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Tim Hudak

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Light Bulb! How to Fix Ontario's Power Problems

Posted: 05/17/2012 8:12 am

Ontario has lots of advantages. We have a skilled workforce and hungry entrepreneurs. People who think, invent, forge, grow, build and mine resources, products, services and ideas in demand around the world. And a prime trading location in the heart of North America.

Ontarians know this. We've got a lot going for us. But as I've learned through the town hall meetings I've been traveling to over the last few weeks -- to talk to the people who pay the bills -- people are feeling pretty discouraged right now.

Ontarians haven't completely given up their optimism, though. I know this because, when I remind people at these events that we've come back before, because we've dared to think in new and different ways, I see heads start to nod.

They also nod when I say that now is the time for action in Ontario -- in particular where our economy and energy policy are concerned. Because they know that affordable energy is a fundamental element of Ontario's future economic success.

To get our economy moving again, we need energy policies that will keep prices under control for entrepreneurs, industry, and households alike, while ensuring that the system is reliable and sustainable.

When you look around Canada, you see the provinces that have taken the right steps to assure a steady supply of power at fair rates are well positioned. Those like Ontario, where power rates are being driven up by expensive energy subsidies, are not.

The good news is that Ontarians have a lot of expertise and ideas to offer that can help put our power sector on the right path. That's why the Ontario PC Caucus has produced a new white paper, "Paths to Prosperity: Affordable Energy" -- the first in a series on Ontario's economic fundamentals -- to pull together some of the best ideas we've heard so far and to focus the discussion on finding real solutions to the problem of rapidly escalating electricity prices.

In the paper, we suggest significant changes as to who owns the electricity sector, a return to competitive bidding for power-generation and ideas to save consumers money.

What Ontario needs is an affordable energy act to treat electricity as a job-creation tool for the whole economy, keep power rates under control for consumers, and sustain our renewable energy industry through consumer choice, not subsidies. After all, power prices affect virtually everything we do. In order to grow our economy we must take a new approach to managing our energy sector.

I see hope for Ontario. But we need to start making some tough choices now, bring new ideas to bear, build on our advantages and seize on the natural optimism of the people of our province to fix this problem and make power prices a job creator -- not a job barrier.

 
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Ontario has lots of advantages. We have a skilled workforce and hungry entrepreneurs. People who think, invent, forge, grow, build and mine resources, products, services and ideas in demand around the...
Ontario has lots of advantages. We have a skilled workforce and hungry entrepreneurs. People who think, invent, forge, grow, build and mine resources, products, services and ideas in demand around the...
 
 
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05:03 PM on 07/04/2012
I might feel bad for peoples high electricity bills -- IF -- they didn't let their A/C or C/A run 24/7 during the summer.
If they actually turned lights off when they left the house during the DAY!

As long as people aren't going to conserve or attempt to conserve, let people pay the high electricity costs.
03:02 PM on 05/22/2012
Hey Tim, quick history lesson. In the 1990's the government of Bolivia under pressure from it's creditors decided to privatize their water supply. Only one company was allowed to bid, water availability declined, people who did have access to water saw their prices increase ten fold, water was available 4 hours a day, no new water pipelines were constructed and consequently a law was passed giving monopoly of all water resources to the private company. Mass protests ensued, people died and government officials arrested. On one hand I want to see your government follow through with this plan because history tends to repeat itself on the other I don't, because I hate to see innocent people suffer.
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Maria Korovessis Sewell
To decimate is to reduce by one tenth.
12:32 PM on 05/17/2012
Thanks for all the specifics, Tim.
11:47 AM on 05/17/2012
Much of Ontario's debt came from Ontario Hydro's building nuclear power plants. Oh yeah, who built and ran these nuclear money pits for 42 consecutive years? I'll give you a guess: it's big, fat, blue and lies like a rug. The Cons have no credibility on this issue. They created most of Ontario's debt and under the Mulroney Conservatives in just 9 years the Cons created most of our national debt (more than doubled it). Mulroney from $250 billion to over $ 600 billion in 9 years! But he did pocket $300,000 in a paper bag from a German 'businessman," so someone made out okay.
11:13 AM on 05/17/2012
While I have many issues with Tim Hudak's position, this article is light on actual information. It states that we've got to do something, yet provides no concrete selections - I guess that we'll have to read about them in the White Paper.

What I really have a problem is that little Timmy, the child of teachers, talks of Ontario having "lots of advantages". Uhhh, Timmy, hate to point this out, but "lots" AIN'T A WORD!!! (Just like "ain't" ain't a word).

Go back to school. One of Ontario's excellent publically-funded schools.
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TT Esty1
Failure is a temporary condition.
02:58 AM on 05/18/2012
Actually, 'lots' is a word and one recognized by most reputable dictionaries as an informal way of sayin 'a lot'. However, this does not make Timmy any more astute. Like a true politician in a failing Party, he offers the 'Jesus Promise' of a reward in the future if you follow me today. Some will, you know.
michty6
Looking for facts and truth not ignorance and lies
10:02 AM on 05/17/2012
There is some great politi-talk in this article which manages to make some nice sounding statements without discussing any of the policies proposed in the white paper.

What your white paper proposes, which you briefly cover in this article, is extreme short-term thinking to reduce prices of power.

The natural result of this, like any short term focus on power prices, will be lower prices in the short run but an over reliance on non sustainable sources that will eventually lead to higher prices and push these higher prices on to future generations.

The reality is that without the subsidies you propose to abolish, renewable energy, wind power, solar power and electric cars are not financially feasible in the short run. Subsidies remedy this by helping to grow the market gradually so that it can stand on it's own two feet in future. Pulling the plug on these subsidies is essentially pulling the plug on these markets.

Lowering power costs through your measures makes for great sounding political headlines. But thinking short term like you are is not the right answer. Oil and gas are finite resources. Fact. No debate. This means that at some point they will be in short supply, which basic economics dictates that short supply = high prices. We have to reduce our reliance on these - starting ASAP - and the way to do this is to spread the future higher prices gradually over time by fully supporting (thus subsidising) all sustainable energy initiatives.
09:41 AM on 05/17/2012
You want to control energy prices? Go back to the days before Mike Harris when energy was considered an essential service for Ontario instead of an opportunity to provide profits for private business interests.
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09:34 AM on 05/17/2012
So called affordable electricity has Ontario Hydro owing $30billion or so. Charge consumers the real cost of producing electricity. What is really moronic is paying solar electric producers 80 cents a kilowatt-hour then selling the electricity to the Americans for 5cents a kilowatt-hour.
10:02 AM on 05/17/2012
When the grid becomes saturated, as it often does, the power has to go somewhere. It's cheaper to give it away than it is to shut down, for example, nuclear power plants. Ontario has an agreement with neighbouring jurisdictions to help reduce the strains of overproduction, which means we also sometimes we buy electricity from the Americans and Quebec for ridiculously low prices.
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10:32 AM on 05/17/2012
Hi Tommee. Thank you for clarifying that for me. My hydro bill never goes above $55 a month so I am not complaining it is just that I am willing to pay more to better reflect the cost of production.