Should Collingwood Sell It's Remaining Stake in Collus?

  Like many of you I have been following the ongoing efforts of the Town of Collingwood to sell their remaining 50% interest in Collus.  According to a recent article online by Simcoe.com, Collingwood Council voted 7 to 2 in favour of continuing talks with one potential buyer in the hopes of securing an agreement.  The Town of Wasaga Beach is similarly engaged in the same process, looking to divest themselves of Wasaga Distribution.  It is such a heated topic with Wasaga Beach residents that a referendum may be called.

  It's easy for any of us to get emotional about the potential sale of Collus or Wasaga Distribution most of which I believe is driven by fear.  Ontario's soaring hydro rates are front and centre on a daily basis with the media seizing every opportunity to point out that Ontario allegedly has the highest electrical rates in North America.  Selling off either of these distribution entities is seen by most as a threat that will potentially increase monthly hydro bills even further in the future.  In reality there are a lot of other factors that need to be considered here not the least of which is future changes in technology.

 When I ran for Collingwood Council in the last municipal election, the ink had just dried on the 50% sale of Collus by the Town of Collingwood to Powerstream.  It was a touchy issue in the public eye at the time one in which I thought would surely come up during the election campaign.  To that end I met with then Chair of Collus, David McFadden to gain further insight and to better understand the reason behind the sale and how it would benefit our community.

  According to online records, at this moment there are 78 public utility/electrical distribution companies (PUC's) scattered across the Province whose mandate is to distribute electricity throughout their respective service areas.  Areas not served by these 78 smaller entities typically falls to Hydro One.  Like Hydro One, these 78 smaller companies are responsible for maintaining their respective electrical grids both above and below ground.  In addition, these smaller PUC's maintain administrative support for billing customers, collecting money owed etc. and this often includes water and sewer services as well.  Performing all of these functions entails a lot of people and a lot of equipment making this a very capital intensive business.  I suspect that many of the smaller PUC's across the Province may be marginally profitable and as such they may not have the financial resources to re-invest in their business, for better systems, employee training, reducing costs or for upgrades to improve the level of services they provide.  There is no doubt in my mind that improvements to efficiencies and systems resulting in lower costs of operation and better service for consumers would be attained if there was a consolidation in the number of PUC's across the Province.  Collus' partner Powerstream, has just merged with three other public utility providers to operate under the new name "Alectra."  In a press release issued on January 16th one of the proposed benefits stated as a result of this merger was " Residential customers will save an average $40 per year on bills as merger efficiencies are achieved over the next 10 years."

  A further case in point is with respect water and sewer services.  Following the 50% sale of Collus to Powerstream, Collingwood has since removed water and wastewater services from Collus and moved it in house under the Public Works Department.  This change was estimated to generate about $750,000 in annual savings. Since implementation, the estimated savings as reported at a Council meeting were in reality even greater so it's not hard to see how a fundamental change in business practice can yield improved efficiency and less cost.  Consolidation of the 78 PUC's in Ontario may well generate significant savings by eliminating redundancy and costs while potentially improving services to both residential and commercial customers.

  The other issue that must be considered is technological changes.  According to the reports I receive from Collus, my electrical usage is well below the average for similar homes in my neighbourhood.  Yes I am a single guy so unlike a family my hydro usage will be less but I have also taken steps to reduce my energy use as well.  Most of the lights in the high use areas of my house such as the kitchen, dining and living rooms are LED's.  If I am not in a room the lights are off.  I just installed a high efficiency gas furnace which saves me money on both gas and hydro.  In addition I installed a WiFi thermostat that allows me to control my heating and cooling using my smartphone regardless of where I am.  By using less I am in essence "less" of a customer for Enbridge and Collus as the revenue they generate from me is diminished.

  With respect to energy generation and use, I believe that we have just scratched the surface regarding technology.  Solar panels are springing up across our region both on farms and on individual residential homes roof tops.  Battery technology whether for vehicular use or in homes is improving dramatically and will continue to do so for years to come.  Tesla's Powerwall 2 can power an average two bedroom home for a day and Tesla's cars are becoming quite common even in our area.  Further, Tesla and other companies have developed what are essentially solar panel shingles.  How long will it be before technology exists whereby you will generate your own power, store it and use it in both your home and car?  The fact is you can now albeit it is still limited and expensive but in the future costs will come down and energy self sufficiency will be much more mainstream than it is today.

  What with consumers like myself using less and with emerging
technologies that will change the way we generate and consume
electricity it begs the question what does the future look like for traditional power distribution companies (PUC's) such as Collus and is now a good time to sell?  PUC's like Collus and Wasaga Distribution will no doubt always be around but just like other industries that were confronted by changes in consumer habits with traditional business' disrupted by technology they are going to have to adapt and change in order to survive.  That takes money and lots of it.  Is the Town wise to exit this business now by selling their remaining 50% stake in Collus?  I think so and I hope those on Council that are involved in making the appropriate decision(s) are considering what the future holds and how it will impact what is essentially a decades old business that until now has held a monopoly.  It won't happen overnight, but that monopoly is about to change and we will all be better off.

Where Have All The Great Leaders Gone?

Last evening the Collingwood Chamber of Commerce of which I am both a member at large as well as part of the executive, held an all-candidates meeting for the upcoming federal election.  As was expected, the Legion was packed to a standing room only crowd prompting many to ask is there somewhere larger in Town to hold this.  The simple answer is no.  Short of the Eddie Bush arena Collingwood lacks a venue to hold and event of this size.  Other observations I overhead by those in attendance was the lack of younger people in the audience.  By far the majority of those present (myself included) were 50+.  I have noted this at other community events of this type leading me to believe that perhaps the younger residents in town are simply too busy with work, family or other commitments to attend politcal or other events that involve issues pertaining to the community or in the case of a federal election, the country.  Perhaps they just don't care and that may stem from a lack of confidence in both the political process and in those individuals that choose to run for political office.
  In a prior posting I posed the question where have all the great leader's gone? Last night's meeting certainly did nothing to answer that question.  After two hours of listening to the candidates answering questions from local members of the media, there were some choices removed from the group but at the same time no out-front winners.  I must admit that Helena Guergis came off "sounding" the best, no doubt due in part to her past experience, her political savvy and the fact that she is fighting for her reputation and job.  The Liberal candidate Alex Smardenka simultaneously pulled out a gun, dropped in a bullet and shot himself with his comment about PC Candidate Kellie Lietch when he essentially said "...we don't need a rich doctor with her million dollar home being parachuted in to the riding....."  That comment drew prolific boos from the audience no doubt costing Mr. Smardenka signifiant votes in the room if he had many to begin with.  It was equally disappointing when later in the evening instead of taking the high road,  Dr. Leitch took an almost equal swipe at the Liberal candidate as payback.  And what's with the Dr. title?  Does anyone really care?  Her skills as a pediatric surgeon are admirable but for the most part are irrelevent to the political job at hand.  My father was a doctor (a dentist) and while he was proud of his profession it was a title that outside of his business dealings, he never used. 
  Election day (May 2nd) is fast approaching and like many I remain unsure as to how I will vote.  I must confess I have never aligned myself with any particular party instead, choosing to vote for the individual I feel is best suited for the position.  Different times require different measures so in my opinion there is no one party that offers a fix-all solution for everything. Last evening was helpful in ruling out some choices but came no closer to answering the question where have all the great leaders gone?    

More on Ontario's "Green Energy Act"

Local MPP Jim Wilson and the Conservatives continue to vigorously oppose the Liberal's proposed Green Energy Act known as Bill 150. The following is the latest excerpt from MPP Wilson's office:
"As I wrote previously, if Bill 150 passes, it will drive energy costs up by shifting the risk of cost overruns and scheduling delays in the energy sector from private developers on to taxpayers. It also eliminates the last remnants of a competitive marketplace by allowing private developers to build anything, anywhere, anytime, at any price. When I was Energy Minister, our Progressive Conservative Government said "never again" to that approach. Those who remember Darlington or the $38 billion in accumulated debt from the old Ontario Hydro know why. Unfortunately, it appears as though Mr. McGuinty's Liberal government is now saying "one more time!"But the most controversial aspect of the Bill that directly impacts every homeowner is the requirement in Bill 150 for every home sold to undergo an energy audit. It will cost about $300 and will consider everything from your shower head to your furnace. If one isn't up to snuff, be prepared to fix it. The average cost of repairs? Based on past examples it's going to cost thousands and thousands of dollars.
Gary Weir of the Ontario Real Estate Association noted "the results of these audits will be used by home buyers as bargaining chips to significantly reduce the final selling price". This could be particularly worrying for seniors relying on the equity in their home for retirement. Same for first time home buyers who will now need more money to buy their first resale home."
I have not read the Bill in it's entirety but certainly intend to. I do not however agree with the stand taken by my own provincial real estate association (OREA) on the matter of "...these audits will be used by home buyers as bargaining chips to significantly reduce the final selling price".
The onus to correctly establish the price on a home whether it be as the listing agent for the seller or if we are prepring an offer to purchase while representing a buyer falls to those of us in the real estate profession. We as licensed and knowledgaeble REALTORS® must price properties correctly to both market conditions as well as the condition of the property inquestion. As a Market Value Appraiser (MVA) I look for characteristics in a property which will help establish a fair market value for a property. If I have done so correctly and accounted for such "Green Energy" difficiencies as old windows, an out-dated furnace etc. then hiow much of a "bargaining chip" can a buyer legitimately hold. Granted we are not energy auditors but it doesn't take a genius to recongnize a property that might me a high energy consumer. The stand taken by OREA suggest the old saying applies "let the buyer beware." That attitude not only ignores the growing need for us to reduce our energy consumption but exposes REALTORS® to legal actionfor not protecting the interest of our clients.
Strangely enough, Ontario REal Estate Association is embarking on a multi-million dollar expansion of their office in Toronto and are doing to to LEED (Leadership in Energy and Environmental Design) standards which I am sure is adding significantly to the cost. Would that not appear to contradict their own stand about home energy audits?
One last comment about the concern of MPP Wilson and the Conservatives about the impact to property owners re: the energy audit. In 1995 the then in power Provincial Conservatives passed into law a Bill which resulted in rental condominiums such as those at Blue Mountain reclassified from residential to commercial property tax status. As a result, a condo with a $3,000 annual tax bill saw that amount increase to approximately $7,800! The Conservatives were not too concerned about a homeowner's rights and costs then so are we now to believe they have seen the light? Somehow I for one am not buying it.
Green Energy Act, mandatory home energy audit or not, my mandate is to continue working diligently to ensure that my knowledge and skills as a REALTOR® are utilized to their full extent when pricing properties and representing my client's best interests. Politics simply doesn't enter into that process nor should it.

The Sad State of Politics

During the 1990's I lived in the U.S. for a period of four years which was an opportunity that provided a great social/cultural experience for my family as well as offering irreplaceable business experience for myself. As much as we enjoyed our time there, it wasn't home, it gave me a greater sense of appreciation for what we have in Canada and consequently I had no desire to remain there long-term. Given the current state of affairs south of the border, I am even more grateful to be back yet I have followed the Presidential race closely.
The procedure to elect a new U.S. President is a long and onerous one taking the better part of two years. They are a country at war, their economy is in a mess and the banking/financial community, well what can one say? They desparately need new leadership in place and quickly. The process is too long, too costly and has dragged on to the point where they have thrashed over all the relevent issues enough so as to allow Americans to make an informed decsion as to whom is best capable to lead the country in these troubled times. In the last couple of weeks the process has now become nothing more than mud-slinging and inconsequential rhetoric that fails to address the real issues facing the U.S. and indeed the world.
Case in point, Vice Presidential hopeful Sarah Palin, now a mere eight days from the election is dwelling on the accusations about her alleged $150,000 wardrobe. At a political rally yesterday Ms. Palin who insists she is just a hockey-mom and typical housewife went into great detail to say that her wedding ring was purchased by her, in Hawaii for $35.00. Further, she said it was in her pocket because it hurts when she shakes hands. Everyone knows that you shake hands with your right hand and not your left which is where you wear your wedding ring. Come on Sarah. She is either (a) not very bright (b) is being completely mishandled by Republican strategists or (c) is typical of many politicians that believes you can indeed fool all the people all the time. Why she is in the position she is in is completely beyond me and can only lead you to question the competence of John McCain and the Republican party for selecting such a weak personality as a Presidential running mate.
Ms. Palin has repeatedly demonstrated thoughout the campaign that she is far from qualified and or experienced for the postion being sought. Don't get me wrong, I have nothing against women in politics or power and one need only look at Hazell McCallion the Mayor of Mississauaga or Margaret Thatcher's role as Prime Minister of Britain to realize just how capable some women are in the political environment. But Sarah Palin? Let's hope our neighbours to the south use some sound judgement come election day next Tuesday. God help them (and us) if they don't.

Justin Trudeau - The Future of Canada?

As President of the Georgian Triangle Real Estate Board, I attended the Canadian Real Estate Association's Annual Conference last week in Gatineau, Quebec. The keynote speaker for the event was Justin Trudeau. Justin is of course the eldest son of the late Pierre Elliot Trudeau. A little known fact is that Justin is only the second child in history to be born during a father's term as Prime Minister. The last was Sir John A. Macdonald's youngest daughter Margaret.

Like his father, Justin posseses a charismatic demeanor, is an adept public speaker and is passionate about his intent on "making a difference" in this world we live. To that end, he is currently teaching school in Montreal with the belief that playing a role in the education of today's youth will in fact impact our future. When asked about a future in politics Justin replied: "..it's not about if, it's when...." He did in fact win the nomination as Liberal candidate for the Montreal riding of Papineau in April 2007.

Justin is an advocate of several causes including safety in winter sports, stemming from the avalanche death of his younger brother Michel during a ski trip in 1998. Another passion he demonstrated during his speech is the environment. Upon walking to the podium, Justin promptly removed a previously placed (obviously on purpose) bottle of water noting that his refusal to drink "bottled water" was one small thing he can do to help the environment.

At this point in history, there seems to be a lacking of obvious or stand-out choices in terms of selecting a politician(s) to lead us, be it municipally, provincially or federally. The same can be said of the U.S. as is evidenced by the current Presidential race. Voter turn-out no matter what level of government is up for election continues to erode perhaps the result of having such a lacklustre field of candidates to choose from.

Perhaps it will take a Justin Trudeau to reinvigorate the public's faith in the political process and in politicians in general. If Justin truly does "want to make a difference" his chance to do so may be coming sooner than later.