Stop paying for others' electricity

By Heather M. O'Connor, Special to Sun Media
Have you ever paid your neighbour's taxes? Footed their natural gas bill? Anted up for their cell phone? So why should you subsidize their electricity bill?

Energy-conscious homeowners who turn off the lights and turn down the air conditioner have been unknowingly underwriting the electricity bills of their power-hogging neighbours for years. By the end of 2010, when every Ontario home and business is using a smart meter, these anonymous "donations" will end.

The province has mounted an ambitious campaign to replace old meters that tot up electricity use monthly with a new generation of meters; 800,000 have already been installed. Smart meters don't just calculate how many kilowatt-hours you use every month. they also pinpoint when you used them. It's called time-of-use (TOU) billing.

It changes the way your bill is calculated. With the old meters, you paid a lower rate for the first block of kilowatt-hours consumed in a month and a higher rate for additional kilowatt-hours. Heavy users paid more because they used more hours. Unfortunately, however, that method doesn't adequately reflect the true cost of the electricity. Here's why:

Energy demands peak and ebb throughout the day, throughout the week and from season to season. But household electricity is like a river - it can't be stored.

Ontario's generating potential must be high enough to keep the juice flowing through the wires during the highest peaks, even though most of the time we need much less. Our generating capacity isn't unlimited, nor is the cost of generating electricity uniform; as demand reaches its zenith, more costly sources of energy are tapped and out-of-province energy is purchased.

BUILD MORE OR USE LESS

One way of accommodating the peaks is to raise the supply of electricity - building more generators. Who funds the capital expenditure for the infrastructure? You guessed it - the taxpayer. A more sensible way to solve the problem, suggests the province, is to grind down the peaks, moving some of the peak demand to mid- or off-peak hours.

Enter the smart meter. By hitting you in the pocketbook for energy used during peak periods - steamy summer afternoons and winter dinner hours, for example - you'll feel the incentive to change. Your electricity bill will provide detailed information on what you used and when.

Demand drops on weekends and overnights. Small changes made by Ontario's 4.3 million households can erode the peaks. Try running the dishwasher on your way to bed instead of on your way to work; turning the air conditioner down a notch whenever the house is empty; doing the laundry on the weekend instead of tossing in a load as soon as you walk in the door from work. Other measures, like switching to compact fluorescent light bulbs and using Energy Star appliances, can reduce your bill around the clock. Every little bit helps.

Toronto Hydro has plowed through the lion's share of meter replacements already. If you haven't got yours yet, don't worry - it's coming. The utility expects to complete the job by this fall. Two weeks before your free ten-minute installation you'll receive a notification in the mail; a week later you'll get a reminder call. If your meter is located outside, a momentary power interruption may be the only cue that the job has been done.

If you're energy-conscious, your conservation will reward you with lower electricity bills. And if you're an energy hog, paying the true cost of wasting electricity might just shift your thinking - and your energy use - into smarter patterns.

SMART DECISION

Residents of 2,500 apartments across the GTA can thank Park Property Management for submetering their homes, says Barton Sala of the Ontario Power Authority.

"It's quite a story," she says. "Park Property Management has really gone to extreme measures to promote conservation in their apartment buildings. They've got a real whole-building approach, not just with electricity."

Energy use dropped significantly when Park Property Management switched from bulk to individual metering. They contracted Stratacon, a utility management company, to install, monitor and bill.

"It's really a great partnership," Sala says. "Plus they have a comprehensive education program for their tenants to explain what it is, the benefits and how to participate. [Tenants] were given fluorescent light bulbs and a brochure. If tenants agree to go on individual metering, their rent is reduced.

"Just because you're renting doesn't mean you don't care about the environment. History has shown that once you are individually metered and are aware of what your consumption is and what it costs, you use less. We really hope that other property management groups pay attention."

OTHER "SMART" SHIFTS

Time-of-use billing doesn't begin when your meter is installed; it will be phased in gradually. Nonetheless, it's a smart idea to start shifting your energy habits now.

- Use a programmable thermostat to automatically control the indoor climate while you're at work, on vacation or sleeping. In summertime, set the temperature no lower than 25*C. Every degree below that adds between 3 and 5% to your electricity bill. During the heating season, set it four degrees lower at night - you'll save 10% on your heating costs.

- Use your clothes dryer and washing machine during off-peak periods like weekends. Washing in cold water and using a clothesline (where allowed by the municipality) can cut your energy consumption dramatically.

- Wrap your electric water heater in an insulating blanket.