Let's travel all the way back to 1998. This is when a PC led government passed "The Electricity Competition Act"
This gem deregulated energy prices in Ontario. The passing of the bill ended 94 years of zero-profit energy for the province. This guaranteed you will pay more. 2/9
This gem deregulated energy prices in Ontario. The passing of the bill ended 94 years of zero-profit energy for the province. This guaranteed you will pay more. 2/9
Later that year, the Cons setup the Market Design Committee. The most powerful company represented in it was a company, little known outside of the energy sector - Enron.
Fun fact: Kinder-Morgan is the company formerly known as Enron Canada. 3/9
Fun fact: Kinder-Morgan is the company formerly known as Enron Canada. 3/9
In 1999, all of Ontario’s power became for-profit. PC Premier Harris said he was “100% convinced,” deregulation would mean greater competition.
Because you know... anyone could just start selling power! It’s not like it’s a small industry, prone to turning into a cartel. 4/9
Because you know... anyone could just start selling power! It’s not like it’s a small industry, prone to turning into a cartel. 4/9
It should be noted at the time, energy experts said this was not true.
They felt this way because the 70% increase in distribution costs granted by the PCs, would lead to a 20% jump in prices almost immediately. 🤷♂️ 5/9
They felt this way because the 70% increase in distribution costs granted by the PCs, would lead to a 20% jump in prices almost immediately. 🤷♂️ 5/9
Back to Enron. Remember them? The pillar of ethics that went down in flames 🔥 🔥 🔥 for corporate fraud and corruption?
Well, one of the last gems they left the world was Ontario’s IESO - basically a stock exchange for Ontario’s energy prices. That’s how rates are born. 6/9
Well, one of the last gems they left the world was Ontario’s IESO - basically a stock exchange for Ontario’s energy prices. That’s how rates are born. 6/9
In 2002, the PC government tried to sell Hydro One. They were blocked by a court, so they passed a new bill that would allow them to sell it.
Premier Harris left politics that year, went to work at a law firm, and became a fellow at the Fraser Institute. 7/9
Premier Harris left politics that year, went to work at a law firm, and became a fellow at the Fraser Institute. 7/9
In 2003, the Libs take over. Mostly nothing happens for a while, but the tax cuts the PCs made led to a tight budget.
When the Great Recession hit, Ontario borrowed $82.5B to keep things humming over 2006 to 2012. This is why we didn’t feel the Great Recession in Ontario. 8/9
When the Great Recession hit, Ontario borrowed $82.5B to keep things humming over 2006 to 2012. This is why we didn’t feel the Great Recession in Ontario. 8/9
Eventually, rather than raising taxes, Wynne made the hard decision of selling Hydro. This reduces taxes by about $3B per year.
Which didn’t matter, because energy prices were made on the open market. Prices in Ontario are still half of that in NY though.
~ Fin. 9/9
Which didn’t matter, because energy prices were made on the open market. Prices in Ontario are still half of that in NY though.
~ Fin. 9/9
