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Canadian Investing / Canada (General)


Subject:  Re: Electricity question? Date:  1/23/2013  3:06 PM
Author:  DrtThrwingMonkey Number:  63234 of 64723

I suppose using electricity for home heating has its downside besides the obvious cost in most areas? I know a few Nova Scotians that do it but not many.

The downside is that it is a waste. Because of the inefficiencies of electricity generation and transmission, you need twice as much gas to make electricity in a gas plant and then sending that to homes to be used for heating, as you do just to burn the gas in your home furnace.

The trouble is, in Quebec, 90% of the province's electricity needs come from hydroelectric power, generated cheaply, so politicians have decided (largely because people want it this way) to keep rates low, and so it is actually cheaper to heat with electricity than with gas, even with today's low gas prices.

It's as though you were the owner of a lumber mill that makes 2 by 4s, and you can take as many as you want, so you decide to heat your house with them. Why not? They're cheap! The answer, obviously, is that you would be better off, as the owner, to sell the 2x4s and buy cheaper firewood.

It's not as though we don't need the extra income.

Regards, DTM
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