CCSAGE Lawyer Alan Whiteley addresses the Standing Committee on Justice Policy regarding Bill 132

The following is the text of the address made by Alan Whiteley before the Standing Committee on Justice Policy regarding Bill 132, today, Tuesday, May 23, 2017

RESIDENTS OF ONTARIO CANNOT AFFORD ELECTRICITY AT CURRENT RATES. SOME FAMILIES HAVE TO CHOOSE BETWEEN ELECTRICITY AND FOOD.

INDUSTRIES FACED WITH EXORBITANT CHARGES ARE RELOCATING TO U.S. JURISDICTIONS THAT OFFER MUCH LOWER RATES, TAKING JOBS WITH THEM.

AN URGENT REMEDY IS REQUIRED.
BILL 132 IS NO REMEDY; IT IS A PONZI SCHEME.

SOME CONSUMERS WILL HAVE A PORTION OF THEIR ELECTRICITY RATES DEFERRED FOR A PERIOD OF TIME;

THE DEFERRED RATES WILL BE ACCUMULATED AS AN “INVESTMENT ASSET” WHICH WILL BE SOLD TO OUTSIDE INVESTORS;

OUTSIDE INVESTORS WILL HAVE THE RIGHT TO COLLECT THE DEFERRED RATES PROTECTED FOR INFLATION, PLUS ACCRUED INTEREST, FROM RATES TO BE CHARGED TO FUTURE CONSUMERS.

BILL 132 DOES NOT ADDRESS THE ROOT CAUSE OF UNAFFORDABLE ELECTRICITY RATES.

ONTARIO CONSUMERS CAN AFFORD TO PAY THE SPOT PRICE FOR ELECTRICITY THEY CONSUME. THEY CAN EVEN AFFORD TO PAY DELIVERY CHARGES, IF LEVIED ON AN EQUITABLE BASIS.

 

WHAT THEY CANNOT AFFORD IS THE GLOBAL ADJUSTMENT CHARGE.

THIS IS DEFINED AS THE DIFFERENCE BETWEEN THE PRICE THE GOVERNMENT PROMISED TO ANY PARTICULAR ELECTRICITY GENERATING COMPANY AND THE “MARKET PRICE” OF ELECTRICITY.

SIMPLY PUT, THE GOVERNMENT BUYS ELECTRICITY FROM SOME SUPPLIERS AT MULTIPLES OF THE MARKET PRICE AND THEN ADDS THAT EXCESS TO CONSUMER PRICES.

THE SOLUTION TO THE PROBLEM IS PATENTLY OBVIOUS: BUY ELECTRICITY ONLY AT MARKET PRICES.

THE GRID IS AWASH WITH ELECTRICITY AT MARKET PRICES. EVERY DAY HYDRO GENERATING STATIONS SPILL WATER AND NUCLEAR POWER GENERATING STATIONS STEAM OFF HEAT BECAUSE THEIR CARBON-FREE ELECTRICITY IS NOT REQUIRED. IN ADDITION, QUEBEC EXPORTS HUGE AMOUNTS OF POWER FROM ITS NORTHERN HYDRO DAMS, ALL AT MARKET RATES.

BUT ONTARIO IS CONTRACTED TO BUY HIGH-COST ELECTRICITY FROM OPERATORS OF RENEWABLE ENERGY PROJECTS AUTHORIZED UNDER THE GREEN ENERGY ACT.

SO INSTEAD OF RECOGNIZING THAT THE CURRENT CRISIS IN ELECTRICITY IS THE DIRECT RESULT OF THE DISASTROUS GREEN ENERGY ACT, THIS GOVERNMENT SEEKS TO DEFER THE PROBLEM BY INFLICTING IT ON FUTURE GENERATIONS.

 

CITIZENS OF ONTARIO EXPECT BETTER THAN SUCH UNETHICAL, UNFAIR AND UNDERHANDED MACHINATIONS FROM THEIR LEGISLATURE.

BILL 132 IS A CLEAR INDICATION THAT ONTARIO’S ELECTRICITY SUPPLY SYSTEM IS BANKRUPT.

IF AN INDIVIDUAL OR A CORPORATION WERE TO PURSUE SUCH A SCHEME, IT WOULD BE AN ACT OF INSOLVENCY, AND THE ONLY ETHICAL COURSE OF ACTION WOULD BE TO DECLARE BANKRUPTCY, COMPROMISE WITH CREDITORS, AND RESTRUCTURE ON PRINCIPLES OF RECTITUDE AND PROBITY.

IT IS POSSIBLE FOR A STATE TO ENACT LEGISLATION CANCELLING CONTRACTS WITHOUT DAMAGES.

IT WOULD BE ARGUED THAT SUCH A DRASTIC COURSE WOULD DAMAGE THE REPUTATION, CREDIBILITY AND CREDIT-WORTHINESS OF THE PROVINCE, BUT THE GREEN ENERGY ACT HAS ALREADY DONE THAT, AND AN HONEST DECLARATION OF FAULT AND FORMULATION OF A WORKABLE REMEDY MIGHT IN FACT REASSURE MARKETS.

THE ONLY OTHER ALTERNATIVE IS TO REDUCE THE AMOUNT OF MONEY PAYABLE TO THE PRODUCERS OF HIGH-COST ELECTRICITY. THIS CAN BE DONE IN SEVERAL WAYS:

1. THE ASSESSMENT ACT PROVIDES THAT AN INDUSTRIAL WIND TURBINE VALUED IN EXCESS OF $2,000,000 CAN ONLY BE ASSESSED AT $40,000 FOR MUNICIPAL TAX PURPOSES. REPEAL OF THIS PREFERENTIAL

 

TREATMENT WOULD IMMEDIATELY TRANSFER LARGE AMOUNTS FROM OPERATORS TO THE HOST MUNICIPALITIES, WHO SO BADLY NEED ADDITIONAL FUNDING;

2. THE RENEWABLE ENERGY APPROVALS THAT AUTHORIZE THE OPERATION OF INDUSTRIAL WIND TURBINES CONTAIN NOISE LIMITS, SETBACK LIMITS, BIRD KILL LIMITS AND OTHER OPERATING CONDITIONS THE VIOLATION OF WHICH CAN LEAD TO SHUTTING DOWN THE IWTS. THERE HAVE BEEN HUNDREDS OF COMPLAINTS REGISTERED WITH THE MINISTRY OF THE ENVIRONMENT ABOUT SUCH INFRACTIONS, BUT NONE HAS BEEN INVESTIGATED. DILIGENCE IN ENFORCING REA CONDITIONS COULD REDUCE SUPPLY OF HIGH-COST ELECTRICITY CONSIDERABLY;
3. IN BONN LAST WEEK A UNITED NATIONS CONFERENCE ISSUED GUIDELINES FOR COMPULSORY SHUTDOWN OF IWTS DURING BIRD MIGRATION, ADVOCATING A SYSTEM TRIGGERED AUTOMATICALLY BY THE BIRDS THEMSELVES ENTERING RADAR RANGE.

BILL 132 STATES THAT THE “FAIR ALLOCATION AMOUNT” IS A METHOD OF MEASURING AND ALLOCATING ESTIMATED CLEAN ENERGY COSTS AND ESTIMATED CLEAN ENERGY BENEFITS FAIRLY AMONG CONSUMERS.

BUT IT DOESN’T ADDRESS THE “CLEAN ENERGY COSTS” IMPOSED UNILATERALLY AND DISCRIMINATORILY ON RESIDENTS OF RURAL ONTARIO BY THE GREEN ENERGY ACT.

BECAUSE OF SETBACKS, NOISE LEVELS, ETC. IWTS CAN ONLY BE ERECTED IN RURAL AREAS.

 

THEY ARE ERECTED IN CONTRAVENTION OF MUNICIPAL BY-LAWS, OFFICIAL PLANS AND ASSESSMENT RIGHTS AGAINST LOCAL OBJECTIONS AND ARE DAMAGING COMMUNITIES, ECONOMIES, HUMAN HEALTH, LAND VALUES AND ENVIRONMENTS ACROSS RURAL ONTARIO.

ON BEHALF OF THE COUNTY COALITION FOR SAFE AND GREEN ENERGY, I AM PROSECUTING A PROCEEDING IN THE SUPERIOR COURT IN OTTAWA SEEKING JUDICIAL REVIEW OF THE GREEN ENERGY ACT AND A DECLARATION THAT BY IMPOSING ALL OF THE NON-MONETARY COSTS OF IWTS ON RURAL ONTARIO THE ACT VIOLATES S. 15 OF THE CHARTER OF RIGHTS AND FREEDOMS IN THAT IT STERILIZES THE RIGHTS OF RESIDENTS OF RURAL ONTARIO TO ADVOCATE FOR, ENACT, RELY ON AND CLAIM THE BENEFIT OF SOUND LAND USE PLANNING PRINCIPLES AND AMOUNTS TO DISCRIMINATION THAT HAS THE EFFECT OF DEMEANING THE HUMAN DIGNITY OF RESIDENTS OF RURAL ONTARIO.

I FULLY EXPECT TO WIN THIS CASE, IN WHICH EVENT EVERY IWT ERECTED IN ONTARIO WILL BE ILLEGAL.

THE $28,000,000 THAT THE WORLD TRADE ORGANIZATION RECENTLY ORDERED ONTARIO TO PAY TO WINDSTREAM FOR IMPOSING A MORATORIUM ON OFF-SHORE IWTS WILL FADE INTO INSIGNIFICANCE COMPARED TO AMOUNTS DEMANDED BY IWT OPERATORS TO COMPENSATE FOR ILLEGAL OPERATING PERMITS.

BILL 132 WON’T SOLVE THAT PROBLEM.