Dear Wealth Daily reader:
We’ve been warning you for months that this could quickly become the summer of fear and loathing as energy grids, pushed to the limits, are forced into rolling blackouts.
And dear reader, it looks like our prediction is spot on.
As the East coast of the US turns into a veritable sauna, our neighbors to the north are beginning to feel the squeeze of the heat.
This came across the wire this morning:
"More than 7,300 homes in Ottawa lost their power last night as demand for electricity hit a record high in Ontario, overloading the embattled power grid and prompting rolling blackouts.
At 6 p.m., just hours after Ontario Premier Dalton McGuinty warned striking Hydro One workers that he will take "whatever steps are necessary" to protect the province’s electricity supply, the demand for electricity in Ontario reached 26,157 megawatts, its highest level in history.
The province’s fleet of coal, nuclear, gas and hydroelectric generators couldn’t keep up. Ontario could only muster 25,087 megawatts, meaning the province was kept afloat by imported U.S. power.
Still, that wasn’t enough.
According to Hydro Ottawa, demand was too much for a Hydro One power station near Bilberry Drive in Gloucester. The overload forced Hydro Ottawa to implement rotating blackouts between 6 p.m. and 7:30 p.m. Residents were forced to watch as their power repeatedly went on and off: On for half an hour, then off for 15 minutes."
Oil and natural gas prices were down this morning. But we believe this to be temporary as the White House tries to talk down the price of energy.
As the heat in the pressure cooker grows, it’ll be nearly impossible from keeping the lid from blowing.
Again, this is only going to get more interesting as the summer drags on.