Want an immediate “head cramp”?……..read what “passes for a Vice Chair” at the Ontario Energy Board

Posted: February 20, 2014 in Uncategorized

The Ontario Government has so completely dismantled a once affordable and efficient energy sector so completely that one has to wonder “who’s responsible” for the governance of all the various organizations that now make up this monstrosity called “Energy Supply”.

Take the OEB, among all the others like the OPA, the OPG and countless Local Distribution Companies like Hydro One and see what resembles a new Vice Chair that was just just appointed.

Of course the OEB actually requires two Vice Chairs but has still only one, but then Wynne and McGuinty don’t have to follow their own rules so why would we expect the sub agencies to follow theirs………….after all……………..“rot at the top breeds a foul smell throughout the governance compost heap”

So here for all to read and try to fathom is an example of the “double speak” this new VC babbles on about trying to answer a simple question: What is the Global Adjustment on our Hydro Bill”

Ontario Electricity Regulation Crisis Report Part 107: New Vice Chair at OEB

On February 18, 2014, the Ontario Legislature Standing Committee on Government Agencies confirmed the appointment of Ken Quesnelle as a vice chair of the Ontario Energy Board. Mr. Quesnelle’s nomination was first reported in Part 96 of this series and further discussed in Part 106.

Although two vice chairs are required by the Ontario Energy Board, the Ontario government had left the second vice chair position vacant since July 2010.

Like the government’s prolonged period of non-compliance with the requirements of the OEB Act, the confirmation hearing helps to illuminate the feeble state of governance of Ontario’s energy system.

The NDP’s Monique Taylor started off her questioning with this gem, “I would love to know your thoughts on global adjustment, and if you could please let me know what global adjustment means.”

A simple Google search of the phrase “what is global adjustment” yields detailed explanations from the IESO and the OPA. The OEB has input into the global adjustment in the areas of conservation programs and OPG’s baseload generation. Both of those areas are worthy of examination, but Miss Taylor’s inquiry never penetrated beyond the level of fluffy confusion.

Asked several times to comment on rapidly escalating power rates, Mr. Quesnelle provided various replies, including this gem:

Again, in going back to my earlier explanation of the global adjustment, it’s as a result of the introduction of integrated power. Ontario certainly doesn’t stand out alone on that. My experience on a global basis is, that is something that’s being wrestled with on a global basis…People have attempted to come up with levelling plans on carbon pricing and what have you. So this is very much a global phenomenon.

Identifying the cause for rising rates as “the introduction of integrated power” is at best a euphemistic statement. Prior to the recent onset of compound annual rate increases running at many times the rate of inflation, Ontario did not have a disintegrated power system. If anyone cares to address the underlying causes for Ontario’s rapidly rising rates, they would need to address such factors as the politicization of power system investment decisions, the careless introduction of the so-called “smart grid”, Ontario’s Green Energy and Green Economy Act, wasteful conservation programs, bureaucratic bloat (including at the Ontario Energy Board), and the coal phase-out.



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