Hydro One Sale

chiller

chiller

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REMOVING the political discussion out of it (e.g. Liberal haters, Conservative Trollers, etc.)

Unless your head is in the sand the government is planning on selling Hydro One ...

http://www.thestar.com/news/queensp...-hydro-one-sale-despite-watchdog-warning.html

On the face of it, it seems like a dumb idea. Relevant points I am understanding :
- 60% gone for 1.83 billion towards transit
- 700 million / yr into the provincial coffers reduced by 60%
- a net loss to our treasury of roughly 420 million / yr
- though we still get 280 million from the remaining 40% that is owned by the province

However ... after not being able to sleep well last night I got to thinking about it and it is actually not a totally bad idea ... based on my recollection of this article

http://www.thestar.com/news/gta/201...y_be_up_to_11_billion_for_gta_study_says.html

so the net loss due to congestion is somewhere between 6 billion and high as 11 billion / yr

if we pump the 1.83 billion in capital gained from the sale into the transit plus whatever else they are spending
- Lets just say they are able to put a 20% dent into the congestion costs for T.O.
- that means that we have a reduced congestion cost by 1.2 billion to 2.2 billion
- this would mean the 420 million loss to the treasury is countered by the 1.2 and 2.2 billion congestion reduction cost
- so we would in effect have a net positive gain of between 780 million to 1.78 billion

- the numbers still seem to work in our favor even if they only reduce congestion by 10% ...

thoughts ?
 
chiller said:
REMOVING the political discussion out of it (e.g. Liberal haters, Conservative Trollers, etc.)

Unless your head is in the sand the government is planning on selling Hydro One ...

http://www.thestar.com/news/queensp...-hydro-one-sale-despite-watchdog-warning.html

On the face of it, it seems like a dumb idea. Relevant points I am understanding :
- 60% gone for 1.83 billion towards transit
- 700 million / yr into the provincial coffers reduced by 60%
- a net loss to our treasury of roughly 420 million / yr
- though we still get 280 million from the remaining 40% that is owned by the province

However ... after not being able to sleep well last night I got to thinking about it and it is actually not a totally bad idea ... based on my recollection of this article

http://www.thestar.com/news/gta/201...y_be_up_to_11_billion_for_gta_study_says.html

so the net loss due to congestion is somewhere between 6 billion and high as 11 billion / yr

if we pump the 1.83 billion in capital gained from the sale into the transit plus whatever else they are spending
- Lets just say they are able to put a 20% dent into the congestion costs for T.O.
- that means that we have a reduced congestion cost by 1.2 billion to 2.2 billion
- this would mean the 420 million loss to the treasury is countered by the 1.2 and 2.2 billion congestion reduction cost
- so we would in effect have a net positive gain of between 780 million to 1.78 billion

- the numbers still seem to work in our favor even if they only reduce congestion by 10% ...

thoughts ?
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I don't have as much an issue with sale, as I do with what they'll actually DO with the money. Also, what oversights will there be for rate regulation, etc?
 
Will it become a new type of 407?

We need electricity, having someone external to the Country controlling it doesn't make sense in any shape or form.
 
nfq said:
I don't have as much an issue with sale, as I do with what they'll actually DO with the money. Also, what oversights will there be for rate regulation, etc?
Click to expand...

This. Hydro one is an asset. Once they get the cash it will evaporate.


thoughts ?

Every two lane road should be converted to a one one lane road and the other lane should be a bicycle lane. Also a lane on gardiner and DVP should be separated with concrete barriers for bicycles and marathons.
 
daught said:
This. Hydro one is an asset. Once they get the cash it will evaporate.


thoughts ?

Every two lane road should be converted to a one one lane road and the other lane should be a bicycle lane. Also a lane on gardiner and DVP should be separated with concrete barriers for bicycles and marathons.
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I could never support adding more bike lanes LOL UNLESS motorcycles were allowed on them.
 
the money raised from the sale is going to go into general revenue and is going to get absorbed quickly in spending. Ontario does not appear to have any plans to pay its debt down.
 
It's going to be chaos, for sure. Always is.
 
My question is, how would they put a 20% dent into the congestion costs for T.O. or any congestion?

Are they expanding the 401? more public transit doesn't mean much for congestion, whomever drives will most likely continue to drive.

Like someone said, what are they specifically doing with the money? I bet you will never know.
 
ZX600 said:
My question is, how would they put a 20% dent into the congestion costs for T.O. or any congestion?

Are they expanding the 401? more public transit doesn't mean much for congestion, whomever drives will most likely continue to drive.

Like someone said, what are they specifically doing with the money? I bet you will never know.
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Yeah, the more I think about it, they'd be better off if they leased it or at least hired a proper company to establish efficiency within Hydro One to try and increase revenue. But the liberals have decided they're selling it so we have to live with this decision. This one is really going to hurt in about 5 years time and forever after that.
 
I didn't think (aka hoped) it would go through, but seems like it will.

Selling it to fund other energy projects makes a bit if sense but seeing as Ontario doesn't seem to have any alt energy plans this seems asinine.

So much for public ownership. 40% is peanuts.
 
The good thing is that I can not think of any other public owned asset that was sold and now is not only way more expensive here than anywhere else in the world but also uses practices of over billing customers for no reason.... oh wait.... I just did almost 200 km on a toll HWY in New York state, it costed me around $5, I wonder how much would that have cost me on the 407?
 
ZX600 said:
The good thing is that I can not think of any other public owned asset that was sold and now is not only way more expensive here than anywhere else in the world but also uses practices of over billing customers for no reason.... oh wait.... I just did almost 200 km on a toll HWY in New York state, it costed me around $5, I wonder how much would that have cost me on the 407?
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Why do you think we have so many 'SAME DAY LOAN' places popping up in the city? LOL
 
meme said:
I didn't think (aka hoped) it would go through, but seems like it will.

Selling it to fund other energy projects makes a bit if sense but seeing as Ontario doesn't seem to have any alt energy plans this seems asinine.

So much for public ownership. 40% is peanuts.
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It's like selling the furniture to pay for the house, but you still have to live in the house....
 
Did they change the Energy Act? I thought they couldn't fund stuff like transit thru this sale? As of April it was that way AFAIK.
 
nfq said:
It's like selling the furniture to pay for the house, but you still have to live in the house....
Click to expand...

I think is more like selling your furniture to pay for the rent but then going and losing all your money in the casino or a drunken rampage.
 
ZX600 said:
I think is more like selling your furniture to pay for the rent but then going and losing all your money in the casino or a drunken rampage.
Click to expand...

Smart. It's always good to have options. Or combo drunken rampage at casino.
 
ZX600 said:
I think is more like selling your furniture to pay for the rent but then going and losing all your money in the casino or a drunken rampage.
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drunken rampage you don't remember and when your friends or everyone show you video, audio and text evidence, you deny that was you and ask for $20 to go get a big mac meal.
 
ZX600 said:
The good thing is that I can not think of any other public owned asset that was sold and now is not only way more expensive here than anywhere else in the world but also uses practices of over billing customers for no reason.... oh wait.... I just did almost 200 km on a toll HWY in New York state, it costed me around $5, I wonder how much would that have cost me on the 407?
Click to expand...

A three dollar toll on the NY Thruway on my last bike trip would have cost eighteen dollars on the 407 doing the same miles without a transponder. To be fair, land acquisition costs would be different on the highways.
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