{"id":102816,"date":"2026-06-03T05:00:41","date_gmt":"2026-06-03T09:00:41","guid":{"rendered":"https:\/\/quotulatiousness.ca\/blog\/?p=102816"},"modified":"2026-06-02T12:35:05","modified_gmt":"2026-06-02T16:35:05","slug":"basically-its-a-plan-to-make-power-more-expensive-while-campaigning-on-affordability","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2026\/06\/03\/basically-its-a-plan-to-make-power-more-expensive-while-campaigning-on-affordability\/","title":{"rendered":"&#8220;&#8230; basically it&#8217;s a plan to make power more expensive while campaigning on affordability&#8221;"},"content":{"rendered":"<p><a href=\"https:\/\/johnrobson.substack.com\/p\/affraudability\" target=\"_blank\">John Robson<\/a> examines a few of the ways the Ontario government (and other provincial and state governments) frames what they call &#8220;affordability&#8221;, yet somehow it always seems to cost more afterwards and nobody is ever held responsible:<\/p>\n<p><a href=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/08\/Wind-turbines-on-Wolfe-Island.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/08\/Wind-turbines-on-Wolfe-Island-1024x224.jpg\" alt=\"\" width=\"853\" height=\"187\" class=\"aligncenter size-large wp-image-10554\" srcset=\"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/08\/Wind-turbines-on-Wolfe-Island-1024x224.jpg 1024w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/08\/Wind-turbines-on-Wolfe-Island-150x32.jpg 150w, https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/08\/Wind-turbines-on-Wolfe-Island-480x105.jpg 480w\" sizes=\"auto, (max-width: 853px) 100vw, 853px\" \/><\/a><\/p>\n<blockquote><p>In many areas of life, the devil is famously in the details. And it presents both an opportunity and a frustration because there is so much out there deserving readers&#8217; attention that you can&#8217;t even follow it all let alone cram it into a newsletter. Including former banking executive <a href=\"https:\/\/parkergallantenergyperspectivesblog.wordpress.com\/2026\/05\/21\/should-we-ratepayers-believe-ieso-after-this-demonstration-of-may-19th\/\" target=\"_blank\">Parker Gallant<\/a>&#8216;s vigilance about the absurdities of the power system in the Canadian province of Ontario that the aspiring Conservative premier Doug Ford promised to fix in the 2018 campaign and then has smugly done nothing about. These things might seem uninteresting if you do not live in Ontario &#8230; until you realize it&#8217;s just as bad wherever you live. And when we say bad we mean both the cost and the deviousness with which it is presented to, or hidden from, the public. On this very point we like to quote the late great P.J. O&#8217;Rourke that &#8220;Beyond a certain point complexity is fraud &#8230; when someone creates a system in which you can&#8217;t tell whether or not you&#8217;re being fooled, you&#8217;re being fooled.&#8221; Which brings us to the shiny new buzzword &#8220;affordability&#8221; which refers to policies that make everything more expensive and the beneficiaries hide the fraud in tangles of complex bureaucracy.<\/p>\n<p>If you want to get a headache, stay with us while we explain what it is that Gallant tracks. Ontario has what they call the &#8220;Independent Electricity System Operator&#8221; so politicians can claim whatever disaster is unfolding isn&#8217;t their fault. Sure, they make the laws and oversee the creation of the regulations. But heck, these things are &#8220;arms&#8217; length&#8221; and &#8220;impartial&#8221; and independent and expert and wise and wonderful so shut up.<\/p>\n<p>Including this nutty system where the province buys power we don&#8217;t need at grossly inflated rates from wind and solar virtue-signallers and then sells the surplus at deep losses to the neighbouring province of Quebec and some American states including New York and Michigan. So he looked in depth (we promised a headache) at just half a day, May 19, 2026, because a post by another of the people who keeps an eye on this stuff for the benefit of an indifferent or baffled populace alerted him to something fishy in the IESO forecast of generation by Industrial Wind Turbine operators. But it seems to be hard to find out exactly how much the taxpayers, via this wonderful &#8220;Independent&#8221; system with its hand in their pockets via the arm of the state, actually paid these IWTs <em>not to produce power<\/em>.<\/p>\n<p>Paid them what? Yup. It&#8217;s how it works. And the idea is that if they didn&#8217;t produce the original forecast rather than the revised one we&#8217;d have had to pay them even more for what they didn&#8217;t do. Weird even by the standards of government. And expensive. As Gallant sums it up:<\/p>\n<ul>\n<p><em>The net result is that those IWT cost us Ontario ratepayers almost $2.6 million for NOTHING over just the first 12 hours but we should rest assured the IWT owners loved it!<\/em><\/p>\n<\/ul>\n<p>You read that right. The citizens of Ontario paid $2.6 million to the energy producers of the future not to produce energy in the present in just half of one day. If it were typical, it would be over $5 million a day times 365 days in the year so yes indeedy folks nearly $2 billion a year.<\/p>\n<p>[&#8230;]<\/p>\n<p>He then looks at various efforts to try to figure out the cost to consumers, including one by &#8220;my friend Roger Caiazza (the Pragmatic Environmentalist of New York)&#8221; based on the auction price of &#8220;allowances&#8221; in March 2025:<\/p>\n<ul>\n<p><em>Roger&#8217;s conclusion at that time was that the <acronym title=\"Regional Greenhouse Gas Initiative\">RGGI<\/acronym> auctions were adding about $8-11\/MWh to the wholesale cost of electricity, for electricity produced by natural gas. That would mean an addition of about 1 cent\/kWh on a consumer&#8217;s bill. A penny may not seem like much, except when you realize that the average price in the country is less than 18 cents\/kWh, so the penny is about 6%.<\/em><\/p>\n<\/ul>\n<p>Imagine if people knew. As he concludes:<\/p>\n<ul>\n<p><em>remember that the structure of the program is that the amount of allowances goes down every year and the price is intentionally driven up. And data centers are going in all over the place. And the Northeastern states have refused to build new power plants for a couple of decades now in the midst of the climate hysteria. So the 10-15% extra cost being experienced now is only the beginning of much worse to come. The worst part of the RGGI &#8216;cap and invest&#8217; scheme is that the consumers get absolutely nothing for the increased cost. It is just a gratuitously inflicted injury brought about by completely artificial scarcity. Keep this in mid when you hear a politician from an RGGI state talking about how they care about energy &#8216;affordability&#8217;.<\/em><\/p>\n<\/ul>\n<p>Or, we add, transparency. Or accountability.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>John Robson examines a few of the ways the Ontario government (and other provincial and state governments) frames what they call &#8220;affordability&#8221;, yet somehow it always seems to cost more afterwards and nobody is ever held responsible: In many areas of life, the devil is famously in the details. And it presents both an opportunity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[6,25,84,15,13],"tags":[640,1188,497,194,574,384,87,113],"class_list":["post-102816","post","type-post","status-publish","format-standard","hentry","category-cancon","category-economics","category-government","category-technology","category-usa","tag-alternativeenergy","tag-dougford","tag-electricity","tag-fraud","tag-michigan","tag-newyork","tag-ontario","tag-quebec"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-qKk","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/102816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=102816"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/102816\/revisions"}],"predecessor-version":[{"id":102817,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/102816\/revisions\/102817"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=102816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=102816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=102816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}