I read with interest an article, February 28, by Heather Mallick in the Toronto Star. She has coined a new phrase “McGuinty Time”; this is the time when our provinces “off-peak” electricity pricing starts. We have three different electricity rates; on-peak – $0.099kwh, mid-peak $0.081kwh and off-peak $0.051 kWh. In addition there are a plethora of other charges including delivery charge, regulatory charge, debt retirement charge and HST 13% on tax on top of all other charges. So what this means is that a total raw electricity charge of $81.93 magically becomes $161.31. Now to ease the blow we are getting a 10% “Clean Energy Benefit” reduction for 2011 – they will claw this back in future years for sure. So on average my electricity cost me on average $4.68 per day.
So how does this compare to the U.S. well there is no shortage of miscellaneous charges here as well. They have multiple plans and, as a homeowner, you can select a plan that meets your lifestyle and usage. I am on Time Advantage 9 p.m. – 9 a.m. $0.158 on-peak and $0.051 off-peak. This plan “encourages” the homeowner to use the most electricity between these hours. There are 11 separate charges and 5 tax categories calculate at approximately 12.5% so pretty even here. Average cost per day $2.24
Comparing January to January total costs come in at $145.17 in Canada and $72.69 in Phoenix. Difference $72.48
So I was in Costco this week in Phoenix and was taken by a display of 13 watt CFL bulbs. The “Smart” part is that the local power company, APS, provides an on-the-spot incentive to go “green”. A four-pack was $4.99 with an at-the-cash discount of $4.00 – cost at checkout $0.99, add the $0.46 tax and we end up with $0.36 per bulb.
Compare this with Home Depot Canada cost of $7.98 for a two-pack. So apples-to-apples $18.03 including HST or $4.50 per bulb. Difference $4.14 per bulb, $33.12 total.
This price difference also significantly increases the ROI or payback one receives from the “green” initiative as compared to a 60 watt incandescent bulb. The payback period for 4 hour usage per day in Phoenix is 20 days, in Toronto 221 days.
Gives new meaning to “screw” in base
April 15, 2011
As most Ontario residents slept between 4 a.m. and 5 a.m. on April 10, they unknowingly deposited a credit of $228,625.86 in the accounts of electricity users in Quebec, New York and Michigan. read John Spears article at http://www.moneyville.ca/article/973579–we-re-paying-others-to-use-our-electricity-again
If you’ve paid a steep hydro bill lately, you might want to take a deep breath before reading this….http://www.moneyville.ca/article/956001–power-firms-were-paid-millions-not-to-generate-power
Ontario electricity consumers received the latest whack to their pocketbooks Tuesday. The Ontario Energy Board (OEB) announced that electricity rates will rise anywhere from 8% to 15% beginning May 1. The biggest increases will hit consumers who are part of the province’s brave new world of time of use (TOU) pricing. For off-peak electricity (between 11 pm to 7 am), the cost of electricity will jump 15% to 5.9 cents a kilowatt hour. Mid-peak electricity (early morning to 11 am and early evenings) jumps 10% from 8.1 to 8.9 cents per kWh. Peak use electricity (11 am to 5pm) rises 8% to 10.7 cents a kWh from 9.9 cents.
These rate increases come on top of a 12% increase last May. Note, also, that the increases are greater for off-peak than peak.