Thursday, February 17, 2011

Ontario Power Generation: under poor management


Poor management! Without looking at the back story, how else can the dramatic rise of the price of electricity in Ontario be explained? When input fuel costs have actually dropped (natural gas), and other costs have been relatively stable, why is your electrical utility bill more expensive today than one year ago? The pamphlet (at left) attempts to explain the reasons behind the huge price increases. I've always been under the impression that the job of management involves using resources in the most efficient way to achieve the best service for the most competitive price. But when there is no competition, and when management has an agenda that is at odds with the needs of customers, what else can you expect?

The Liberal government of Dalton McGuinty manages the operation of Ontario Power Generation (OPG). Here is what OPG says on its website: OPG is an Ontario-based electricity generation company whose principal business is the generation and sale of electricity in Ontario. OPG was established under the Business Corporations Act (Ontario) in 1999 and is wholly owned by the Province of Ontario. "Wholly owned by the Province of Ontario," the government sets policy, and plans future projects that often require huge amounts of capital investment and sets the course for the future prosperity (or lack thereof) of the Province. Therefore a major component of the wealth of Ontario is centrally planned at Queen's Park, right or wrong, that is a fact. The OPG website says the right things, but somehow their comments are at odds with the McGuinty Liberals: Our focus is on the efficient production and sale of electricity from our generation assets, while operating in a safe, open and environmentally responsible manner. "Efficient production," I beg to differ. Below you see my first YouTube video attempt, which outlines the pricing plans of Dalton McGuinty. I hope to follow this up with others. By the way, a job review (general election) for management comes up on Oct. 6, 2011.

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