Hydro One Sale

REMOVING the political discussion out of it (e.g. Liberal haters, Conservative Trollers, etc.)

Unless your head is in the sand the government is planning on selling Hydro One ...

http://ift.tt/1M6cDCz

On the face of it, it seems like a dumb idea. Relevant points I am understanding :
- 60% gone for 1.83 billion towards transit
- 700 million / yr into the provincial coffers reduced by 60%
- a net loss to our treasury of roughly 420 million / yr
- though we still get 280 million from the remaining 40% that is owned by the province

However ... after not being able to sleep well last night I got to thinking about it and it is actually not a totally bad idea ... based on my recollection of this article

http://ift.tt/1M6cDCB

so the net loss due to congestion is somewhere between 6 billion and high as 11 billion / yr

if we pump the 1.83 billion in capital gained from the sale into the transit plus whatever else they are spending
- Lets just say they are able to put a 20% dent into the congestion costs for T.O.
- that means that we have a reduced congestion cost by 1.2 billion to 2.2 billion
- this would mean the 420 million loss to the treasury is countered by the 1.2 and 2.2 billion congestion reduction cost
- so we would in effect have a net positive gain of between 780 million to 1.78 billion

- the numbers still seem to work in our favor even if they only reduce congestion by 10% ...

thoughts ?

Hydro One Sale