Feature Article March 28, 2002
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Leona Dombrowsky talks about Hydro restructuring in Ardenby David BrisonA full crowd turned out on a very snowy, wintry spring day at the Kennebec Community Hall in Arden to hear Leona Dombrowsky discuss the deregulation of Hydro, and outline the Liberal party position on this very controversial issue.
Evelyn
Izzard, who lives on Kennebec Lake, was instrumental in organizing the
meeting.
Evelyn
had good things to say about Leona, I called her office and she
personally returned the phone call.
I talked to her about my concerns about Hydro, and she
suggested that she come to Arden to talk about Hydro restructuring.
She is a very personal politician who touches base with
people.
Leona presented some of the background on Hydro restructuring and stated that the liberal party has not been opposed to the breaking up of Ontario Hydros 90-year monopoly on the generation of power. Ontario Hydro has, in the Liberal view, a sorry litany of bloat, debt, and bad decisions . The status quo is, according to the party, not an option.
The Conservative government has split Ontario Hydro into two companies: Ontario Power Generation (OPG), who will compete against other power generators to supply electricity; and Hydro One, who owns the power lines and electricity transmission system.
The OPG will sell off some of their generators and retain others. The intention is for OPG to remain a force in the power generation field, but to reduce its share of the market to 35% within ten years.
Rates for the generation of electricity will be subject to market forces when the electricity market opens on May 1, 2002.
In addition to the power generating companies (OPG and other private companies), and Hydro One, who owns the transmission system, there are independent retailing companies who are now selling electricity through contracts, which will go into effect on May 1. These independent retailers have salespersons on the road and have visited many homes in the Sharbot Lake area. Leona asked how many people had been visited by retail salespersons, and it seemed that about 15 20% had received visits.
These salespersons often use unscrupulous practices. Their most common deceitful technique is to ask customers to produce their electricity bill. They point to a figure that is now being paid for electricity per kilowatt hour, often higher than 7, and then say that they can guarantee electricity at 5.95 per kilowatt hour for a five-year period. The problem is that the comparable price is really 4.3 per kilowatt hour. That is what we are presently paying for generation of electricity alone. Transmission costs will be added to both the 4.3 and the 5.95 figures. Customers have the option of not signing any contract and receiving electricity at market rates when the market is restructured on May 1.
Using the unfair comparison is an unethical practice, and the Ontario Energy Board, set up to oversee the retailers, has said that it could be the basis for voiding an already signed contract. However, there are only eight persons working to receive complaints, and it seems unlikely that contracts can be cancelled without paying a penalty. Contracts can, however, be cancelled without any penalty if it is done within ten days.
Leona said that her party is totally opposed to the Conservative governments announced intention to sell Hydro One. This decision was, she says, not part of their platform and came as a complete surprise to most people. The transmission grid is one of the provinces most valuable assets, and they believe it should remain in public hands
The sale of Hydro One is not yet a done deal, although the government could sell it at any time. Leona urged the members present, most of whom seemed to share her views on the sale of the grid, to write The Honourable Jim Wilson, 900 Bay St., 4th floor, Hearst Block, Toronto, ON M7A 2E2, and express their concerns.
In a Toronto Star editorial on March 24, just after Ernie Eves was elected leader and premier, the Star said:
his first move as premier should be to call a freeze on the sale of Hydro One, the power transmission lines that are one of Ontarios most vital assets and belong under public control. He should also call off the piece-by-piece selloff of the generators controlled by Ontario power Generation, as well as the opening of the market on May1. If the restructuring of hydro can be defended, as the Tories maintain it can, it should be defended in the legislature. A policy that threatens Ontarios economic stability is far too important to be rammed through.
Ron Henry, present at the Arden meeting, had another suggestion for the Liberal party. He says the party should announce in advance that should Hydro One be sold, they will expropriate it if they come into power, and they should set the price in advance.
Leona liked the idea, and said she would discuss it at the liberal caucus when they next meet.
