Ontario’s “stranded debt”

From Parker Gallant (who is speaking tonight in Shelburne)

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 billionit 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. 

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.

Charter Challenge info meeting October 8

Join the Oppose Belwood Wind Farm group on Tuesday, October 8th for an important meeting about legal strategy.

 

Here from leader Janet Vallery:

Over the past several years many rural communities have been investigating their legal options in the fight against wind industrialization. Recently there has been a development that could be beneficial to all communities led by Barrister Julian Falconer.  The case is based on the merits of a Charter Challenge of the Canadian Charter of Rights and Freedoms.

 

Section 7 of the Canadian Charter of Rights and Freedoms states that: “Everyone has the right to life, liberty and security of the person and the right not to be deprived thereof except in accordance with the principles of fundamental justice.”  The Appeal states the right to security of a person and principles of fundamental justice have been violated.

 

Julian will be joining us in Belwood by teleconference to provide details on the case and the progress made to date.

 

This is an opportunity to get first hand information on the status of the case as well as to discuss how we can work together to raise the necessary funds to support it.  The Belwood group is organizing this meeting because they believe the claim is a viable legal option.  After the presentation, their community will vote to determine financial support.  Other communities at risk from wind turbines are welcome to participate as the legal action has the potential to benefit all of us in rural Ontario.

 

Place:       Pine Meadows Retirement Community (Grand Hall)

Address:  8473 Wellington County Road 19 (between Fergus and Belwood on the north side of Lake Belwood)

Time:       7:00pm

Date:        Tuesday October 8th

 

If you plan on attending please contact Janet Vallery at jvallery@everus.ca

From Germany: a “nightmare”

For those who think Europe is the haven for wind power generation done well, and where citizens are happy with the beautiful turbines spinning happily in the breeze, this will be a shock: people are sick, the landscape is ruined, and property values (and lives) devastated.

This short video comes from Russia Today via Facebook; thanks to Esther Wrightman and the Middlesex-Lambton group for calling attention to it.

https://www.facebook.com/photo.php?v=703983162949836