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Everyone has a hilariously short and selective memory when it comes to policy.
Gather round children, and I'll explain the tragedy that's Ontario's electricity prices.
The story features a great cast of characters like the PC Party, and Enron.
#cdnpoli #elxn43 #onpoli https://twitter.com/CPC_HQ/status/1173579819281539079
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
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
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
