Ontario’s Power Trip: Province’s power giants keep losing ground under green policies
Parker Gallant — Financial Post — June 7, 2012
Ontario Power Generation and Hydro One see declines in revenue, profits and performance since 2009
When Ontario Minister of Finance Dwight Duncan presented his recent budget he lamented the disappointing performance of the government’s two major electricity players:
“The combined net income of Ontario Power Generation Inc. (OPG) and Hydro One Inc. is estimated to be $107 million below the 2011 Budget forecast, largely due to the Ontario Energy Board’s (OEB) March 2011 decision for OPG’s rate application for 2011 and 2012, lower market prices for OPG’s unregulated hydro and lower volumes, and the impact of unfavourable capital markets on OPG’s nuclear funds.”
So, why did power generator OPG and power distributor Hydro One miss their forecast? Could it be that the Green Energy and Economy Act, in its third anniversary May 14, 2009, has affected OPG and Hydro One? Could be.
The two companies recently produced their first-quarter results for 2012, and they make grim reading compared with the same quarter back in 2009.
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