Ontario Auditor General Bonnie Lysyk released a special report today on the Wynne government’s move to cut hydro bills by 25 per cent, with an election around the corner.
She said in the report that the Wynne government created a “needlessly complex” scheme to pay for its hydro rate cuts without showing the costs on its own bottom line.
Lysyk said the government is “improperly” accounting for the $26 billion in debt the province is taking on to cut hydro bills in the short term.
The $26 billion is being borrowed through Ontario Power Generation, so will not appear on the province’s books. Electricity customers will pay off that debt through rate increases spread out over the next 30 years.
She said that the government is “wrong” in how it’s accounting for the borrowing.
She added, “Anywhere else in Canada, you won’t see this done.The government’s proposal is to treat that loss as an asset.That’s like you treating your credit card debt as an asset in your books. Does that sound right to you?”
The Wynne government is already trying to dismiss all of the auditor’s findings.