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All NewsFriday, August 27, 2010
Smart meters $1 billion price tag to skyrocket, says NDPBy Tanya Talaga Queen's Park Bureau Published On Mon Aug 23 2010 Ontario's New Democrats are demanding the auditor general investigate the true costs of Ontario's smart meter program — a system the government estimates at $1 billion. Already, $852 million has been spent to install the meters, according to NDP MPP Peter Tabuns (Toronto-Danforth), the party's energy critic. But as the entire province switches to the pay-per-use system, costs to the public purse will skyrocket, warned Tabuns. "This is costing us a fortune," he said. The $1 billion is an estimate for the entire smart meter infrastructure, which includes a computer support network, said Energy Minister Brad Duguid. The smart meters are needed to allow for time-of-use pricing so customers can shift their usage from peak periods when costs are higher. The cost for one meter is $700.54 in 2010. This includes a communications network to support the meter, according to Hydro One's Laura Cooke. The actual price and installation of the meter alone is only $145, says Cooke, and the $700.54 cost for the full system is spread over the customer base. The cost to install the meters is in line with the initial estimates from the Ontario Energy Board, which regulates the province's electricity, said Duguid. "What the NDP should be doing is supporting our efforts to bring forth a clean and reliable system," he said. "In this day and age there is a need to modernize. We are trying to give consumers an opportunity to be part of that clean, reliable system." So far, 4.1 million smart meters have been installed and another 400,000 are on their way. But Tabuns says Auditor General Jim McCarter needs to provide a comprehensive, cost-benefit analysis on the program. "We know of no studies detailing how much money the system will save to justify the investment of billions of dollars," Tabuns said. "This is a perfect Liberal program, you get to spend a fortune and nothing really happens in the end. Sort of like e-health." However, Charlie Macaluso, CEO and president of the Electricity Distributors Association said "based on some crude data and averaging, the $1 billion sounds about right". The OEB has had exhaustive hearings on all these costs, he said. "All these costs are part of a regulatory review process," he said. The EDA represents approximately 80 local distribution companies across the province. Read more…
Thursday, August 19, 2010
Smart meter data system has $89 million price tagPublished On Wed Aug 18 2010 By Tanya Talaga Queen's Park Bureau IBM has negotiated a contract with the Ontario government that pays the computer giant 25 cents per smart meter customer every month to collect power readings, according to freedom of information documents. Details of the $85-million agreement between the province's Independent Electricity System Operator (IESO) and IBM were obtained by the provincial NDP through a freedom of information request. The IESO oversees Ontario's electricity system. The Star revealed on Tuesday that thousands of Ontarians may have been inaccurately charged by the system created to read smart meters, which are intended to measure time-of-use electricity consumption. But Young said IBM "is not responsible for the process issue identified in Tuesday's Star". "The contract with IBM includes delivery milestones and operational service levels that are linked to payment under the contract," Young said. Failure to meet those provisions results in financial penalties. The cost of running a central registry for the smart meter initiative was originally estimated at $85 million in development and operating expenses over four years, said Terry Young, vice-president of corporate relations for the operator. Another $4 million was paid to IBM and other parties later on to accelerate the timeline. The monthly fees paid to IBM to collect and manage the data are included in the $85-million contract, Young said. He added the IESO signed a contract with IBM in 2007 after going through a competitive bidding process. To date, IBM has been paid $26 million. There are 3.6 million Ontarians with smart meters. Eventually the number on the time-for-use plan will grow from 1.2 million to all customers. The NDP obtained the freedom of information documents after a nearly two-year quest to find out how much money the province is spending on the time-of-use electricity system. IBM is making a lot of money each month just to read the meter, said NDP MPP Peter Tabuns (Toronto Danforth). "They (IBM) have a very good business deal here," Tabuns said. "This is an ongoing contract." In view of the Star's revelation Wednesday that the smart meters themselves do not meet federal measurements standards and must be repaired before Jan. 1, 2012, Tabuns wonders why IBM is being paid so much. Read more…
Wednesday, August 18, 2010
Debate continues over rapid transit570 News Jul 29, 2010 12:48:23 PM Is the province shortchanging the Region of Waterloo on funding for Rapid Transit? The conversation continued this morning on the Jeff Allan show with guest host, Mike Farwell, nearly 24 hours after Cambridge MP Gary Goodyear told 570 News Ottawa would not make up the difference in funding for the region's light rail plan. NDP Transportation Critic, Peter Tabuns weighed in, saying LRT would be a benefit to the economic growth of the region and, on a larger scale would improve air quality in the province. Tabuns says many countries are looking at transit systems as a way of getting around. He says areas that develop the expertise will have marketable products, while those that don't are going to choke in their traffic and smog and fall behind economically. Tabuns says the Liberals should follow through on their two-thirds promise. In the past, the province put in 75 percent of capital costs. Last month, the province promised 300 million dollars in funding for the LRT. Even with Ottawa covering an additional third, it still leaves a shortfall of almost 230 million. Read more…
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