Why hydro rates are high - Part 1

So, on the morning of May 2nd, Ontario was generating about 1,000 MW of wind power. Producers are paid around $150/MWh ($0.15/kWh) for wind. At the same time, this power was being exported out of the province at an average price of around $0.015/kWh. Guess who picks up the tab for the difference? That's right - you, the rate payer. It's called the Global Adjustment.

The best part? At the same time, we were spilling water at our hydro plants (to accommodate the wind generation). This water could have been used to generate power at a rate of $0.033/kWh.

Good times.