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THE 3 CENT SOLUTION
I would like to pay higher power prices, and use the increase in price to bribe people to save electricity. Why? Because if people consume less, the power price will be reduced, and save me money. New power costs more than old power. A lot more. And Ontario needs a lot of new power. The less we need, the less our power will cost. This apparent paradox - where I should pay more to bribe you to use less, should form a strong pillar of future energy policy. Let me explain. The price that we pay for power is based on a blend of factors. Ontario Power Generation (OPG) has "heritage assets", including major hydroelectric facilities like Niagara Falls. The price of the power from these assets is set by the Ontario Energy Board based on an allowable rate of return. Since the power costs little to produce, it is very cheap (about 2 cents/kWh). These assets supply about 20% of our power. OPG also has the Pickering and Darlington nuclear stations, which again are priced based on an allowed rate of return, and supply about 25% of our power. Today, because the cost of the nuclear power has been higher than expected, the 5% allowed rate of return is very low. This will increase to a more normal rate in the future. The price we pay for power from these plants is 5-6 cents/kWh. We are not paying the full true cost of this power, because we have not properly budgeted for waste storage (recently estimated at $24 billion), nor for plant decommissioning, and our rate of return is still below where it needs to be. The price of this power will inevitably go up.
Phase one of the largest solar power plant in the world located in South Western Germany it will generate 12 MW on completion. Photo by Andreas Labes OPG also has the coal plants, which are scheduled to be shut down, because of health and environmental effects, and also because they are old. The oldest plant, Lakeview, was shut down this year at the ripe old age of 43. Have you ever tried to keep a car that long? The price of this power is not regulated, but is instead sold into the spot market. The cost of power from the coal plants is about 4 cents/kWh, but the spot market has been averaging a little over 5 cents. OPG pays rebates to all electricity consumers if the price they realize in the spot market is higher than a certain threshold. Other players in the spot market include certain hydro facilities, natural gas facilities, and the output of the Bruce nuclear plant. Demand for electricity rose by 1.1% last year. So we need new supply - half of the latest Pickering refurbishment, which is costing over $1 billion will be required just to meet one year of growth in demand. In addition, our plants are aging, and need replacement. So the government has purchased some new power. They purchased the output 395 MW of new renewable power, from wind and water. The average cost of this power was 8 cents/kWh. And they have purchased the output of 2300 MW of new gas fired facilities. The cost of this power is more than 8 cents/kWh, at today's gas prices, and may be much more in the future. So back to the price on my bill. It is made up of a blend of all of these prices - the very low cost heritage hydro, the low cost, but underpriced regulated nuclear assets, the spot price, the OPG rebate, and the cost of the newly purchased power. Of these, the most costly power is from the new facilities. The less of their power we need, the lower my cost would be. And that is why I want to be charged more. So I can bribe you to use less. Of course, it need not be a bribe. We could simply provide you with free compact fluorescent light bulbs. Or pay a bounty on an old inefficient refrigerator, so you replace it with one that is twice as efficient. Or pay a bounty on old window air conditioners. Or plant deciduous trees on the south of your property. Or pay half the cost of a solar thermal heater. Conservation technologies are far cheaper than new power. But since we sell our power at a blended price (just over 5 cents/kWh), they do not offer the consumer a payback in many cases. But they would offer all consumers a payback. We should be willing to pay up to the difference between the cost of new power (about 8.5 cents) and our power price (5.5 cents), and we will be equally well off. So that is the 3 cent solution. It is time to let the conservation bribes begin.
GRANTS AVAILABLE FOR ENERGY EFFICIENCY RETROFITS! Energuide For Houses is a federal government project to cut Greenhouse Gases and save homeowners money. When should you use Energuide For Houses?
Who is eligible for a grant? Homeowners with a primary residence, work must be done within a specific time frame, only homes that have pre- and post-retrofit Energuide For Houses ratings*) and only one application for grants honoured. Eligible homes must meet a certain level of improvements in order to qualify for a grant.*) Energy efficiency retrofits must be based on licenced energy audit advisor's ratings. Homeowners must contact an EnerGuide for Houses advisor before starting renovations. Grants can range from $100 to as much as $3,348. Call the Office of Energy Efficiency, Natural Resources Canada, 1-800-387-2000 or visit their website for information www.oee.nrcan.gc.ca/infosource . STUDY DONE FOR CALIFORNIA UTILITLY PROVES THE VALUE OF SOLAR PHOTO VOLTAICS (PV) A comprehensive analysis submitted to the California Public Utilities Commission in May of this year shows that the use of PV provides numerous ancillary benefits. "There are 14 areas where the value of distributed solar PV offsets other infrastructure and environmental costs led by the value of avoiding generation fuel costs for natural gas. Avoiding capital costs, avoiding distribution costs(summer peak) and avoiding CO2 emissions. All of this was estimated to be worth 22.4 cents (U.S.) Per kWh. The other benefits are avoiding of transmission costs, generation capacity O&M costs, generation and T&D losses and distribution costs, as well as the value of the fossil fuel price hedge, deployment ease and speed, grid support, health benefits, avoided Nox emissions and the value of avoided water use! The study demonstrates that the value of distributed generation of solar PV electricity, especially when reducing high-cost peak loads, is greater than the average alternative power generation and distribution options. It also provides a clear rationale supporting ratepayer investment, as well as a foundation for developing the appropriate regulatory framework to make solar PV a staple of the electricity supply in California and the nation, according to the authors. The benefits of distributed generation - solar power made locally and used locally - go far beyond the savings on your summer electricity bill," comments lead economist Lori Smith Schell. "Distributed solar PV reduces air pollution, reduces the need for costly new peaker power plants and transmission and distribution lines, and makes the power grid more reliable. Most importantly, solar PV is a valuable peaking resource because solar contributes maximum power in the afternoon during peak power usage, and shaves peak demand and reduces the spikes in peak electricity prices to benefit ratepayers".Solar PV is more valuable because it competes on the retail side of the customer meter, not wholesale like other technologies, according to the study. Key to good policy changes will include consumer-friendly interconnection standards, net metering and voluntary solar tariffs, which properly value distributed solar electricity generation. Legislators in California are examining the ‘Million Roofs' initiative of governor Arnold Schwarzenegger and the analysis was prepared by the group Americans for Solar Power (ASPv) to demonstrate the economic viability of the governor's program. Coordinator's comment: Even though this study features sunny California, the main arguments are just as valid for our province as the summer peak loads can be effectively lessened and pollution minimized by a supportive government initiative - the 100,000 solar roof program! proposal.
SPOTLIGHT ON...Alternative Energy Student Group (AESG) We had an unexpected but very welcome addition to our presentations at our May 29 workshop: A 19-year old student, Michael Samaroo, son of one of our members, brought us an insight into what projects the students at Lawrence Technological University(LTU) in Michigan are working on. An 'Alternative Energy Student Group(AESG)' was formed there a year ago by 6 students under supervision of the professor of the LTU Alternative Energy Program.The group is involved with real-life application projects to help students to understand how to integrate these technologies for everyday use. Membership has grown to approx. 75 undergraduate and graduate students. Among other projects, the students are helping to troubleshoot, assess functionality and review operational data for system optimization of the largest fully renewable energy hydrogen-power park installed in North America so far. The park utilizes solar energy and biomass power to split water into hydrogen and oxygen, storing the hydrogen gas, highly compressed (5700psi), in cylinders. The hydrogen then can be used to fuel hydrogen vehicles or to produce power in the 5 kW fuel cells installed in the park, With a grant from the State of Michigan and matching funds from the university a 10 kW solar photovoltaic(PV) system was installed on the roof of the engineering building. Much of the labor was done by students working with the professional installers. The system is a pilot project and students will analyze the feasibility of producing solar power in Michigan. Thank you, Mike, for this interesting and inspiring presentation! It should inspire university and college students on this side of the border to follow this example! P.S.: Mike is off on a scholarship to the Lawrence Livermore Laboratory in Oregon. Best of luck, Mike!
SPECIAL ANNOUNCEMENT! - T-shirts We finally got another shipment of our famous 'Happy Face' CFRE t-shirts! Made in Canada from special Pima Organic Cotton, they are an example of our dedication to a sustainable environment. We have all sizes from small to xtra large. Cost of $20 is only a fraction above our wholesale cost. So please help us carry the message :Sun and Wind, - For Clean and Safe Renewable Energy' into our communities!! We'll be happy to send them out, postage is extra!
UPDATE ON THE REPORT "RELIABLE POWER FROM NUCLEAR" (#29, March 2003) In one of our newsletters over 2 years ago we reported on the fallacy of ‘reliable nuclear power'using the performance of Ontario's newer reactor fleet, and shedding light on those misleading claims by the industry in connection with the Kyoto commitments and Climate Change. Have things improved over those two years? Here is an overview with all the information taken from documents available at the Canadian Nuclear Safety Commission(CNSC), the federal regulator for the industry. Now most people remember the large blackout in August of 2003 when the Energy minister and the Premier kept urging the public to cut back on energy use. It was the nuclear reactors, being deprived of the power from the grid who suddenly had to shut down and then had a lot of trouble getting restarted, some taking more than a week. But lets look at the status of nuclear generators in 2004: Bruce Power unit 8 out for an extended time in late winter (tube support plate degradation) Unit 3 out of service for 2 days for pump motor repairs. Darlington unit 2 running just slightly above half power, Pickering unit 8 shut down for a valve repair. On March 1st at Pickering a station emergency was declared because of a hydrogen leak at unit 6 generator. Luckily no explosion or fire occurred. The unit had to remain shut down for an extended period of time for investigation and repair. Darlington unit 1 was taken out of service for a maintenance outage from March 12 to May 18 (over 2 months!) Pickering unit 8 was in a planned maintenance outage for almost 5 months(!) From March to mid-August. Unit 6 had a forced outage on July 16 and was out of service for repairs until August 9th. On July 20 unit 4 at Pickering A, newly restarted after an expensive retrofit, had to be shut down for extensive repairs for 2 weeks, all this during the hottest time of the season when Ontario is supposed to rely on full production from its nuclear fleet. In August Bruce Power's unit 6 was out for 3 days due to a malfunction caused by human error. In the early spring of 2005 Bruce unit 4, restarted only a year earlier, was out of service already for a planned maintenance outage.In April 2005 Bruce unit 6 was in a forced outage because of a fire in the main output transformer.The outage was extended due to the length of time it took to repair/replace the transformer.After reconnecting the unit it had to be shut down again to repair other problems. Darlington unit 2 is in a planned maintenance outage as of the Status Report of May 2,2005, and unit 4 is in a critical/low power state. In the Pickering B station unit 5 has been in a planned outage throughout the period from late December to February 2005. And in Pickering A the unit 4, restarted at a cost of 1,25 Billion dollars and brought back on line 2 years late is now down again for at least 3 months while the outlet feeder piping is inspected for thinning, a dangerous condition which could bring about leaks and the possibility of breaks leading to the critical condition of a meltdown. There goes our government's pipedream of ‘reliable nuclear power'! Tell the Premier and the Minister of Energy not to spend another dollar of taxpayers' money on that dangerous power!!
In our last newsletter we reported on that great project "5000 in 2005" that our board member Gary Bastin had initiated in partnership with the Glenview Park Secondary School in Cambridge. Well, with a heroic effort on behalf of Gary and his students this EcoAction funded project has been successfully concluded. Hundreds of households now will reap the benefit of lower electricity bills from the energy efficient light bulbs and have come a step closer to meet the One-Tonne-Challenge on Climate Change! Gary also assisted the coordinator, together with Andrea, our board member from Waterloo, to staff an extensive display at the Halton Eco-Festival in Milton the first weekend in April. Another chance to inform the public about CFRE's activities was an invitation to display at a REEP event in Cambridge. In May the coordinator appeared before the Canadian Nuclear Safety Commission(CNSC) in Ottawa to present a submission on the Draft Environmental Assessment of the restart of Bruce Power's reactors 1 and 2, their life extension until 2043(!) and the potential use of Slightly Enriched Uranium(SEU) fuel. The next day a submission on behalf of CFRE was presented on the request from Ontario Power Generation(OPG) for a renewal of the Pickering A operating licence for a 5-year term. We feel that these interventions are a necessary part of our mission to help protect our members and the general public from the dangerous operation of nuclear reactors, and the continuous production of that lethal, radioactive nuclear waste, still without a proven solution for safe longterm disposal. And then, of course, came time to hold our 9th Annual General Meeting, as always combined with a high-profile workshop at our favourite location, the YMCA Paradise Lake Outdoors Centre near Waterloo. Over 40 people attended(some were able to take in the afternoon sessions only) and were treated to several informative presentations. Board member George Wright drove his diesel-powered van all the way from near Ottawa with used fryer oil as fuel and talked about this neat way of using a product for fuel that often would end up in a landfill. Ben Polley, founder of Harvest Home and acclaimed strawbale home expert, informed listeners on using eco-friendly materials when renovating. We had the great opportunity to have the newly appointed Ambassador for the Environment, Karen Kraft Sloan, as guest, talking about government initiatives on Climate Change. The afternoon session brought an interesting and timely talk by former board member Vitold Kreutzer on his experience with net metering, where you can get credit on your hydro bill for your excess renewable energy generation fed back into the grid. The workshop concluded with an appeal by the coordinator to realize the need to get weaned off that dangerous, costly nuclear energy generation to bring forward the clean and safe energy supply from the free fuel nature offers us - sun and wind! In the afternoon business section the coordinator reported on the previous year's activities and handed out the Financial Statement. Our organization is in good shape thanks to our members' contributions and some generous donations. We still have to come up with some novel fundraising projects to expand our activities. We hope to have our website enhanced with the help of Alan Kirker, graphic designer from Waterloo University. We welcomed our new female board member, Annette Verhagen, who brings expertise in coordinating events through her work with the Ecological Farmers Association(EFAO) and thanked Andrea Chappell, who is leaving the board due to other commitments, for all her valuable help. Our 3 other board members Charlie Middleton, Gary Bastin and George Wright agreed to stay on and we extend our heartfelt thanks to all of them for their efforts in making CFRE a vibrant environmental organization! Our stay at the Outdoors Centre with its fabulous facilities was again made so enjoyable with their friendly staff, good food and a guided tour of the site's attractions.So we are going to make preparations already for next year's AGM/workshop when we will be celebrating CFRE's 10th Anniversary!! 
This new building near Wolfville Nova Scotia features a row of solar panels installed by Hans Albarda and also a museum of renewable energy components.
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