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HomeMy WebLinkAboutTimes-Advocate, 1982-07-21, Page 5The readers write Hydro clialrman replies to Riddell's conc•rns Dear Editor: Jack Riddell has raised a long list of concerns about On- tario Hydro (Jack's Jottings, June 16). Perhaps you'd allow me space for a few "jottings" on behalf of Hydro. If I read it correctly, your Member's main concerns are rates, salaries, staff growth, Hydro's accountability, and the long-term debt. I'll deal with each in turn. Rates Some people think that because we're a big utility we're immune from the ravages of inflation, a weak Canadian dollar, and un- precedented interest rates. We're not. The 54 per cent so widely quoted in recent weeks represents the possible im- pact of those factors on Hydro rates over the next three years. I say "possible" because all we've proposed sofaris 13.9 per cent for 1983 - that's as far into the future as we can now look with any certainty, and even that figure isn't cast in concrete. Salaries It has also been widely, but incorrectly, reported, that Hydro's executive staff were to receive a 22 per cent in- crease next year. In fact, our estimate called for someing between 12 and 14 per cent, close to the pro- jected inflation rate. Even that is now doubtful, because Hydro's board of directors - in light of the cur- rent economic slump - has frozen executive salaries indefinitely. Staff growth The number of people Hydro employs has indeed grown, and the main reason has been our increasing use of nuclear power. Although electricity generated from nuclear power is on the whole only . half the cost of electricity from coal, nuclear stations re- quire about twice as many people to build and operate as coal stations do. In other words, part of the enormous fuel savings on coal are offset by'the cost of hiring more people. And I suggest that in hard times, that's not a bad thing. It's worth noting, too, that in recent years Hydro has been doing a lot that has nothing to do with producing electricity, but responds to definite public needs - in- cluding the need to account for its policies and activities. For instance, Hydro employees work on in- vestigating and developing alternative sources of energy: solar -assisted water heating, fusion, and hydrogen to name just three. Some of these technologies are already in use; others will serve us well as we move in- to the next century. Other employees ensure what Mr. Riddell seems most concerned about: Hydro's accountability. Accountability I agree absolutely that Hydro must be accountable and also responsive. The record shows we are. We have answered to the Royal Commission on Elec- tric Power Planning, the Select Committee on Hydro Affairs and, more recently, to the Consolidated Hearings Board on transmission plans for eastern and southwestern Ontario. We also submit our rate proposals for review by the Ontario Energy Board every year. I'd like to quote from the a Science Council of Canada report called "Public In- quiries in Canada", September 1981, which says: "Ontario Hydro can legitimately claim to place greater emphasis on assess- ment than any other corpora- tion of similar size and allows for greater public input than any other Canadian company. The debt Much concern has been ex- pressed over Hydro's debt, and that's understandable. The total long-term debt is now about $14 billion - a for- midable sum. Equally formidable, however, is the value of Hydro's assets - over $18 billion. On the international money market, which is the ultimate test of a utility's financial 'health, assets count as much as debt. Together, they measure your credit- worthiness, which determines how much you can borrow and at what interest rate. The Government of On- tario, which guarantees Hydro's borrowings, enjoys a Triple -A rating - the best there is. For the Ontario electricity consumer, here's the bottom line: if you're served by one of the 234 municipal utilities in this province, you are pay- ing an average of $40 a month for 1,000 kilowatt-hours of electricity. If you lived in New York, you'd be paying $119; in Detroit $77; in Los Angeles $69. Closer to home, Ontario rates are lower than rates in five of the other nine provinces. Sincerely, Hugh Macaulay per JRT Chairman of the Board, Ontario Hydro Times -Advocate, July 21,1982 " , • .,, Po9e 5 rt, Ma 1 POPULAR BAND ENTERTAINS — The and Heritage Days over the weekend the Old Towne Hall a couple of times. Gerwen, Bob Fletcher, Rick Graham, Main Street Jug Band provided plenty of peppy music for Sidewalk Sales . 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