North Bay LDC Using Ratepayers To Subsidize Taxpayers

A local article from North Bay proves Parker Gallant's argument that Local Distribution Companies are making electricity ratepayers subsidize taxpayers.

Hydro profits keep city taxes down - The North Bay Nugget - Ontario, CA:

"City council is increasing how much it pulls out of North Bay Hydro Distribution Ltd. profits to keep the 2012 property tax increase below 3%.
The dividend the municipality charges its utility corporation will increase to about $700,000 from $500,000 if the operating budget is adopted as presented to council Monday.
The dividend is in addition to $1 million the utility pays the city annually as interest charges on a $19.5-million promissory note.
North Bay is using the interest payments to cover the $20 million it committed to the North Bay Regional Health Centre.
But Don Rennick, a local businessman and chartered accountant, said it doesn't make financial sense to use the utility to create profit to offset municipal property tax increases — mostly because the provincial and federal governments charge tax on utility bills.
"The Ontario Energy Board allows North Bay Hydro Ltd. to make a profit. They don't have to make a profit," Rennick said, adding that the utility is seeking to raise even more revenue through bills beginning May 1."

The entire article is at The North Bay Nugget