This Ontario power bill (with the company name redacted) shows how much companies are paying for a line item called “Global Adjustments”. Thos adjustments cost more than the power itself and Red Deer-Lacombe MP Blaine Calkins is worried that this type of program is coming to Albertans from the current provincial and federal governments. Bill submitted

$38,000 power bill in Ontario raising red flags for Albertans

MP Blaine Calkins is concerned about the potential costs of power for Albertans

A $38,000 power bill for a company in Ontario is raising red flags for what Alberta’s residents may face.

Red Deer-Lacombe MP Blaine Calkins has been actively speaking to constituents about the breakdown of the bill, which shows that almost $21,000 of it was a line item called “Global Adjustments (GA).”

After the untimely death of MP Gord Brown, Calkins said that colleagues will go to his area to meet with constituents and while speaking with one company noticed power bills that were posted on the company’s bulletin board. The bills seemed quite high for the size of the operation.

“The cost of the electricity on the bill was $3,600,” said Calkins.

“So basically, 10 times the cost of the actual electricity.”

The company is a light manufacturing outfit that makes wires out of aluminum and copper for commercial purposes, said Calkins.

Here is the full breakdown of the bill:

• Weighted Adjustment Price, $3,596

• Global Adjustment, $20,928

• Delivery, $6,146

• Regulatory Charges, $1,002

• Debt Requirement Charge, $1,663

On top of those charges is HST, which was factored after the other items at $4,333. The company also paid water, sprinkler and sewer charges totalling $366 and change.

The company paid $56,000 the month before and staff post the bills on bulletin boards for staff to see the extent of the issue and also mark up the bill with their thoughts on it.

Calkins’ wants Albertans to know that power policies set out in Ontario are similar to the ones being laid out in Alberta such as the reduction of coal and natural gas-fired electrical generation.

“This is what (Albertans) power bills will, or possibly could look like,” he said.

“We’re not blessed with the hydro electricity that Ontario is blessed with. We do have wind power here but that is not a guarantee all the time either.”

Calkins added that it’s the same people leading the charge with the Liberal Government that brought about those changes in Ontario.

“These policies, they’re disastrous,” said Calkins. “$21,000 a month for this Global Adjustment fee…that’s a month’s salary for five people making $60,000 a year.”

“I think people are starting to wake up to the reality that they cannot afford a 10-fold increase in their power bill,” said Calkins.

In a request for response, Ontario’s Ministry of Energy stated that the electrical system costs are recovered through charges on the electricity bills. These three fees cover electricity generation, transmission and maintaining the system.

“Of the three charges, the largest is the commodity charge,” states an emailed response. “It has two components, the first is the wholesale market price, known as the Hourly Ontario Energy Price (HOEP).”

The second part to that is the Global Adjustment as seen in the bill, which accounts for two areas: conservation programs, and the difference between HOEP and regulated and contracted revenue that generators receive.

Some notes to this include that all generators receive HOEP for the electricity they supply, which is determined by supply and demand.

Generators also receive additional payments to make up the difference between revenue generated through the wholesale market and their required regulated revenue. That difference comes from the Global Adjustments that customers end up paying.

“It should be noted that HOEP and GA are inversely related; as the market price decreases, GA payments increase,” states the response.

“HOEP is primarily influenced by supply, demand and fuel (i.e., natural gas) costs. Although HOEP is currently relatively low, GA is comparatively high in order to fully recover costs.”

Just Posted

Red Deer’s next winter celebration is just around the corner

Snow and Ice Celebration runs Dec. 1st at Red Deer Civic Yards

Red Deer husband and father of four passes away overseas

A GoFundMe page has been set up to support the family

The Gaetz Avenue bridge is officially open to traffic

After over two years Red Deerians will have an easier commute

Local singer/songwriter Ryan Langlois lands in Project WILD’s top three

Popular artist could land as much as $100,000 for his dream recording project

Festival of Trees celebrates the season while supporting a tremendous cause

The 25th annual Festival of Trees opens Nov. 21st

VIDEO: Shoppers like self-checkout lanes at the grocery store, survey suggests

Grocery Experience National Survey Report suggests most grocery shoppers spend 32 minutes per visit

Ponoka’s Caleb Shimwell arrested after pursuit

Police allege that Shimwell rammed a police cruiser

731,000 Canadians going into debt to buy prescription drugs: UBC

Millennials and those without private coverage were more likely to borrow money

Pot users, investors need to be vigilant at Canada-U.S. border

U.S. authorities say anyone who admits to having used pot before it became legal could be barred

No deal in sight: Canada Post warns of delivery delays into January

Union holds fifth week of rotating strikes as both sides remain apart on contract negotiations

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

Air force getting more planes but has no one to fly them, auditor warns

The report follows several years of criticism over the Trudeau government’s decision not to launch an immediate competition to replace the CF-18s.

Bolder action needed to reduce child poverty: Campaign 2000 report card

The report calls for the federal government to provide more funding to the provinces, territories and Indigenous communities to expand affordable, quality child care.

Most Read