Hydro One

Thursday May 17, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 18, 2018

Sound bytes and witch hunts won’t quell hydro anger

According to Environment Canada, the odds of getting hit by lightning are lower than one in a million. 

April 17, 2015

Unless you’re the Kathleen Wynne Liberals. In that case, you get zapped pretty much any time the subject of hydro comes up in Ontario. It doesn’t matter whether the specifics are big or small, the subject is a lightning rod for Ontarians’ anger and discontent, both with hydro rates and with the Liberals.

It happened again this week, with predictable results. But let’s try to drill down a bit to get past the rhetoric and sound bytes.

CBC was first to report that, back in January, Hydro One board members voted to boost their own compensation. After that boost, those part-time jobs pay $185,000. And at the time of the board decision, Hydro One’s share price was falling. 

April 14, 2018

Predictably, outraged followed from all the usual players. Doug Ford waxed apoplectic, promising to fire the bums and the CEO as well. Andrea Horwath reminded Ontarians, again, that we wouldn’t be in this position if the power utility was still under completely public control. And Kathleen Wynne, still smoking from the lighting strike, also condemned the raise while saying her government has already planned a review of utility governance including compensation.

All this sound and fury? It masks a difficult truth. Not one of the three parties has a believable, viable plan to really do what Ontarians want — to reduce electricity rates substantially and over the long term. 

Consider: Horwath’s NDP promise to cut hydro rates 30 per cent. They will “end the oversupply of power” and “aggressively” renegotiate contracts. You don’t need to be an expert to recognize this is pretty loose talk. Cutting rates that much would probably mean selling power for less than it costs to make. How will that help?

The numbers problem

The NDP also promises to buy back the part of Hydro One the Liberals sold to the private sector. That sounds like bringing back the good old days, but open your wallet first. Those shares have been appreciating in value. They will cost a lot of money. The government would need to use dividends it gets from the privatization to buy back the privatized share. Not only would be expensive, but it would take years, according to credible industry experts. 

Doug Ford’s hydro solution is even less realistic. So he fires Hydro One executives and the board. (It’s not even clear he could do this since it is not a public company at this point.) What then? He’ll need a new board and a new CEO. That means his cronies and will replace the Liberal ones there now. Will they work for nothing? Hydro One CEO Mayo Schmidt’s salary sounds ridiculously high at over $6 million, but his wage and that of all the board is a drop in the financial bucket overall. 

June 4, 2015

Beyond firing the CEO and board, and paying hefty severance penalties to do so, Ford has no plan for hydro. He is simply beating a convenient scapegoat, but he doesn’t have a better idea. And keep in mind it was Ford’s party that began the privatization of power under Mike Harris. 

The Wynne Liberals? Sadly or not, it doesn’t matter because no one is listening to them. 

Simplistic solutions won’t get the job done, and making Hydro One public again is a massive and expensive undertaking. No one in this election is being straight with voters, that much is clear. (Source: Hamilton Spectator Editorial) 

 

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Saturday April 14, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday April 14, 2018

Doug Ford vows to fire CEO and board of Hydro One if elected premier

January 15, 2016

Doug Ford says that if he is elected premier this spring, he will fire the CEO of Hydro One and the company’s board of directors.

The Progressive Conservative leader says he would dump CEO Mayo Schmidt because the head of the partially privatized utility presided over a dramatic increase in rates and earned a $6.2 million salary last year.

Tory energy critic Todd Smith says in order to fire Schmidt the government would have to first fire and replace the Hydro One board, which would then have to fire the CEO.

Smith says it’s also not clear how much it would cost to fire the CEO since his contract is not public.

Smith says the party will have further details on how it plans to address hydro costs at a later date. (Source: Hamilton Spectator) 

Published in the Niagara Falls Review

 

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Saturday, November 7, 2015

By Graeme MacKay, The Hamilton Spectator - Saturday, November 7, 2015 Five things to know about Hydro One: big revenues, big profits and big salaries Hydro One makes its debut on the TSX today, and the $1.66 billion it raised from its underwriters makes it one of the largest initial public offerings in the last 15 years. Here are five things to know about the power utility: It's huge: Hydro One owns more than 150,000 kilometres of low-voltage and high-voltage transmission and distribution lines, with 290 transmission stations and 1,026 distribution and regulating stations. The system includes more than 1.4 million smart meters attached to homes and buildings across the province. The company has about 1.4 million customers and $22.6 billion in assets, making it one of the largest transmission systems in North America. Big revenues, big profits: Hydro One made a profit of $749 million on revenues of $6.55 billion in 2014. Capital spending amounted to $1.53 billion last year. Revenue has increased by 13 per cent since 2012, and the company's net assets have increased by 15 per cent in the same period to $7.95 billion. The sun shines on its staff: More than 4,300 employees at Hydro One and its subsidiaries made Ontario's Sunshine List of those who make more than $100,000 per year on the public dime. That's out of more than 5,700 total full-time employees. CEO Carmine Marcello was one of the top-ten best paid public employees with a salary of $745,208.25 in 2015, more than three times that of Premier Kathleen Wynne at $209,385.30. After the IPO, Hydro One salaries will no longer be disclosed on the Sunshine List. Acquisitions: Hydro One already transmits and distributes around 97 per cent of Ontario's power, based on revenue, and the company has been growing its footprint by buying smaller distributors. In 2014, Hydro One completed its buyout of Norfolk Power and agreed to buy two other local power companies, Woodstock Hydro and Haldimand Hydro. Communications: H

By Graeme MacKay, The Hamilton Spectator – Saturday, November 7, 2015

Five things to know about Hydro One: big revenues, big profits and big salaries

Hydro One makes its debut on the TSX today, and the $1.66 billion it raised from its underwriters makes it one of the largest initial public offerings in the last 15 years.

Here are five things to know about the power utility:

It’s huge: Hydro One owns more than 150,000 kilometres of low-voltage and high-voltage transmission and distribution lines, with 290 transmission stations and 1,026 distribution and regulating stations. The system includes more than 1.4 million smart meters attached to homes and buildings across the province. The company has about 1.4 million customers and $22.6 billion in assets, making it one of the largest transmission systems in North America.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Saturday October 31, 2015 ÔItÕs going,Õ Kathleen Wynne says of the looming sale of Hydro One despite watchdog warning ItÕs Òfull steam aheadÓ with the Liberal governmentÕs sell-off of Hydro One despite a damaging report from the budget watchdog warning the sale will hurt the provinceÕs bottom line. Premier Kathleen Wynne said she is sticking to her plan to unload 60 per cent of the utility in order to bankroll transportation infrastructure. ÒItÕs going,Ó Wynne said firmly on Thursday in Niagara-on-the-Lake. As first disclosed by the Star, Stephen LeClair, the new financial accountability officer, warned the province will be in even ÒworseÓ shape after the sale of the Crown utility. In a report to the legislature, LeClair said there is much ÒuncertaintyÓ surrounding the sale of the electricity transmitter. His findings landed the same day the government announced the first tranche of 89 million shares of Hydro One Ñ 15 per cent of the company Ñ will begin being sold next Thursday on the Toronto Stock Exchange for $20.50 apiece, generating $1.83 billion. ÒWe are pleased to announce that 40 per cent of shares are being reserved for retail investors, so individual Ontarians can participate in the IPO,Ó said Energy Minister Bob Chiarelli. Both the Progressive Conservatives and New Democrats are imploring the Liberals not to sell such a valuable public asset. ÒThis government has known all along that the most they could get was limited new money on the fire sale of Hydro One . . . while you lose an asset that brings in $700 million each and every year,Ó said Progressive Conservative Leader Patrick Brown. NDP Leader Andrea Horwath echoed BrownÕs assessment. ÒThis is a terrible deal and it makes no sense whatsoever. Will the premier and her government stop this insane sell-off of Hydro One?Ó she said. LeClair warned the LiberalsÕ move would increase the provincial debt by reducing revenue. ÒIn th

Big revenues, big profits: Hydro One made a profit of $749 million on revenues of $6.55 billion in 2014. Capital spending amounted to $1.53 billion last year. Revenue has increased by 13 per cent since 2012, and the company’s net assets have increased by 15 per cent in the same period to $7.95 billion.

The sun shines on its staff: More than 4,300 employees at Hydro One and its subsidiaries made Ontario’s Sunshine List of those who make more than $100,000 per year on the public dime. That’s out of more than 5,700 total full-time employees. CEO Carmine Marcello was one of the top-ten best paid public employees with a salary of $745,208.25 in 2015, more than three times that of Premier Kathleen Wynne at $209,385.30. After the IPO, Hydro One salaries will no longer be disclosed on the Sunshine List.

Acquisitions: Hydro One already transmits and distributes around 97 per cent of Ontario’s power, based on revenue, and the company has been growing its footprint by buying smaller distributors. In 2014, Hydro One completed its buyout of Norfolk Power and agreed to buy two other local power companies, Woodstock Hydro and Haldimand Hydro.

Communications: Hydro One’s telecom subsidiary owns a 6,000-km fibre-optic network and sells capacity to telecom carriers and commercial customers. The network includes hospitals and other health care locations across Ontario. (Source: Hamilton Spectator)

 

Saturday October 31, 2015

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Saturday October 31, 2015 ÔItÕs going,Õ Kathleen Wynne says of the looming sale of Hydro One despite watchdog warning ItÕs Òfull steam aheadÓ with the Liberal governmentÕs sell-off of Hydro One despite a damaging report from the budget watchdog warning the sale will hurt the provinceÕs bottom line. Premier Kathleen Wynne said she is sticking to her plan to unload 60 per cent of the utility in order to bankroll transportation infrastructure. ÒItÕs going,Ó Wynne said firmly on Thursday in Niagara-on-the-Lake. As first disclosed by the Star, Stephen LeClair, the new financial accountability officer, warned the province will be in even ÒworseÓ shape after the sale of the Crown utility. In a report to the legislature, LeClair said there is much ÒuncertaintyÓ surrounding the sale of the electricity transmitter. His findings landed the same day the government announced the first tranche of 89 million shares of Hydro One Ñ 15 per cent of the company Ñ will begin being sold next Thursday on the Toronto Stock Exchange for $20.50 apiece, generating $1.83 billion. ÒWe are pleased to announce that 40 per cent of shares are being reserved for retail investors, so individual Ontarians can participate in the IPO,Ó said Energy Minister Bob Chiarelli. Both the Progressive Conservatives and New Democrats are imploring the Liberals not to sell such a valuable public asset. ÒThis government has known all along that the most they could get was limited new money on the fire sale of Hydro One . . . while you lose an asset that brings in $700 million each and every year,Ó said Progressive Conservative Leader Patrick Brown. NDP Leader Andrea Horwath echoed BrownÕs assessment. ÒThis is a terrible deal and it makes no sense whatsoever. Will the premier and her government stop this insane sell-off of Hydro One?Ó she said. LeClair warned the LiberalsÕ move would increase the provincial debt by reducing revenue. ÒIn th

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Saturday October 31, 2015

‘It’s going,’ Kathleen Wynne says of the looming sale of Hydro One despite watchdog warning

It’s “full steam ahead” with the Liberal government’s sell-off of Hydro One despite a damaging report from the budget watchdog warning the sale will hurt the province’s bottom line.

Editorial cartoon by Graeme MacKay, The Hamilton Spectator - Thursday June 4, 2015 Liberals pass Ontario budget, clearing way for privatization of Hydro One Ontario's Liberal government used its majority Wednesday to pass the omnibus budget bill, which clears the way for the sale of Hydro One, the huge transmission utility. The government hopes to raise $9 billion by selling 60 per cent of Hydro One, starting with 15 per cent this year, and will use $5 billion to pay down hydro debt and $4 billion on public transit and infrastructure projects. "This was a difficult decision, but it is the right decision because if we do not do this, we cannot make the investments in transit and transportation infrastructure," Premier Kathleen Wynne told the legislature. The Progressive Conservatives and NDP warned electricity prices will rise, the government will lose control of Hydro One and legislative watchdogs like the ombudsman and auditor general will lose oversight of the utility. "You may think you're helping yourself politically by removing this oversight, in reality, without these checks, you will become more arrogant, more reckless, which will lead to even greater scandals," warned PC energy critic John Yakabuski. "Will you not save yourself from your party's own hubris and allow the auditor general and the ombudsman to continue to investigate Hydro One?" Wynne said the Liberals took steps to protect the public by ensuring that no one individual will own more than 10 per cent of Hydro One, that the Ontario Energy Board will continue to set prices, and that the government would retain control of the utility by owning at least 40 per cent. (Source: Chronicle Journal) http://www.chroniclejournal.com/news/national/liberals-pass-ontario-budget-clearing-way-for-privatization-of-hydro/article_9043d631-9625-5e67-84d6-744dd0cc0ee6.html Ontario, Kathleen Wynne, Hamilton, LRT, transit, Hydro, Hydo One, privatization, sell, robin hood

Premier Kathleen Wynne said she is sticking to her plan to unload 60 per cent of the utility in order to bankroll transportation infrastructure.

“It’s going,” Wynne said firmly on Thursday in Niagara-on-the-Lake.

As first disclosed by the Star, Stephen LeClair, the new financial accountability officer, warned the province will be in even “worse” shape after the sale of the Crown utility.

In a report to the legislature, LeClair said there is much “uncertainty” surrounding the sale of the electricity transmitter.

Friday April 17, 2015His findings landed the same day the government announced the first tranche of 89 million shares of Hydro One — 15 per cent of the company — will begin being sold next Thursday on the Toronto Stock Exchange for $20.50 apiece, generating $1.83 billion.

“We are pleased to announce that 40 per cent of shares are being reserved for retail investors, so individual Ontarians can participate in the IPO,” said Energy Minister Bob Chiarelli.

Both the Progressive Conservatives and New Democrats are imploring the Liberals not to sell such a valuable public asset.

Wednesday, December 4, 2013“This government has known all along that the most they could get was limited new money on the fire sale of Hydro One . . . while you lose an asset that brings in $700 million each and every year,” said Progressive Conservative Leader Patrick Brown.

NDP Leader Andrea Horwath echoed Brown’s assessment.

“This is a terrible deal and it makes no sense whatsoever. Will the premier and her government stop this insane sell-off of Hydro One?” she said.

LeClair warned the Liberals’ move would increase the provincial debt by reducing revenue.

“In the years following the sale of 60 per cent of Hydro One, the province’s budget balance would be worse than it would have been without the sale,” he wrote in his first-ever report to the legislature. (Source: Toronto Star)

 

Thursday June 4, 2015

Editorial cartoon by Graeme MacKay, The Hamilton Spectator - Thursday June 4, 2015 Liberals pass Ontario budget, clearing way for privatization of Hydro One Ontario's Liberal government used its majority Wednesday to pass the omnibus budget bill, which clears the way for the sale of Hydro One, the huge transmission utility. The government hopes to raise $9 billion by selling 60 per cent of Hydro One, starting with 15 per cent this year, and will use $5 billion to pay down hydro debt and $4 billion on public transit and infrastructure projects. "This was a difficult decision, but it is the right decision because if we do not do this, we cannot make the investments in transit and transportation infrastructure," Premier Kathleen Wynne told the legislature. The Progressive Conservatives and NDP warned electricity prices will rise, the government will lose control of Hydro One and legislative watchdogs like the ombudsman and auditor general will lose oversight of the utility. "You may think you're helping yourself politically by removing this oversight, in reality, without these checks, you will become more arrogant, more reckless, which will lead to even greater scandals," warned PC energy critic John Yakabuski. "Will you not save yourself from your party's own hubris and allow the auditor general and the ombudsman to continue to investigate Hydro One?" Wynne said the Liberals took steps to protect the public by ensuring that no one individual will own more than 10 per cent of Hydro One, that the Ontario Energy Board will continue to set prices, and that the government would retain control of the utility by owning at least 40 per cent. (Source: Chronicle Journal) http://www.chroniclejournal.com/news/national/liberals-pass-ontario-budget-clearing-way-for-privatization-of-hydro/article_9043d631-9625-5e67-84d6-744dd0cc0ee6.html Ontario, Kathleen Wynne, Hamilton, LRT, transit, Hydro, Hydo One, privatization, sell, robin hood

Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Thursday June 4, 2015

Liberals pass Ontario budget, clearing way for privatization of Hydro One

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Saturday October 31, 2015 ÔItÕs going,Õ Kathleen Wynne says of the looming sale of Hydro One despite watchdog warning ItÕs Òfull steam aheadÓ with the Liberal governmentÕs sell-off of Hydro One despite a damaging report from the budget watchdog warning the sale will hurt the provinceÕs bottom line. Premier Kathleen Wynne said she is sticking to her plan to unload 60 per cent of the utility in order to bankroll transportation infrastructure. ÒItÕs going,Ó Wynne said firmly on Thursday in Niagara-on-the-Lake. As first disclosed by the Star, Stephen LeClair, the new financial accountability officer, warned the province will be in even ÒworseÓ shape after the sale of the Crown utility. In a report to the legislature, LeClair said there is much ÒuncertaintyÓ surrounding the sale of the electricity transmitter. His findings landed the same day the government announced the first tranche of 89 million shares of Hydro One Ñ 15 per cent of the company Ñ will begin being sold next Thursday on the Toronto Stock Exchange for $20.50 apiece, generating $1.83 billion. ÒWe are pleased to announce that 40 per cent of shares are being reserved for retail investors, so individual Ontarians can participate in the IPO,Ó said Energy Minister Bob Chiarelli. Both the Progressive Conservatives and New Democrats are imploring the Liberals not to sell such a valuable public asset. ÒThis government has known all along that the most they could get was limited new money on the fire sale of Hydro One . . . while you lose an asset that brings in $700 million each and every year,Ó said Progressive Conservative Leader Patrick Brown. NDP Leader Andrea Horwath echoed BrownÕs assessment. ÒThis is a terrible deal and it makes no sense whatsoever. Will the premier and her government stop this insane sell-off of Hydro One?Ó she said. LeClair warned the LiberalsÕ move would increase the provincial debt by reducing revenue. ÒIn th

Ontario’s Liberal government used its majority Wednesday to pass the omnibus budget bill, which clears the way for the sale of Hydro One, the huge transmission utility.

The government hopes to raise $9 billion by selling 60 per cent of Hydro One, starting with 15 per cent this year, and will use $5 billion to pay down hydro debt and $4 billion on public transit and infrastructure projects.

The LRT waiting game gallery

The LRT waiting game gallery

“This was a difficult decision, but it is the right decision because if we do not do this, we cannot make the investments in transit and transportation infrastructure,” Premier Kathleen Wynne told the legislature.

The Progressive Conservatives and NDP warned electricity prices will rise, the government will lose control of Hydro One and legislative watchdogs like the ombudsman and auditor general will lose oversight of the utility.

“You may think you’re helping yourself politically by removing this oversight, in reality, without these checks, you will become more arrogant, more reckless, which will lead to even greater scandals,” warned PC energy critic John Yakabuski. “Will you not save yourself from your party’s own hubris and allow the auditor general and the ombudsman to continue to investigate Hydro One?”

Wynne said the Liberals took steps to protect the public by ensuring that no one individual will own more than 10 per cent of Hydro One, that the Ontario Energy Board will continue to set prices, and that the government would retain control of the utility by owning at least 40 per cent. (Source: Chronicle Journal)