By Carl Clutchey, Local Journalism Initiative Reporter
Source: The Chronicle-Journal
Hydro One customers could face “more equipment failures and higher emergency repair costs” if the utility doesn’t invest in upgrades sooner than later, the utility warns.
But critics say the highly profitable company appears to be putting the blame for its deteriorating infrastructure on customers, while maintaining high profits for its shareholders.
Customers had until Friday to respond to a Hydro One survey seeking input into how the utility should invest funds for the period of 2028-2032.
“The feedback we receive will be incorporated into the draft (investment) plan before it’s submitted to the Ontario Energy Board later next year,” a Hydro One spokeswoman said on Friday.
The survey indicates monthly bill increases will be connected to the “pace” of how repairs are addressed.
How much Hydro One could spend for the five-year investment period wasn’t immediately available on Friday.
According to detailed background information that accompanied the customer survey, much of Hydro One’s aging infrastructure is in bad need of repair.
Of 90,000 wood poles and steel transmission towers, 23,000 are at the end of their expected service life, the utility’s survey says.
More than 10 per cent of 28,000 kilometres of transmission lines are at increase risk of failure to age and conditions, the survey says.
NDP MPP Lise Vaugeois, who read through the survey, said customers should be concerned.
“It certainly raises a lot of questions, including why repairs have been left for so long and how this intersects with the privatization of Hydro One,” said Vaugeois (Thunder Bay-Superior North).
Hydro One, a rural electricity transmission service funded by its ratepayers, was privatized in 2015 under former Liberal premier Kathleen Wynne. Ontario remains a shareholder in the utility with a 47-per cent stake.
For 2024, the company reported net income of $1.15 billion, a slight increase over 2023.
Vaugeois said customers should wonder whether the “need to generate profits for the corporation is affecting the cost to ratepayers.”
Some of Hydro One’s infrastructure dates back to a period between the 1930s and 1950s, the utility says.
“We have continued to upgrade and maintain areas of the line, and have identified several types of equipment that are at increased risk of failure due to age and condition, and would have widespread impacts if they were to fail,” the Hydro One spokeswoman said.
Vaugeois said the customer survey is a “public relations exercise” that suggests “it’s up to ratepayers to decide whether they want to pay higher rates or risk blackouts.”
The Hydro One spokeswoman said “Ontario is facing historic growth in electricity demand, and significant investments are required to meet Ontario’s future needs.”
“These investments will also support Ontario jobs, strengthen local businesses and build a more resilient Canadian and Ontario-based supply chain,” she added.
