That's the plan as presented for public consumption.
The plan might not do much damage to Ontario's electricity sector, but it's not likely to do anything beneficial for transit or provincial finances either. Mostly it's more deceptive spectacle from a government that's been spectacularly inept money managers. This post will primarily discuss two issues: the impact of the sale on the perceived electricity sector debt, and the role of the Ontario Energy Board (OEB) in not only consumer pricing - which it's being claimed it regulates responsibly - but the pricing of the share sale.
The plan to sell shares in Hydro One is part of the recommendations in a report from the Premier's Advisory Council on Government Assets. I'll call this the Clark Report as that body is chaired by the architect of Pierre Trudeau's National Energy Plan in the 1980's, Ed Clark - he is also known as a banker.
2014 Financial reporting indicates total equity of $7.6 billion.
The Clark Report values Hydro One much higher than that:
The Council’s analysis indicates that, in today’s markets, the integrated Hydro One transmission and distribution business would likely command a fully distributed equity valuation of between $13.5 billion and $15 billion in a public offering, excluding Hydro One Brampton. We believe this valuation is a conservative range in the context of today’s market:Call it $15 billion, which is $7.4 billion higher than the total equity reported by Hydro One.
$7.4 billion. Remember this number.