The sale of Alaska Electric Light and Power/Avista is likely to drag Juneau into the politics of Ontario Province where the partial privatization of Hydro One was controversial from the start.
A quick look at Toronto newspapers, for example, shows that this Liberal Party strategy is publicly backfiring for costing the province nearly $2 billion. Ontario is banking on Avista and its utilities to bail out Ontario at our expense.
“The report found Hydro One’s $6.7-billion purchase last year of Avista, a U.S. utility, could improve provincial finances “depending on the future profitability” of the company,” a Feb. 12 article in the Toronto Star reads.
The controversial partial privatization has also become an election issue. Ontario elections will be June 7 and the New Democratic Party (NDP) is campaigning to repurchase shares and change Ontario law to put Hydro One under direct control of the Ontario Provincial government. The Ontario Progressive Conservative Party has vowed to replace Hydro One management and reduce their multi-million dollar salaries.
Whichever party wins, Juneau could be in for a wild ride in which all previous rules and promises may be broken, especially if the City and Borough of Juneau has not been able to negotiate iron clad written agreements enforceable by the Regulatory Commission of Alaska.
Margo Waring,
Juneau