Breitling Oil and Gas Morning Podcast #169 10-12-12

A recent study by the Fraser Institute, found that Ontario Canada residents will pay an average of $285-million more for electricity each year for the next 20 years as a result of subsidies to renewable energy companies.

By the end of 2013, Ontario household power rates will be the second-highest in North America, and they will continue to accelerate while they level off in most other jurisdictions. Even more alarming for Ontario’s economic competitiveness, businesses and industrial customers will be hit by almost $12-billion in additional costs over the same period.

Besides the direct cost of these huge subsidies, there’s also a big hidden cost of fossil-fuelled standby facilities, because the wind doesn’t always blow and the sun certainly doesn’t always shine   Should the United States really stay on the path of subsidies to wind and solar companies and follow in the footsteps of our friends to the North? I think not!

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