Chiarelli on stranded Hydro debt: “Explanation almost laughable if it wasn’t so sad”!

Posted: January 29, 2014 in Uncategorized

“Chiarelli said retiring that debt is taking a little longer than originally anticipated”………………….

No guff!

Did this guy just fall off the energy turnip truck  or does he really think Ontario consumers are that bloody stupid and forgetful  that we just keep paying an item on our Hydro Bill month after month, year after year without even questioning it?

The trouble with questioning the stranded debt portion of our Hydro Bill is all we get in the form of answers are lies, excuses and, yepper……MORE LIES!

The latest Minister of Energy is once again adding his little tidbit of BS to the mix and hoping that we will swallow his idiotic explanations willingly and like good little children, not cause any trouble for Nanny and her Government!

So just to bring everyone back up to speed on how we are being gouged out of existence, here once again is the “skinny” on our bloated bills and probably “CORRUPT” billing from the gang who brought us our “Green Energy Discount” which of course goes against the stranded debt!

Rob Peter to Pay Paul  takes on a whole new meaning with this Gang Green!

Ontario Liberals hope to prevent hydro bills from rising with end of OCEB

Ontario Liberals hope to prevent hydro bills from rising with end of OCEB

ONTARIO PREMIER KATHLEEN WYNNE AND ENERGY MINISTER BOB CHIARELLI  Credits: DAVE ABEL/QMI AGENCY

January 29th, 2014

TORONTO ─ The provincial government is trying to rejig hydro bills to ensure customers aren’t hit with a sharp increase when the Ontario Clean Energy Benefit is phased out, Energy Minister Bob Chiarelli says.

The government is scheduled to end the benefit, a 10% break on hydro bills, at the end of 2015.

The plan was to also eliminate the debt retirement charge on hydro bills at the same time, he said Wednesday.

“It was scheduled to come off at the time the Clean Energy Benefit was coming off, and they would balance each other out more or less,” he said.

When Ontario Hydro was broken up into Hydro One and Ontario Power Generation in 1999, its $20.9-billion stranded debt was handed over to the Ontario Electricity Financial Corp.

READ MORE HERE:

How many times do Ontario Hydro consumers have to pay the “stranded debt” off?

Posted: September 25, 2013 

The never-ending “debt retirement charge” on Hydro bills across Ontario looks like another way to scam dollars out of consumers pockets along with the Smart Meter charges, Global Adjustment charge, the delivery charge not to mention the off/on peak charges that mean nothing any more. If we JUST PAID for the amount of electricity we used it could be fairly an affordable bill to write a cheque for, but add on the other bogus charges and what we have is a monstrous SCAM to literally “nickel and dime” every electrical consumer out of $$$$ using vague and financially destructive methods that look more like a shakedown” than a legitimate charge! All one has to do to literally steal money out of consumers pockets these days is label it and then legislate it!

Ontario’s electricity Residual Stranded Debt—another 16 years til paid off?

Questions, questions.  The Ontario Electricity Financial Corporation (OEFC) finally had its March 31, 2012 annual report

released a few days ago. The financial statements audit letter from the Auditor General is dated June
21, 2012. Why it took 15 months for the Finance Minister to table the report is not known—by now
the March 31, 2013 annual report should also have appeared.
   In any event, the “stranded debt” which started life on April 1, 1999 at $19.4 billion has been further reduced and as of the end of March 31, 2012 stood at $12.3 billion. OEFC has generated gross revenue of $49.5 billion since its inception, April 1, 1999 to the end of March 31, 2012. Of that amount, $11.9 billion came from ratepayers under the guise of the “Debt Reduction Charge” (DRC). What this means is, the $6.1 billion reduction in stranded debt gobbled up that $49.5 billion in gross revenue and, further, each $1 billion reduction in the stranded debt required $8.1 billion in revenue.
   The original debt on OEFC books April 1, 1999, was $31.2 billion−it had reduced by $2.4 billion as of March 31, 2012 when it stood at $28.8 billion. That meager debt reduction required $20.6 billion of revenue per $1 billion of debt reduction.
   If we look at the “Residual Stranded Debt,” originally calculated as $7.8 billion, we can see from the following chart that it has reduced by $3.3 billion.
Unfunded Liability
In other words, in 13 years, the Residual Stranded Debt has required $14.6 billion of revenue per $1 billion of reduction.

Ontario’s ratepayers were told the DRC would be around for only a few years. This report would seem to indicate, however, 13 years later, that it will take many more years before it finally disappears. To retire the remaining “Residual Stranded Debt” could require $65 billion in gross revenue to OEFC before it is finally paid off. At the current average of approximately $4 billion in annual revenue, it will take 16 years and another $16 million of DRC charges to ratepayers before that happens.

   Perhaps the government should change the corporate name of OEFC. My suggestion is to
change the name to “Ontario Evading Financial Control.” That way, they get to keep the
acronym and retain any inherent future marketing value in its use.
Parker Gallant
September 24, 2013
The opinions expressed here are those of the author and not Wind Concerns Ontario.
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