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Reality Check: McNeil is in over his head on energy policy

In the last few weeks, Stephen McNeil dropped a bombshell without seeming to even realize it himself:

“It is time to break the monopoly ... We’ll open the market to allow renewable energy producers to compete...”[i]

"I would have opened up the energy market. I would have put competition into the energy sector to allow Nova Scotians more than one option to buy energy from."[ii]

So now we know for sure that the Liberal rhetoric about “breaking the Nova Scotia Power monopoly[iii]” really means deregulating and leaving ratepayers at the mercy of the market.

Like Ontario, where the Harris-Eves government was forced to back off of their plan to deregulate after power rates rose 30% in seven short months[iv] - in some cases up to 70%[v].  Where a scrambling government put taxpayers on the hook for $480 million of a $1.36 billion artificial price cap[vi].  Where Ontario became a net importer[vii] of electricity.  And where McNeil’s own Liberal colleague had this to say:

“...there is a broad consensus right across the country that this has been one of the most glaring examples of gross mismanagement and incompetence ... your experiment has been an abject failure.”
-Dalton McGuinty, Ontario Hansard,  18 November 2002

Like Alberta, where brownouts became frequent and rates went from some of the cheapest in North America to the third most expensive (after California, another deregulated jurisdiction, and Hawaii).[viii]  Where the price rose from 5 cents to 25 cents/KwH between June and October of 2000, buffered only by a $2.3 billion dollar taxpayer-funded rebate program[ix] .  Where, between 1997 and 2000, the wholesale price of electricity went up 650%[x]. Where less than 30% of consumers opt to sign contracts with independent power producers, preferring to stick with the regulated utility[xi] (Calgary Herald). Where analysts concluded that deregulation couldn’t work in such a 'small market'[xii] (Alberta’s population is more than 3 times the size of Nova Scotia’s).

By now it’s clear: McNeil doesn't understand energy issues or gasoline pricing issues. He would drive the cost of energy through the roof and let big oil set the price at the pumps. He’s naive enough to think that unregulated independent power producers would have Nova Scotian’s long - or short - term interests at heart and be there to meet demand and help us get off coal.  That big oil wouldn’t immediately claim the 4 cents he would take off the price of gas. And that the deregulation experiment would work in our small market where it failed in Ontario, Alberta, and California.

Deregulation just might be the only thing the Liberals could do that would top their biggest energy policy blunder ever - allowing the sell-off Nova Scotia Power to begin with.

 



[i] Stephen McNeil, AGM speech, April 28 2012

[ii] Rick Howe Show, 3 April 2012

[iii] http://www.liberal.ns.ca/nslp_9556_40236.html

[iv] Ontario’s Long Term Energy Plan. Page 6. 2010. http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf

[v] Premier Dalton McGuinty, Ontario Hansard. November 24, 2010

[vi] Cost of power-price freeze at $1.36 billion in 11 months. The Globe and Mail. April 12 2003.

[vii] Ontario’s Long Term Energy Plan. Page 6. 2010. http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf

[viii] Dr. Marjorie Griffin Cohen, in CUPE: Deregulation, privatization and the Ontario power failure, 24 September 2003, also RBC Dominion Securities, ZAP! Alberta is jolted by electricity price deregulation. January 2001. http://www.iasa.ca/ED_documents_various/zap0101.pdf

[ix] Rick Wallace, The British Columbia Advantage, 2001 report by the Parkland Institute

[x] RBC Dominion Securities, ZAP! Alberta is jolted by electricity price deregulation. January 2001. http://www.iasa.ca/ED_documents_various/zap0101.pdf

[xi] Darcy Henton, Calgary Herald, 9 January 2012

[xii] Alberta Power Market Players Anxious. Calgary Herald. December 2, 2011. http://www2.canada.com/health/alberta+power+market+players+anxious/5804619/story.html?id=5804619



The ultimate NS budget "hoodwink"
click to expand


Reality Check: Job Numbers
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Reality Check: Electricity Rate
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Reality Check: Renewable Electricity Plan
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Reality Check: "Secret" Plans
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Reality Check: Economy & Environment
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Reality Check: Nova Scotia Power Profits
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