Ontario’s Electricity Regulation Crisis Report – Part 27: Tony’s Hydro (Formerly Toronto Hydro) Paid Exec. Bonuses While Failing to Meet Reliability Standards

As noted in “Crisis Report – Part 19”, Tony’s Hydro chair Clare Copeland wrote to the Ontario Energy Board on January 20th. One element of that letter was the following statement:“…we have not met the OEB’s minimum reliability standards for distribution companies for the past five years.”Here are the utility’s comments contained in successive Annual Information Forms summarizing the basis upon which the utility issued performance-based incentive payments to senior executives over the last 3 years:

“The Corporation achieved all of its 2010 performance objectives, except for the objective related to SAIFI.”“The LDC (Toronto Hydro) achieved all of its performance objectives except for the objective related to net income (in 2009).”

“Each of the Corporation (the holding company), LDC (the regulated utility) and TH Energy (unregulated subsidiary) exceeded their objectives for 2008.”

Here are the incentive pay amounts paid to Anthony Haines by the utility under the leadership of Clare Copeland:

2010: $340,018
2009: $224,166
2008: $217,372

The amounts noted here do not include salary payments and “Other compensation” amounts that cover costs for perks like luxury car leases.

Post Script: Here is an example of some of the news coverage arising from this post.

 

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