tag:blogger.com,1999:blog-446210048006827157.post7207585964506578672..comments2023-09-21T08:36:00.461-07:00Comments on Cold Air Currents: Ontario Paused Residual Stranded Debt Payments for 2 yearsScott Lufthttp://www.blogger.com/profile/09219859339423144673noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-446210048006827157.post-67824415218353375222012-05-16T10:46:39.492-07:002012-05-16T10:46:39.492-07:00Parker, between April 1, 2003 and March 31, 2004 i...Parker, between April 1, 2003 and March 31, 2004 it increased more than it did from the 1999 date. Retroactive accounting can say a lot more about the accountant than the subject.<br /><br />I just quickly reviewed a couple of OPG's annual report figures and IESO annual totals for commodity charges (no the GA plus the HOEP). <br />In 2006 the HOEP averaged $48.75 and the GA was $4.26.<br />So the market averaged about $53, and OPG got about $46 (coincidentally the difference being the amount of the debt retirement charge).<br />By 2011 OPG's price had risen $7/MWh, while the market was up about $24.15, to $71.95/MWh <br /><br />Retroactively this government reduced OPG's "projected financial performance" while increasingly setting RPP rates well above the rates it was setting for OPG's output.<br />On the tax side we are to believe the residual stranded debt was increased due to lower taxation, while we went from being tax exempt to paying the 8% PST when harmonization occurred. I'd also note the Liberal government cancelled the Eves planned corporate tax cuts and instead raised the rates - which one would think would have reversed some of the impacts they account for prior to April Fools Day 2004.Scott Lufthttps://www.blogger.com/profile/09219859339423144673noreply@blogger.comtag:blogger.com,1999:blog-446210048006827157.post-69710183572424361082012-05-16T10:07:40.913-07:002012-05-16T10:07:40.913-07:00In the McGuinty press release yesterday they made ...In the McGuinty press release yesterday they made this claim:<br />“Between April 1, 1999, and March 31, 2004, the estimated residual stranded debt increased to a peak of $11.9 billion, due to the electricity price freeze and a reduction in the estimated present value of future dedicated revenues to OEFC, mainly reflecting the revised lower projected financial performance of Ontario Power Generation (OPG) and lower tax rates. “<br /><br />The lower projected performance of OPG was a partial reflection of the Mitigation Agreement which the Liberals left in place after being elected. They then restricted OPGs ability to compete by granting fixed priced contracts, created the Global Adjustment Mechanism instead of allowing the wholesale market to actually become a true market by continuing the restriction on OPG to sell at market rates.Parkerhttps://www.blogger.com/profile/15513787635789981352noreply@blogger.com