Ontario Liberals Often Fail to Honour contracts

The Toronto Star ran an article recently indicating a political leader in Ontario would not honour contracts.   That leader was PC leader Tim Hudak, and since I’ve said in the past Ontario’s ratepayers would have saved billions by electing Hudak’s party when they had the change in fall 2011, I thought I’d take some time to show why that is, and how the current government has not honoured the contracts signed prior to that election.

The PC’s party “Changebook” 2011 campaign platform included;

We will end the feed-in tariff program that, in some cases, pays up to 15 times the usual cost of the hydro. Hardworking farmers and other Ontarians who signed contracts to host energy production on their property will have their contracts honoured. But there will be no more of these deals.
We will end the king of all secret, sweetheart deals – the $7 billion Samsung deal…

As Mr. Hudak’s stance of trying to end contracts is portrayed as being impractical, in the Toronto Star article and elsewhere, it’s important to note that in the two years following that election there has been little new contracting of supply.    Comparing the OPA’s 2013 Q3 – A Progress Report on Contracted Electricity Supply to the same report for the quarter prior to 2011’s election, only 33.6MW more “wind” shows as being contracted ( 5,755MW total), and 62.7MW more solar (of 2,050MW total).    The majority of renewable supply contracted since July 2011 is the conversion of Atikokan from coal to biomass (Hudak is currently being criticized for supporting another biomass project).Read More »