Why Politicians Should Never Run Anything–Part172

    Do not think about, write about or deal with  human behavior without determining the effects of incentives.

    In Ontario, the jurisdiction where I live, has a long tradition of costly and arbitrary electrical generation. The first czar of electricity, Adam Beck, relentlessly drove out all the independent electrical generation operators and made the generation of electricity a government activity. He is credited with “bringing electricity to Ontario” as if electricity generation did not already exist before he came on the scene. Since then, the inevitable has happened. Rates kept increasing, workers were paid much more than they were worth, pensions were unfunded, “green” energy soaked up a large part of the budget and wind turbine operators are paid for not generating electricity. Not content with these traditional government ways of wasting money, the government invented a new way.

    The government announced new plans for two large gas generating stations close to large population centers. These plants were actually started and then moved to more remote locations. The cost of cancellations has risen from the government announced 40 million to 1.1 billion which is probably closer to the real amount. So, government business as usual. The reason for the cancellations was that the government believed more votes would be garnered from those who did not want the plants in their neighbourhoods.

    One fact is not mentioned in this nonsense: Amount of electricity deteriorates with travel so that the farther away from consumer the larger the generating plant has to be. This will be an ongoing cost.   Apparently those errant electrical charges which bleed off during transmission are not susceptible to political influence.

Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Days of Songs and Mirrors: A Jacobite in the ‘45.
Cui Bono–Cherchez les Contingencies

Ontario on the hook for $1B over gas plant closures


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