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Home My WebLink AboutZurich Citizens News, 1976-03-10, Page 11At the beginning of February the Ontario Energy Board submit- ted to the Provincial Minister of Energy a report on Ontario Hydro's bulk power rates for 1976. The Board wants Ontario Hydro to reconsider their habitu.al growth ethic, because this "traditional approach to power system planning is no longer appropriate in North America." This report is actually the sec- ond of two parts of the Board's submission to the Province on Hydro's request for rate inc- reases this year. The first part, released last fall, said that Hydro needed a 27% increase in rates this year to maintain its position. However, this proposed increase was subseq- uently cut to 22%. In the second report the En- ergy Board discusses in some depth Hydro's procedures and policies, drawing attention to the fact that although develop- ment plans have been reduced, future service to customers has not been jeopardized in any way. Further cuts and deferments have been announced since the Energy Board prepared this report, however, although possible eff- ects on future customer service have not been assessed. North America electric utilit- ies have in the past assumed that all electrical demands must be met, and generous reserves maintained, in order to prevent possible interruption of service. To date they have been able to raise capital easily and pass on all their costs, while lower unit costs for larger projects have favoured building over -capacity. However, the economic situation has changed; galloping inflation, high interest rates, rising fuel costs and the need to switch to costly nuclear generation have all be contributing factors to this change. The Energy Board states categorically that Hydro's plan to spend more than $14 billion on capital development from 1975 to 1980 is too much for Ont- ario consumers to accept. During that period the cost of new generating capacity would more than double to something like $742 a kilowatt after two dec- ades of stable costs. The Board called Hydro's margin of reliab- ility in generating capacity ex- cessive. Two years ago it had urged that Hydro reduce its reserves and depend more on other utilities' reserves and now reiterates this statement. The Board considers Hydro should develop a pattern of wholesale rates "to minimize wasteful uses of energy." It should also ensure that customers who create the need for additional generating capacity should pay their full share of the costs. At present, Hydro has one rate for demand - the peak rate at which the customer draws power and one for energy - the volume of power drawn over the year. Adjustments are made to reflect the needs of individual whole- sale customers. The Board cons- iders that Hydro should set a range of wholesale rates and stop apparently giving some customers special treatment. The Energy Board has not recommended another Task Force Hydro inquiry, nor has it rec- ommended an examination of future electricity needs for the Province, as this responsibility has been given to the Royal Commission on Electric Power Planning. The Board does rec- ommend a series of public hear- ings by itself and any approp- riate inquiries by other agencies, which will examine, among other matters, the efficiency and productivity of the organization, the validity of medium-term Jottings by Jack from ueen's Park system expansion plans in terms of realistically required reserves and economic investment choices the financial policy in general and pricing policy in particular; the economic and social role Ont- ario Hydro does and should play in the Province and the environ- mental impact and social costs of Ontario Hydro. Recently Ontario Hydro ann- ounced that it intends to trim some $5 billion from its ten-year expansion program, which will involve cancellation. of large cap- ital intensive projects, although this reduction is, for the most part, a question of deferrals. However, this $5 billion only represents 1/7th of Hydro's planned expansion programme of $35 billion, based on their own demand projections into the 1980's. The proposed expansion programme would generate a reserve capacity of 39% in 1976 and a reserve capacity of some 30% by 1981. The Ontario En- ergy Board has stated that the "reserve margins at least to 1981, happen to he unusually high," and have recommend- ed that Ontario Hydro take "immediate steps to reduce its generating reserve margin." A Select Committee of the Leg- islature has been studying Hydro's proposed rate increases, which would have actually doubl- ed prices to the consumer in the next three years. These inc- reases cannot be regarded as the inevitable result of rising costs or inflation, and are, for the most part, necessary to fin- ance Hydro's expansion prog- ramme, the magnitude of which is incompatible with recent studies in the United States which indicate that projections of future demands can be very substant- ially reduced by a sensible programme of conservation, without affecting our standard of living. While domestic consumers will be seriously affected by Hydro's excessive rate increases, the inflationary effects will un- doubtedly seriously damage the economy of the entire Province. Production costs will be forc- ed upwards for all Ontario manufacturers, and severe de- mands will be placed on capital markets, with the resultant esc- alation of interest rates. The competitive position of our manu- facturing industries which arc specifically geared to the exp- ort market will be forced to cut back operations, which would further increase unemployment in the Province. NFU wants check- off disallowed National Farmers Union president Walter Miller has asked the Minister .of Agriculture and Food, the Honourable William Newman, to disallow the increase in check -off to the Cattlemen's Association, In a letter to the Minister the NFU vice president pointed out that 00 plebiscite was ever held in Ontario to authorize the check- off and the monies collected have been used to obstruct the development of stabilization and marketing programs for . the industry which we believe the vast majority of .farmers support. The NFU letter contends this is taxation without represent- ation and contrary to the princ- iples of democracy. The Union claims the cattle- men's Association represents only a minority of producers and have called for a discontinuing of the present check -off. Citizens News, March 10/76 19 on au avium II am so am sus ow �lali�>�j�o�� 1 1 1 O 1 ■ 1 1 1 1 ■ ■ ■ ■ ■ ■ ■ I GROUND g8 CHUCK `B FRESH COUNTRY STYLE ' FAMILY PAK FRYER PARTS FAMILY PAC LOIN $ 138 PORK LB CHOPS 7-9 CHOPS FAMILY PACKED ■ PEAMEAL BY -THE -PIECE $ BACK BACON LB 1/)5 ® FORYOURH 1 1 • BEEF ■ SIDES i 93¢ LB LEAN FAMILY PACKED STEWING BEEF HOMEMADE HEAD CHEESE Al STEER 1 1 TIN LB ■ 1 ■ O M 984 s ■ • 99c • ✓ WHOLE $ SLAB BACON Ls .,,Y, 5: Al HEIFER BEEF SIDES 87 LB PRICE INCLUDES PROCESSING SUPER SPECIALS FRESH SELECT PORK LOIN $11025 LB • ' • S OOD C SILVERWOOD'S HOMO or 2% BAGGED NEW DUNCAN HINES 141!20Z NGEL FAIR LADY SOFT ■ MARGARINE a 1 SUN GOLD 5-31/40ZPKGS ORANGE 16 OZ TUB ® CRYSTALS o0 . FROZEN DEEP & DI SUPREME PIZZAS 1 1 1 hill III M NEIN 1110 FLORIDA NO. 1 Celery Stalks 38' PROD FRESH Spinach 100Z 38' 128 07 BLEACH DELMONTE 48 OZ TIN TOMATO JUICE 5,F. DARE'S COOKIES 10 OZ JELLO MALLOWS ``' 1 1 LB12OZ U.S. NO. 1 Radishes 1 LB PACKAGES 3P1 '2 58 1 • ■ • ONTARIO NO.1 1 Mcintfjlsh 1 Apples ■ PRICES EFFECTIVE MARCH 110 TO CLOSING MARCH 16 1 I: 2382512 GRAND BEND