price of power from Bruce A that suggests a ‘premium’ was paid for this electricity, but the story fails to recognize a number of key issues.
This article (which you can read here) and some of the subsequent commentary does not tell the full story. Electricity ratepayers in Ontario want a reliable source of low-cost electricity, while also protecting the air we breathe, so it’s important we set the record straight.
Bruce A is a low-cost source of electricity for Ontario homes, businesses, schools and hospitals. When consumers look at their electricity bill, the cost of power is made up of two factors – Hourly Ontario Energy Price (HOEP) and something referred to as the Global Adjustment Mechanism (GAM). The Toronto Star article only looks at one of these factors, despite the fact the combination of both of these is the cost people pay for electricity.
Bruce A receives 6.8 cents per KW/h for its output from Bruce A – all in. That’s the price consumers pay for this electricity and it’s the price Bruce A has received since 2005. It’s also the price we will receive for the next 30 years. The price Bruce Power received in the third quarter is consistent with this contract. The article suggests this price paid was a premium – this is not accurate.
It’s important to also note that virtually all generators in Ontario from a number sources including wind, solar, natural gas, hydroelectric and other nuclear generators are paid a combination of HOEP and GAM – Bruce A is no exception. The output from Bruce A is under contract with the OPA to enable Billions of private investment in these public assets so these four units can run for decades to come and enable the phase-out of coal in Ontario.
Following Units 1 and 2 being removed from service in 1995 and 1997, combined with Units 3 and 4 in 1998, fossil generation dramatically increased in Ontario – it jumped from 12 per cent of electricity in 1995 to 29 per cent in 2000.
We’ve turned this around by returning all of the Bruce A units to service, In fact, the increase in the amount of energy produced on an annual basis, with all units in operation on the Bruce Power site, accounts for 70 per cent of the energy needed to phase-out coal. With these units now back in service, we can move forward with a clean energy future and support the province’s plan to shut down coal plants.
The facts speak for themselves. The electricity paid by consumers from Bruce A is low-cost and is a clean source of electricity to protect the air we breathe in Ontario.
For more information visit www.brucepower.com.