The Fraser Institute probably won't be getting coal in its stocking this Christmas.

That's because it doesn't sound like the Liberal government will be taking the right-wing think-tank up on its latest report, which calls for a moratorium on all new hydroelectric, wind and solar projects and bringing back some coal-fired power to help keep electricity prices down.

A statement from Energy Minister Bob Chiarelli's spokesperson, Jennifer Beaudry, said producing "clean, reliable and affordable energy in a way that respects communities is a priority for our government."

The statement also touted Ontario's elimination of coal power. Just this year, the government became the first jurisdiction in North America to remove coal from its power mix.

"Replacing coal-fired electricity generation was the single largest climate-change initiative undertaken in North America," Beaudry said. "Ontario can be proud of what it has accomplished in energy over the last decade. Ontario’s clean-energy initiatives have been a success, creating 42,000 jobs as of the end of 2013."

On Thursday, the Fraser Institute released a study titled, "What Goes Up: Ontario's Soaring Electricity Prices and How to Get Them Down." The report found power prices are being pushed up by the global-adjustment charge on hydro bills. That charge has risen six cents per kilowatt hour since 2007, the study claims, making it the main culprit for escalating hydro costs.

But the cause behind the hiked adjustment fee, the report discovered, is the closure of the province's coal-fired power plants and expensive contracts with renewable energy companies for hydroeletric, wind, solar and biomass generation. The Ontario Power Authority then adjusts the global-adjustment charge accordingly on all hydro bills.

"In the U.S., power rates have been falling but Ontarians are paying more than ever because of the Global Adjustment," said Tom Adams, independent energy analyst and study co-author in a release.

"Wind and solar power systems provide less than four per cent of Ontario's power but account for 20 per cent of the cost paid by Ontarians, yet the government wants to triple the number of wind and solar generators. That's a good deal for wind and solar producers but a raw deal for consumers."

To stifle the charge, the report says the province should put a stop to new hydroelectric, wind and solar projects. Existing contracts between renewable energy companies and the OPA could also be terminated to create more savings, the study argues.

In addition, the province could reopen four of the 12 coal-fired power plants at Lambton and Nanticoke in southwestern Ontario. Those units had advanced air-pollution control equipment installed before they were closed, the report says, making them as green as gas-fired power stations.

"The Ontario government conducted a misleading public relations campaign to demonize coal and scare the public into thinking that the Lambton and Nanticoke plants greatly harm Ontario's air quality, which is false," stated co-author Ross McKitrick, a Fraser Institute senior fellow and economics professor at the University of Guelph.

"Many European countries made costly commitments to renewable energy but are now winding back those commitments. If Ontario wants to provide residents and businesses with relief from rising power costs, it should reconsider costly commitments made to renewable energy companies."

The government, however, argues non-hydro renewables made up only eight per cent of an average power bill.

"Looking ahead, we will aim to balance five key principles, as indicated in our Long-Term Energy Plan (LTEP): cost-effectiveness, reliability, clean energy, community engagement and an emphasis on conservation and demand management before building new generation," Beaudry said.

Province won’t heed call for coal in latest Fraser Institute study

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