About the Post

Author Information

Ontario’s Power Trip: McGuinty’s legacy

Tip of the hat to Greg Schmalz

Parker Gallant — Financial Post — January 17, 2013

Billions spent but no new deliverable power

Over the next few weeks Ontario will get a new Liberal premier to replace Dalton McGuinty, who abruptly announced his resignation last October. One of the biggest challenges facing the new Liberal premier, to be selected at a party convention next weekend, will be to set out a plan to extricate the province and the Liberals from the McGuinty government’s most costly and disruptive policy failure.

None of the contenders, as far as I can tell, have even mentioned the topic: electricity. Over the last decade of McGuinty rule, through seven energy ministers, the government of Canada’s industrial heartland virtually eliminated market forces from the electricity market and created a top-down regime that will cost the Ontario economy — consumers and industry — billions of dollars.

The costs to the economy have yet to be fully acknowledged, although it is worth noting that just this week Honda Canada’s executive vice-president, Jerry Chenkin, told The Windsor Starthat the Japanese automaker sees rising transport, labour and rising electricity costs as competitive factors for auto plants in Ontario.

It began in 2004 with the creation of the Ontario Power Authority (OPA). Four years later, under a new energy minister, the Liberals brought in the Green Energy and Economy Act (GEEA). Using authority under the GEEA, North America’s first feed-in-tariff subsidy regime was launched and the OPA was assigned the task of signing juicy above-market-price contracts for wind and solar development. Over the period, various so-called long-term energy plans were created using expert advisors. But they were abandoned. Eventually, the government moved everything into the offices of the premier and whomever happened to be energy minister.

 (To continue reading, click here)

Tags: , , , ,

One Comment on “Ontario’s Power Trip: McGuinty’s legacy”

  1. windfarmresearch January 22, 2013 at 3:20 pm #

    Reblogged this on windpowergrab.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: