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Southern Ontario Tesla Owner's Club

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New Ontario Electricity Prices - May 1, 2015

Posting this in the Owners' Club thread since I referenced this at our last meeting.

The Ontario Energy Board has just announced new pricing effective May 1st (today) as follows:

Off Peak: 8.0 cents/kWh (7:00 pm - 7:00 am weekdays + all day weekends and holidays)
Mid Peak: 12.2 cents/kWh (7:00 am - 11:00 am and 5:00 pm - 7:00 pm weekdays)
On Peak: 16.1 cents/kWh (11:00 am - 5:00 pm weekdays)

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I always like to remind folks that these are just the charges for the commodity (electricity) and do not include loss uplift and HST, nor does it include the distribution and regulatory charges levied by your local electric utility.

I maintain a little spreadsheet where I tabulate all of these costs so I can see my "all-in" cost including taxes (just like you see at the pump when you buy gasoline). The following is data for my local utility and will vary slightly based on utility company. It should be pretty close for anyone wanting to "ballpark" the cost of running their Tesla. (Remember that your Tesla will consume more than the car's energy display shows because it doesn't account for charging inefficiencies and standby losses).

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You can see from this that the "real" Time of Use costs are:

Off Peak: 12.65 cents/kWh
Mid Peak: 17.07 cents/kWh
On Peak: 21.17 cents/kWh

It will get worse when the government cancels the so-called "Green Credit" which takes 10% off of the total bill.

Hope this is useful to our Club members in Southern Ontario.
 
Does this mean "real" Seasonal Residence pricing is now more like 30 cents/kWh On Peak?

Yes, Hydro One charges much higher distribution tariffs for "seasonal" properties, and I believe their loss adjustment factor is higher too. The commodity prices are the same, however. I built a sheet like this a couple of years ago for my buddy who has a cottage in Muskoka. It was mainly so I could show him how much my car was costing when I plugged in at his place, but he wouldn't take my money anyway! I'll have to download Hydro One's approved rate application and check those numbers again sometime.

EDIT: What it did convince him to do was install a propane forced air furnace last year and stop using his baseboard electric heat!
 
Wow! Thanks Mike for this. Here comes solar! Does this mean "real" Seasonal Residence pricing is now more like 30 cents/kWh On Peak?
You don't want to actually use any solar power that you generate since you can sell it back into the grid at $0.384/kWh. So even at the peak all-in rates you still don't want to use any solar power that you generate if you are on the grid. See my thread here on the PowerWall.
 
You don't want to actually use any solar power that you generate since you can sell it back into the grid at $0.384/kWh. So even at the peak all-in rates you still don't want to use any solar power that you generate if you are on the grid. See my thread here on the PowerWall.

Yes, the Ontario microFIT program does pay quite a premium under contract. There are situations, however, where simple net metering is the only option, for example, if you already have a microFIT contract and want to add to or install another system.
 
Thanks Mike! It looks like in the best case scenario we can save 8.52 cents per kWh by shifting usage from on-peak to off-peak. A Tesla PowerWall could, in theory, shift 10kWh per day between buckets, for a maximum savings of $311 per year per PowerWall. Does this sound right to you?
 
You don't want to actually use any solar power that you generate since you can sell it back into the grid at $0.384/kWh. So even at the peak all-in rates you still don't want to use any solar power that you generate if you are on the grid. See my thread here on the PowerWall.

I don't think this is totally correct for net metering. If you are net metering, then you wan't to use solar for all your household needs and sell any excess back to the grid.

I already have a microfit contract at $.54 /kWh so yes in that circumstance don't want to use any of that power!
 
Yes, the Ontario microFIT program does pay quite a premium under contract. There are situations, however, where simple net metering is the only option

Or like me, you have 2/3 acre of land that can have panels, but the house roof is completely obscured by trees (in a good way, that saves us a lot on heating).
MicroFit does not allow panels on my back yard in the city. I'd have to net-meter, which is not a big enough benefit right now (as I am not a big electricity user mid day).
 
Thanks Mike! It looks like in the best case scenario we can save 8.52 cents per kWh by shifting usage from on-peak to off-peak. A Tesla PowerWall could, in theory, shift 10kWh per day between buckets, for a maximum savings of $311 per year per PowerWall. Does this sound right to you?

I thought the utilities were shutting down this practise of gaming the system using batteries?
 
Thanks Mike! It looks like in the best case scenario we can save 8.52 cents per kWh by shifting usage from on-peak to off-peak. A Tesla PowerWall could, in theory, shift 10kWh per day between buckets, for a maximum savings of $311 per year per PowerWall. Does this sound right to you?

The Ontario Environmental Commissioner called on the Province and the OEB to significantly widen the gap between On and Off peak rates to encourage load shifting. Once you blend in the distribution charges, which are the same 24/7 with the TOU rates, there wasn't a heck of a lot of incentive for consumers to shift their loads. As such, "smart meters" were seen as a waste of money when really it was unfair to blame the technology when bad rate design was the cause. The OEB never likes to do anything suddenly. I suspect this is a trend we'll see over a number of years where the On and Off gap widens.

Another interesting development is that the volumetric distribution charge will be going away in favor of a larger fixed charge. Of all the numbers in my chart above, the local utility only gets to keep the fixed monthly charge and the distribution volumetric amount and uses this money to build the poles and wires, billing systems and so forth. The rest gets passed through. Going forward, utilities will determine their revenue requirements (as they do now) but will collect it based on a fixed connection charge. In some ways it's not totally fair. Very low users may end up paying more, while large users (like EV owners) may pay less as it all gets averaged into one fixed number. The plan is to roll this out over 4 years.

So, in answer to the question about PowerWall, I'd hold off on using it as a peak shaving mechanism, because the opportunities are likely only to get better, and if battery costs come down, the device itself might be cheaper in the future too. As a backup system or as a means to go totally off-grid with solar? Absolutely.

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I thought the utilities were shutting down this practise of gaming the system using batteries?

Certainly it's a no-no under FIT and microFIT rules. They pay the premium to get more renewables (mainly solar and wind) in Ontario, not simply to allow someone to "buy low and sell high" using batteries. Under normal circumstances, there is nothing stopping anyone from shifting their load this way.

I mean, I game the system now with batteries: I charge my car overnight off peak, and then use the energy during the on peak period in the daytime :wink:

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MicroFit does not allow panels on my back yard in the city.

That's probably a zoning thing more than a microFIT rule. There is a microFIT and FIT rate for ground mounted solar, but it's less than the rooftop rate in recognition of the fact you can utilize sun tracking and the yield will be higher from them.
 
I forgot the load shifting doesn't apply to weekends and holidays, so would only be $214 per year per PowerWall.

Why would utilities try to prevent this? It helps balance their load, which is the exact purpose of the price tiers.

Just playing devils advocate here, but where is the incentive for the utility to want to balance their load when they can just pass the costs on to us and make more money during On Peak hours by raising prices?
 
Just playing devils advocate here, but where is the incentive for the utility to want to balance their load when they can just pass the costs on to us and make more money during On Peak hours by raising prices?
Because having to build incremental power generation is exepnsive and time-consuming. The Negawatt is cheaper than the Megawatt.
 
Just playing devils advocate here, but where is the incentive for the utility to want to balance their load when they can just pass the costs on to us and make more money during On Peak hours by raising prices?

I believe they can't charge us more than the rates MKnox described below. However, the utility has to purchase that power from the U.S. at a very high rate. So it would be advantageous to them to not have to purchase electricity during very high usage.