How privatized power haunts Ontario politics

Ontarians are being reminded once again that the private companies involved in the electricity system are by no means motivated to keep people's hydro bills low.

This reminder comes from a story first exposed by CBCNews, then detailed by the auditor general, about power plants "gaming the system" for some $260 million in costs they weren't entitled to.

The auditorrevealed that some of the power plant companiesexpensed such things asscuba gear and car washes. Whilethose made up only a fraction of the overbillings,they are the kinds of tangible things that enrage people;things they remember when they vote.

• Scuba gear, car washes among expenses claimed by Ontario power companies
• Investigation reveals power company 'gamed' $100Mfrom electricity system

Is privatization the only reason why the average hydro billin Ontario has doubled since the Liberals took office in 2003? Probably not.

But people sure believe privatization is having an impact, as shown in this poll by Angus Reid Institute. At election time, voterperceptionis reality andthe Ontario Liberals have overseen more privatization of the province's hydro system than any other political party.

That could all add up to big trouble for Premier Kathleen Wynne's attemptto win re-election on June 7.

While the PC governmentof Mike Harris set the stage forprivatization by dismantling the former Ontario Hydro into separate Crown agencies for generating, transmission and system management, it's the Liberals who really embraced giving private corporations the chance to profit from electricity.

First, as part ofefforts to phase out coal-fired generationand make the system less vulnerable to blackouts, the province commissioned a series of new natural gas power plants. Private companies got a big piece of that action, with generous long-term generation contracts. Also, everyone in Ontario knows that cancellingtwo of those plants (which were to be operated by the private sector) cost the province about $1.1 billion.

• Patrick Brown's PCs won't reverse Hydro One sale, platform reveals
• Andrea Horwath's NDPwould buy back Hydro One shares, costing billions

Then,the Liberals introduced their Green Energy Program, paying premium rates to wind and solar power producers. While it was derided by many on the conservative side of the spectrum as an expensive and ill-conceived sop to environmentalists, private corporations sure didn't see it that way. For-profit companies jumped on what they considered a lucrative chance to cash in on Dalton McGuinty's green energy dream.

And finally, theWynne government sold off a majority stake in publicly-owned Hydro One. It means Hydro One's salaries are no longer disclosed on the Sunshine List, its practices can't be scrutinized by the province's ombudsman, and its books aren't open to the auditor general.

The Angus Reid poll mentioned earlier showed 82 per cent of those surveyed opposed the sale of shares in Hydro One, a result consistent with the government's own polls.The pollsters also found 76 per cent believe sellingHydro Onewill drive up the price of electricity.

Wynnehas said repeatedlythat privatizing Hydro One has nothing to do with the size of your power bill. She may be correct, butthat almost certainly doesn't matter when it comes to the election.

Even ifOntariansare wrong in believing theHydro One sale is to blame for electricity costs, they will not likely be shaken in that belief, and they will take it with them to the ballot box in less than six months.

• Government's own polling shows deep opposition to selling Hydro One
• Liberals' move to cut hydro bills by 25 per cent hides truecost, auditor says

In the 2003 election, many voters believed (rightly or wrongly) that the Harris government's dismantling of Ontario Hydro was at least partly to blame for the big blackout that August. Those voters helped send the PCs packing.

In 2011, many voters believed (rightly or wrongly) that wind farms were being shoved down the throats of rural communities and driving up their hydro bills. Those voters helped bustthe Liberals down to a minority.

In 2018, voters will have their first chance to letKathleenWynneknow what they think of herprivatization ofHydro One. Stay tuned.

• Follow Mike Crawleyon twitter @CBCQueensPark