It started about a week and a half ago when BLM (Bureau of Land Management) officers tasered a member of Cliven Bundy’s family and set a dog on a pregnant woman during a protest over the seizure of land and cattle by BLM on behalf of a solar company in China and supported by Senator for Nevada Harry Reid who has some “skin in the game” with the massive Solar development on the seized land.

Call it what you will but when your lands, homes and lives are arbitrarly attacked seized and harmed by Government decrees which are not just and moral, something has to give.

In this case the ranchers in Nevada who are allowed to carry firearms openly decided enough is enough and took action which appeared to look like an episode of Gunsmoke!

Fast forward to this week and what we have is a push back by ranchers who took back the cattle and land by threatening force on the BLM officers.

A day later Harry Reid has the absolute gall to bad mouth the ranchers and call them publicly “DOMESTIC TERRORISTS”!

From the citizens point of view the Government have become the terrorists and will be treated as such

Here in Ontario, guns are not allowed and Ontarians have no real history of being violent or threatening officials with harm.

But don’t let that suggest Ontarians aren’t pissed off about how they have been routed from their homes, farms or lands by unscrupulous Wind Energy Developers with the backing of elected Politicians!

We in Ontario just do things a bit different. We remove these parriahs from public service through elections and never forget the harm they have done us. Their political careers are over and even though a few of them pop up in daylight once in a while (e.g. Harris, Mulroney), basically they will always be despised by the majority of the population!

The following public display by Senator Harry Reid should cause his supporters a bit of a concern that “this man might not be quite right in his head”!

In case you think this statement has escaped the notice of the American public just go to Harry Reid’s Facebook page and read the comments………….most can’t be repeated on this site!

Harry Reid Calls Cliven Bundy Supporters “Domestic Terrorists”

“I repeat: what happened there was domestic terrorism”

Paul Joseph Watson Infowars.com April 17, 2014

During a ‘Hashtags & Headlines’ event at the Paris Hotel & Casino in Las Vegas, Reid referred to Bundy supporters as “Nothing more than domestic terrorists,” adding, “I repeat: what happened there was domestic terrorism.”

Image: Harry Reid (YouTube).

Reid claimed that Bundy viewed the United States as a “foreign government,” while accusing his supporters of goading violence.

“There were hundreds, hundreds of people from around the country that came there,” Reid said. “They had sniper rifles in the freeway. They had weapons, automatic weapons. They had children lined up. They wanted to make sure they got hurt first … What if others tried the same thing?”

Despite Reid’s characterization of Bundy supporters as “domestic terrorists,” the only violence metered out during the dispute was when BLM agents tasered and assaulted Bundy supporters during an incident on April 9.

No matter where you stand on the Bundy issue, Reid’s characterization of American protesters as “domestic terrorists” is chilling and a massive backlash is almost certain to follow.

It also fits the narrative that the federal government has been pushing for years through literature such as the MIAC report, which framed Ron Paul supporters, libertarians, people who display bumper stickers, people who own gold, or even people who fly a U.S. flag, as potential terrorists. In 2012, a Homeland Security study was leaked which characterized Americans who are “suspicious of centralized federal authority,” and “reverent of individual liberty” as “extreme right-wing” terrorists.

Reid was referring to the stand off on Saturday in Bunkerville where Bundy supporters, some of whom were armed, forced Bureau of Land Management agents to back down and release around 380 head of cattle belonging to Bundy that had been seized over the course of the previous week.

READ MORE HERE:

 

REALLY! ….a day never goes by without another ridiculous announcement from the Ontario Government on how well they are doing by ruining what was once a vibrant and cost effective existence within a once great Province!

These announcements are lost on most citizens as they try and wrap their heads around police investigations, budget worries and the dozens of unresolved SCANDALS that have gripped Ontario since the beginning of this Liberal Reign of Terror.

Mike Harris’s Common Sense Revolution was just a warm up exercise for ripping the guts out of venerable institutions in Ontario like Health and Education. The Liberals decided to do one even better better. “Let’s ruin” the Energy Sector and accumulate a debt load so big that it will essentially leave this Province so crippled that we can deliver it on a silver platter to a “developing country like China” and make it look like win-win decision.

This is in line with Agenda 21 and should be a blueprint for any corrupt and dictatorial government to follow if they want to absorb new lands and industry without going to a full out conflict like a war!

If we don’t get an election call on May 1st after the Liberal “budget” (exercise in futility) then we should all dig in, sand bag our homes and drop trees across our entrances and wait for the re-possession warrants to be delivered for our castles.

See if you can spot the “disconnect” in the next two announcements:

April 15: a very busy day for the Ontario Liberal government!

Libel Suits, budget announcement and shutting coal plants: all in one day!

April 15, 2014 will go down as the Ontario Liberal Party’s busiest day, bar none.   We had the Premier’s office announcing she was moving forward in a libel suit against the Loyal Opposition, Ontario’s PC Party, their leader, Tim Hudak and Lisa MacLeod, their energy critic.  Then we had the Energy Minister’s announcement that the Thunder Bay coal plant burned its last lump of coal; and to cap it off the Finance Minister announced that the budget would be presented to the Legislature May 1.  The last announcement was made at 3 PM which, coincidently, was when the committee investigating the Liberal gas plant scandal was examining a key witness.

Was this a lot of noise to distract the media (and anyone who is following the scandal) and make the best of what could be a very bad day. There was almost certain to be  more bad news on the waste of $1.1 billion to move the gas plants in the run-up to the last provincial election.

Interesting is the Energy Minister’s proud announcement that the Thunder Bay coal plant had burned its last coal:  “Getting off coal is the single largest climate change initiative undertaken in North America and is equivalent to taking up to seven million cars off the road.” Thunder Bay is being converted to biomass, but I’ll get to that.

All in a day's work

All in a day’s work

Minister Chiarelli didn’t exactly claim his party was entirely responsible for closing down the coal plants but, it was inferred. The Cold Air blog recently posted some history related to Minister Chiarelli’s announcement: The Select Committee on Alternative Fuel Sources  was formed in 2001 and this all-party committee of the Ontario Legislature in its report  one year later recommended, among many other things, “the Ontario government shall mandate the closure of all remaining coal or oil-fired generating stations by 2015.”

Back to biomass: Biomass is not all it is claimed to be and “advanced biomass” means the plant could also burn coal in the future, if necessary.  It should be mentioned that Thunder Bay was originally (via a Ministerial directive from Brad Duguid) slated to be converted to gas but OPG and the OPA were unable to reach agreement on a contract, so that plan was shelved.

What happened then was that the current Energy Minister stepped in and issued a directive to the OPA on December 16, 2013 with the instructions to the OPA to: “negotiate and enter into a contract with OPG for the procurement of electricity from advanced biomass at TBGS”.  One would surmise that the OPA was successful or the Minister would not have issued his press release on April 15, 2014.

Or, maybe not, as the press release issued by OPG on the same day (April 15, 2014) as the Minister of Energy’s contained this quote:  “OPG is currently seeking suppliers for the advanced biomass fuel and negotiating a power purchase agreement with the Ontario Power Authority.

In my opinion, it appears that the Ministerial announcement yesterday was meant to show that all is well with the government’s energy plan, and the Thunder Bay conversion is a fait accompli but it is obvious that the OPG and the OPA have no agreement, and OPG have no supplier lined up to provide “advanced biomass.”   Where that leaves the people in Thunder Bay and area is unclear, and what implications are there for the future development of the “Ring of Fire”?

Create enough confusion and perhaps the voters will be fooled into thinking you really do have a plan!

©Parker Gallant,

April 16, 2014

The views expressed here are those of the author and do not represent Wind Concerns Ontario policy.

 

Another rate increase for Ontario

What are ya gripin' about? It's just another 2 Timmies a day

What are ya gripin’ about? It’s just another 2 Timmies a day

Ontario Energy Board: your bills are going up … again

The press release issued from the Ontario Energy Board (OEB) April 16, 2014 was more bad news!   Electricity prices are heading higher for “households and small business consumers” as both Time Of Use (TOU) and RPP prices will rise May 1, 2014. Cost to the average electricity consumer will be approximately $2.83  per month on the “Electricity line,” for “a household with a typical consumption pattern of 800 kWh per month.”  No doubt it will cost the small business consumer a lot more.

Now $34.00 a year doesn’t sound like much, but on top of the $48 they added to our bills only six months ago, and the $44 from just one year ago, it’s adding up.  In fact, electricity bills have claimed $126.00 (+ HST) of our after-tax dollars in just 12 months.  

Do the math

The Yearbook of Distributors on the OEB website shows electricity by  “households and small business consumers” for 2012 totaled about 125 billion kilowatts (kWh).  The OEB press releases tell us that 64% of our consumption is during off-peak hours—that’s about 80 billion kWh.   The just announced TOU price increase of 0.3 cents per kWh (mid and off-peak) therefore represents an additional cost of $240 million (80 billion kWh X 0.3 cents), while the balance of 45 billion kWh and a 0.6 cent per kWh increase adds another $270 million.  This most recent increase will extract approximately $500 million of after-tax dollars, on top of the $625 million increase of October 2013, and the $630 or so that the May 1, 2013 increase took from us. 

Since the Liberal government came to power in 2003, the average electricity consumer has seen the cost of that 800 kWh of electricity per month go from a monthly cost of about $34 to almost $97 (including the PST portion of the HST) — an increase of 185% in 10years.

More bad news to come

Additional bad news in the OEB press release confirms there are more increases to come: “The forecast for higher costs includes more generation in the next 12 months from sources including renewables,” it said. That confirms the Minister’s December 2013 forecast of that prices will increases by 33% over the next three years.

Energy Minister Bob Chiarelli told members of the business community in Ottawa (where his riding is) he planned to announce “measures that would save small enterprises money on their bills.”

We wait to see what he will pull out of his hat. Maybe a free Tim Hortons coffee for every 800 kilowatts they consume or a free kilowatt of electricity by “rolling up the rim”!  No matter what, we should all expect the cost of electricity to eat up more of our money due to inept management of the energy portfolio.

Parker Gallant,

April 16, 2014

Pick any one of the 3 or all 3 at once and you’ll be in agreeance with Ontario’s most senior bureaucrat, Peter Wallace.

Are the gerbils at Queen’s Park turning on their masters finally?

Seems when leaders like McGuinty and Wynne along with every other Minister who has claimed “they know nothing” when it comes to scandalous behaviour is causing the staff to begin to turn on them and start the inevitable “meltdown” within this rotten cabal of tax thievery.

Wynne is trying to stall the inevitable by suing her opposition, Tim Hudak and Lisa MacLeod for saying what all Ontarians are saying: Wynne is as guilty as McGuinty in covering up scandals!

Alleged plan to cover up Ontario gas plant scandal was ‘criminally stupid,’ top bureaucrat tells committee

National Post Staff | April 16, 2014

Peter Wallace, Ontario's cabinet secretary, answers questions during a committee hearing at Queen's Park in Toronto on Tuesday, April 15, 2014.

Peter Wallace, Ontario’s cabinet secretary, answers questions during a committee hearing at Queen’s Park in Toronto on Tuesday, April 15, 2014. THE CANADIAN PRESS/Darren Calabrese

Ontario’s most senior bureaucrat says he was shocked to learn that a top aide to former premier Dalton McGuinty allegedly oversaw a “criminally stupid” plan to delete emails about the gas plant scandal.

“I was extremely, extremely surprised to learn that there’s an allegation that the actions had crossed from a stupid idea, to something really stupid, to what the OPP were telling me was potentially criminally stupid in that context,” cabinet secretary Peter Wallace told a Queen’s Park committee Tuesday afternoon.

The OPP is investigating possible breach of trust charges for the alleged deletion of correspondence on the decision to cancel gas plants in Liberal ridings in the lead-up to the 2011 election, at a cost of $1.1-billion. The probe has focused on McGuinty’s former chief of staff David Livingston, who allegedly gave an outside tech expert access to computers in the premier’s office.

“My shock and my concern was crystal clear”

Wallace criticized the McGuinty government’s handling of the gas plant cancellations, and he complained that the affair put him in a position where he had to choose between serving his political masters or serving the public interest.

“I owe a broader duty of care to the office of the premier,” Wallace said — not to the person who occupies that office. “I owe a broader duty of care to the people of Ontario.”

The expensive cancellations should have been handled by “legal contract-holders” — provincial agencies, represented by public servants — and not McGuinty’s staff, the 30-year public servant told the justice committee, which is investigating the affair.

READ MORE HERE:

For someone as high up the political ladder as Kathleen Wynne one would think she would know what a “suicide mission” she is on when trying to attack an opposition member who is only trying to find out what every single Ontario tax payer is asking: “who the hell ordered the deletion of gas plant e mails?”

Wynne might as well just come right out in public and tell every single Ontarian “to shut the hell up and let me continue blowing your hard earned tax dollars to keep my people and myself inside Queen’s Park so I can flush more of your dollars down the Liberal toilet?!

Can this clown show get any worse?………………give it another day or two and sit back while Ontario slowly but surely Moves Forward………….toward the cliff of bankruptcy!

Ontario Premier Wynne seeks $2-million in libel suit against Hudak, Tory MPP

The Globe and Mail ADRIAN MORROW Apr. 15 2014

Ontario Premier Kathleen Wynne attends question period at Queen's Park in Toronto on Tuesday, April 1, 2014. (Chris Young/The Canadian Press)

Ontario Premier Kathleen Wynne attends question period at Queen’s Park in Toronto on Tuesday, April 1, 2014. (Chris Young/The Canadian Press)

Ontario Premier Kathleen Wynne is demanding $2-million in damages from her Progressive Conservative opponents after they accused her of taking part in the destruction of documents in her predecessor’s office, called her “corrupt” and compared her to Richard Nixon on Twitter.

The unusual lawsuit comes just ahead of a crucial budget – which the Liberals announced Tuesday they will table May 1 – and a possible spring election.

Ms. Wynne’s statement of claim alleges PC Leader Tim Hudak, MPP Lisa MacLeod and the party’s fundraising arm all libelled the Premier. None of the allegations have been tested in court.

“The defendants acted out of malice … with the deliberate intention of discrediting [Ms. Wynne’s] reputation and subjecting her to public scandal, ridicule and contempt,” it reads.

An Ontario Provincial Police document, unsealed last month, accuses former premier Dalton McGuinty’s chief of staff of getting an IT expert to wipe clean the hard drives of computers shortly before Ms. Wynne took power last year, potentially erasing documents connected to the costly cancellations of two gas-fired power plants.

READ MORE HERE:

It used to be called the “old boy’s club” when we learned of appointments to boards and positions of power within Government agencies by “connected” people within Queen’s Park and Liberal created organizations.

It now APPEARS that Kathleen Wynne has taken this to a whole new level with an “old girl’s club” even though you will never hear that she had ANYTHING to do with the appointment of her wife’s brother being appointed to CEO of the scandal plagued E Health Ontario organization.

Just like Kathleen Wynne had NOTHING to do with the deleted gas plant e mails during the period McGuinty fled the pink fortress and Wynne took over.

In fact if anyone believed one single word from any or all Liberal Ministers lately one would think Kathleen Wynne was more saintly than Mother Teresa. 

Courtesy Bing

I know nothing………..I see nothing…………I hear nothing” should be her mantra going into a well needed election period!

Premier Wynne’s brother-in-law named interim CEO of eHealth

,QMI AGENCY APRIL 14, 2014

Kathleen Wynne and Jane Rounthwaite

Premier Kathleen Wynne (L) with partner Jane Rounthwaite. (Reuters files)

TORONTO - Premier Kathleen Wynne’s brother-in-law has been appointed “interim” CEO of eHealth, the Toronto Sun has learned.

David Rounthwaite, brother of Wynne’s wife, Jane, was appointed to the $210,000-a-year job effective March 7.

A spokesman for eHealth said Rounthwaite has been general counsel for the giant agency charged with getting health records online for more than four years — before Wynne became premier.

Rounthwaite’s appointment has not yet been confirmed by cabinet.

“There hasn’t been any attempt on the part of eHealth to not be transparent about this,” spokesman Rob Mitchell said Monday.

“It was communicated to staff very clearly in an announcement. We had a town hall for all staff last Wednesday,” he said.

“(Rounthwaite’s) been in this role for a while and is a long-term employee of the agency, long before the ascendancy of the premier.”

The previous CEO, Greg Reed, left Oct. 1 and was replaced in the interim by Ray Hession.

The troubled agency was the subject of a scorching report in 2009 by then provincial auditor general Jim McCarter. He estimated $1 billion had been wasted in a botched attempt to get a digital health record system up and running.

McCarter documented an agency bogged down in consultants, paying excessive bonuses and expenses.

READ MORE HERE:

One more “tidbit here about this guy…………..he was up to his ears in the Wind Industry!

WYNNE’S BROTHER-IN-LAW THE NEW CEO OF EHEALTH, BUT HE ALSO HAS DEEP TIES TO THE WIND INDUSTRY

http://quixoteslaststand.com/2014/04/15

How deep does the corruption of this Liberal government go?  How great is their arrogance for making sure that their family and buddies make a fortune off the backs of Ontario taxpayers?

Turns out, not only has Kathleen Wynne’s brother-in-law been appointed the new CEO of EHealth, but he’s also on the Board of Directors for two renewable energy companies.  The chutzpah and corruption of this gang of thieves just knows absolutely no bounds.   He’s also been a lawyer for the past 30+ years.

READ MORE HERE:

When a child is ignored when having a temper tantrum it only escalates and nothing short of removing that child completely and abruptly from the subject of their tantrum will stop it!

Chairman of IPCC R K Pachauri courtesy Bing

It seems the The Intergovernmental Panel on Climate Change has reached that point where they have to publish an extreme and actually quite INSANE report so that they may garner some attention from media outlets that have up to now been virtually shut off by informed people world-wide who don’t believe a bloody thing these fools have published in years!

Unfortunately these perpetrators of lies and untruths have dug into the U.N. so deep that it may take a massive disinfecting of the whole gaggle of gerbils inside the structure in New York City like digging ticks from a dog’s back to get them out of there!

If nobody listened or wrote about these foolish edicts then they would just fade away like a bad rash. Hopefully I haven’t given them any “legs” by commenting on this latest piece of crap called: Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC)

GIVE UP MEAT, COAL, OIL, ECONOMIC GROWTH AND NATIONAL SOVEREIGNTY – ORDERS NEW IPCC CLIMATE REPORT

The United Nations (UN) has delivered its latest verdict on the measures necessary to save the world from global warming and the news is as grim as it is predictable and wearisomely familiar:

More regulation from “experts”, technocrats and bureaucrats at supranational organisations, such as the one whose initials begin with U and end with N.

More taxpayer subsidies for expensive, inefficient renewable energy.

More nuclear power (with shale gas used as a transitional fuel to replace coal).

The abandonment of fossil fuels.

Less meat consumption.

A single, globally-regulated price for carbon dioxide.

More local-government-enforced walking, cycling and public transportation.

More back-door wealth redistribution from the West to the developing world in the name of “sustainability”

All at a cost to the global economy of up to 3.7 per cent of GDP by 2030, provided we act now.

These are the recommendations of Working Group III of the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), due to be officially announced in Berlin on Monday.

The report notes that almost half of the rise in post-industrial anthropogenic (man-made) CO2 levels since 1750 occurred during the last forty years. Therefore, it argues, a dramatic decarbonization of the world economy – including more renewable energy and less fossil fuel – must begin immediately if global warming is to be kept below 2 degrees C by the end of the century.

This action will set back economic growth, involve significant “behavioural change” and “devalue fossil fuel assets”, the report admits. But only with “major institutional and technological changes” can the world avert an even greater threat. If no action is taken, it warns, temperatures may rise by as much as 4.8 degrees C by 2100.

“There is a clear message from science: to avoid dangerous interference with the climate system we need to move away from business as usual,” said Germany’s Otmar Edenhofer, one of the three co-chairs of the report.

READ MORE  HERE:

WHY isn’t that debt paid off? Parker Gallant tells you why

money1

One of the issues that came up during last week’s cross-Province hydro bill protest was the debt retirement charge and why, like Ontario’s own version of Bleak House, it just goes on and on and on, and never seems to get paid off in full?

Parker Gallant has examined the books, the news releases, the ministerial pronouncements and more, and has the answer for you.

 

The Debt Retirement Charge: Premier Wynne’s $6.2 billion “Revenue Tool”

 The Auditor General’s (AG) report released December 10, 2013 highlighted some of the problems inherent with taxpayer owned Ontario Power Generation Inc. (OPG), particularly its above market human resource costs.

Unfortunately the report didn’t ascribe specific costs to Ontario ratepayers. The report noted power generation levels had fallen considerably over the past decade but again failed to cite the reasons. Despite those human resource costs, OPG is still Ontario’s low cost electricity generator as noted in their press release of March 6, 2014 wherein they state their average revenue per kilowatt (kWh) in 2013 was 5.7 cents versus 9.9 cents per kWh for private sector generators.

The $6.2 billion “Revenue Tool”

 The AG’s report had a follow-up to a 2011 audit report on Ontario Electricity Financial Corp. (OEFC) which noted Minister of Finance, Duncan, should update the “residual stranded debt” (RSD) and asked “when electricity ratepayers might expect to see the DRC [Debt Retirement Charge] fully eliminated.”

Collection of the DRC from ratepayers commenced after Ontario Hydro was restructured (1999) and the first Annual Report from OEFC described stranded debt and RSD as follows:

“As at April 1, 1999, the present value of these revenue streams1. was estimated at $13.1 billion, resulting in an estimated $7.8 billion of residual stranded debt.”

  1. Those “revenue streams” were described as “dedicated electricity revenues” and included anticipated future income and future “payments in lieu” of taxes to be paid by successor companies and the local, municipally owned, electricity distributors.

 The statement from 1999 said “stranded debt” was $20.9 billion but future revenue from OPG and Hydro One plus PIL (payments in lieu of taxes) from OPG and Hydro One and municipal electricity distributors would generate $13.1 billion in the future 8/9 years and the DRC from ratepayers would eliminate the RSD of $7.8 billion. The “stranded debt” was subsequently reduced to $19.4 billion as it was adjusted for $1.5 billion of additional assets transferred to OEFC. The latter did not alter the RSD as it remained at $7.8 billion.

To Recap:

Total Stranded Debt                                       $ 20.9 billion

Less: Additional Assets                                $   1.5 billion

Net Stranded Debt                                           $ 19.4 billion

Less: Future earnings & PIL2.                     $ 11.6 billion

Residual Stranded Debt3.                      $  7.8 billion

Add: 2012 ADJUSTMENT          $  6.2 billion

Revised Residual Stranded Debt       $14.0 billion

 

The action taken by the Finance Minister as a response to the AG’s 2011 “audit” was to arbitrarily backdate and revise the “revenue streams”, reducing them by $4.4 billion for the year ended March 31, 2004 and $1.8 billion for the year ended March 31, 2011 increasing the “RSD” by $6.2 billion thus extending the period the DRC would remain on ratepayers bills. Those adjustments were made in Finance Minister Dwight Duncan’s 2012 budget as he rewrote the Province’s financial history!

Since the OEFC’s year-end of March 31, 1999 future earnings and PIL have generated “Excess Revenue” of $10.9 billion. The $10.9 billion in revenue is “excess” to the $520 million in annual interest ($6.8 billion since 2000) costs on the $8.9 billion that the Province owes OEFC for the price of acquisition of OPG and Hydro One.

  1. OEFC via its annual reports has indicated that up to the March 31, 2012 year-end they have collected $12.8 billion as a result of the “Debt Retirement Charge” (DRC). The writer estimates that another $950 million has been collected up to the end of March 31, 2014 meaning $13.8 billion has failed to pay off the original $7.8 billion of “Residual Stranded Debt” due to Minister Duncan’s $6.2 billion adjustment.

What Minister Duncan did was burden each of the 4.5 million ratepayers with $1,400. of new debt that could extend the appearance of the DRC on our electricity bill for another 6 or 7 years!

The original “Stranded Debt” of $19.4 billion made up of the two subsets: $11.6 billion to be repaid from “Future earnings and PIL” plus the $7.8 billion of “Residual Stranded Debt” to be repaid from the DRC, has generated revenues of $24.7 billion (see 2. and 3. above) yet has only reduced the $19.4 billion to $11.3 billion as noted in Finance Minister Sousa’s 2013 Fall update. Put another way, it has taken $3.00 of ratepayer funds to repay each $1.00 of debt or $24.7 billion to repay $8.1 billion!

Why?

Connecting the dots:

From all appearances it seems that the Finance Ministry ignored the requirements of the “Electricity Act, 1998” (Act) which, under part 62, “Use of revenues,” states:

 “Despite the Financial Administration Act, the revenues received by the Financial Corporation [OEFC] do not form part of the Consolidated Revenue Fund and shall be used by the Corporation for the purpose of carrying out its objects. 1998, c.15, Sched. A, s. 62.”  Well, they weren’t!

As one example the OEFC March 31, 2012 financial statement under assets lists the following: “Due from Province of Ontario  $2,750 [million]”. This asset is listed as a “current” asset but it has been growing since 2008 at a rate of over $500 million annually and should be classified as “past due”. It represents a large part of the “Excess Revenue” (2. above) that the province should have paid to OFEC in compliance with the Act. Carrying that receivable on their books requires OEFC to finance it at an average borrowing cost of 5.86% and an annual interest expense of $161 million. Both the interest and the excess revenue should have been paid to OEFC by the Ministry instead of by the ratepayers. Coincidentally, Hydro One has paid $1.2 billion in dividends to the province since 2008 but it would appear that instead of passing those to the OEFC they simply used them as part of the Consolidated Revenue Fund. Why has the Finance Ministry ignored the Act that created the OEFC?

Another example is the “Guarantee Fee” levied by the Province on OEFC’s debt and “guaranteed” by the Province. From year end, March 31, 2000 until year end March 31, 2012, guarantee fees were $1.9 billion. Based on the debt “guaranteed” by the province in 2000 ($21.7 billion) it appears the “guarantee fee” escalated from less than 1/10th of 1%  in 2000 to 1.75% based on the much lower amount ($7.9 billion) “guaranteed” by the province in 2012! Why?

As an aside to the above, the amount of debt outstanding and owing by OEFC has increased from 2003 (when the Liberals assumed power) when it was $26.8 billion to 2012 when it was $26.9 billion and while the province benefited from reduced borrowing rates (currently averaging 4%) the effect on OEFC’s debt has shown only a modest reduction from 6.78% in 2003 to 5.86% in 2012! Why?

It is worth noting that the Province owes OEFC $8.9 billion for the purchase of OPG and Hydro One after the breakup of Ontario Hydro (acquired in 1999 for that debt) at book value. As of December 31, 2013 their combined “Shareholder Equity” was $15.4 billion for a gain of $6.5 billion. To put that in perspective the Province has earned .67 cents for every dollar they borrowed (to acquire OPG and Hydro One) while sticking ratepayers with the interest carrying costs. Ratepayers on the other hand pay $3.00  for every $1.00 of the “stranded debt reduction they didn’t play any role in creating! Why doesn’t the Finance Ministry execute a debt swap for that $8.9 billion and save ratepayers $520 million in interest carrying costs?

In the $6.2 billion of adjustments to the “RSD” the Minister ignored Liberal policy changes affecting OPG’s ability to generate revenue and PIL. Ignored were: directives to OPG to build “Big Becky” ($1.5 billion), convert Atikokan to biomass ($170 million), proceed with the $2.6 billion Mattagami project, etc. Those projects will impact ratepayers producing expensive power only occasionally needed. The Liberal policies ignored the financial impacts! Why?

The “greening” of Ontario’s generation via the GEA meant OPG was forced to close coal plants (negative impact $473 million) and as renewable energy (wind and solar) entered the grid, OPG were forced to spill hydro–without compensation. Increased capacity and falling demand had a negative effect on the wholesale price (HOEP) of electricity. OPG’s unregulated generation, (coal and 3,700 megawatts of hydro) were affected. Tracking OPG’s unregulated coal and hydro generation from Jan. 2009 to Sept. 2013 discloses production of 95.9 terawatts (TWh). Had OPG received the average cost of production (HOEP + Global Adjustment) instead of HOEP, their revenue would have been $3.6 billion higher and those dollars would have reduced the stranded debt. Why choose OPG as the whipping boy?

The AG should not have lauded the Finance Minister for adjusting OEFC’s books in her review and instead should have castigated him for hiding a huge dollar grab from ratepayers. The Liberals found a “Revenue Tool” of $6.2 Billion and hid it from Ontario’s ratepayers!

That $6.2 billion “sleight of hand” took care of: the gas plant moves, the ORNGE scandal, the Toronto subway funding, the PRESTO/MetroLinx mess and a big chunk of the PanAm Game’s cost all on the backs of Ontario ratepayers. Where would the Provincial deficit be today and in the future without the planned $6.2 billion in future revenue generated by the “Debt Retirement Charge”?

Ontario’s ratepayers and taxpayers should hope the upcoming Spring budget from Minister Sousa is examined closely by the opposition parties to ensure the Liberals don’t pull another “sleight of hand” and another “revenue tool” grab!

 

©Parker Gallant

April 10, 2014

 

P.S.  The March 31, 2013 OEFC annual report has still not been released by the Liberal Minister of Energy, Bob Chiarelli.