Just like the new rules for credit cards, each electricity bill should tell us when our last payment will be on the debt.
Why is OEFC financing this capital project when OPG supposedly has the ability to raise funds from private sources and the “stranded debt” was placed in OFEC to ensure that OPG would be self-financing in the future? Why is the “debt retirement” money being paid by ratepayers into OEFC now being used to provide new financing to OPG? The historical rate of repayment of the old “stranded debt” indicates it will take another 49 years to retire! Why hasn’t the Auditor General raised some alarms on this? Why doesn’t OEFC publish quarterly reports so the public can properly follow its activities?
So should our bills not say “At current payment rates, you will make your last payment on February 29th, 2060?
If this 49 year extension is accurate, then it is safe to say that this debt has been severely mismanaged by the OEFC. The OEFC was created to hold the old debt and pay it off. And now it is being used as a bank which is funding new projects. This is clearly not good for your electricity bill because what few people pay attention to is the fact that you pay HST on top of that debt retirement charge.
If the infrastructure money for new electricity projects was simply to come from the government and not the OEFC, then you would not have to pay that charge and the HST on it directly. It would simply be rolled in to the provincial deficit/debt. But by shuffling it into the OEFC, McGuinty get’s a nice HST boost and you and get…. you guessed it…