Killing green energy contracts

radwanski30nw1Financial Post, Bruce Pardy
Tim Hudak says the Ontario Conservatives, if elected, will cancel lucrative wind and solar contracts put in place under the Liberals’ green energy program. Can he do so without racking up huge compensation costs?

The answer is yes – if he does it the right way.

The wrong way is to direct the Ontario Power Authority to simply terminate existing contracts, which have robust compensation clauses. The liabilities would dwarf the $1.1-billion paid out by the Liberals for cancelled gas plants.

The right way is to legislate: to enact a statute that declares green contracts to be null and void, and the province to be free from liability. The compensation clauses in the contract will be rendered inoperative if the statute says so.

Statutes can override iron-clad provisions in a contract because that is the nature of legislative supremacy: Legislatures can pass laws of any kind, as long as they are within their jurisdiction and do not offend the constitution. Legislating on electricity production is clearly a provincial power, as are “property and civil rights.” Read article

24 thoughts on “Killing green energy contracts

  1. Hudak will not cancel existing contracts…that would be taking a leaf out the McGuinty/Wynne playbook and it was too costly.

  2. Haha, most of these windfarms are owned by oil/gas corporations. Like Hudak is going to cancel anything, Harper won’t let him.

  3. I never heard Hudak ever say he was going to cancel existing contracts.

    But since the article says he can at no cost, why wouldn’t he considering what job killers the wind and solar scam has turned into.

    The financiers and crony capitalists would squeal and give tax payer subsidized campaign donations to the other parties. We get the best government money can buy.

  4. Pingback: Hydro Bills Up For Election | WAINFLEET WIND ACTION GROUP

  5. You get a government that will destroy any credibility and market security that this province ever had. Look at what one Gas company did to this province after the gas plant cancellations. Now look at what the 10-20 more powerful renewable energy companies (with parent backing) will do to this province financially. Hudak will also ruing the credit rating and drive away investors from government contracts because of market instability.

    Not very conservative is it. A safer consideration would be to try and alter the agreements with new caveats around local support/acceptance and competitive pricing (sounds a lot like the Liberals plan with the new Large Renewable Procurement).

  6. The gov’t would be insane to do such a thing as it would shake investor confidence in all sectors which would really kill jobs. It a company can’t trust the gov’t of the country they are invested in, they’ll pull out. Thats’ why its so difficult to do business with dictatorship countries.
    You can’t just break contracts without and consequences. That’s why Hudak of all people would be the last to do such a thing. The NDP on the other hand…

    • Please clarify if I’m understanding this incorrectly but you would willingly vote for Hudak though he is clearly lying about the contract cancellations and then turn around and take a hit at the NDP for keeping their word on contract cancellations?

  7. To argue that wind energy contracts cannot be altered, comes perilously close to questioning who exactly runs Ont; The duly elected executive government, or a cabal of wind companies.
    While it was proper for Mike Crawley and cronies to influence Dalton McGuinty to pass the GEA, enact the lucrative FIT Tariffs and enable IWT development through all kinds of favourable boards and agencies, somehow it isn’t for a succeeding government to change things? This is what Wynne and Chiarelli would have us believe; I for one do not buy it.

    As we have just seen, even a minority government with an unelected premier has enormous power to influence energy development in Ont. For one thing once assuming control they can only be removed by a NC motion on a money bill.Wynne’s regime should have been defeated months ago on the gas plant hearings alone.
    If Hudak can form a government He has all the levers at hand to decide who runs the province; I expect him to use them.

  8. There are other ways of handling this situation without cancelling contracts.
    Don’t know who is spreading this nonsense around?

  9. Nobody will get this as obvious reasons that nobody understands that all this mess was done in fraud and once fraud or the light is directed to it and exposed all contracts past and present is void and nulled. That is by only thru lawful means and not legalese.
    We are dealing with health issues and many other harmful elements that call for immediate shut down and we can wheel this power. Remedy is you need to educate yourselves from what you have not learned.
    As far as money is this country has a vast amount of resources that we never got a fare share of and as far as our bank notes that is exactly what they are,just notes and nothing to back it up with.
    Do not concern yourself s with those legal fiction fear porno.

  10. I would think that a NEW government could find their own scientific data to support health issues from IWTs and implement new legislation to force operators to trim back their operations. Just need to prove the deceptions from the windys. Would be easy. Just my thoughts. But first we would need a majority PC govt. If its minority I wouldn’t dout libs and AND go back to bed together even after what Andrea said

  11. Oops. I meant” Libs and NDP”. At the end of my comment. I’m sure you knew what I meant. Lol

  12. Who is spreading this nonsense?

    DS, robert – do you know?

    Anyhow, this is kind of confusing:

    ‘[excerpt] Since the Canadian constitution does not guarantee property or contract rights, there are no obvious constitutional limitations on a provincial legislature’s ability to change any contract as it likes. Unlike the U.S. Constitution, in Canada there is no constitutional right to compensation for property expropriated by government.’

    Just what do lawyers think a Canadian’s “right to security” in the Canadian Charter of Rights and Freedoms is?

    • Sure, they break all kinds of contracts but it will only hurt Ontarios credibility as a safe place to do business. No credibility = no businesses willing to move here = no jobs.

      • You think anyone wants to invest in Ontario the way it is? Companies will clearly see valid vs. invalid deals with the government.
        Who will lose if contracts are cancelled? Not the higher ups — the “smart money” has already “taken” their profits and moved on…

    • Neglecting to mention that WIND TURBINES ARE A TOTAL FRAUD!

      How could that happen?

      “Oops!”
      “was just laundering..”
      […] and other absurdities…

  13. Just look at who owns the stock in these IWT companies and you will know who will take the loss. Lots of “smart” money owns these stocks.

  14. University business, engineering and law schools are by and large “infected” with the new “green” energy & economy in Canada and in the States.

  15. So Pardy article was a set-up for Brad Duguid to go after Tim Hudak? A not too successful attempt to neutralize the gas plants issue?

    Hudak not scrapping solar and wind power contracts, just no new ones
    Posted on 05/18/2014 by windaction
    hudakMonteSun News, ANTONELLA ARTUSO

    TORONTO — Progressive Conservative Leader Tim Hudak has learned nothing from Liberal government’s mistakes in the $1 billion gas plants controversy. That was the unusual message from Liberal MPP Brad Duguid, who said Hudak is about to waste 20 times as much public money if he proceeds with his plans to tear up solar and wind power contracts.

    “Ontarians should be asking Tim Hudak whether he’s learned from the mistakes that were made during the gas plants issue,” Duguid said Sunday. “We certainly as a government have. We’ve taken a number of measures to make sure that doesn’t happen again. “Tim Hudak, though, in his plan, would repeat the same darn mistake again, costing us tens of billions of dollars.”…

  16. Hudak not likely to make the same contract mistakes that the Libs did when there are other ways of dealing with the IWT issue.
    Urbanites will connect with:
    High electric bills
    Energy poverty in Ontario and what’s causing it.
    Loss of their purchasing power due to paying high energy bills.
    Loss of jobs due to the same reason as above.
    Why new businesses won’t locate in Ontario and why business is leaving the province.
    Electric power produced to be sold to the U.S. but paid for by Ontarians.The evidence for this is available and the reason why the U.S.needs power now.

  17. Save it Duguid. You Liberals are the biggest liars going. Even if you did make sense, anyone with half a brain wouldn’t believe you anyway. These guys need to be put in their places once and for all.
    Put them all in Toronto and put a fence around them. Grow your own food and develop your own hydro. Have you ever baked a cake from scratch?! Na, I didnt think so.
    Fiberals don’t mix well with the values of rural folk.

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