Thibault says province exploring Sault to Michigan power sales

Energy minister Glenn Thibeault says the province is assisting Michigan in its study to explore the possibility of channeling Ontario-produced electricity to the Upper Peninsula through Sault Ste. Marie.

Thibeault made remarks about the feasibility study, which was requested in the summer by Michigan governor Rick Snyder, at a Sault Ste. Marie Chamber of Commerce breakfast this morning.

“We are in initial early stages, but it is something our ministry is committed to working on for the benefit of not only Michigan, but our province,” said Thibeault.

Sault Ste. Marie, with its renewable energy assets, is in a good position to potentially provide electricity across the St. Marys River, said Thibeault.

The feasibility study is being conducted by Midcontinent Independent System Operator (MISO) — the regional transmission operator for most of the state — to find cost savings and increased reliability of electricity transmission to the Upper Peninsula of Michigan.

Thibeault said criticism from opposition party leaders about the province’s practice of selling power to the United States at a loss is only telling half of the story.

The province routinely produces too much electricity to address the needs of consumers, said Thibeault.

By not doing so, he said the province would risk brownouts and blackouts.

Because the excess electricity has to go somewhere, it often is sold to Michigan, New York or other places at a steep discount.

A 2015 study by the auditor general said in some instances between 2009 and 2014 when too much power was produced, the province paid exporters more than $32-million to take our surplus Ontario power. 

Thibeault notes when those states require additional electricity from Ontario to meet their needs, that electricity is sold at market value.

In 2015, for instance, Thibeault said the province made $230 million on electricity exports.

That is a stark contrast, said Thibealt, to the province’s power generation gap experienced in 2002 while under a Progressive Conservative government.

“But back in 2002, it cost us $700 million to buy power from the (United States),” said Thibeault.

Steve Butland, councillor for Ward 1, said he was satisfied with Thibeault’s remarks about the province’s plans to participate in the feasibility study.

“I think it is up to us to ensure Sault Ste. Marie and Sault Ste. Marie Michigan are the focal point of the study,” said Butland.

The transmission lines could run under the St. Marys River between the twin Saults, suggested Butland.

In a September SooToday article, Tom Vair, who was then Sault Ste. Marie Innovation Centre's executive director, said the Sault and area was at capacity for renewable energy projects because of the state of aging transmission lines to southern Ontario.

Adding more solar or wind projects in the area could overwhelm the transmission lines.

Creating a corridor to Michigan instead, said Vair, could be an opportunity to expand green energy projects in the area.

Vair has since taken a deputy CAO position with the city of Sault Ste. Marie.

In addition to the various wind and solar projects in the Sault and area, a 7-megawatt battery project currently under construction in the city’s east end is scheduled to go online in April, said Butland — with a second battery project in the works.

“We are way ahead of the curve than anybody else is, so let’s take advantage of it as best we can,” he said.