COST OF ONTARIO HYDRO RISING

Policy makers in Ontario have made poor policy decisions in recent years, resulting in rising electricity costs in the province. Ontario’s rising electricity costs have been, in part, blamed on the province ‘s 2009 Green Energy Act (GEA). The centerpiece of the act included a schedule of subsidized contracts to purchase electricity called Feed-in-Tariffs (FITs). These provided long-term guarantees of above-market rates to generators of renewable sources (wind, solar, bioenergy, and some hydroelectric). To fund these commitments, as well as the cost of other non-market interventions such as conservation programs, Ontario levied a surcharge on electricity called the Global Adjustment (GA). Over the past decade, the GA has soared, resulting in a drastic increase in the cost of electriciy in Ontario.