McGuinty’s Energy policy is BANKRUPTING Ontario’s Citizens!!!!!

Posted: November 15, 2011 in Uncategorized

Have you opened your Hydro Bill this month yet?………..if you haven’t and you want a rather peaceful sleep tonight…..DON’T!

Absolute insanity is displayed in every line of your Bill that leaves a Harvard Graduate scratching his head on how the accounting is done to get to the final figures that you will owe your electrical utilty each month!

This “criminal bilking” of Ontario electrical consumers has gone beyond the pale!  To try and explain any of the charges with a straight face and sensible reasoning has long since disappeared.  Ever tried to question your Bill with your provider?…………….good luck if your not hung up on within 5 minutes.  Try writing for an explanation………….don’t hold your breath for any answers……………

The following explanation of how the energy sector here in Ontario “directs” your hard earned dollars should leave you in quite a state of desperation after reading it.  The first question will be of course …………….isn’t there a Law against this kind of stuff?” Well, don’t expect any help soon from the fools that were lected on October 6th of this year…………….we have been “sold out” and basically we are on our own folks…….Good Luck this winter, we’re going to need it!!!

Ontario ratepayers subsidize taxpayers

(November 15, 2011) Ontario ratepayers are helping to hold down municipal taxes and the provincial debt, says Energy Probe director Parker Gallant.

The Ontario Energy Board (OEB) requires the 80 local distribution companies (LDC) in Ontario to send detailed financial and ratepayer information annually and OEB assembles it in the “Yearbook of Electricity Distributors”. The information is presented in a consolidated and individual basis so viewing it provides a myriad of facts including statistics on the number of kWh purchased, km of overhead lines, etc. It gives collective and individual average delivery costs per customer and a financial picture of each LDC. As an example, Hydro One’s distribution arm collected an average of $949 per customer (year ended December 31, 2010) for “delivery” of electricity whereas clients of Kitchener-Wilmot Hydro ($423) or Toronto Hydro ($752) paid less. Capital expenditures made by your local utility company are also included.

On the latter point Hydro One increased annual capital expenditures from 2005 by $406 million (+142% ) to $574.00 per customer. The other 79 LDCs increased capital spending by $583 million (+91%) to $310 per customer. A major portion of those expenditures reflect the installation of “smart meters” ($2 billion + or -) but why Hydro One’s expenditures are so much more is not explained. Hydro One’s spending does not include capital spending for transmission builds associated with renewable connections such as the Bruce to Milton line at a cost of $700 million.

Why it costs a Hydro One ratepayer 124% more and a Toronto Hydro ratepayer 77% more for delivery then a Kitchener-Wilmot ratepayer calls for an explanation and an examination however, this issue doesn’t receive attention from our political leaders in either provincial or municipal politics. It also doesn’t appear to be a part of the OEB regulatory process except peripherally in setting the allowed Return on Equity formulae.

The yearbooks’ posted on OEB start with the year ended December 31, 2005 and finish with the 2010 year end. If you view the collective net revenue (excluding the cost of purchased power—up by only $9 million as consumption has fallen) which effectively is the “delivery” line on your hydro bill; you note that it increased by $572 million or 23% . Net profit after PIL (payments in lieu of taxes) was up $145 million or 44.3%. The difference ($427 million) between net revenue and the increase in net profits went principally to pay the increasing OMA (operations, maintenance & administration) costs which increased by 35.6% (6% annually) or $355 million ($206 million from Hydro One) over those 6 years.

Collective profits after PIL, of the 80 local distribution companies for the 6 years was $2,303 million however the equity of those 80 LDCs only increased by $1,116 million. The difference of $1,187 million ended up as dividends (51% of net profit) and was paid to the municipality that owned the LDC. Local politicians used those dividends to reduce municipal tax increases (except for Hydro One who paid dividends to the Province), thereby allowing them to defer making tough choices on other services that the municipality might have to reduce. Reflecting further on this, the local municipal government would have less call to demand financial support from the Province helping to keep provincial debt levels lower. As noted above the bulk of gross profits of the LDCs went to pay for OMA as the unions were successful at gaining above market salary and benefit increases.

The result of the foregoing is that the LDC’s infrastructure has suffered from a lack of funds to upgrade or replace it, pushing those costs forward. Those costs will bite the ratepayers severely in the next few years. As an example Toronto Hydro has two rate applications before the OEB presently. The first filed in 2010 seeks an increase in their “service charge” for a residential client of 14.8% and a 16.4% increase in their distribution charge. The 2011 rate application filed in August 2011 seeks double digit increases for distribution for 2012, 2013 and 2014 of 9.7%, 12.4% and 12.6% along with “rate rider” increases of 18.7%, 12% and 12% for those same years.

So municipal and provincial taxpayers have benefited from ratepayers paying above market rates that have not been utilized to refurbish the utilities infrastructure and that same ratepayer will continue to suffer, large rate increases over the Energy Minister’s forecast of 46% in our electricity bills as LDCs now upgrade both their deteriorated capital equipment and continue to spend money on those mandated Green Energy Act directives.

While some in the energy sector have suggested that the taxpayer is picking up some ratepayer costs (via the “Ontario Clean Energy Benefit”) it might in fact be quite the opposite. Ratepayers have helped keep both the local municipal taxes and the Provincial debt lower!

Perhaps the Liberals have simply found a new way of taxing us and we didn’t even know it!

Comments
  1. ted says:

    have you ever thought why this electric distribution company is called HYDRO one, when in fact IT DISTRIBUTES 50%+ NUCLEAR AND 30%+ COAL GENERATED ELECTRICITY !
    THAT’S BECAUSE MC GUINTY HAS IT STUCK UP HIS ASS BY HIS PALS APPOINTED TO HEAD THIS FALSELY NAMED COMPANY AND LIE TO THE PUBLIC WHILE GORGING THEMSELVES ON THE ILL GOTTEN EXCESSIVE WAGES THEY PAY THEMSELVES WHILE REFUSING TO PAY THE FOR THE HOSPITALS, DOCTORS, NURSES AND OTHERS THAT REALLY NEED THE MONEY. YOU CAN WAIT 3 TO 4 MONTHS FOR A CANCER OPERATION AS I HAD TO AT THE OTTAWA HOSPITAL BECAUSE THERE ARE NOT ENOUGH DOCTORS OR OPERATING ROOMS
    WHILE THEY CONTINUE TO LIE ABOUT THE ELDERLY AND CHILDREN THEY KILL WITH THE EMF FROM THE POWER LINES. IT IS ESTIMATED THAT ONE OF EVERY CHILD THAT DIES FROM LEUKAEMIA OR IN THE WOMB IS KILLED BY EMF FROM POWER LINES OR TRANSFORMERS. WHEN YOU QUESTION THIS, THEY SEND YOU FALSE INFORMATION- THE USA’S “NIEHS” REPORT -WHICH WAS SHOWN TO BE A LIE – FALSIFIED BY THE BUSH ADMINISTRATION EVEN BEFORE IT WAS PUBLISHED-. AND AN EMF METER, AND SAY TO MEASURE THE ELECTRIC APPLIANCES FOR EMF RADIATION. WHEN YOU HAVE 3MG IN YOUR KITCHEN WITH THE MAIN BREAKER OPENED THAT’S FROM THE 240KW (THE STICKER ON THE LINE TOWER SAYS 220KW– SHOWS THEY ARE OVERLOADING THESE LINES. “1 MG CONTINUOUS KILLS BRAIN CELLS CAUSING NUMEROUS DESEASE INCLUDING LEUKAEMIA, CANCER ALS ETC (SEE LAST PARAGRAPH).
    AND IF YOU EVER ACTUALLY CALCULATED YOUR hydro one invoice, YOU WOULD FINE OUT THAT IT JUST DOES NOT ADD UP TO THE AMOUNT THEY BILL. THEY HAVE BEEN STEALING FROM ALL THEIR USERS EVER SINCE. THE DELIVERY CHARGES SHOULD BE SHOWN AS THREE AMOUNTS, NOT ONE. YOU WILL SEE THE DIFFERENCE. YOU MAY SAY THAT’S NOT SIGNIFICANT BUT ADD ALL THE USERS AND IT’S A MILLION OR SO EACH YEAR FOR ALL THE YEARS THEY HAVE DONE THIS.
    AND THE SMART METERS ARE MISSING 2 DIGITS SO YOU CANT ACTUALLY READ HOW MUCH YOU HAVE USED EACH DAY OR HOUR. (EACH DIGIT- 1 – IS 20 KILOWATTS. THAT IS -2 TO 3 DAYS USE FOR US !) AND THEIR WEB SITE DOES NOT EVEN SHOW THE DAILY USED FOR EACH OF THE THREE RATES, SO IT’S TOTALLY USELESS TO GO THERE.

    ALSO THEY JUST INCREASED THE ELECTRIC RATE BY 20%. 5.1 TO 6.2 CENTS THAT’S OVER THE PREVIOUS RATE INCREASED LAST FALL ALONG WITH THE BASE BASE PRICE INCREASE. LAST FALL WE PAID 24 CENTS PER KILOWATT, NOW WE WILL BE PAYING ABOUT 30 CENTS/KW.
    THAT’S INSANE. IT IS MORE THAN DOUBLE WHAT YOU WOULD PAY ANYWHERE ELSE.
    WHO VOTED FOR THIS IDIOT MC GUINTY ??? WHO OBVIOUSLY GIVES SOLAR PERMITS TO KNOWN LIBERAL VOTERS AT RIDICULOUS RATES. AND BILLS US FOR THIS.

    READ ABOUT HOW EMF WILL KILL YOU THE RUSSIANS AND NORWEGENS HAVE KNOW THIS FOR MORE THAN 25 YEARS AND THESE WEB SITES WILL TELL IT –
    ONE MISPLACED – TO BE SENT LATER !
    http://www.midtod.com/9603/voltage.phtml
    http://www.powerlinefacts.com/emf.htm

  2. Tom Adams says:

    Many of the key assertions in this essay are wrong. Let’s examine just one paragraph for examples.

    “Why it costs a Hydro One ratepayer 124% more and a Toronto Hydro ratepayer 77% more for delivery then a Kitchener-Wilmot ratepayer calls for an explanation and an examination however, this issue doesn’t receive attention from our political leaders in either provincial or municipal politics. It also doesn’t appear to be a part of the OEB regulatory process except peripherally in setting the allowed Return on Equity formulae.”

    There are three main factual problems with this paragraph and one implied policy recommendation that deserves further consideration.

    A full detailed and historical explanation of the differences in rates between Ontario distributors can be seen in the history of applications and decisions going back to about 2001.
    Energy Probe, as an interventor, claims to assist the OEB in these many of reviews. Energy Probe gets paid significant amounts by orders of the OEB, recovered against rate payers, to participate. If there are gaps in the reviews, the intevenors are at least partly responsible.

    The different rates charged by different utilities is central to the OEB’s work on distribution. By contrast, transmission utilities in Ontario charge a pooled rate.

    The argument presented in the original paragraph is that our political leaders should be more active in determining our power rates. Historically, Energy Probe pursued less political influence on energy decisions.

    The essay closes with a charge against the Ontario Liberal government for the recovery of dividends by some municipalities from municipally-owned electricity distributors. The fundament decisions that created the impugned ownership and financial structure were taken by the Harris government and the Ontario Energy Board in the period 1998-2001, long before the Liberals were elected in 2003.

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