The electricity industry in Canada Essay

In 2008, the mean retail monetary value for all clients rose 0.61 cents per kWh to 9.74 cents per kWh ( Table 7.4 ) . This amounted to a 6.7-percent addition over the 9.13 cents per kWh norm retail monetary value paid in 2007. Year-over-year, the mean retail monetary value for all clients increased in 47 of the 50 States every bit good as the District of Columbia, with the exclusions being California, Maine, and Nevada. From 2007 to 2008, the mean monetary value of electricity increased 10 per centum or more in 15 States. Most of the additions were in the 10 to 13 per centum scope, with the largest addition, 22.0 per centum, happening in Rhode Island. The mean retail electric monetary value for all clients declined in merely 3 States compared to 11 States in 2007, and merely Maine and California had lessenings of more than 1 per centum. The mean retail monetary value of electricity to all clients increased by 4 per centum or more in all Census Divisions of the country-except the Pacific Contiguous, which was led by a 2.0 per centum, lessening in California. In New Jersey the mean retail rate for all clients increased 11.0 per centum. In the District of Columbia the mean monetary value increased 13.4 per centum and in Texas it increased 8.7 per centum. In Louisiana, the mean electricity monetary value for all clients increased 12.5 per centum. Most Census Divisions experienced additions of 4 to 9 per centum in the mean retail monetary value for all clients, with the exclusion of the East South Central Census Division, which experienced an addition of 12.3 per centum. The highest regional monetary value addition was in the Pacific Non-Contiguous Census Division ( Alaska and Hawaii ) , where the mean electricity monetary value to all clients increased 29.7 per centum over 2007. While both States rely to a great extent on oil and refined oil merchandises, the regional monetary value addition was chiefly driven by additions in Hawaii. Hawaii ‘s primary fuel for electricity is crude oil, and crude oil monetary values to that State increased 42.0 per centum in 2008.

In 2008, residential monetary values increased to 11.26 cents per kWh, or 5.7 per centum over 2007. The mean residential monetary value increased by 10 per centum or more in 8 States and the District of Columbia. Most of these legal powers have implemented retail competition and the investor-owned public-service corporations runing within these States participate in organized, competitory wholesale markets operated by independent system operators. Residential monetary values in Rhode Island increased 24.1 per centum, from 14.05 cents per kWh in 2007 to 17.43 cents per kWh in 2008. The mean residential monetary value in Maryland increased 16.4 per centum, from 11.89 cents per kWh in 2007 to 13.84 cents per kWh in 2008. The largest addition in mean residential monetary values was in Hawaii, at 34.7 per centum. The additions in Rhode Island and Maryland are the consequence of the passage to market based rates for the sweeping electricity part of retail electric service. In order to extenuate the impact of higher retail monetary values, the Maryland Public Service Commission approved a program for the largest investor-owned public-service corporation in the State that gave clients two payment options. The first option provided for retail monetary values based on the full market monetary value of sweeping electricity monetary values, effectual June 1, 2008. This option resulted in about a 50-percent addition in the mean electric measure. The 2nd option provided that the cost of electricity would be phased in over clip. Deferred costs would be recovered by December 31, 2009.

The District of Columbia had the 4th largest addition in residential monetary values, at 13.2 per centum, followed by New Jersey ( 10.8 per centum ) . On a regional footing, the highest mean residential monetary value addition was observed in the East South Central Division. New England, Mid-Atlantic, East North Central, South Atlantic, and West South Central all observed additions of between 6 per centum and 7 per centum. Average residential monetary values in the New England and Middle atlantic Census Divisions increased 6.0 per centum and 6.8 per centum severally. Average residential monetary values fell 1.9 per centum in Maine and 4.2 per centum in California. These were the lone two States to recognize a lessening in the residential mean retail monetary value of electricity in 2008.

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Nationally, mean commercial monetary values increased from 9.65 to 10.36 cents per kWh, a 7.5 per centum addition over 2007. The largest regional monetary value addition was in the Pacific Noncontiguous Census Division, at 28.0 per centum, followed by a 14.8 per centum addition in the East North Central Census Division. By State, the largest addition in mean commercial monetary values was in Illinois, where monetary values increased 37.6 per centum as consequence of some Illinois public-service corporations reclassifying higher-priced industrial minutess as commercial in 2008. Illinois was followed by additions in Hawaii ( 35.7 per centum ) , Rhode Island ( 21.2 per centum ) , Virginia ( 14.7 per centum ) , Georgia ( 12.4 per centum ) and the District of Columbia ( 12.1 per centum ) . The mean commercial monetary value in the East North Central Census Division was 9.75 cents per kWh in 2008, up from 8.49 in 2007. In 2007, the West South Central Census Division was unchanged at 9.26 cents per kWh but increased 9.2 per centum in 2008 to 10.11 cents per kWh. The mean commercial monetary value declined less than 1 per centum in Nevada and 2.2 per centum in California. In the Pacific Contiguous Census Division, the mean commercial monetary value declined from 11.19 cents per kWh in 2007 to 11.03 cents per kWh in 2008. This was the lone part where mean commercial monetary values declined.

Average industrial monetary values increased 6.9 per centum from 6.39 cents per kWh in 2007 to 6.83 cents per kWh in 2008. The largest regional monetary value addition in the industrial sector was in the Pacific Noncontiguous Census Division, at 36.1 per centum, with Hawaii detecting an addition of 41.7 per centum from 18.38 cents per kWh to 26.05 cents per kWh in 2008. Average industrial monetary values in the District of Columbia increased 33.7 per centum followed by additions in Louisiana and Tennessee ( both at 21.2 per centum ) , and Georgia ( 20.6 per centum ) . The mean industrial rate in the East North Central Census Division was 5.79 cents per kWh in 2008, a 1.9 per centum lessening from 5.90 cents per kWh in 2007. This was driven by a 31.3-percent lessening in Illinois industrial monetary values, as a consequence of reclassifying informations.

Entire U.S. retail gross revenues of electricity were 3,733 million MWh in 2008, a 0.8 per centum lessening from 2007 to 2008. Relatively, the one-year growing in electricity gross revenues in 2007 was 2.6 per centum, and the mean one-year growing rate since 1997 was 1.6 per centum. The 2008 lessening in one-year gross revenues from 2007 Markss the first clip since 2001 that one-year gross revenues decreased from the anterior twelvemonth. This lessening was driven by the residential and industrial sectors, with gross revenues lessenings of 0.9 per centum and 1.8 per centum, severally. Commercial gross revenues were basically level between 2007 and 2008. Since 1997, one-year industrial gross revenues have declined four times and overall, burden continues to bit by bit switch off from the industrial sector. The industrial sector accounted for 33.0 per centum of entire retail gross revenues in 1997, but by 2008 it had declined to 27.0 per centum. Over that same clip period, the commercial sector ‘s portion of retail gross revenues increased from 29.5 per centum to 35.8 per centum, while retail gross revenues to the residential sector grew from 34.2 per centum to 37.0 per centum.

American electricity demand is at an already high degree, and although an economic lag or recession would cut the demand prognosis, it is predicted that demand overall will go on to increase in the following 5 old ages and beyond. Generation of 350,000 megawatts ( MW ) of new electricity is necessary to fulfill electricity demand in the U.S.A. in 2030, harmonizing to prognosiss and anticipations of the authorities. Along the manner, a coevals addition of 80,000 MW to 90,000 MW will be necessary from 2006 to 2012.The industry is in understanding that new power Stationss are needed in the U.S.A. The state must increase investing in transmittal systems, while procuring new baseload electricity capacity, to run into demand. However, there is small build-out of new transmittal systems, and the American power supply modesty is falling in those countries of the state where electricity ordinance is relaxed. Several factors, including the high capital cost of building a new baseload power station, the cost of following with CO2 ordinance, and an opaque feeling about fuel monetary values, have become deterrences for constructing new capacity.

Producing electricity utilizing hydroelectric power has some advantages over other power-producing methods.

Advantages to hydroelectric power:

  • Fuel is non burned so there is minimum pollution
  • Water to run the power works is provided free by nature
  • Hydropower plays a major function in cut downing nursery gas emanations
  • Relatively low operations and care costs
  • The engineering is dependable and proven over clip
  • It ‘s renewable – rainfall renews the H2O in the reservoir, so the fuel is about ever there

Disadvantages to power workss that use coal, oil, and gas fuel:

  • They use up valuable and limited natural resources
  • They can bring forth a batch of pollution
  • Companies have to delve up the Earth or bore Wellss to acquire the coal, oil, and gas
  • For atomic power workss there are waste-disposal jobs



Canada is a mid-size coal manufacturer, ranked the 14th among planetary coal bring forthing states ( 2007 ) . Canada ‘s coal production has remained comparatively steady over the past decennary. In 2007, Canada produced 70 million metric tons of coal valued at C $ 2.7 one million millions. About 60 % of the coal production was thermic coal and 40 % was metallurgical ( coking ) coal. Thermal coal production is chiefly for domestic ingestion. Coking coal, about all of the end product, is for exports.


Coal is an abundant and widely distributed resource in Canada. Coal is low-cost and readily available. The current proven coal militias could back up 100 old ages of production. IEA forecasts coal to hold the highest one-year growing rate among fossil fuels between 2006 and 2030. Forecast growing of coal will demand more coal supply from Canada and drive up investing and production. With the sustainable excavation pattern, clean coal engineering development and deployment, coal will go on to play an of import function in Canada ‘s energy supply.


Electricity Canada is one of the taking manufacturers of hydroelectricity in the universe.

Canada had 126 gigawatts of installed electricity bring forthing capacity in 2007. The state produced 595 billion kWs hours ( Bkwh ) of electric power in 2007 while devouring 530 Bkwh. Hydroelectricity represents the largest portion of Canada ‘s electricity coevals, followed by conventional thermic and atomic.

Canada ‘s Electricity Generation, by Beginning

The electricity webs of Canada and the United States are extremely incorporate. It is true that in 2007, Canada exported 50.1 Bkwh of electricity to the United States while importing 19.6 Bkwh. Over the past 10 old ages, Canadian imports of electricity from the U.S. have increased by over 150 per centum, while exports have remained comparatively changeless. Due to the increasing mutuality of the webs in both states, a dependence made clear during the 2003 Northeast blackout, there have been greater attempts to increase cooperation and coordination between Canada and the U.S. A bilateral committee is be aftering the formation of the North American Electric Reliability Organization, an intergovernmental organisation that would supervise web dependability, settle trans-border differences, and formulate common industry criterions. Canada ‘s Electricity Trade with the United States


Canada is one of the universe ‘s largest manufacturers of hydroelectricity, bring forthing 370 Bkwh from the beginning in 2008. Quebec has the largest portion of Canada ‘s hydroelectric production, followed by British Columbia.

Natural Gas

Canada is one of the universe ‘s largest natural gas manufacturers and exporters.

The state produced 6.6 Tcf of natural gas in 2007, while devouring 3.3 Tcf. Canada is the 2nd largest manufacturer of natural gas in the Western Hemisphere, after the United States. Canada is besides an of import beginning of the U.S. natural gas supply ; in 2008, it exported 3.6 Tcf of natural gas to the United States, stand foring 16 per centum of U.S. natural gas ingestion and 90 per centum of entire U.S. natural gas imports that twelvemonth. Most Canadian natural gas exports enter the United States through grapevines in Idaho, Montana, North Dakota, and Minnesota.

  1. Includes little sums of air current and tidal.
  2. Includes crude oil coke.
  3. Includes manufactured gases, other crude oil merchandises, other fuels and station service.

Data beginning: Statistics Canada, 2007, Report on Energy Supply-demand in Canada, catalogue figure 57-003.

Table beginning: Statistics Canada, 2007, EnviroStats, volume 1, figure 2, “ Heavy fuel oil ingestion in Canada ” , catalogue figure 16-002-XWE.


  • Alberta Regional Transmission Organization
  • ATCO Electric ( once Alberta Power )
  • Canadian Hydro Developers, Inc.
  • Cardinal Alberta Rural Electrification Association
  • ENMAX ( once City of Calgary Electric )
  • EPCOR ( once Edmonton Power )
  • ESBI Alberta Ltd. ( Transmission Administrator of Alberta )
  • Lethbridge Power
  • The Grid Company of Alberta Inc.
  • The Power Pool Of Alberta
  • Prairie Power Ltd.
  • The Rocky Rural Electrification Association
  • South Alta Rural Electrification Association Limited
  • TransAlta Utilities Alberta Canada
  • UtiliCorp Networks Canada


Relevance of Electricity Industry Reforms

Over the past two fiscal old ages Audit has made a figure of observations on electricity industry reforms in South Australia. Those observations included commentary that Audit would go on to supervise the advancement of the reforms. The inclusion of farther remarks in this Report to Parliament reflects non merely the gait of alteration that has taken topographic point in the electricity industry, but besides issues that have arisen as the competitory electricity market develops. Most significantly, in December 1998 the National Electricity Market ( NEM ) commenced operations, conveying with it a new competitory and regulative government which underpins the manner in which the electricity market maps in Australia and in this State. Some of the issues originating from the competitory electricity market have the potency to significantly impact on the fundss of the State, viz. : the Government has a big direct investing in the electricity industry through its current ownership of concerns whose assets have a book value of more than $ 3.5billion as at 30 June 1999. Jointly, these concerns make a important one-year part to the State ‘s fundss ; the liabilities of the electricity concerns in authorities ownership are guaranteed by the Treasurer pursuant to the Public Corporations Act 1993 ; there is a public outlook that authoritiess will guarantee the supply of an indispensable service ( for illustration electricity ) irrespective of whether the Government has a direct investing in the industry. These outlooks have received considerable attending in recent old ages through jobs experienced in the supply of electricity in Queensland and New Zealand, in the quality of the H2O supply in New South Wales, and in the supply of gas in Victoria.

Major Factors Influencing each Section of the Electricity Industry

Coevals Businesss

The creative activity of competition in the coevals section of the electricity industry has by and large been considered a cardinal beginning of nest eggs originating from reforms in the electricity industry. These nest eggs emanate from the pool mechanism into which all generators with a capacity greater than 30 MW are required to offer their capacity into the pool. The monetary values command by the generators to provide electricity, together with the demand for electricity, will find the pool monetary value that generators will have for providing electricity to the pool.

The pool agreement and the nature of electricity ( which ca n’t be stored ) consequences in altering pool monetary values. The undermentioned chart demonstrates the volatility of these altering pool monetary values.