Politicians face off over hydro rates

Barrie Advance - November 7, 2002
by Bruce Hain

Mike Ramsay, Liberal aspirant for the provincial seat of Barrie-Simcoe-Bradford, has called on the Tory government to cap hydro rates, and call a public inquiry into escalating power costs.

"It's clear that the (Ernie) Eves government has lost control of the situation," Ramsay says. "There is fear in the public that they will not be able to afford the basics of heat and lighting this winter. Eves is the grinch who stole Christmas. Not since the energy crisis of the 1970s have people been so upset."

Ramsay wants electricity rates capped while public hearings take place.

"(Mike) Harris and Eves got us into this hydro mess," he says. "I fear unless something is done soon, it will be the public left cleaning it up."

Joe Tascona, incumbent Tory MPP for the riding, says that while his constituency office has received dozens of calls from residents concerned about the sharp rise in their utility bills, consumers should realize that Barrie Hydro is now a profit-making enterprise.

"Municipalities were allowed to decide if they wanted to get into the (hydro) business," Tascona said. "The City of Barrie went to the Ontario Energy Board, and got permission to raise rates by nine per cent."

Barrie Hydro also went on an acquisition tear, scooping up several smaller public utility companies before deregulation came into effect.

"One of my constituents pointed out to me that Barrie Hydro raised the basic hydro service charge from $12.08 to $17.03 - an increase of 41 per cent," Tascona said. "They've also added a volumetric charge, plus some new service charges."

The provincial government is looking closely at what went on in the hydro market this past summer, Tascona said.

"Was it (power) provided the way we intended it to be provided?" he wonders. He noted customers are in line to receive a 50-per-cent rebate on hydro charges above 3.8 cents per kilowatt hour. Charges have exceeded seven cents per kilowatt hour in recent months.

"Hydro rates were frozen from 1995 to 2000," Tascona added. "The Minister of Energy is looking at how to make rates stable."

The government has several issues to resolve, including sustainable rates, sustainable capacity, and to encourage investment in Ontario's power generation industry, Tascona said.

"There should also be a transparent system so people can see what they are paying for their hydro," he said. "And the GST should come off the Ontario Hydro debt retirement charge."

He notes that both Barrie Mayor Jim Perri, and alderman Mike Ramsay, sit on Barrie Hydro Distribution Inc.'s board of directors, and receive an annual honorarium of $7,000.

"The City of Barrie has a monopoly on distribution, and is the sole shareholder of Barrie Hydro. The City of Barrie," Tascona added, "is doing quite well on the hydro bills."

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