THE Toronto Sun

Last Updated: January 28, 2011 5:35pm

When it comes to hydro, Ontarians pay the full sticker price while other jurisdictions get the province's electricity wholesale, the Ontario NDP says.

NDP MPP Peter Tabuns said Friday the province should charge outsiders the same rate it slaps on local consumers.

"It has to end power exports that are subsidized by the ratepayers of Ontario," Tabuns said.

Ontarians subsidized its neighbours to the tune of $2.1 million through exports during last Monday's deep freeze, Tabuns said.

But Energy Minister Brad Duguid said the money made selling surplus electricity is pure "gravy" for the province's electricity customers.

"It really shows just how out of touch the NDP are with the fundamentals of running an energy system," Duguid said. "The surplus that we've exported has brought $300 million into our system (net last year) to help offset the cost of power."

Ontario hydro customers are charged a global adjustment cost, also known as a "provincial benefit," that covers the difference between the market price of electricity and the actual price paid to generators and for conservation and demand management programs.

For instance, Ontario pays a strong return on wind and solar energy to encourage the green energy industry in the province.

Tabuns said the provincial benefit should be applied equally to Ontarians and exports.

Duguid said Ontario wouldn't be able to sell its electricity outside the province at above-market prices, so it would actually lose money.

"It's important Ontario families understand how it works," Duguid said. "Global adjustment pays for the fixed costs within the system. So what we're talking about here is power that's surplus...you need surplus power to have a safe, health and reliable energy system."