New SaskPower facility opens to reduce carbon emissions

By SaskPower


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Recently, SaskPower marked the official opening of a new fly ash load out and storage facility at Boundary Dam Power Station near Estevan, Saskatchewan.

Fly ash, a fine powder byproduct of coal combustion, is used in ready-mix concrete, pre-cast structures such as bridge decks and pipes, as well as concrete products like bricks and paving stones. Construction of the Boundary Dam facility, which began in 2011, more than triples the fly ash storage capacity to 5,000 tonnes.

“Capturing and recycling fly ash from our coal-fired power stations in the area means SaskPower is using the province’s abundant coal reserves in a more sustainable manner,” said Robert Watson, SaskPower President and CEO. “Each tonne of fly ash captured and sold, that replaces cement, prevents roughly one tonne of carbon dioxide from entering the atmosphere.”

In February 2012, SaskPower entered into a 10-year agreement with Lehigh Hanson Materials Limited Lehigh, which gives Lehigh the exclusive rights to market fly ash from Boundary Dam. SaskPower looked for a company that could help maximize fly ash sales, given the increased storage capacity and the steady demand for the high quality of fly ash that comes from Boundary Dam.

“Lehigh Hanson is excited to be part of Saskatchewan’s economic growth by selling and distributing fly ash from Boundary Dam Power Station to markets across Canada and into the United States,” said Jim M. Derkatch, President and CEO of Lehigh Hanson Materials Limited. “Saskatchewan has taken its rightful place as part of Canada’s economic engine and we are proud to support it by investing in the construction of a world-class storage facility in southern Saskatchewan.”

In the past few years, SaskPower sold between 110,000 to 135,000 tonnes of fly ash from Boundary Dam and Shand Power Stations. With the expanded storage capacity at Boundary Dam, and with LehighÂ’s expertise in marketing fly ash, SaskPower expects to see net income from fly ash sales more than double by 2020.

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Restoring power to Florida will take 'weeks, not days' in some areas

Florida Hurricane Irma Power Outages strain the grid as utilities plan rebuilds; FPL and Duke Energy deploy crews to restore transmission lines, substations, and service amid flooding, storm surge, and widespread disruptions statewide.

 

Key Points

Large-scale post-storm power losses in Florida requiring grid rebuilds, thousands of crews, and phased restoration.

✅ Utilities prioritize plants, transmission, substations, then critical facilities

✅ 50,000-60,000 workers mobilized; bucket trucks wait for safe winds

✅ Remote rerouting and hardening aid faster restoration amid flooding

 

Parts of Florida could be without electricity for more than a week, as damage from Hurricane Irma will require a complete rebuild of portions of the electricity grid, utility executives said on Monday.

Irma has knocked out power to 6.5 million Florida electricity customers, or nearly two-thirds of the state, since making landfall this weekend. In major areas such as Miami-Dade, 74 percent of the county was without power, according to Florida's division of emergency management.

Getting that power back online may require the help of 50,000 to 60,000 workers from all over the United States and Canadian power crews as well, according to Southern Company CEO and Chairman Thomas Fanning. He is also co-chair of the Electricity Subsector Coordinating Council, which coordinates the utility industry and government response to disasters and cyberthreats.

While it is not uncommon for severe storms to down power lines and damage utility poles, Irma's heavy winds and rain batted some of the state's infrastructure to the ground, Fanning said.

"'Restore' may not capture the full sense of where we are. For the very hard impacted areas, I think you're in a 'rebuild' area," he told CNBC's "Squawk Box."

"That's a big deal. People need to understand this is going to take perhaps weeks, not days, in some areas," Fanning said.

Parts of northern Florida, including Jacksonville, experienced heavy flooding, which will temporarily prevent crews from accessing some areas.

Duke Energy, which serves 1.8 million customers in parts of central and northwestern Florida, is trying to restore service to 1.2 million residences and businesses.

Florida Power & Light Company, which provides power to an estimated 4.9 million accounts across the state, had about 3.5 million customers without electricity as of Monday afternoon, said Rob Gould, vice president and chief communications officer at FPL.

The initial damage assessments suggest power can be restored to parts of the state's east coast in just days, but some of the west coast will require rebuilding that could stretch out for weeks, Gould told CNBC's "Power Lunch."

"This is not a typical restoration that you're going to see. We actually for the first time in our company history have our entire 27,000-square-mile, 35-county territory under assault by Irma," he said.

FPL said it would first repair any damage to power plants, transmission lines and substations as part of its massive response to Irma, then prioritize critical facilities such as hospitals and water treatment plants. The electricity company would then turn its attention to areas that are home to supermarkets, gas stations and other community services.

Florida utilities invested billions into their systems after devastating hurricane seasons in 2004 and 2005 in order to make them more resilient and easier to restore after a storm. Irma, which ranked among the most powerful storms in the Atlantic, has nevertheless tested those systems.

The upgrades have allowed FPL to automatically reroute power and address about 1.5 million outages, Gould said. The company strategically placed 19,500 restoration workers before the storm hit, but it cannot use bucket trucks to fix power lines until winds die down, he said.

Some parts of Florida's distribution system — the lines that deliver electricity from power plants to businesses and residences — run underground. However, the state's long coastline and the associated danger of storm surge and seawater incursion make it impractical to run lines beneath the surface in some areas.

Duke Energy has equipped 28 percent of its system with smart grid technology to reroute power remotely, according to Harry Sideris, Duke's state president for Florida. He said the company would continue to build out that capability in the future.

Duke deployed more than 9,000 linesmen and support crew members to Irma-struck areas, but cannot yet say how long some customers will be without power.

Separately, Gulf Power crews reported restoring service to more than 32,000 customers.

"At this time we do not know the exact restoration times. However, we're looking at a week or longer from the first look at the widespread damage that we had," Sideris told CNBC's "Closing Bell."

FPL said on Monday it was doing final checks before bringing back nuclear reactors that were powered down as Hurricane Irma hit Florida.

"We are in the process now of doing final checks on a few of them; we will be bringing those up," FPL President and CEO Eric Silagy told reporters.

 

 

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U.S. Grid overseer issues warning on Coronavirus

NERC COVID-19 Grid Security Alert urges utilities to update business continuity plans, assess supply chain risk, and harden cybersecurity against spearphishing, social engineering, and remote-work vulnerabilities to protect the U.S. power grid and critical infrastructure.

 

Key Points

A notice urging U.S. utilities to fortify pandemic continuity, secure supply chains, and enhance cybersecurity.

✅ Mandates updates to business continuity and pandemic readiness plans

✅ Flags supply chain risks for PPE, electronics, chemicals, and logistics

✅ Warns of spearphishing, social engineering, VPN and remote-work threats

 

The top U.S. grid security monitor urged power utilities to prepare for the new coronavirus in a rare alert yesterday, adding to a chorus of warnings from federal and private organizations.

The North American Electric Reliability Corp. called for power providers to update business continuity plans in case of a pandemic outbreak and weigh the need to prioritize construction or maintenance projects, including updates on major projects like BC Hydro's Site C, while the COVID-19 virus continues to spread.

NERC is requiring electric utilities to answer questions on their readiness for a possible pandemic, including potential staffing strategies such as on-site sequestering, by March 20, an unusual step that underscores the severity of the threat to U.S. power systems.

The Electricity Information Sharing and Analysis Center, NERC's hub for getting the word out on dangers and vulnerabilities for the grid, also sent out an "all-points bulletin" on Feb. 5 addressing the coronavirus outbreak. That nonpublic document covered "potential supply chain issues stemming from a manufacturing slowdown in Asia," NERC spokeswoman Kimberly Mielcarek said.

Among offering basic hygiene and awareness recommendations, NERC's latest alert also encourages utilities to take stock of resources with supply chains affected by the virus. Because "China and nearby southeast Asian nations" have been impacted, NERC said, the supply chain hits will likely include "electronics, personal protective equipment and sanitation supplies, chemicals, and raw materials." The nonprofit grid overseer also warned of global transportation disruptions.

NERC also recommended utilities be on the lookout for cyberattacks taking advantage of the panic and using "coronavirus-themed opportunistic social engineering attacks" to hack into power companies' networks. Social engineering attacks are when hackers use social interactions to manipulate targets into giving up sensitive information.

"Spearphishing, watering hole, and other disinformation tactics are commonly used to exploit public interest in significant events," the alert said.

Electric utility representatives said they're working on or have already completed some of the steps outlined in NERC's alert, though nuclear plant workers have cited a lack of precautions in some cases.

"At this point, many of our members are activating and/or reviewing their business continuity and preparedness plans to ensure that operations and infrastructure are properly supported," said Tobias Sellier, director of media relations for the American Public Power Association, which represents around 1,400 electric utilities.

The power providers are also collaborating with other utilities such as "water, wastewater and gas," Sellier said.

Stephen Bell, senior director of media and public relations at the National Rural Electric Cooperative Association, said his group's members "have already taken a number of steps recommended by NERC" while continuing to maintain operations.

"Co-ops continue working with local, state and federal stakeholders to remain vigilant and prepared. These preparations include more frequent communications to key stakeholders, updating business continuity plans and monitoring new information from public health officials," said Bell.

Last week the Electricity Subsector Coordinating Council (ESCC), a panel of government and industry officials charged with responding to power-sector emergencies, scheduled a conference call discussing how to protect the grid from disruption if the virus infects system operators. Ohio-based utility American Electric Power Co. said it is limiting public visits, has created a high-level response team and is working to ensure operations can continue, while reinforcing downed power line safety, if the virus keeps spreading (Energywire, March 6).

Scott Aaronson, vice president for security and preparedness of the Edison Electric Institute, which represents major investor-owned utilities, said that the electric sector practices "contingency planning" to deal with unusual situations such as the coronavirus. That means that while the type of emergency may be new, dealing with an emergency situation is not, he said. Aaronson added that many of NERC's recommendations are based on what companies are already doing.

"We have heightened awareness given the circumstances, and we have messaging to employees all the way up and down the chain — from CEOs to frontline workers — that: given this time of heightened awareness and potential vulnerability, we have to practice hygiene both of the personal and cyber variety," said Aaronson.

Aaronson said that the ESCC had another call this week with the departments of Energy and Homeland Security and the Centers for Disease Control and Prevention to stay on top of the issue.

Hacking concerns
In a cybersecurity event yesterday, Lisa Monaco, co-chair of the Aspen Cybersecurity Group and former homeland security adviser during the Obama administration, warned that the coronavirus should be considered a national security threat.

"Frankly, [pandemic] is the thing that kept me up at night amongst many, many things that kept me up at night for four years in the White House," Monaco said.

Monaco went on to say the virus will strain organizations' IT infrastructure as more employees work remotely and households face higher electricity bills, and lead to "potentially more vulnerabilities for bad actors when it comes to cybersecurity."

On Friday, the DHS's Cybersecurity and Infrastructure Security Agency released advice on steps that can be taken to lessen the virus's impact on supply chains and cybersecurity, as well as tips for defending against scams exploiting coronavirus fears.

Cybersecurity firms also have been reporting a dramatic increase in spear-phishing attacks, with hackers reportedly using the coronavirus topic as a lure to trick victims into clicking a malicious link. Whether it's hackers aiming at industries susceptible to shipping disruptions, attacking countries like Italy hit particularly hard by the virus or even masquerading as the World Health Organization, cybercriminals are taking full advantage of the crisis, experts say.

Greg Young, vice president of cybersecurity at Trend Micro, said businesses should continue to expect an increase in targeted phishing attacks.

"With a large majority of businesses switching to a work-from-home model and less emphasis on in-person meetings, we also anticipate that malicious actors will start to impersonate digital tools such as 'free' remote conferencing services and other cloud computing software," said Young.

Working from home can be especially risky, as often home networks are less secure than corporate offices, Young said — meaning a hacker aiming to get into an enterprise network could find an "easier attack path" from a home office.

The Department of Energy is asking employees to make sure they can work remotely when needed, even as some agencies set limits with EPA telework policy, including updating security questions and asking those with government-furnished laptops to be sure they have a VPN, or virtual private network, account. In a post added this week to the agency's website, Chief Information Officer Rocky Campione said the department over the next two weeks will be initiating steps to ensure there is adequate network capacity to carry out DOE's work.

"Ensuring the continued operations of the department's many varied missions requires diligence," Campione said.

 

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Yukon receives funding for new wind turbines

Yukon Renewable Energy Funding backs wind turbines, grid-scale battery storage, and transmission line upgrades, cutting diesel dependence, lowering greenhouse gas emissions, and strengthening Yukon Energy's isolated grid for remote communities, local jobs, and future growth.

 

Key Points

Federal support for Yukon projects adding wind, battery storage, and grid upgrades to cut diesel use and emissions.

✅ Three 100 kW wind turbines will power Destruction Bay.

✅ 8 MW battery storage smooths peaks and reduces diesel.

✅ Mayo-McQuesten 138 kV line upgrade boosts reliability.

 

Kluane First Nation in Yukon will receive a total of $3.1 million in funding from the federal government to install and operate wind turbines that will help reduce the community’s diesel reliance.

According to a release, the community will integrate three 100-kilowatt turbines in Destruction Bay, Yukon, providing a renewable energy source for their local power grid that will reduce greenhouse gas emissions and create local jobs in the community.

A $2-million investment from Natural Resources Canada came from the Clean Energy for Rural and Remote Communities Program, part of the Government of Canada’s Investing in Canada infrastructure plan, which supports green energy solutions across jurisdictions. Crown-Indigenous Relations’ and Northern Affairs Canada also contributed a $1.1-million investment from the Northern REACHE Program.

Also, the Government of Canada announced more than $39.2 million in funding for two Yukon Energy projects that will increase the reliability of Yukon’s electrical grid, including exploration of a potential connection to the B.C. grid to bolster resiliency, and help build the robust energy system needed to support future growth. The investment comes from the government’s Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure plan.

 

Project 1: Grid-scale battery storage

The federal government is investing $16.5 million in Yukon Energy’s construction of a new battery storage system in Yukon. Once completed, the 8 MW battery will be the largest grid-connected battery in the North, and one of the largest in Canada, alongside major Ontario battery projects underway.

The new battery is a critical investment in Yukon Energy’s ability to meet growing demands for power and securing Yukon’s energy future. As an isolated grid, one of the largest challenges Yukon Energy faces is meeting peak demands for power during winter months, as electrification grows with EV adoption in the N.W.T. and beyond.

When complete, the new system will store excess electricity generated during off-peak periods, complementing emerging vehicle-to-grid integration approaches, and provide Yukoners with access to more power during peak periods. This new energy storage system will create a more reliable power supply and help reduce the territory’s reliance on diesel fuel. Over the 20-year life of project, the new battery is expected to reduce carbon emissions in Yukon by more than 20,000 tonnes.

A location for the new battery energy storage system has not been identified. Yukon Energy will begin permitting of the project in 2020 with construction targeted to be complete by mid-2023.

 

Project 2: Replacing and upgrading the Mayo to McQuesten Transmission Line

Yukon Energy has received $22.7 million in federal funding to proceed with Stage 1 of the Stewart to Keno City Transmission Project – replacing and upgrading the 65 year-old transmission line between Mayo and McQuesten. The project also includes the addition of system protection equipment at the Stewart Crossing South substation. The Yukon government, through the Yukon Development Corporation, has already provided $3.5 million towards planning for the project.

Replacing the Mayo to McQuesten transmission line is critical to Yukon Energy’s ability to deliver safe and reliable electricity to customers in the Mayo and Keno regions, mirroring broader regional transmission initiatives that enhance grid resilience, and to support economic growth in Yukon. The transmission line has reached end-of-life and become increasingly unreliable for customers in the area.

The First Nation of Na-Cho Nyak Dun has expressed their support of this project. The project has also been approved by the Yukon Environmental and Socio-Economic Assessment Board.

Yukon Energy will begin replacing and upgrading the 31 km transmission line between Mayo and McQuesten in 2020. Construction is expected to be complete in late 2020. When finished, the new 138 kV transmission line will provide more reliable electricity to customers in the Mayo and Keno regions and be equipped to support industrial growth and development in the area, including the Victoria Gold Mine, with renewable power from the Yukon grid.

Planning work for the remainder of the Stewart to Keno City Transmission Project has been completed. Yukon Energy continues to explore funding opportunities that are needed to proceed with other stages of the project.

 

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Sask. sets new record for power demand

SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.

 

Key Points

The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.

✅ New peak surpasses last August by 50 MW to 3,520 MW.

✅ Capacity target: 7,000 MW by 2030 with more renewables.

✅ Tips: AC settings, close blinds, delay heat-producing chores.

 

As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.

The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.

“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”

The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.

SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.

To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.

The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.

Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:

Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);

Consider having their air conditioning unit inspected to make sure it is operating efficiently;

Keep the heat out by closing blinds and drapes, especially those with direct sunlight;

Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and

As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.

 

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Crews have restored power to more than 32,000 Gulf Power customers

Gulf Power Hurricane Michael Response details rapid power restoration, grid rebuilding, and linemen support across the Florida Panhandle, Panama City, and coastal areas after catastrophic winds, rain, and storm surge damaged transmission lines and substations.

 

Key Points

Gulf Power's effort to restore electricity after Hurricane Michael, including grid rebuilding and storm recovery.

✅ 3,000+ crews deployed for restoration and rebuilding

✅ Transmission, distribution, and substations severely damaged

✅ Panhandle customers warned of multi-week outages

 

Less than 24 hours ago, Hurricane Micheal devastated the residents in the Florida Panhandle with its heavy winds, rainfall and storm surge, as reflected in impact numbers across the region.

Gulf Power crews worked quickly through the night to restore power to their customers.

Linemen crews were dispatched from numerous of cities all over the U. S., reflecting FPL's massive Irma response to help those impacted by Hurricane Michael.

According to Jeff Rogers, Gulf Power spokesperson; “This was an unprecedented storm, and our customers will see an unprecedented response from Gulf Power. The destruction we’ve seen so far to this community and our electrical system is devastating — we’re seeing damage across our system, including distribution lines, transmission lines and substations.”

Gulf Power told Channel 3 said they dealt with issues like trees and heavy debris blocking roads from strong winds, and communications down can slow down the rebuilding and restoration process, but Gulf Power said they are prepared for this type of storm devastation.

According to Gulf Power, Hurricane Micheal caused so much damage to Panama City's electrical grid that crews not only had repair the lines, they had to rebuild the electrical system, a scenario similar to a complete rebuild seen after Hurricane Laura in Louisiana.

Gulf Power officials say, "Less than 24 hours after the storm, more than 3,000 storm personnel from around the country arrived in the Panama City area Thursday to begin the restoration and rebuilding process. So far, more than 4,000 customers have been restored on Panama City Beach. Power has been restored to all customers in Escambia, Santa Rosa and Okaloosa counties, and it’s expected that customers in Walton County will be restored tonight. But customers in the hardest hit areas should prepare to be without power for weeks, not days in some areas. Initial evaluations by Gulf Power indicate widespread, heavy damage to the electrical system in the Panama City area."

According to Gulf Power, crews have restored power to more than 32,000 Gulf Power customers in the wake of Hurricane Michael, but the work is just beginning for power restoration in the Panama City area.

Rogers said, “We’re heartbroken for our customers and our teammates who live in and near the Panama City area,” said Rogers. “This is the type of storm that changes lives — so aside from restoring power to our customers quickly and safely, our focus in the coming days and weeks will also be to help restore hope to these communities and help give them a sense of normalcy as soon as possible.”

 

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Ontario's electricity operator kept quiet about phantom demand that cost customers millions

IESO Fictitious Demand Error inflated HOEP in the Ontario electricity market, after embedded generation was mis-modeled; the OEB says double-counted load lifted wholesale prices and shifted costs via the Global Adjustment.

 

Key Points

An IESO modeling flaw that double-counted load, inflating HOEP and charges in Ontario's wholesale market.

✅ Double-counted unmetered load from embedded generation

✅ Inflated HOEP; shifted costs via Global Adjustment

✅ OEB flagged transparency; exporters paid more

 

For almost a year, the operator of Ontario’s electricity system erroneously counted enough phantom demand to power a small city, causing prices to spike and hundreds of millions of dollars in extra charges to consumers, according to the provincial energy regulator.

The Independent Electricity System Operator (IESO) also failed to tell anyone about the error once it noticed and fixed it.

The error likely added between $450 million and $560 million to hourly rates and other charges before it was fixed in April 2017, according to a report released this month by the Ontario Energy Board’s Market Surveillance Panel.

It did this by adding as much as 220 MW of “fictitious demand” to the market starting in May 2016, when the IESO started paying consumers who reduced their demand for power during peak periods. This involved the integration of small-scale embedded generation (largely made up of solar) into its wholesale model for the first time.

The mistake assumed maximum consumption at such sites without meters, and double-counted that consumption.

The OEB said the mistake particularly hurt exporters and some end-users, who did not benefit from a related reduction of a global adjustment rate applicable to other customers.

“The most direct impact of the increase in HOEP (Hourly Ontario Energy Price) was felt by Ontario consumers and exporters of electricity, who paid an artificially high HOEP, to the benefit of generators and importers,” the OEB said.

The mix-up did not result in an equivalent increase in total system costs, because changes to the HOEP are offset by inverse changes to a electricity cost allocation mechanism such as the Global Adjustment rate, the OEB noted.


A chart from the OEB's report shows the time of day when fictitious demand was added to the system, and its influence on hourly rates.

Peak time spikes
The OEB said that the fictitious demand “regularly inflated” the hourly price of energy and other costs calculated as a direct function of it.

For almost a year, Ontario's electricity system operator @IESO_Tweets erroneously counted enough phantom demand to power a small city, causing price spikes and hundreds of millions in charges to consumers, @OntEnergyBoard says. @5thEstate reports.

It estimated the average increase to the HOEP was as much as $4.50/MWh, but that price spikes, compounded by scheduled OEB rate changes, would have been much higher during busier times, such as the mid-morning and early evening.

“In times of tight supply, the addition of fictitious demand often had a dramatic inflationary impact on the HOEP,” the report said.

That meant on one summer evening in 2016 the hourly rate jumped to $1,619/MWh, it said, which was the fourth highest in the history of the Ontario wholesale electricity market.

“Additional demand is met by scheduling increasingly expensive supply, thus increasing the market price. In instances where supply is tight and the supply stack is steep, small increases in demand can cause significant increases in the market price.

The OEB questioned why, as of September this year, the IESO had failed to notify its customers or the broader public, amid a broader auditor-regulator dispute that drew political attention, about the mistake and its effect on prices.

“It's time for greater transparency on where electricity costs are really coming from,” said Sarah Buchanan, clean energy program manager at Environmental Defence.

“Ontario will be making big decisions in the coming years about whether to keep our electricity grid clean, or burn more fossil fuels to keep the lights on,” she added. “These decisions need to be informed by the best possible evidence, and that can't happen if critical information is hidden.”

In a response to the OEB report on Monday, the IESO said its own initial analysis found that the error likely pushed wholesale electricity payments up by $225 million. That calculation assumed that the higher prices would have changed consumer behaviour, while upcoming electricity auctions were cited as a way to lower costs, it said.

In response to questions, a spokesperson said residential and small commercial consumers would have saved $11 million in electricity costs over the 11-month period, even as a typical bill increase loomed province-wide, while larger consumers would have paid an extra $14 million.

That is because residential and small commercial customers pay some costs via time-of-use rates, including a temporary recovery rate framework, the IESO said, while larger customers pay them in a way that reflects their share of overall electricity use during the five highest demand hours of the year.

The IESO said it could not compensate those that had paid too much, given the complexity of the system, and that the modelling error did not have a significant impact on ratepayers.

While acknowledging the effects of the mistake would vary among its customers, the IESO said the net market impact was less than $10 million, amid ongoing legislation to lower electricity rates in Ontario.

It said it would improve testing of its processes prior to deployment and agreed to publicly disclose errors that significantly affect the wholesale market in the future.

 

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