Let’s get this straight–selling 60 percent of Hydro One will yield a one-time windfall of between roughly $3 and $6 Billion to the Ontario Treasury. But currently the treasury gets approximately $750 Million a year in dividends from Hydro One. So if Ontario sells 60 percent of the utility—the dividend will now drop to roughly $300 Million a year– meaning we lose $450 million a year for ever and ever. At today’s ridiculously low interest rates, that $450 Million a year would cover the debt servicing on about $18 Billion dollars’ worth of infrastructure. This is as dumb as the Harris government’s 1989 sale of the 407 ETR for $3.1 Billion. That highway in 2013 generated about a quarter of a billion dollars in profit for its private sector owners– and that is AFTER they pay down the bonds they used to buy the road in the first place. Ed Clark, the former TD bank executive who has convinced Premier Wynne that this is a good idea, may be a smart guy; but with these stakes the premier needs to get a second opinion and maybe a third and fourth.
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