With the race for climate security on, energy is risky (and expensive) business to be run by corporations. We know there has been irreversible damage to the atmosphere, land and waters. We feel shame and we want change. More serious than the carbon impact of one company, the risks of regional management by a fossil fuel cartel are many. A sustainable energy future requires public control. What will it take for the government of Canada to follow the people’s will?
The Great Turning
We live in a time of contrast that raises hope and fear. We put our heads in the sand or open our minds to the question – how can I serve? For me the pressure brings both responses: hope inspired by creative localization, and fear and grief from the dismantling of the commons by private interests. David Korten, and other progressives, call this time of tumultuous change: the Great Turning. Trade and investment pacts are mechanisms of the power crisis because they are the long-term platform for the extraction-privatization of nations. With the new deals, city assets and municipal energy bodies are being traded on the free market. In Ontario where I live provincial and municipal energy service is in the process of being privatized. Selling this people’s asset without permission, and hiring private corporations to run it into perpetuity, is a deal breaker for me. In these energy shaky times, I want the next generation to inherit a public system. This knowing is resultant from more than my Tar Sands shame. Privatizing the energy of Canada’s most populous province risks essential stuff, like affordable rates and service quality. In this blog I explore why energy sectors should not privatize, and if they do, never through trade. I also ask questions about the plans to deregulate Ontario energy.
Extreme Risks
What does it mean to have corporations be in charge of energy? Very few of us can survive off the grid – the majority rely on public energy. All day long we employ energy sources in service of our eating, bathing, working, learning. Nearly all our activities are beholden to shared power. Just like water, energy is essential and the quality of our lives depends on its availability. Many problems can arise when energy becomes managed by for-profit interests. With privatization (or p3ing) we frequently see: decreased access, service limitations, job cuts, rate increases, and environmental risks. California saw rolling blackouts when they privatized. Ontario has its own privatization stories that have increased stress and expense like the 407 highway and Hamilton city water. Because of repeated problems, many municipalities are bringing energy (and other life-dependent sectors) back to public hands. Hamburg Germany residents won an energy referendum in 2013 and are in the process of bringing their energy service fully public again. The purpose behind the “Our Hamburg, Our Grid” campaign is to reclaim public authority in order to create a system based in renewables. Under a North American style trade treaty, like CETA-TTIP, this change could be difficult.
Ontario announces privatization
Ontario’s premier, Kathleen Wynne, recently announced her intention to sell 60% of the public’s energy shares. Last week, at the London town hall for a public Hydro One, Andrea Horwath, MPP for Hamilton and head of the Ontario NDP party, announced that this number could reach 90% or higher. The transfer of power remains regardless of the percentage, however, Horwath shared this — if Ontario ownership reaches below 10%, the legislation implies that the public will be barred from bringing it back to public control. Why privatize a successful crown corporation that has been generating funds and providing stability since 1906? The government says they will privatize Hydro One to build other public infrastructure – transit lines, roads and bridges with an anticipated 4 billion of the sales, and to pay off debt with the other anticipated 5 billion. This asset makes 300 million a year in dividend income for Ontario people. Why sell it off for small short-term gain when the return is long-term losses forever? The danger for our future is not only the loss of reliable consistent funding but also the ability to shape our energy program and monitor its integrity. The auditor general and provincial ombudsperson have warned that they will no longer be able to monitor a private Hydro One.
Plausible Future Outcomes
Big business investors cannot focus on equitable rates and environmental impacts at the expense of their bottom-line. Company survival depends on increasing profit. This does not an-evil-corporation-make, but a dangerous mismatch of public need with private goals. How do energy corporations manage their quarterly profit targets? Increases in rates, decreases in service, or cutting of jobs is likely. What else can do they do to make more money in a context that requires profit growth? In a future Hydro One, we would have no shareholder voice to create renewable infrastructure. The premier knows that we must take care of the climate. She announced a commitment to dealing with climate change this spring. However, encouraging corporations to run Ontario’s energy is fundamentally incongruent with sustainability. Ontario public energy was previously funding renewables until local procurement provisions were banned by the World Trade Organization. Trade law gets in the way of environmental change.
More of the story can be found here: http://newgenerationtrade.com/2015/04/21/earth-day-isnt-just-for-turning-off-lights/
Ontario Energy and Trade Pacts
The government should not make key policy and structural changes without a public mandate. Doing this behind closed doors and legislating far into the future through trade treaties, like the Comprehensive Economic and Trade Agreement (CETA), encourages skepticism. For the first time Canadian energy entities of provincial jurisdiction, like Hydro One, and municipal jurisdiction, like Toronto Hydro, will be ruled through international treaty law. According to the CETA text, Ontario’s energy, including Hydro One, the Ontario Energy Board, and major municipal entities are not protected by Annex reservations. On the European side of CETA-TTIP, sustainable energy choices are also not protected. Europeans will lose their ability to favour cleaner energy sources or suffer the threats of ISDS lawsuits.
Taking Back Power from the CETA-TTIP
There are many things that work in a profit model, and many that don’t! Corporate energy systems, that put us at risk of going even higher in parts per million, is not on my list of what the generation after us should inherit. What I love about this time is the sweet significance it holds. The Great Turning is abundant with ways to make purpose of our quiet lives. It’s a time of opportunity to think about what we stand for and what we can do to make things better for those coming next. How we power this planet should not be decided by a management team of large corporations nor secretly designed in a trade deal. What you will you do with your power in the Great Turning? What part of story do you feel compelled to voice? Canadian economist Marjorie Griffin Cohen, back in the early days of new trade, in a Canadian Centre for Policy Alternatives study, says this of energy: “It is an industry that provides for human survival in a densely populated and complex world. Electricity is the basic infrastructure for every industry. The significance of who controls its generation and supply cannot be overstated.” After all, energy is an expression of our collective power as a civilization. Right now that power is being taken away. There are so many other possibilities. Let’s shine a light on them.
http://www.policyalternatives.ca/sites/default/files/uploads/publications/National_Office_Pubs/electricity.pdf
Jennifer Chesnut
Trade Justice London
London, Ontario Chapter
Council of Canadians
Originally published here:
http://newgenerationtrade.com/2015/06/02/the-great-turning-negotiations-for-public-power/
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