Live Small PT 1: Are hydro rates shocking or expected?

Or are Ontario’s rising hydro rates (predicted to rise by 46% - likely a lowball figure - over the next 5 years) somewhere in between shocking and expected?

E.g., kind of in “I can see part of the reason but not all of it” territory.

Truth be told, right now, I’m not completely shocked.


["You can't easily surprise this kid!": GH circa 1955]

Reasons:

Our energy demands continue to rise, for one thing

Many people and politicians realize coal isn’t so cheap in the long run, so, want off ‘black juice’ as I like to call it

Infrastructure for nuclear plants is expensive

Maintaining water-driven hydro plants is expensive

And start-up fees for supplemental solar and wind programs are not cheap and we’re coming late to that table.

Taken together, these factors (there are others) add up to a hefty and growing bill.

No wonder people are complaining. My neighbours have taken to hiding their mailbox when hydro bills are delivered.

Opposition parties are complaining. Hydro bills could be a big election issue soon.

And the party in power is feeling so much heat they’re going to preside over a $6.4 billion Ontario Clean Energy Benefit to cushion the blow to some ratepayers, at the same time hoping taxpayers will not understand their part in paying off the $6.4 billion cost. (Hint: Ratepayers and taxpayers know each other quite well).

However, in spite of the loud complaints I’m not fully shocked by increasing rates.

Are you?

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More to follow.

Read more Live Small posts here.

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