Blackouts and Bonuses

Well the Ontario Power Generation folks won't let a little thing like an operating loss, get in the way of the good times. 1200 managers shared in over 16 million dollars in bonus payments from the Power Utility, which reported a net loss for 2003 of 491 million dollars. Average bonus for management came to around 13,000 dollars, a nice little lump of cash in a province where the power delivery system has been under constant attack from the public.

Now lest you think that bonuses are only for the management lackeys, think again. Yesterday, OPG announced that it's 9,000 unionized workers received bonuses, totaling up to 15 million dollars for 2003. Grade 12 math grads in Ontario will quickly realize that's 31 million dollars in bonus payments made by the money losing utility. A situation that has citizens and power critics alike shaking their heads in amazement.

Thankfully not everyone gets a bonus, OPG pointed out that managers on the Pickering power project were not paid out their performance bonus, as the project did not make it on line in the expected time frame. That slowdown resulted in cost over runs in the hundreds of millions of dollars and suffered thirteen delays before they could get the turbine on line.

Ontario Energy Minister Dwight Duncan has his hands full with OPG. Some have called for complete privatization of the utility, tired of the money pit atmosphere around it. No doubt the first thing he may wish to address is the concept of bonus payments going out, when there is no money coming in.

As for the poor beleaguered tax paying consumer, bonuses must seem like a sharp stick in the eye. Wasn't it August when the lights went out all over Ontario. One gets the feeling that nobody met their performance objectives that day.

The above posting is taken from my Boondoggle blogsite, for more government related postings and links check it out.