For Immediate Release
January 21, 2011

 

WHERE DID THE DEBT REPAYMENT MONEY GO?

WOODSTOCK – Today Ernie Hardeman, Oxford MPP, called on the McGuinty government
to conduct a forensic audit to determine what happened to the money that Ontarians were
charged through their hydro bills to pay off the stranded hydro debt.

“The stranded hydro debt was scheduled to be paid off after about ten years, by 2012,” said
Hardeman. “At a time of record low interest rates the repayment time should be getting
shorter. Instead the McGuinty government has extended the repayment time and the charge on
hydro bills to 2018 with no explanation.”

The Debt Retirement Charge is a dedicated revenue stream to pay off the $7.8 billion residual
stranded debt – a debt stretching back to the Peterson era. The amount the Ontario Electricity
Financial Corporation has collected through the charge on hydro bills since May 1, 2002 is
$7.8 billion, the amount of the original debt.

“Ontario families have been paying the debt retirement charge in good faith – they deserve
an accounting of where that money went and why the debt won’t be repaid on time,” said
Hardeman. “That is why the PC Caucus is calling for a forensic audit of the Debt Retirement
Charge and residual stranded debt.”

The debt retirement charge was scheduled to pay off the debt by 2012. However, the
McGuinty Government first pushed back the repayment date from 2012 to 2014, and then
until 2018, with no explanation. In November the PC Caucus introduced a motion asking for
an accounting of the debt and repayment, but the McGuinty government used their majority to
block the motion.

“Hydro rates have been spiraling out of control thanks to the McGuinty government’s
rich contracts to subsidize green energy, the Samsung deal and the addition of HST,” said
Hardeman. “Now when hardworking Ontario families need relief the most we find that the
McGuinty government is trying to turn the debt retirement charge into a permanent tax grab.”

- 30 -

For more information, contact:
Ernie Hardeman, MPP Oxford
(416) 325-1239