privatization – mackaycartoons

Saturday, November 7, 2015

November 5, 2015 by Graeme MacKay

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: 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

October 30, 2015 by Graeme MacKay

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.

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.

His 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.

“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

June 3, 2015 by Graeme MacKay

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.

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?”

One of the cartoons @Kathleen_Wynne ackowledges mocks her, but also makes a point on transit. #onpoli pic.twitter.com/UbYRlOx8iK

— Rob Ferguson (@robferguson1) March 30, 2016

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)

Saturday, May 23, 2015

May 22, 2015 by Graeme MacKay

Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Saturday, May 23, 2015

Wynne responds to Hydro One criticism: There will be oversight, she says

Ontario’s premier has defended the partial sale of Hydro One, insisting there will be oversight of the electricity utility after the government sells off up to 60 per cent of the operation.

Kathleen Wynne was responding to criticism from several provincial oversight agencies that the public would continue to own much of the utility, but not get to exercise much scrutiny over it.

Eight officers of the provincial legislature, in a public letter last week, bemoaned that the utility would become exempt from things like government audits, disclosure-of-lobbying rules and Access to Information law.

Wynne was asked about that letter in an interview during a trip to Washington, where she will speak at a public forum today after meeting with members of Congress and the Obama administration.

Wynne said companies have their own oversight models.

She suggested that will be the case when the province proceeds with the sale of 60 per cent of Hydro One, starting with an initial public offering of 15 per cent.

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“The fact is that private companies have their own oversight mechanisms,” Wynne told The Canadian Press.

“There are rules around oversight for publicly traded or private companies. And on top of that we’re going to put a Hydro ombudsman in place. We’re building in some oversight. So I actually think the oversight will be there.”

She said the government wants to create “a great Canadian company” that will provide quality service, with price controls still in place on electricity rates, but sell part of the utility to raise revenue for new infrastructure. (Source: Hamilton Spectator)

Friday April 17, 2015

April 16, 2015 by Graeme MacKay

Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 17, 2015

Liberals will sell 60% of Hydro One to fund transit infrastructure

Premier Kathleen Wynne’s Liberals will sell off 60 per cent of the province’s $16-billion Hydro One transmission utility to bankroll new transit infrastructure, the Star has learned.

Queen’s Park will retain a 40 per cent stake and minority shareholders will be limited to a 10 per cent ownership, sources say.

At the same time, Hydro One Brampton and Hydro One Networks’ distribution arm will be spun off into a separate company and sold outright for up to $3 billion.

The Hydro One changes — and a plan to allow the sale of beer in about 300 supermarkets — are key recommendations in a major report to be released Thursday by Wynne’s privatization guru Ed Clark, the former TD Bank CEO.

Insiders confide that Wynne will immediately accept Clark’s findings and move forward ahead of Finance Minister Charles Sousa’s April 23 budget.

All proceeds will go toward a 10-year, $29 billion infrastructure plan that includes $15 billion to build public transit in the Greater Toronto and Hamilton Area.

Wynne defended the Hydro One partial privatization, saying it’s a “very different process” than the full sell-off the Progressive Conservative administration had planned in 2002 because Ontario will keep the largest single ownership stake and maintain regulatory and price control. (Source: Toronto Star)