Quote:
Originally Posted by omro
I read this in one of Ryan's comments to this article here:
Green Energy Act for Home Resales a Good Deal
Which suggests that there is a subsidy.
A quick google finds this article from last year's Toronto Star:
End to hydro rate subsidy urged
Or, in my opinion, building the renewable means of electricity generation that will ultimately lower the price of electricity again when the cost of generation is brought down.
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Actually that Star article is fairly interesting on what is considerer a subsidy:
"Specifically, it determined the province pays nearly $2 billion so that Ontario Power Generation and other owners of hydroelectric power stations can pay royalties for water that are well below market rates. Ontario Power Generation also gets a below-market return on its generating assets that amounts to $850 million annually."
OK the $850 million I can see. How are market rates determined for the water rights?
"Another $2 billion goes toward a provincial sales tax exemption on grid-supplied electricity and interest payments on the former Ontario Hydro's $19.3 billion in stranded nuclear debt."
I don't think that a sales tax exemption really counts as a subsidy. Interest payments I think in principle don't have sales taxes in Canada, although I could be wrong.