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Municipalities urged to resist Hydro One sale

Although 34 out of 35 Northwestern Ontario municipalities have passed resolutions opposing the privatization of Hydro One, opponents of the province’s plan say resolutions are only the beginning.
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Former Elliot Lake Mayor and member of the Citizens Coalition Against the Privatization of Hydro One Rick Hamilton speaks to the Northwestern Ontario Municipal Association at its annual Fall Meeting on Friday. The coalition is urging municipalities increase pressure to stop the asset's 60 per cent share sale. (Jon Thompson, tbnewswatch.com)

Although 34 out of 35 Northwestern Ontario municipalities have passed resolutions opposing the privatization of Hydro One, opponents of the province’s plan say resolutions are only the beginning.

The Citizens Coalition Against the Privatization of Hydro One pleaded with members of the Northwestern Ontario Municipal Association on Friday morning, saying more activism will be needed to keep the utility in public hands.

“Once you pass a resolution, you have to be resolved to make it happen,” said coalition chair Rosario Marchese.

The coalition has produced bumper stickers, postcards and petitions to focus popular pressure behind the municipal resolutions.

Marchese pointed out energy prices increased from three-fold after Ontario deregulated energy distribution and privatized Ontario Power Generation in 1999.

If Ontario follows through to sell 60 per cent of Hydro One’s shares for $4 billion, he claimed, it will not only forego the annual $750-million profit the utility is currently making but the sale will have a deep impact on the regional economy, as nine-tenths of Northwestern Ontario’s energy usage is industrial.

“Much of our pulp and paper industry was devastated because they went to cheaper places – Manitoba and Quebec. This is going to make it even worse. If you thought the prices were bad in 1999, imagine what will happen when you privatize.” 

NOMA president Dave Canfield is the Mayor of Kenora, the closest Ontario town to the Manitoba border. He has watched forestry opportunities leave his district for cheaper pastures and said the privatization will only make matters worse.

“We’re very concerned if this gets privatized and gets out of control, we’re dead in the water,” he said, adding NOMA will meet with provincial officials to discuss the issue next month.

“We already have – with the exception of Nova Scotia – the highest rates in North America and that’s not good for business.”

Thunder Bay Coun. Larry Hebert is also the co-chair of the Common Voice Northwest Energy Task Force. He’s hoping to add further action on hydro privatization to Monday’s City Council meeting and ask administration to make recommendations.

“Maybe we’ll form a group in Thunder Bay that supports this coalition,” Hebert said.

“I certainly believe we shouldn’t be selling hydro one and we have to put our money where our mouth is and maybe invest a few dollars, start a petition or card campaign form the citizens of Thunder Bay, saying this isn’t what we want.”

Minister of Northern Development and Mines, Michael Gravelle insisted the province's plan will not only bring in much-needed infrastructure dollars but the consumer will also be safeguarded against rate increases.   

"I truly believe we can manage and execute this and see a better run organization that will be a benefit to everyone in the province, at the same time increasing those infrastructure revenues that are going to be so crucial  to see the economic development that we all talk about taking place in Northern Ontario," Gravelle said.

"I'm confident if we do bring this forward with the right protections in place including managing the cost of Hydro one for ratepayers, this will be something that will be to the benefit of all Ontarians."





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