Like many in the Province I didn't expect much would fall out of the Finance Minister's budget and thats what it delivered. The NDP got most on their wish list but the people in rural Ontario got more of the same.
On page 24 of the budget you find the heading: “Business Invests in Ontario's Economic Renewal” where you find a list of five (5) companies “that are helping to renew the province's economy and create jobs.” The largest investment ($250 million) comes from Nova Chemicals who will convert their cracker plant to process imported liquid shale gas from the US. Presumably the $250 million investment will allow Nova to obtain preferred electricity pricing (Stream 2), announced by former Energy Minister Chris Bentley via his directive to the Ontario Power Authority November 1, 2012. That directive should allow Nova to obtain electricity for the price of the HOEP which in 2012 averaged 2.41 cents per kWh. Nova won't have to pay for the “Global Adjustment” or the “stranded debt”, the IESO administrative fee, the OPA administrative fee, the “Rural and Remote Rate Protection Charge” or the “Renewable Generation Connection Fee.”. All of the foregoing fees and administrative charges not paid by Nova will instead be paid by the rest of the ratepayers. Also listed amongst the five investments is IBM who are expanding their Ontario reseach facility (IBM are contracted to work with IESO to develop the “smart grid”) and create 145 jobs with the help of $35 million in grants from the Province and the Feds. Those grants provide IBM with $241,000 per job. The budget fails to mention that IBM also received $7 million from the Ontario Centre of Excellence (OCE) which is also fully funded by the province. Read more »
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