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We are seeing the widespread effects of increased hydro costs all through the news. I find it truly frustrating that none of our elected representatives are discussing this or fighting on our behalf. We also do not see the news media making the connection.
As of Nov. 1, 2019, the Ontario Energy Board set new time-of-use power rates at about a 30 per cent rate increase across the board. This means that the peak usage price went from about 13.4 cents per kilowatt hour to 20.8 cent/KWh.
This daytime peak power cost increase greatly impacts all aspects of our daily activities. This 30 per cent across-the-board cost hits us when our activity level is the highest.
It will increase the cost of food, the cost of our water and sewer bill, MUSH-sector costs (municipalities, university, schools and hospitals, which includes police buildings, jails, courtrooms, fire halls, all city buildings, nursing homes, libraries, skating rinks, swimming pools, etc.)
Costs will also increase for small businesses like stores and the ski hills (making snow) and those costs will need to be covered by us, the consumer. This will continue to force more jobs out of Ontario like car factories and other living-wage jobs. You cannot forget about the 30 per cent increased power cost on your household hydro bill.
The most amazing thing is the mayor and council have never warned the people of Orillia of the tax increase from the 30 per cent power hike.
The closing of the GM plant had a considerable amount to do with increased costs due to higher power rates. We also have the Ontario government encountering budget issues in different sectors that is in part due to increased hydro costs.
They are, right now, attempting to make cuts to education where personnel and quality services are being sacrificed to cover increased energy rates. The Simcoe County District School Board alone has seen an increase in power costs from $4.7 million to $5.8 million in the past few years. (This is despite the fact that they have decreased their power consumption and the government rate reduction of 2016 that is currently gathering interest.) The 30 per cent increase will only exacerbate these and other issues.
There is good reason the city has said not a word, because they hope you will not notice as they benefit from increased power prices through dividends from Orillia Power.
These added costs are many more times what it actually costs for electricity, and they are collected by Orillia Power Corporation. Historically, public hydro generation ran at cost, about 1¢/KWHr. Orillia’s Heritage Hydro Contract now pays 21¢/KWHr. at peak; some of the profits go to city hall (through an annual dividend) and as a corporation they pay no taxes on their profits.
Orillia Power Hydro Generation produces about 80 million KWhr a year and take note Orillia Power also generates solar power at 53¢/KWHr. When public hydro generation is available at 1¢/KWHr and pushed off line, we miss the moderating benefit in the overall power price. All the extra monies over the cost of production are categorized as 'global adjustment.'
When are we going to see a politician actually take a stand for the people? It sure is getting past the time to organize and push back against this atrocity against our children’s well-being?
Maurice McMillan
Ramara Township
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