By Sustainable PF What is a TOU Meter or Time Of Use Meter (Smart Meter)?TOU is an electricity billing system that relates the cost of using a kilowatt hour (kwh) dependent on the time of day that kilowatt hour is consumed. During “peak” periods when the electrical grid is under high demand the electricity consumer will pay more for a kwh than they would during off peak periods when there is less stress on the grid. Special meters have been developed called “Time of Use Meters” to calculate this increasingly complex method of billing. Between now and 2025, Ontario must build almost a whole new electricity system. This includes replacing about 80 per cent of our current generating facilities are retired over time, and expanding the system to meet future growth. Building new supply is vital. So is conservation. That’s why the Government of Ontario is introducing new tools like smart meters that will encourage all of us to think more about how and when we use electricity. Time of Use Meters measure hourly electricity use, so electricity prices can be different at different hours of the day. That better matches the way prices work in the electricity market, and will encourage us to think more about how and when we use electricity. As we move consumption away from the more expensive (peak) times of the day, we can help Ontario reduce its peak demand, which can help limit the building and operation of peak generating facilities. Why are there Time of Use Meters?Supplying electricity at peak times (those times when we’re all using a lot of electricity) has a range of impacts: - It adds to our electricity costs because higher demand often means higher market prices.
- It’s hard on the environment because more of the less attractive forms of generation must be run to meet them.
- It adds to the amount that Ontario needs to invest in the system because meeting the peaks means building even more new generating facilities, and more transmission and distribution infrastructure and that also adds to electricity costs.
High demand peaks affect the power system in three ways: - They strain the power system. Particularly during sustained heat-waves, power generators work at almost full capacity.
- High demand pushes up the cost to produce electricity. At peak, more expensive types of electricity production are called upon.
- Peak demand forecasts are used by power system planners to determine how much more power production the province will need in the years ahead. The higher the demand peaks, the more investment will be needed in the electricity system – building new generation plants, new transmission and distribution infrastructure.
The real impacts of heavy drain on the grid were displayed in 2006 when a massive heatwave hit North America which sadly resulted in 225 deaths. As people cranked their air conditioning the grid system could not supply the electricity demand and “brownouts” rolled through cities, provinces and states. The Ontario government believes (is hoping) that by altering how electricity is billed based on the Time of Use Meter, people will adjust their energy usage habits in order to save money on their power bills. All of this makes logical sense, however, as implemented today it isn’t really working. By Teacherman 
Who would’ve known that all this time we have been pouring caffeine-laced devil’s brew down our throats every morning?! If you’re not aware that the latte factor is the reason that we have poor people in the world, and are most likely the major cause of the growing income gap, increased student debt, and foreclosures, then you haven’t been reading many personal finance blogs lately. Seriously though people, what did poor lattes ever do to you? Why choose to single out that frivolous expense as opposed to our other frivolous expenses? I mean, how many people consume sodas, cigarettes, French fries, booze etc. on a daily basis, yet somehow lattes get to become the whipping boy? They are so hated they even get their own trending title of the “The Latte Factor” to make it all dark and mysterious? Now I must admit, I too have succumbed to the “my site needs a coffee article before it is complete” syndrome myself. It is a useful figure for showing how compounded savings can work. The Latte Factor Prophet HimselfIn case you actually have a social life and don’t read many personal finance blogs, the latte factor is an idea generally accredited to David Bach. It shows just how effective daily saving and investment can be. By taking the cost of an over-priced cup of coffee (seriously, why do these scenarios always use like the Starbucks mocha-frappa-double-choc-frothalicious that costs more than a happy meal) and showing how much money you can garner when the black magic of compound investment returns is applied to it, every personal finance blogger in the world believes they have found the path to true happiness. A sort of financial nirvana if you will. The articles usually forget to deduct what the coffee, cream, sugar etc. would have cost at home, and they usually assume extremely high investment returns, but yes, let’s all agree that cutting back on the coffee could help us out to the tune of a couple hundred grand when we are 103. Sweet. A Venial Sin At Worst The bottom line is that this is a tough strategy to enact because it advocates an extremely frugal position. People like a small creature comfort, and if a little coffee (by the way, in Canada we have this magic place called Tim Hortons – it’s kind of a cultural icon – and I get a great double-double there for like $1.50, you should try it sometime) prevents someone from going crazy in this insane world they live in, then hey, let ‘em have it. The key is to limit the luxuries we spend money on to a level that we are comfortable with and have made a conscious choice to spend beforehand. If you figure that you can spend $100 on “token luxuries” in a given two-week stretch, and you don’t smoke, rarely drink, and hate fast food, then knock yourself out and enjoy the caffeinated heaven that is calling your name. Everyone has different priorities, so to just casually send someone to frugal purgatory because they like a good cup of java makes little sense to me. As long as people are aware of the long-term sacrifice of the occasional cup of coffee (and how could they not be with the staggering amount of anti-coffee propaganda pouring out of keyboards everywhere), then who are we to tell them no? As financially-enlightened individuals we often give people a free ride, or a mild rebuke for driving luxury vehicles, investing in mutual funds that have ridiculous MERs, or spending money on gifts that will likely be underappreciated anyway. Yet we feel the need to fill the blogosphere with more coffee-bashing articles than there are hipsters in a downtown Starbucks. Come on guys and gals… we can be better, we must be better. Baristas of the world rejoice, hold your coffee up high and say, “I will staff write one post about the evil bean and it will pay for a week’s worth of my sinful ways.” What are your thoughts on the latte factor? Photo credit: @Doug88888 By Mrs. SPF Anyone who has looked after kids knows that they have short attention spans. Moreover babies grow at such a rapid pace in their first year that a toy that was intriguing and difficult to manipulable one month is easy and boring the next. So you go through a lot of toys, keeping them entertained and aiding in their development. You can spend a lot of money on 1st year kids toys. SPF and I have bought toys both new and used and received others as gifts for lil’ SPF. I was recently very happy to discover a toy library in town recently. It is part of a government subsidized family resource center which hosts drop in playgroups every week, teen parent support suppers, baby massage and sign language classes among many other great services. Kids can rent 2 toys and 3 books per month. Lil’ SPF and I have taken out a couple of toys now and he seems to enjoy them. Not every town has such a program but if you don’t you could start one! Either through an existing family center such as ours or a church group. Or perhaps even simpler, set one up with some other parents you know with kids around the same age and trade toys. The kids will be happy with these “new” toys and you won’t have to spend a ton of money. Added bonus as always with our Green Tips: less resources, production and shipping which helps our environment. Back to the good old days. Win-win. Would you think of using or creating a toy co-op? How about borrowing toys from the library or trading with other Moms? Check out our 365 Green Tips Series! If you like our writing and want to follow us further please follow us on Twitter @SustainablePF, like us on Facebook and subscribe to our RSS feed in a reader or via E-Mail By Miranda The current economic climate has encouraged many people to become interested in striking out and starting their own businesses. Technology has grown to the point that many people can start businesses, and earn money, with the help of the Internet. For those working from home, costs might be low initially, but expansion might require something more. And, of course, if you are a small business starting out in a different location you need start up cash immediately. Getting that cash can be difficult if you can’t the angel investment you need, or the venture capital you require. And what if the bank turns you down for a loan? Small business funding isn’t easy. However, with the help of crowdfunding many businesses are starting to get off the ground. What is Crowdfunding?Crowdfunding works in much the same way as microloans for the poor. You receive a large number of small cash infusions, rather than one or two large ones. Multiple investors can band together to pledge amounts of money ranging from one dollar to thousands of dollars. Web sites like Kickstarter have really taken off in the United States. In Canada, though, the trend is slow to catch on. Sites like Ideavibes and Startup Fuel are offering crowdfunding services, but the regulatory situation in Canada provides challenges to crowdfunding. How Does Crowdfunding Work?In some cases, efforts to fund an enterprise are more like donations. Contributions to the startup are made, and the person giving the money may only be listed as a supporter, and receive no tangible benefits. In other cases, business owners offer finished products, or provide discounts, in return for financial support. So, an “investor” might not own equity in the company, but he or she can expect to be among the first to receive a product, or get some other special perk. (I funded a friend’s comic book at a level that allows me to be a background character and get artwork on top of a free copy of the comic.) This type of crowfunding is popular because securities regulators don’t have to get involved. “Investors” receive “gifts” or recognition, and that is the end of it. The United States just recently passed a law that eases requirements for crowdfunding that involves an equity model allowing investors to receive an actual interest in the business profits. This is where regulatory agencies come in. The United States just passed a law that helps exempt crowdfunding from some of the more onerous requirements of business and investors involved. In Canada, the snag is that there is no national regulatory agency. Crowdfunding and the Equity Model in CanadaWith the equity model, investors truly are investors, and receive some sort of interest in the company, and receive an on-going benefit. However, in Canada the ability to raise funds for your business with the help of crowdfunding is limited by the fact that you would have to meet requirements in 13 different provinces and territories. Unlike the U.S., one rules change doesn’t solve the issue. There would have to rules changes with each of the Canadian securities regulators. And, if one province/territory changed the rules, the funding could only be raised in that region; no nationwide push for funding. So, while crowdfunding might help your business, it might take a while for it to really catch on Canada — especially if you want to pursue the equity model. | |
