Saturday, September 24, 2011

A Good explanation of the Debt Retirement Charge

Ontario votes: Retiring Hydro’s debt a real numbers game:
"Although the stranded debt and the residual stranded debt were calculated separately in 1999, they’re really just one debt. The definition of the residual stranded debt is that it’s whatever’s left over after the revenues from the power system go into the big debt pit that we’re trying to fill up. If people use a lot of hydro one year and the system makes a lot of money, the residual debt goes down faster than expected. If there’s a mild winter and a cool summer and people don’t use much power, it goes more slowly.
The Tories say the residual debt was $7.8 billion in 1999, the province has collected $9.6 billion in debt retirement charges ..."

I will note, aside from the article being correct, that it didn't investigate why profits haven't been paying down debt, as I did, in a blog entry, previously.

No comments:

Post a Comment