Home & Garden

hydro one retirement debt paid off..why are we still paying??

  • Last Updated:
  • Feb 18th, 2011 8:29 pm
Tags:
None
12 replies
Deal Guru
User avatar
Sep 10, 2009
10900 posts
394 upvotes
GT&A
Because they're milking us.
troll: someone you dislike, fear or do not comprehend...
11b guide
When the doorbell rings, it's just a request. You are not a dog, it is not a command, only a request. You are not in church, you are at home. No guilt.
Deal Addict
Jan 19, 2011
2189 posts
426 upvotes
Because the article makes it pretty clear that the debt is not paid off.... plus they're milking us!
"The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is."
Just a guy who dabbles in lots of stuff learning along the way. I do have opinions, and readily share them!
Deal Guru
User avatar
Sep 10, 2009
10900 posts
394 upvotes
GT&A
fieldhousehandyman wrote:
Feb 16th, 2011 2:04 pm
Because the article makes it pretty clear that the debt is not paid off.... plus they're milking us!

+1
troll: someone you dislike, fear or do not comprehend...
11b guide
When the doorbell rings, it's just a request. You are not a dog, it is not a command, only a request. You are not in church, you are at home. No guilt.
Deal Addict
Jan 19, 2011
2189 posts
426 upvotes
^^^ excellent

a quick read illustrates that the effective indebtedness of the Corporation has remained virtually unchanged, after 10 years of "paying it off"

Excellent news!
"The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is."
Just a guy who dabbles in lots of stuff learning along the way. I do have opinions, and readily share them!
Member
Jul 20, 2007
292 posts
34 upvotes
The other charge such as regulatory charges, why are we still paying it? Sometimes the non-electricty charges cost more than what I use for electricity. That is bv11sh1t!
Deal Addict
Jan 19, 2011
2189 posts
426 upvotes
It's not actually bulls%@t, it is what things cost to provide electricity to your home. What is BS is the fact mammoth corporations have no real control over how they spend money, consume vast amounts of it in a wasteful fashion, overpay many of their employees, and simply get further and further into debt as the years go on. Did you read the financial statements MacGyver linked to? The corporation in question took on a 30b debt, and still has a 30b debt for all purposes.
"The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is."
Just a guy who dabbles in lots of stuff learning along the way. I do have opinions, and readily share them!
Deal Addict
User avatar
Mar 8, 2002
3791 posts
587 upvotes
Ottawa
It's like paying down a mortgage. Most of the payments over the first few years go to paying the interest.
helterskelter wrote:
Feb 16th, 2011 4:05 pm
The other charge such as regulatory charges, why are we still paying it? Sometimes the non-electricty charges cost more than what I use for electricity. That is bv11sh1t!
I agree. They are spending all sorts of time thinking about how to tweak time of use rates, but what they keep forgetting is that the average homeowner pays less for electricity than they do for the other charges which they cannot control, so in the end the average homeowner doesn't care, thereby nullifying the usefulness of TOU in the first place!
Deal Guru
User avatar
Dec 12, 2009
11394 posts
2086 upvotes
Toronto
I am confused. According to the OEFC, there is still a lot of outstanding debt to be paid. I thought that was what the debt retirement charge was directed to. Unless the OEFC has cooked the books, Mr. Wilson appears to be blowing political smoke over the voters eyes ahead of the fall election.

http://www.oefc.on.ca/debtmanage.html
Deal Guru
User avatar
Jun 12, 2007
11198 posts
1421 upvotes
will888 wrote:
Feb 16th, 2011 9:45 pm
I am confused. According to the OEFC, there is still a lot of outstanding debt to be paid. I thought that was what the debt retirement charge was directed to. Unless the OEFC has cooked the books, Mr. Wilson appears to be blowing political smoke over the voters eyes ahead of the fall election.

http://www.oefc.on.ca/debtmanage.html
You pay a certain fixed/discounted/regulared rate for electricity set by the OEB, but the electricity producers still get paid the full market rate. The difference between the market rate and the OEB rate goes back into the electricity debt

So the solar cell guy makes 85 cents/KWh, but you only pay ~5 cents/kwh, the 80 cents difference goes into the debt
MacGyver wrote:
Feb 16th, 2011 4:36 pm
It's like paying down a mortgage. Most of the payments over the first few years go to paying the interest....!

My understanding is that it's the Government's fault (as each sucessive government kept doing the same thing). Nuke plants are very expensive, but the government wanted very low power rates to attract big manufacturing plants to Ontario. They set the financing up so when money is borrowed to build a new nuke station, the principal and interest don't get added to the electricity rates until the plant is completed.

Well a nuke plant takes 10 years to build and costs $2B. Suppose you take out a $2B mortgage and make no principcal or interest payments for 10 years and just keep adding to the mortgage with compound interest. How much money will you owe after 10 years?
Deal Addict
Jan 19, 2011
2189 posts
426 upvotes
Well, the entire debt could be wiped clean tomorrow if every man, woman, and child (infants included) coughed up $3000 each in a one time payment. Yes, the typical family of four is on the hook for about $12,000 in OEFC debt! So with carrying charges at least $400 annually per family of four, how far is your $12 a month retirement charge going in reducing that debt?
"The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is."
Just a guy who dabbles in lots of stuff learning along the way. I do have opinions, and readily share them!
Member
Aug 10, 2010
378 posts
20 upvotes
OTTAWA
It's the oddest thing and irks me every time I send my payment. First off, pension, which we don't have so I care about these guys having one... cause I'm just a great person? NO, I'm not.
Secondly, the great "Ice Storm" debt. OK, a problem with this, as we worked day and night to reconnect homes that had their stacks taken down by the ice/rain without more then a regular service charge. Nothing to do with Hydro. Hydro, in fact, was so overwhelmed with demand for help that they gave all authorized Electrical Contractors authority to do what they had to, minus Hydro disconnect, to get power back to people. We worked on live wire and secured stacks that were taken down etc.

We made nothing but Hydro reaps the rewards from the "cost"? Oh well, was it ever different.
× < >

Top