THUNDER BAY – Minister of Municipal Affairs Bill Mauro on Friday shrugged off accusations the Ontario government is slashing electricity rates to lift the Liberals out of polling purgatory.
A day earlier, Premier Kathleen Wynne announced the province would cut residential hydro rates by 25 per cent, refinancing debt over 30 years instead of 20.
The move will provide immediate savings, but ultimately cost billions more in interest costs over the additional 10-year period.
“I think that I’ve been asked that question every time I’ve made an announcement for the last six months,” Mauro said at a news conference held to explain how the Ontario Fair Hydro Plan would be rolled out this summer.
“I guess I could stop working on behalf of the people of Thunder Bay-Atikokan, if that’s the suggestion. There will be other announcements I’ll be making in the next 12 or 14 or 16 months that I’ve been working on for a very long time.”
Mauro also bristled at suggestions by Queen’s Park opposition parties that the Liberals, mired in third place in a recent Forum poll, waited too long to provide relief to electricity customers overburdened by high monthly bills, pointing to a number of initiatives embarked on by the province designed to help homeowners and the business sector.
“We’ve brought lots of programs forward already, including a Northern Ontario energy tax credit, including a senior’s tax grant and other programs that are being enhanced today as well,” Mauro said.
“So I would suggest if their comment is this is a beginning point for our government, they’re completely, completely off base.”
Mauro acknowledged critics have jumped on the Liberals for stretching the payment plan for up to $50 billion in generation, transmission and distribution assets, over an extra decade, but the Thunder Bay-Atikokan MPP said it’s really righting a mistake made in the past.
“If we had originally structured the investments as 30-year payments instead of 20, we wouldn’t be here having this conversation today. We made an implementation choice to do it over 20 years. We’re now choosing to do it over 30,” Mauro said.
“These assets will be serving the people of the province of Ontario over 30 years. I think you can make a great argument that the costs associated with those assets should be spread over the life of the asset and that’s what we’re doing.”
The cost-saving includes an already promised eight per cent reduction that would see the provincial sales tax portion of energy costs eliminated. A new Affordability Fund at the same time will enhance the Ontario Electricity Support Program, which will now be funded by the province, and the Rural or Remote Rate Protection, which provides even more savings to residents living outside major centres. First Nations residents living on-reserve will also receive a delivery credit.
Mauro said electricity costs have risen for a number of reasons, with inflation and the end of coal-generated power.
Charla Robinson, president of the Thunder Bay Chamber of Commerce, welcomed the rate reductions with open arms.
“We believe that a lot of small and medium enterprises will be able to take advantage of this cut … Certainly this is something that businesses will be eagerly awaiting the bill that comes in with the rebate in the summer,” Robinson.
“And it definitely will have a positive impact on the economy because we do know this has been having an impact on folks’ discretionary spending allowances.”
