Wynneing!

Alternative Subsidy 31 Comments

How Hydro is walloping Ontario business;

Over the past several months there has been a constant din of noise from all business segments in Ontario about the high price of electricity and its effects. Electricity prices have risen as they have absorbed the high costs of 20-year contracts for renewable energy in the form of wind and solar as additions to Ontario’s electricity grid. Ontario currently has a huge surplus which results in as much as 20 per cent of our generation exported at fire sale prices. Couple that with a drop in demand, annual spending of $400 million on conservation messages, smart meters that allow time of use (TOU) pricing and the Hydro One, OPG and other Ministry of Energy employees enjoying wages and benefits that outstrip the private sector means electricity bills for all segments of businesses and households are now a drain on the economy versus an attraction for new business and the jobs they might create.

31 Replies to “Wynneing!”

  1. In 2002 the manufacturing sector accounted for 8.9% of Canada’s GDP and in 2014 it accounted for 4.9% of Canada’s GDP. The biggest part of that decline was in Ontario; in 2002 manufacturing accounted for 21.7% of the province’s GDP and in 2014 it was 12.7%.
    I’m sure it’s nothing but a coincidence that the business closures graph looks a lot like the hydro increases graph.

  2. In a silver lining moment, I was looking for 5,000 sq ft of light manufacturing space for my business. Thanks to Wynne the commercial real estate lease market (for manufacturing) is in a bit of a mess. Not only did my real estate agent get me a lower per square foot rate, he clinched the deal by negotiating “utilities included”. Someone else can deal with the Premier while I get on with my business.

  3. As I drive around the “industrial” sections of Barrie, ON, literally half of the existing space has “For Lease” signs prominently displayed. We had Canada’s largest (so far) weed grow-op in a former Molson’s (Formosa Spring) Brewery facility visible from Hwy #11, that has since been torn down. I venture to say that we now have a handful of industrial-size grow-ops in a dozen or more of these former factories.

  4. It’s ok though, her ORPP 1.9% payroll tax will have companies FLOCKING here…..
    Not to mention the additional 1.9% that employees will have to contribute.

  6. The ORPP stinks. Why else would the government quote the contributions in dollars per day and the payouts in dollars per year? So people wouldn’t bother converting one into the other.
    If you contribute $4.50 per day for 40 years ($45,000) you will be entitled to receive over $260,000 in payouts (assuming you live to age 85). How is that possible, even if the employer matches the contribution and with compound interest, the latter not contributing much until your contributions have substantially added up. Plus, the $12,815 per year you receive. Will it be taxed? Adjusted for inflation?

  7. Wynne has other priorities, she’s busy with the Federal election,she wants the person she can most manipulate to win to help her get out of the holy mess she’s in. Her Minister of Energy is an example of a stunned stupid individual, just like the people who elected the lot of them.
    No doubt Wynne agrees with her chosen one’s belief that budgets balance themselves, it’s nice to live in a fools paradise as long as you can swing it.

  9. Steve from Rockwood…my base figure based on 4.50/day for 40 years comes out to 65,700.00. Otherwise your other points are bang on. Especially if Morontario elects another Fiberal or NDPee guberment. Oh wel. I’ve my own probs to worry about here in the new province of Albertastan.

  10. I noticed right after he made that bold, brave announcement the media sheep asked him what were his ‘thoughts’ on how Wynne handled the gas plants, and was he ‘concerned’ about the many jobs leaving Ontario due to Hydro costs.
    Oh, wait…
    I made that up…
    But you knew that…

  11. Justthinkin,
    I was basing my calcs on a 250 day work year. Why would someone be contributing $4.50 toward their pension on Saturday, Sunday and holidays?
    What I did not factor in was the 100% forced co-contribution by the employer.
    You pay $45,000
    Your employer pays $45,000
    Assume 5% compound interest over 40 years
    You receive $12,815 per year for the rest of your life.
    1. How is the forced contribution by the employer not a tax?
    2. If Wynne is using this money for infrastructure expenditures how will compound interest take hold?

  13. It’s a total lose-lose on the ORPP. Conservative returns
    would yield 3-4X what they plan to pay out. On top of that if
    your money was in a TFSA, if you die your heirs get it….the
    ORPP, not so much…..
    I’ve heard numbers of $200 PER PERSON to administer
    the plan, which is a 10-15% “management” fee right off the top.
    Based on payouts we’re looking at maybe 2.5% growth per year….
    It’s a Lib Slush Fund, plain and simple. This has to be stopped.
    http://makemoneymakesense.com/tag/tfsa/
    “That’s $855.00 taken from Ontarians right when they get paid, per year.
    According to the government’s calculations, if the same employee pays their $855.00 a year for 40 years, they qualify for a $6,410 a year pension once they retire.
    Over 40 years, this equates to $34,200 contributed by the employee. Adding in the employer match, and the pool grows to $68,400.
    Of course, the ORPP would be invested, resulting in a larger pot for retirees who plan to live a little longer after retirement. It was stated in the ORPP that the pension would be inflation adjusted. Assuming a yearly inflation rate of 3%, the total investment by the employee grows to $66,402.
    Despite the good intentions of the government, $855 a year for 40 years would result in $182,636 at retirement, if invested at a compounded rate of 7%. For people who know how to budget and invest in low-cost investments, the government is taking away returns that could easily be achieved by the employees of Ontario.
    $182,636 >>> $66,402”

  16. Paddles canoes and more money to First Nations
    Which is about as advanced as they can make

  17. Steve….understand the 250 day work year…..however, how long do you think the Whiner will wait to make it mandatory 365 because it “just isn’t generating” the returns for the Fibs to blow? I give it 2 years.

  18. It’s 1.9% of you salary regardless of how many day you work….the dollars per day is a smokescreen.
    And another 1.9% your employer will “gladly” part with…..

  19. That’s 1.9% that your employer has to find somewhere and he’s sure as hell not taking it out of his profit margin so this is going to drive up costs across the board. Couple that with rising electricity costs, the upcoming carbon tax, and God knows what else the Liberals have in their “Hidden Agenda” and it might be a good idea for Ontarians to look to emigrate, Lower Slobovia will have a cheaper cost of living than Ontario in about five years. Emigrate now before the rush and look at the money you’ll save.

  20. Davets6 wrote: ” We had Canada’s largest (so far) weed grow-op “.
    Interestingly my city has 86,000 people and our newest and nearly largest ‘business’ (the other big employers being a small university (gov’t) a regional hospital (gov’t) and a pulp mill (employee owned) is a grow-op.
    They paid for the July 1st fireworks show which was fabulous and probably more so if you happened to have used their product. Gives a whole new meaning to ‘up in smoke’. BTW, the pulp mill was going bankrupt due to it’s intractable union employees – you know the drill, fix a light switch, that’s an electricians job…. blah, blah blah.
    Then the employees who were about to be jobless, used their severance and retirement funds to buy the mill and it’s now highly profitable. Because no one lets a co-worker/owner not do whatever it takes to make things run smoothly.
    Funny how that works.

  25. And this comes as a SURPRISE to Ontarians…??
    WOW…I lived in Barrie 2008-2010…(54 Wessenger Drive)
    I saw many of those signs go up over those three years and elsewhere in the GTA. I also started reading Parker Gallants Most Excellent Series “ONTARIO’s POWER TRIP”. I left Ontario to come back to Alberta in Oct 2010 and that series of articles along with seeing a “SMART Meter” installed in my home in early 2010 loomed large in my decision. Quit a Job I had for 10 years and drove back to Alberta…ZERO REGRETS even today.
    I was just back on Cornwall visiting some of my wives family and saw many many Solar “FARMS” on our treks out there…Sad really, while the farmer/investor makes out like a bandit, the consumer is getting boned up the (_i_) on electricity costs.
    Aside from all the other scandals perpetuated by the McGuinty-Wynne cabal, their Green Energy Act is the killer here and it, combined with their municipality act that allowed wind developers to bulldoze any local concerns is in my mind CRIMINAL.
    When will Ontarians React with some cojones…???
    When they can’t buy food due to high electricity costs I assume…and that will be ugly to say least.

  26. Add to the Green Energy thing the following BS ya have to put up with:
    PST
    HST
    Eco Tax
    Emissions testing – Now theres a Money grubbing SCAM If I ever saw one. There is not a vehicle on the road today in Ontario that would ever fail…cant be, they rust out faster than the emissions go bad if they EVER do.
    Total Scam for $39.95 annually. Thank you very F****ing much.!!
    Pickup trucks are considered Commercial so ya pay $125.00 a yr for a plate – another scam.
    Annual registration for RV’s and Travel Trailers (in Ab its a one time thing: $50.00 and thats it).
    Land Transfer Fees that will blow you away…(from their website)
    “1.5% above $250,000”
    “2% above $400,000 where the land contains one or two single family residences.”
    Property Taxes (at least on my 2250 sq ft home in Barrie), were 400.00 a month ($195./month in Calgary)
    Vehicle insurance for a pick up and a corolla were 400+/month. (I’m at $235 for both here in Calgary)
    Yea, they see ya comin in Ontario all right…. SOoooo Glad I left..
    Mind you..now that Ms Nothing and her socialist horde is in Power…I can see all this BS coming our way.

  27. Lately we have been getting phone calls from hydro about “summer savings days”. Designated days where energy that you saved in your household will be given free to public sports arenas in your area. OK why? Anyone who has paid attention knows ontario is almost giving the stuff away to the USA . I told them to go fly a kite. i know that they are not storing that saved energy to give free to sports fascilities in the winter. what is everyone stupid? does no one in Ontario pay attention anymore? How much does this campaign cost? the phone calls to the households? the data they collect and calculate? then the return phone call that tell me how my personal home placed in the saving percentile? WThoodles are people smoking in this province for crying out loud….

  28. “…we have been getting phone calls from hydro about “summer savings days”.
    Yep. The notion of reducing your hydro bills by cutting down on consumption is BS.
    Ontario Hydro (or whatever its constituent parts are now called) needs X amount of billion$ to operate. The revenue comes from only place: electricity consumers. If everyone cuts down their energy consumption by let’s say 10 percent, the company has no alternative but to raise the dollars-per-kwh rate to compensate for the revenue deficiency.

  30. As long as the LGBTG flag is flying at Queens Park who cares what the price of electricity is. Jobs? Who needs those as long as Grade ones are getting sex education before they learn how to spell. Look at the bright side when all businesses have left Ontario the College of Trades won’t be necessary.

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