Toronto Hydro looking to counter own effectivness

[BlackEleven]

I guess Toronto Hydro's plan to get consumers to reduce consumption was a little too effective for their own liking:

The hike is needed to cover a $10.4 million loss in revenues associated with conservation programs that began in 2005, including last year's summer challenge, which offered hydro customers a 10 per cent credit on their fall bill if they cut electricity use by 10 per cent over two months, according to the utility.

http://www.thestar.com/Business/article/194785

Although I find this pretty funny, I'd be mad if I were a T.O resident.

[octothorp]

Yeah, that is pretty funny. Energy conservation efforts make less sense in an industry like hydro-power, where costs remain more or less the same regardless of minor fluctuations in use. At least with fuel-burning power plants, reduced demand directly results in reduced cost, since a major cost is the fuels themselves. I'm guessing the policy was set up specifically to address the brown-outs that Toronto experiences during high-demand seasons but it still seems really short-sighted. I'd agree, I'd be pissed if I was a TO resident. Especially if I was someone who didn't bother reducing power last year, and now has to pay more because of all my tree-hugging hippie neighbours.

[Radically Red]

Man if I was a Tree hugger in T.O I would be pretty upset. cut power usage and still get charged more. No incentive to save power next time.

The power company should have to take their lumps for their own challenge. They are pretty much having their cake and eating it to if this is approved

[Frank the Tank]

Originally Posted by Radically Red

Man if I was a Tree hugger in T.O I would be pretty upset. cut power usage and still get charged more. No incentive to save power next time.

The power company should have to take their lumps for their own challenge. They are pretty much having their cake and eating it to if this is approved

Maybe 4 or 5 years ago the gas company got government approval to jump our rates something like 250%. Why? Because for the previous 15 years they had no enforcement for unpaid bills so they stuck it to the people that actually pay their bills. Nice. And people wonder why I get so loud and belligerant when it comes to bills/taxes/politics.

[Bobblehead]

Well, T.O. gets some of their power from Nanticoke - the largest coal-generation plant in North America.

[Frank the Tank]

There was also a story on the news about Bruce Power getting some money for something like 600 million for new high tension lines to Toronto. Crazy money in the power business!

[Bobblehead]

Originally Posted by Frank the Tank

There was also a story on the news about Bruce Power getting some money for something like 600 million for new high tension lines to Toronto. Crazy money in the power business!

Didn't they shut down one of the reactors a few years ago?

I have a cousin that works there (or used to - I have so many cousins I can't keep track)

Edit: It appears 2 were shut down, but they are now refurbishing them.
And Douglas Point is still shuttered.

[Devils'Advocate]

Funny. When Nova Scotia Power was owned by the province, they had a huge conservation effort in place, including selling energy saving kits (various devices used for saving energy, ie low-flow shower heads). As soon as they privatized, all conservation efforts went out the window.

A for-profit industry is in the business of selling MORE of their product, not LESS.

[calculoso]

Originally Posted by Devils'Advocate

A for-profit industry is in the business of selling MORE of their product, not LESS.

To a certain extent, yes. A for-profit industry is in the business of selling the most product for the least cost.

If the incremental cost to produce 1 more unit is astronomical, it won't happen until there is sufficient demand to do so (ie: their costs will be covered or deemed acceptable). This applies directly to this example. If the cost of producing 1 more kilowatt of electricity comes at the expense of building a new substation, they're not going to do it.

At this point, it sounds like Hydro One reduced consumption so much that they need to either shut down substations (unlikely) or increase the cost of their electricity.