Brown, Wynne, share ignorance of $500+ million ratepayer hit

The Ontario PC party put out some tweets that tweeked my interest yesterday, on payments due to a court ruling.

The parties in the case included those in a ruling I wrote about in May’s Ontario appeals court upholds sentence of higher costs for ratepayers – but the hit on ratepayers in the case I wrote about IS estimated at over half a billion dollars.

After watching an exchange between Premier Kathleen Wynne and Leader of the Official Opposition Brown, I decided to see what they were on about.

It turns out I knew most of what they were on about, it was just hard to be certain as neither of them did.

Two new pieces of information since I wrote on the court case in May:

  1. the case was appealed to the Supreme Court
  2. additional payments/penalties were paid to compensate for more months of generation. [1]

The Ontario PC party seems totally unaware what the nature of the case is, and it seems blissfully oblivious to the fact the latest $94.7 million payout was not the first payment, nor will it be the last if the court case fails – and Northland is only one supplier getting the payouts as a result of the court case against the Ontario Electricity Financial Corporation (OEFC).

The exchange in the legislature doesn’t reveal:

  1. the payment is less than 20% of the cost impact of the court judgement
  2. the OEFC is a shell corporation
  3. the control of the OEFC is essentially under the Minister of Finance [2]
  4. the contracts involved in the court case originate prior to 1995, under Premiers Peterson (Liberal) and Rae (New Democratic Party) [3]
  5. the court case is due to changes in payments due to calculations changed with the introduction, for 2011, of the Industrial Conservation Initiative (ICI – or Class A global adjustment mechanism)

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The $113 bill “for nothing” in Ontario

I’ve seen many references to a $113 hydro bill “for nothing” today. With anger high over electricity costs in the province, this seems to be a rallying point for some.

Not for me.

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Before I get to the specific bill…

I saw tweets from the official opposition this morning showing the bill, and tonight Christina Blizzard has a report on events that followed; Sousa claims hydro bills going down.

To me, Sousa is an appalling man, but that’s not exactly what he’s shown as saying. This is:Read More »

Sousa returns to Duncan’s lying ways in raiding electricity debt charge revenue

Today’s economic statement from Ontario Finance Minister Sousa should be the last time we get data to demonstrate his theft of residual stranded debt charge revenue. I’ve written on this many times, so in this post I just want to cover the latest farcical accounting, but I’ll provide one more overview of what the “residual stranded debt” was meant to be, and how a charge of $7/MWh (0.7 cents/kilowatt-hour) ended up on electricity bills to address it.

Ontario Hydro was broken up with the electricity act of 1998, and the successor company left with the financial burdens was the Ontario Electricity Finance Corporation (OEFC). It’s a shell company that held about $20 billion more in liabilities than it had in assets (this is known as the OEFC Unfunded Liability). In order to pay the liabilities the OEFC was provided revenue tools; specifically payments in lieu of taxes (PIL) from sector businesses, and profits (above a certain number) from Hydro One and OPG – two successor companies of Ontario Hydro.

The Unfunded Liability that was not capable of being retired through PIL and sector revenues was called the “Residual Stranded Debt”, and to address that debt the residual stranded debt charge was added to our bills.

I was anticipating today’s lie, and here’s how it was pictured:

OEFCcapture

Let me explain how this is a lie.Read More »