Explaining the high cost of cheap electricity

As newspaper headlines can attest the cost of hydro is a contentious subject. However, a stable electricity system is so critical to a successful modern economy that government agencies must plan decades in advance to make sure the lights don't go out.

As a result, Canadians have been left paying for an expensive legacy system of power generation that produces more energy than the economy can consume. 

Ivey's Adam Fremeth explains to CBC.ca this issue may be most pronounced in Ontario.

"Some of the facilities that we have fixed contracts with and have agreed to take their power under different schemes are only being used a few hours a year," says Fremeth.