The Ontario’s governments efforts to ease electricity rates has apparently hit a snag. An $80 million snag to be exact.
In the government’s public accounts for 2015-16, the Independent Electricity System Operator reported a “previously unrecognized actuarial loss and past service costs” of just over $80 million.
The provincial agency which oversees Ontario’s electricity market says it will raise fees it charges the power industry to recover the losses as part of its accumulated deficit charge. Chances are consumers will pay for this mistake as the agency tries to recoup the loss.
The PC party points out that the loss basically offsets the $70 million the Liberals said would be saved under the agreement reached last week with Quebec to purchase two terawatt hours.
The Liberals are also removing the eight per cent provincial portion of the HST from electricity bills, and scrapping plans for more wind and solar power projects, to reduce system costs and ease upward pressure on rates.
The IESO, which combined operations with the now-defunct Ontario Power Authority in January 2015, had an accumulated deficit of $74 million and a net debt of $184 million, with revenues of $187 million.