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Opening comments: More at the end.
Check out the, The Carolyn Parrish Enersource Facts Sheet
Mississauga News - June 10, 2008 - Editorial by Carolyn Parrish Sale of utility serves us best
My neighbour has a sign in his back yard that says, "No Elephants Allowed," and it's a rousing success. It's so effective, in fact, there are none of the big gray critters in my yard, either!
Too bad there isn't a sign for mosquitoes.
The Ontario Electricity Coalition is fussing about city council's potential sale of the City's 90 per cent ownership of Enersource.
Who is the OEC other than a maker of elephant signs? The membership of OEC can fit into a Volkswagen Bug, but they sure know how to attract attention.
Why is the OEC interested in Enersource? The stated purposes and goals of OEC are based on opposition to deregulation and privatization of electricity in Ontario.
For good reason, distribution rates, service quality and financial returns permitted for all power distribution companies in Ontario are now, and always will be, strictly regulated by the province's watchdog, the Ontario Energy Board.
The vast majority of electrical distribution companies are publicly-owned. The Province is encouraging the amalgamation of many small utilities through mergers or sales, by providing a tax-free window until Oct. 17, 2008 - saving 33 per cent on each transaction. This incentive does not apply to private corporations.
Will hydro bills increase if Enersource is sold? Not because of the sale. In the words of CEO Craig Flemming: "The only charges that Enersource can influence are within the delivery charge and that, too, contains (elements) that are beyond our control."
Enersource is like your local gas station - a retail distributor, pumping electricity instead of gasoline. It's not a manufacturer, nor even a bulk distributor. In fact, the City saved more than $2.5 million in hydro costs over the past three years by "spot buying" hydro from bulk distributors for all our public buildings rather than directly from our own hydro utility. Enersource does not control your hydro rates; the OEB does.
Should Enersource be sold, the only changes Mississauga taxpayers will see are positive ones.
One hundred per cent of the proceeds of the City's portion of the sale would be put into a reserve fund specifically targeted to infrastructure needs and invested prudently. When the City's current reserve funds run out in 2012, we'll have replenished them, therefore delaying the need to borrow money.
The yearly interest income of $16 million plus would be more than double the $8 million dividend currently received from Enersource.
That interest will offset operating budget increases that are expected to hit double digits next year. It will also remove the need for a five per cent levy on our property taxes in the foreseeable future.
While I'm not clear on OEC's motives, I am clear on the intent of your city councillors. They have only one concern, and that's the prudent future management of our city and the well-being of its residents.
Ward 6 councillor Carolyn Parrish is a member of the Enersource board of directors.
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