Month: May 2018

Hydro One Doesn’t Matter

HYDRO ONE DOESN’T MATTER.  WHY ARE POLITICAL PARTIES AND THE MEDIA TRYING TO FIX IT?

Consider a typical family ordering food for delivery to their home. Assume that the restaurant used to charge $40 five years ago but is now charging $80 for the same food. Assume the delivery service used to charge $10, but is now charging $11. Thus, in five years, the total cost of the delivered food has increased from $50 to $91. Would it make sense to blame the delivery service’s $1 fare increase for the entire price increase when the restaurant has doubled its prices? Of course not. Yet that is what the political parties and some media critics have been doing with Hydro One. The only reason I can think of for this mistake is that they are confusing Hydro One with the old Ontario Hydro, which used to generate and deliver electricity but was broken up years ago. 

For a typical Toronto Hydro customer’s 2018 electricity bill of $123 a month, Hydro One would represent no more than 8% of that total bill, around $10.31. Why is everyone obsessed with “fixing” the 8% while ignoring the remaining 92%, which is truly broken? Continue reading “Hydro One Doesn’t Matter”

Are Old Polluters Better Than New Polluters?

Carbon dioxide emissions will become a scarce and valuable commodity in Canada soon. Who will be permitted to emit how much CO2? The answer should not depend upon whether someone has been emitting for a long time or  is just starting a new facility.  I have covered this topic in a recent publication of the C.D. Howe Institute that you can read here:

https://www.cdhowe.org/intelligence-memos/andrew-roman-are-old-polluters-better-new-polluters