Reviving Uranium City's nuclear past

By Toronto Star


Arc Flash Training - CSA Z462 Electrical Safety

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
Spindly alders strain and crack underfoot as Don Hovdebo trudges through the thick bush. Then he finds it, on a soaring ridge above the Cracklingstone River valley: a rusted steel slab, roughly the width and length of a car, covering a rough pit in the ground.

Hovdebo, burly and soft-spoken, with a thick brown moustache flecked with grey, seizes a fist-sized rock and rolls it through an ominous gap between the steel and solid ground. "Wait for it," says the 48-year-old, smiling. One one thousand, two one thousand.... At six there's a distant splash, echoing up from below.

Hovdebo taps the slab with the toe of his boot, and there's a hollow echo. "Kind of an emergency patch job," he says, grinning. "That's a long way to fall."

Here at the site of the long abandoned Cinch Lake uranium mine, across the river from Uranium City in Saskatchewan's far north, the task is industrial archaeology – with, at long last, a mind to more than a quick fix.

Hovdebo, a consultant with SRK, an engineering consulting firm, has two scientists from the Saskatchewan Research Council in tow. Together, they're assessing 37 such sites here officially slated for cleanup and reclamation, left for dead in the wake of nuclear disarmament and a subsequent uranium industry collapse through the 1970s. All told, with federal and provincial money, the cleanup will cost $24.5 million.

But reports of the industry's death have been, as the saying goes, greatly exaggerated. In January 2002, the price of uranium, nuclear energy's radioactive fuel, was set at $9.60 (U.S.) per pound. A year ago, it surged to $48.60. This month, it's $120, and some projections have it hitting $200 next year.

And in a deliciously ironic twist, the forces driving the new-era uranium boom mean to save the planet, not destroy it: the quest for clean – and more – energy is slowly shaping an international governmental consensus that nuclear power, finally, is the solution.

According to the World Nuclear Association, 250 new nuclear reactors are either in the planning or proposal process worldwide (435 are currently in operation). In 2005, U.S. President George W. Bush signed an energy bill that provides loan incentives, tax credits and federal risk insurance for companies willing to build new nuclear plants – none of which have been built since the Three Mile Island accident in 1979.

In Ontario, where more than half of our electricity already comes from nuclear power, coal-fired plants are scheduled to be phased out by 2014. Environmental groups are livid at the nuclear surge, but despite their urgings, the provincial liberals have committed about $5.2 billion to refurbishing nuclear reactors, which will add about 2,000 megawatts of nuclear power capacity.

The growing fascination with nuclear power – China alone will build 50 reactors over the next few years, increasing its nuclear load fivefold – is dramatically bumping up demand for uranium, which is already in short supply. Only 55 per cent of the global uranium supply comes from mines; the rest is culled from dismantled warheads, government stockpiles and reprocessing.

And so the hunt is back on, in forgotten corners of the country and around the world, where long-silenced drills are boring into bedrock in search of new or abandoned veins – in Elliot Lake, Ont., which gave up hope as a mining centre decades ago and reinvented itself as a retirement community; in the parched high plains of Mongolia, where Canadian-based Khan Resources is reinvigorating an old Soviet-era claim; in the thick boreal forests of Frontenac County, north of Kingston; in the rich, river-veined Gatineau region of Quebec; in New Brunswick, Nova Scotia, Labrador, Nunavut, the Northwest Territories and, of course, here in Uranium City, where it all began.

"The best place to go looking for new ore is in an old mine," says Zbiegniew Wytrwal, 61. He moved to Uranium City when he was nine years old, and became a geologist at Eldorado, the biggest mine there, through the boom. He left in 1980, just before uranium began its freefall into economic oblivion. Twenty-seven years later, much to his own shock, he's come full circle. "It was a dead industry," he says. "I never thought it would come back."

Uranium City, in the far northeast corner of Saskatchewan and connected by road in winter across frozen lakes, began as a tented outpost in 1950. Just a few years later, bathed in uranium's glow, it was a thriving hub of 5,000, complete with hotels, department stores, a dance hall, a curling rink and a movie theatre. In 1959, even Prince Philip dropped by. Just a few kilometres away from the Uranium City hub, the mine towns of Eldorado and Gunnar counted another 2,000 and 1,200 people, respectively. By the early '80s, though, anti-nuclear sentiment was gaining momentum. Even with détente looming, a near-disaster at Three Mile Island in 1979 coupled with a public weary of their cold war anxieties was cooling the prospects of a nuclear-powered future.

"There was a time when people from Uranium City were real pariahs," says Jim Kermeen, a geologist at Eldorado in the '60s. "You'd tell them you were from here, and they'd take a step back."

Even though the meltdown disaster at Chernobyl was still 3 1/2 years away, economically the uranium business was all but dead. Eldorado, operated by the Canadian government, was the biggest mine in the area, and the last to operate. It announced its closure in late 1982, and proceeded to quickly erase itself – buildings razed, shafts capped and filled – taking most of Uranium City with it. At 77, Kermeen is back in the North for the first time in almost 40 years. On a recent morning near the Eldorado site, he pointed to an expanse of blue sky where the Eldorado mine headframe once stood.

"Costs were rising, prices were low," he says. "Usually, when that happens, you close the mine on care and maintenance and wait for things to cycle back. Here, they demolished the whole thing and buried it. My opinion, and that's all it is: it was political. The stigma against anything nuclear was so strong."

Now, fewer than 100 people call Uranium City home. "Eighty-nine, last I counted," says Carolyn Lenko, the official Uranium City clerk, postmaster and lone administrative civic employee.

Uranium City is a weathered outpost now, the remains of a town slowly being swallowed by the wilderness. What's left lingers amid thick pines and brush and endless crystal blue lakes that dot the heavy bedrock like droplets on a freshly waxed car hood.

On the outskirts of town, suburban bungalows flayed by the elements and decades of neglect squat in the overgrowth, roofs caved in, windows blown out. Fractured sidewalks lead to weed-choked cul-de-sacs where no one has lived for years.

But the 89 people who remain are seeing more activity here than they have in years. A surfeit of junior exploration companies, with names like CanAlaska Uranium, Red Rock Energy and Uranium City Resources, are drilling on their claim sites, hunting down the increasingly precious metal.

The grade of uranium here is low compared with that of newer mines to the south and east of Lake Athabasca, where the uranium concentration, or grade, in the rock extracted can be as high as 20 per cent. Here, it's closer to 0.2 per cent – a fraction that, until recently, made mining it cost-prohibitive.

But times have changed, says Serge Nadeau, the chief geologist with Uranium City Resources here. "We were estimating that something like 0.02 per cent was economically viable. With the prices the way they are now, even if we get one pound per ton, we're happy."

He has been even happier to find that some of his core samples are suggesting a grade as high as 1.3 per cent. Nadeau was sniffing out gold here when uranium prices shot up last year. He switched gears, and has seen a host of new explorers rush in.

Uranium City Resources has almost completed a $1-million renovation of a government building, abandoned in 1982, that will now include living quarters, offices, a restaurant and a geology field office. "We're hiring pretty much everyone in town," Nadeau says.

With the spike in uranium prices since last summer, "the past year has been pretty crazy," says Dean Classen, 44. Classen runs the town's only gas station, Uranium City Bulk Fuel, a truck rental business, a construction company and the town's lone bed and breakfast.

Exploration has been so busy, he says, that seats on TransWest Air from the south, which flies in eight-seater planes three times a week, are hard to come by. So in July, a second airline, Pronto, started running the route as well. Classen's fuel station serves as the flight check-in desk, too.

It's a far cry from the 737s that used fly in and out daily back in the heyday. But it's something, he says.

Classen grew up here. His father was the high school teacher. When the town collapsed with the closure of Eldorado, in 1982 – "December 13, just before Christmas" – he stayed on despite it all.

"By the end of that summer, I'd say about 3,000 people were gone," Classen recalls. "It was a real exodus. That's why I like seeing new people in town. It means we have a chance at better services, better schooling. It means we have hope."

Out at Cinch Lake, Hovdebo and the scientists are searching for the mine's stockpile – where rock containing the precious, gamma-emitting metal would be piled for hauling to the mill. Bill Olsen, one of the scientists, clutches a radiometer, which gauges gamma radiation emissions from the rock underfoot.

Hovdebo first came north in 1994, as a mine inspector for the Saskatchewan government. He has been pushing the federal and provincial governments for a comprehensive cleanup ever since.

Radiation is the least of his concerns. "If I compare the radiation I'm measuring in Uranium City, it's lower than in downtown Saskatoon," he shrugs. "You can't see it, you can't feel it, and most people just don't understand it."

The bigger problem: tailings, the waste product from refining the ore from the mills. Once the rock was extracted, it was hauled to the handful of mills that were active in the region – Gunnar, Eldorado and Lorado. Once there, it was ground to a fine sand, called slurry, from which a series of chemical processes dissolved and concentrated the pure uranium ore from the silty muck that contained it.

The by-product – called tailings – was let loose in nearby lakes. "Arsenic trioxide, sulphuric acid leaching into the water table – that's the issue," he says. "Human beings are very good at creating molecules nature has never seen before. We've got to make sure these things don't stick around."

But as the uranium boom and its nuclear application gather momentum worldwide, so too do its detractors.

Frontenac Ventures, an Ontario company, has been exploring for uranium deposits at Sharbot Lake north of Kingston, but last month the local Algonquin First Nation occupied its exploration camp in protest and refused to leave. The company is suing the first nation for $100 million.

In New Brunswick, where a government ban on uranium mining was enacted in 1982, CVRD-Inco is exploring for uranium near Moncton to a chorus of public outcry. There have been demonstrations in Quebec, protests in British Columbia. And controversy abounds near Baker Lake in Nunavut, where skyrocketing uranium prices prompted an Inuit land claims organization to reverse a uranium-mining ban on its lands last year.

For environmental groups, all the talk of nuclear energy as a green power panacea rings hollow. "It's basically wishful thinking that nuclear power will do anything to reduce greenhouse gases," says Emilie Moorhouse, of the Sierra Club.

Carbon emissions from mining, transporting and milling uranium offset any benefits, she says. Then there's the issue of nuclear waste – spent uranium from the reactors, for which there's no long-term storage solution.

Fears of nuclear power were bluntly reinforced last month after an earthquake in Japan caused a radioactive leak at a nuclear plant there. Immediately after, the price of uranium, peaking at $136 per pound, suffered its first fall in four years, to $120.

"The industry promises `This time around, things will be different,'" Moorhouse says. "But it's not clean, it's not reliable and it's not safe."

To make the point, the Sierra Club is touring a photo exhibit called "Chernobyl: 20 years – 20 lives." The images of the continuing devastation left behind by the 1986 Chernobyl meltdown disaster are grotesque and disturbing.

In the Uranium City municipal office, Carolyn Lenko sits alone at a computer, minding the town's scant affairs. Things are busier these days, she allows. But, she continues, "There's been so many ups and downs over the years, you don't want to get your hopes up."

As far as she's concerned, Uranium City's most precious resource is tranquility. But in the past year, it has become less quiet. "When you bring in the mining industry, you get a whole bunch of single guys, and you know what comes with that," she says. "You get the drinking, the fighting. And I have kids I'm raising here. And you look at these mines, and you think, `Do we really want it?'"

At Uranium City Bulk Fuel, the de facto town centre these days, Andy Schultz pulls up in a weather-beaten pickup, a truck axle thrown over his shoulder. He drops it in Classen's garage and settles in for a coffee. After years working in Fort McMurray, the country's no-holds-barred oil sands boomtown, Schultz, 41, has come back to where he started.

"I'm retired," he says. Schultz came back to spread his father's ashes here. "I forgot how beautiful it was. They'll spread my ashes here someday, too."

With uranium rising, Classen suggests what he thinks might be a realistic goal for the town: about 2,500 people, servicing the industry.

"Holy crap, don't even say that," says Schultz with a dose of playful anxiety. "I came here to get away from the rat race."

Classen shrugs. "I'd love to see it," he says. "We could actually do things again."

Related News

Abu Dhabi seeks investors to build hydrogen-export facilities

ADNOC Hydrogen Export Projects target global energy transition, courting investors and equity stakes for blue and green hydrogen, ammonia shipping, CCS at Ruwais, and long-term supply contracts across power, transport, and industrial sectors.

 

Key Points

ADNOC plans blue and green hydrogen exports, leveraging Ruwais, CCS, and ammonia to secure long-term supply.

✅ Blue hydrogen via gas reforming with CCS; ammonia for shipping.

✅ Green hydrogen from solar-powered electrolysis under development.

✅ Ruwais expansions and Fertiglobe ammonia tie-up target long-term supply.

 

Abu Dhabi is seeking investors to help build hydrogen-export facilities, as Middle Eastern oil producers plan to adopt cleaner energy solutions, sources told Bloomberg.

Abu Dhabi National Oil Company (ADNOC) is holding talks with energy companies for them to purchase equity stakes in the hydrogen projects, the sources referred, as Germany's hydrogen strategy signals rising import demand.

ADNOC, which already produces hydrogen for its refineries, also aims to enter into long-term supply contracts, as Canada-Germany clean energy cooperation illustrates growing cross-border demand, before making any progress with these investments.

Amid a global push to reduce greenhouse-gas emissions, the state-owned oil companies in the Gulf region seek to turn their expertise in exporting liquid fuel into shipping hydrogen or ammonia across the world for clean and universal electricity needs, transport, and industrial use.

Most of the ADNOC exports are expected to be blue hydrogen, created by converting natural gas and capturing the carbon dioxide by-product that can enable using CO2 to generate electricity approaches, according to Bloomberg.

The sources said that the Abu Dhabi-based company will raise its production of hydrogen by expanding an oil-processing plant and the Borouge petrochemical facility at the Ruwais industrial hub, supporting a sustainable electric planet vision, as the extra hydrogen will be used for an ammonia facility planned with Fertiglobe.

Abu Dhabi also plans to develop green hydrogen, similar to clean hydrogen in Canada initiatives, which is generated from renewable energy such as solar power.

Noteworthy to mention, in May 2021, ADNOC announced that it will construct a world-scale blue ammonia production facility in Ruwais in Abu Dhabi to contribute to the UAE's efforts to create local and international hydrogen value chains.

 

Related News

View more

Data Center Boom Poses a Power Challenge for U.S. Utilities

U.S. Data Center Power Demand is straining electric utilities and grid reliability as AI, cloud computing, and streaming surge, driving transmission and generation upgrades, demand response, and renewable energy sourcing amid rising electricity costs.

 

Key Points

The rising electricity load from U.S. data centers, affecting utilities, grid capacity, and energy prices.

✅ AI, cloud, and streaming spur hyperscale compute loads

✅ Grid upgrades: transmission, generation, and substations

✅ Demand response, efficiency, and renewables mitigate strain

 

U.S. electric utilities are facing a significant new challenge as the explosive growth of data centers puts unprecedented strain on power grids across the nation. According to a new report from Reuters, data centers' power demands are expected to increase dramatically over the next few years, raising concerns about grid reliability and potential increases in electricity costs for businesses and consumers.


What's Driving the Data Center Surge?

The explosion in data centers is being fueled by several factors, with grid edge trends offering early context for these shifts:

  • Cloud Computing: The rise of cloud computing services, where businesses and individuals store and process data on remote servers, significantly increases demand for data centers.
  • Artificial Intelligence (AI): Data-hungry AI applications and machine learning algorithms are driving a massive need for computing power, accelerating the growth of data centers.
  • Streaming and Video Content: The growth of streaming platforms and high-definition video content requires vast amounts of data storage and processing, further boosting demand for data centers.


Challenges for Utilities

Data centers are notorious energy hogs. Their need for a constant, reliable supply of electricity places  heavy demand on the grid, making integrating AI data centers a complex planning challenge, often in regions where power infrastructure wasn't designed for such large loads. Utilities must invest significantly in transmission and generation capacity upgrades to meet the demand while ensuring grid stability.

Some experts warn that the growth of data centers could lead to brownouts or outages, as a U.S. blackout study underscores ongoing risks, especially during peak demand periods in areas where the grid is already strained. Increased electricity demand could also lead to price hikes, with utilities potentially passing the additional costs onto consumers and businesses.


Sustainable Solutions Needed

Utility companies, governments, and the data center industry are scrambling to find sustainable solutions, including using AI to manage demand initiatives across utilities, to mitigate these challenges:

  • Energy Efficiency: Data center operators are investing in new cooling and energy management solutions to improve energy efficiency. Some are even exploring renewable energy sources like onsite solar and wind power.
  • Strategic Placement: Authorities are encouraging the development of data centers in areas with abundant renewable energy and access to existing grid infrastructure. This minimizes the need for expensive new transmission lines.
  • Demand Flexibility: Utility companies are experimenting with programs as part of a move toward a digital grid architecture to incentivize data centers to reduce their power consumption during peak demand periods, which could help mitigate power strain.


The Future of the Grid

The rapid growth of data centers exemplifies the significant challenges facing the aging U.S. electrical grid, with a recent grid report card highlighting dangerous vulnerabilities. It highlights the need for a modernized power infrastructure, capable of accommodating increasing demand spurred by new technologies while addressing climate change impacts that threaten reliability and affordability.  The question for utilities, as well as data center operators, is how to balance the increasing need for computing power with the imperative of a sustainable and reliable energy future.

 

Related News

View more

Stop the Shock campaign seeks to bring back Canadian coal power

Alberta Electricity Price Hikes spotlight grid reliability, renewable transition, coal phase-out, and energy poverty, as policy shifts and investor reports warn of rate increases, biomass trade-offs, and sustainability challenges impacting households and businesses.

 

Key Points

Projected power bill hikes from market reforms, renewables, coal phase-out, and reliability costs in Alberta.

✅ Investor report projects 3x-7x bills and $50B market transition costs

✅ Policy missteps cited in Ontario, Germany, Australia price spikes

✅ Debate: retain coal vs. speed renewables, storage, and grid upgrades

 

Since when did electricity become a scarce resource?

I thought all the talk about greening the grid was about having renewable, sustainable, less polluting options to fulfill our growing need for power. Yet, increasingly, we are faced with news stories that indicate using power is bad in and of itself, even as flat electricity demand worries utilities.

The implication, I guess, is that we should be using less of it. But, I don’t want to use less electricity. I want to be able to watch TV, turn my lights on when the sun sets at 4 p.m. in the winter, keep my food cold and power my devices.

We once had a consensus that a reliable supply of power was essential to a growing economy and a high quality of life, a point underscored by brownout risks in U.S. markets.

I’m beginning to wonder if we still have that consensus.

And more importantly, if our decision makers have determined electricity is a vice as opposed to an essential of life – as debates over Alberta electricity policy suggest – you know what is going to happen next. Prices are going to rise, forcing all of us to use less.

How much would it hurt your bottom line if your electricity bill went up three-fold? How about seven-fold? That is the grim picture that Todd Beasley painted for us on Tuesday’s show.

Last week, he launched a campaign on behalf of Albertans for Sustainable Electricity, called Stop the Shock. He shared the results of an internal investor report that concluded Alberta’s power market overhaul would cost an estimated $50 billion to implement and could result in a three to seven-fold increase in electricity bills.

Now, my typical power bill averages $70 a month. That would be like having it grow to $210 a month, or just over $2,500 a year. If it’s a seven-fold increase that would be more like $5,000 a year. That may be manageable for some families, but I can think of a lot of things I’d rather do with $5,000 than pay more to keep my fridge running so my food doesn’t spoil.

For low-income families that would be a real hardship.

Beasley said Ontario’s inept handling of its electricity market and the phase-out of coal power resulted in price spikes that left more than 70,000 individuals facing energy poverty.

Germany and Australia realized they made the same mistake and are returning some electricity to coal.

Beasley shared a long list of Canadian firms – including our own Canadian Pension Plan – that are investing in coal development around the world. Meanwhile, Canadian governments remain in a mad rush to phase it out here. That’s not the only hypocrisy.

Rupert Darwall, author of Green Tyranny: Exposing the Totalitarian Roots of the Climate Industrial Complex, revealed in a recent column what he calls “the scandal at the heart of the EU’s renewable policies.”

Turns out most of their expansion in renewable energy has come from biomass in the form of wood. Not only does burning wood produce more CO2, it also eliminates carbon sinks.

To meet the EU’s 2030 target would require cutting down trees equivalent to the combined harvest in Canada and the United States. As he puts it, “Whichever way you look at it, burning the world’s carbon sinks to meet the EU’s arbitrary renewable energy targets is environmentally insane.”

Beasley’s group is trying to bring some sanity back to the discussion. The goal should be to move to a greener grid while maintaining abundant, reliable and cheap power, and examples like Texas grid improvements show practical steps. He thinks to achieve all these goals, coal should remain part of the mix. What do you think?

 

Related News

View more

Oil crash only a foretaste of what awaits energy industry

Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

 

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

 

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

 

Related News

View more

Hydro One delivery rates go up

Hydro One Rate Hike reflects Ontario Energy Board approval for higher delivery charges, impacting seasonal customers more than residential classes, funding infrastructure upgrades like wood pole and transformer replacements across Ontario's medium-density service areas.

 

Key Points

The Hydro One rate hike is an OEB-approved delivery charge increase to fund upgrades, with impacts on seasonal users.

✅ OEB-approved delivery rate increases retroactive to 2018

✅ Seasonal customers see larger monthly bill impacts than residential

✅ Funds pole, transformer replacements and tree trimming work

 

Hydro One seasonal customers will face bigger increases in their bills than the utility's residential customers as a result of an Ontario Energy Board approval of a rate hike, a topic drawing attention from a utilities watchdog in other provinces as well.

Hydro One received permission to increase its delivery charge, as large projects like the Meaford hydro generation proposal are considered across Ontario, retroactive to last year.

It says it needs the money to maintain and upgrade its infrastructure, including efforts to adapt to climate change, much of which was installed in the 1950s.

The utility is notifying customers that new statements reflect higher delivery rates which were not charged in 2018 and the first half of this year, due to delay in receiving the OEB's permission, similar to delays that can follow an energy board recommendation in other jurisdictions.

The amount that customers' bills will increase by depends not only on how much electricity they use, but also on which rate class they belong to, as well as policy decisions affecting remote connections such as the First Nations electricity line in northern Ontario.

For seasonal customers such as summer cottage owners, the impact on a typical user's bill will be 2.9 per cent more per month for 2018, and 1.7 per cent per month for 2019.

There will be further increases of 1.0 per cent, 1.4 per cent and 1.1 per cent per month in 2020, 2021 and 2022 respectively. 

Typical residential customers will experience smaller increases or rate freezes over the same period.

In the residential medium density class, the rate changes are a 2.0 per cent increase for last year, a decrease of 0.5 per cent this year, and an increase of 0.5 per cent in 2021. There will be no increases in 2020 and 2022.

 

Seasonal Rate Class — Estimated bill impact per month

2018 - 2.9 %

2019 - 1.7%

2020 - 1.0%

2021 - 1.4%

2022 - 1.1%

 

Residential Medium Density Rate Class — Estimated bill impact per month

2018 - 2.0%

2019 - -0.5% decrease

2020 - 0.0%

2021 - 0.5%

2022 - 0.0%

A Hydro One spokesperson told tbnewswatch.com that over the next three years, the utility's upgrading plan includes reliability investments such as replacing more than 24,000 wood poles across the province as well as numerous transformers.

In the Thunder Bay area, the spokesperson said, some of the revenue generated by the higher delivery rates will cover the cost of replacing more than 180 poles and trimming hazardous trees around 3,200 kilometres of overhead power lines while sharing electrical safety tips with customers.

 

Related News

View more

Ontario Extends Off-Peak Electricity Rates to Provide Relief for Families, Small Businesses and Farms

Ontario Off-Peak Electricity Rate Relief extends 8.5 cents/kWh pricing 24/7 for residential, small business, and farm customers, covering Time-Of-Use and tiered plans to stabilize utility bills during COVID-19 Stay-at-Home measures across Ontario.

 

Key Points

A province-wide 8.5 cents/kWh price applied 24/7 until Feb 22, 2021 for TOU and tiered users to reduce electricity bills

✅ 8.5 cents/kWh, applied 24/7 through Feb 22, 2021

✅ Available to TOU and tiered OEB-regulated customers

✅ Automatic on bills for homes, small businesses, farms

 

The Ontario government is once again extending electricity rate relief for families, small businesses and farms to support those spending more time at home while the province maintains the Stay-at-Home Order in the majority of public health regions. The government will continue to hold electricity prices to the off-peak rate of 8.5 cents per kilowatt-hour, compared with higher peak rates elsewhere in the day, until February 22, 2021. This lower rate is available 24 hours per day, seven days a week for Time-Of-Use and tiered customers.

"We know staying at home means using more electricity during the day when electricity prices are higher, that's why we are once again extending the off-peak electricity rate to provide households, small businesses and farms with stable and predictable electricity bills when they need it most," said Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs. "We thank Ontarians for continuing to follow regional Stay-at-Home orders to help stop the spread of COVID-19."

The off-peak rate came into effect January 1, 2021, providing families, farms and small businesses with immediate electricity rate relief, and for industrial and commercial companies, stable pricing initiatives have provided additional certainty. The off-peak rate will now be extended until the end of day February 22, 2021, for a total of 53 days of emergency rate relief. During this period, and alongside temporary disconnect moratoriums for residential customers, the off-peak price will continue to be automatically applied to electricity bills of all residential, small business, and farm customers who pay regulated rates set by the Ontario Energy Board and get a bill from a utility.

"We extend our thanks to the Ontario Energy Board and local distribution companies across the province, including Hydro One, for implementing this extended emergency rate relief and supporting Ontarians as they continue to work and learn from home," said Bill Walker, Associate Minister of Energy.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified