FAO Looks At Hydro One Sell-Off

Posted on Tuesday, February 13, 2018 07:52 AM

Ontario's Financial Accountability Office suggests it might have been better for the Wynne government to borrow the money than proceed with the partial sell-off of Hydro One to help cover the cost of infrastructure improvements.

The FAO released it's latest report on the net costs of the privatization of the utility.

Chief Financial Analyst Jeffrey Novak says while there is some short term gain, overall it will mean long term pain for Ontario taxpayers.

"Over the first three years, 2015/16 to 17/18, that's a positive benefit to theprovince of $3.8 billion. After that, negative fiscal impact of $1.1 billion in 18/19 and then on-going about $264 million each year." 

Novak adds last year's purchase of US-based Avista is having a negative impact on Hydro One's credit rating.

The FAO's report was at the request from a Progressive Conservative MPP.