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Toronto needs to secede from OPG, or Ontario debt, or even Canada. Entirely justified by Ontario energy policy/corruption alone (lemmy.ca)

submitted 1 week ago by humanspiral@lemmy.ca to c/canada@lemmy.ca

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Proposal to Toronto City Council: The Toronto Energy & Food Sovereignty Act (2026)

Subject: Formal Plan for Local Grid Autonomy and "Secession" from OPG/Toronto Hydro

EXECUTIVE SUMMARY
Toronto faces an unprecedented "Utility Death Spiral." With Ontario Power Generation (OPG) seeking a 72.6% rate hike by 2027 to fund aging nuclear infrastructure, and Toronto Hydro applying for nearly $5 billion in grid maintenance, the current path is a direct tax on the citizens of Toronto. This proposal outlines a "Secession Strategy"—municipalizing the local distribution grid at a "Salvage Value" buy-out and establishing a community-owned, circular energy economy.

1. THE INDICTMENT: THE FAILED NUCLEAR PROMISE

The management of Ontario’s nuclear sector has devolved into a multi-generational Ponzi scheme. For decades, the province has "deficit-financed" the true cost of nuclear energy to hide rate shocks, burying billions in provincial debt that our children will inherit. Nuclear power is inherently uneconomic; it is inflexible, high-risk, and requires massive centralized subsidies to appear viable. OPG's $207/MWh target is not a "market rate"—it is an extortionate recovery fee for a tech-heavy addiction that is losing the race against modular renewables. If Pickering B is approved for a second multi-billion-dollar refurbishment, the fiscal collapse of the Ontario energy sector is no longer a risk; it is a mathematical certainty.

2. THE SECESSION STRATEGY

Toronto must act as a sovereign energy district.

Grid Buyout: Expropriate the local low-voltage wires from Toronto Hydro at a "Salvage Value" of $300/home. This effectively recovers assets already "paid for" by citizens over the last 40 years.
Political Deterrent: Secession from OPG’s supply chain would strand 25% of OPG's revenue, effectively forcing the cancellation of the Pickering B project and protecting Torontonians from the $26.8B refurbishment bill.
Jurisdictional Autonomy: If the province denies local control, Toronto will pursue status as an independent "City-State Province" within Canada, or pursue international tariff exemptions to source the necessary modular energy components directly.

3. THE COMMUNITY MICROHUB MODEL

Instead of a centralized grid, Toronto will be powered by 150 "Mega-Hubs" (80 MW each) and 600 "Community Hubs" (20 MW each).

Indoor Vertical Farming: Each hub features an 8-story agricultural stack. By utilizing 20MW of waste heat and oxygen, Toronto becomes self-sufficient in premium tomatoes, melons, and fish.
Tourism & Quality of Life: By selling produce and alpine-quality (ozonated/distilled) water at subsidized rates, Toronto becomes a global "Bio-District" magnet, attracting expats and tourists to the world's most resilient city.

4. THE PROSUMER DIVIDEND & SOLAR ARCHES

Homeowners are the "Engine" of this economy.

15kW Solar Arches: Homes install 66° high-performance solar arches for $11,250 (bulk buy price).
Returns:
- Direct Dividend: $200/kW per year (~$3,000/year for 15kW).
- Energy Sales: Guaranteed Hub buy-back at 6¢/kWh (Summer) and 15¢/kWh (Winter Bonus).
- Payback: Under 3 years, after which the homeowner effectively "mines" community profit.

5. COMPARATIVE RATE STRUCTURE

Even without government subsidies (OER), our "Seceded Hub" rates remain the most competitive in North America.

6. CITY REVENUE SHARE

The City of Toronto transitions from a "shareholder" in a failing utility to a "Landlord" of a thriving hub network.

100-Year Lease: Hubs pay a fixed 10% lease rate on the industrial land value.
Guaranteed Income: This generates $3.2M per year per 8-acre site, over 4x the current industrial property tax revenue, funding city services without raising residential taxes.

NEXT STEPS
We propose a Pilot Hub in Etobicoke to demonstrate the first 20MW agricultural stack and solar-arch rollout. The era of energy extortion ends where local resilience begins.

Is Council prepared to authorize the initial Salvage Value Appraisal of Toronto Hydro's low-voltage assets?

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[-] Rentlar@lemmy.ca 6 points 1 week ago* (last edited 1 week ago)

I like the concept but where'd you get a salvage value of $300? On first order math, I think a crackhead could get more from ripping out the copper from one Toronto household's worth of wiring and electrical distribution and bringing it to a scrapyard.

Also I think you partially misunderstand how Toronto Hydro works. The City of Toronto is not just any ol' shareholder of Toronto Hydro, it's more or less a sole proprietorship, the 100% of shares are owned by the City. https://www.toronto.ca/legdocs/mmis/2024/ex/bgrd/backgroundfile-246358.pdf

Essentially the City has a financial stake but does not directly manage operations. But they can express their desires in ways they set out in their agreements and via Council actions.

[-] humanspiral@lemmy.ca 1 points 1 week ago

Thank you. That ownership document is new to me, but confusing. City would be sole owner as a result of previous bankruptcy/bail out. Seems as though the city is adding $300m into the company (needed for infrastructure), while getting $350m in dividends over next 9 years (which could have paid for that infrastructure instead?). Toronto Hydro has highest monthly fixed fee in the world, managing to not be profitable is proof of corruption on its face. Ownership of the piggy bank inside Toronto Hydro without full operational control ensures that nothing ever gets deposited into the piggy bank.

The $300/home takeover, on threats of right of way fee increases could force Toronto Hydro to cease operations, as well as have a legal liability to remove unmaintained power infrastructure. $300 was proposed as fair accounting salvage value, but a unionized army of crackheads with duty to not just smash and grab has higher overhead than crack trade.

In a way, a fake Toronto ownership scam could expropriate all Toronto Hydro assets at 0 cost because "the shell company is suing its only shareholder" is the remedy.

[-] humanspiral@lemmy.ca 3 points 1 week ago

There are also some regulatory asks from city of Toronto. No tariffs on Chinese components, and permission to build solar archways on properties (under 4 floors high)

[-] humanspiral@lemmy.ca 0 points 1 week ago

Internal Report: Financial Architecture and Profit Genesis of the Community Hub

Subject: Operational Profitability and Dividend Sustainability for 20MW Community Microhubs

1. The Management & Governance Model

To ensure high-efficiency execution, each 20MW Hub operates as a semi-autonomous business unit under a professional management structure.

The Hub Coordinator ($500k): Responsible for energy arbitrage, H2/Ammonia logistics, municipal relations, and secession legal defense.
The Agricultural Director ($500k): Manages the 8-story vertical stack, fish health, crop rotation, and premium branding/sales.
Performance Incentive: The $1M management pool is the primary OPEX line for leadership. High performance is rewarded through a share of the "Agricultural Director" pool, ensuring the food quality and energy uptime are prioritized.

2. Profit Centers: Annual Revenue Breakdown (20MW Baseline)

The Hub’s profitability is derived from three primary streams: Industrial Chemicals, Premium Food, and Energy Arbitrage.

3. Dividend Calculation & Distribution

The "Surplus" is the amount remaining after all management fees, land leases, and infrastructure maintenance are paid.

Gross Profit: $29.2M
Land Lease (10%): ($3.2M)
Management Pool: ($1.0M)
Grid Maintenance: ($3.0M)
Total Available for Dividend: $22,000,000

Distribution (per 10,000 home community):

The "Money Machine": $200/kW of installed solar. A 15kW home receives $3,000 annually.
The Prosumer Incentive: This dividend is paid only to those who contribute solar capacity or battery storage to the microgrid, forcing 100% community adoption.

4. Option: The "Social Dividend" (Subsidized Quality of Life)

If the community votes to prioritize Affordability over Cash Dividends, the Hub can pivot its pricing model. This reduces the cash payout but drastically lowers the local cost of living.

Impact: By cutting the dividend in half, the Hub can provide approximately $11M worth of food subsidies to the neighborhood.
The Result: The community becomes a "Tourists/Expat Magnet" not because people are rich, but because "The world's best food and water cost almost nothing for residents."

5. Capital Resilience (The "Secession" Hedge)

Unlike Toronto Hydro, which must borrow for every transformer, the Hub’s CAPEX is funded by its own cash flow.

Maintenance Fund: $3M per year is set aside for the "Asshole Discount" grid. This pays for the eventual replacement of old AC wires with modern, higher-capacity aluminum or DC lines without needing new debt.
Self-Funding: With a 20-year outlook, the Hub generates enough surplus to replace its entire 20MW electrolyzer and fuel cell stack every 7 years, ensuring the technology is always state-of-the-art.

Summary for Council

The Hub is not a charity; it is a high-margin industrial engine that uses Toronto's expensive land to produce high-value goods. By using 4¢/kWh energy and free fish-poop fertilizer, the Hub operates at margins that no "extortionist" utility or global food importer can match.

Which dividend strategy should the pilot project implement: Maximum Cash to drive solar adoption, or Social Food Subsidies to drive community approval?

[-] humanspiral@lemmy.ca 0 points 1 week ago

Green H2 and ammonia are produced from summer surplus solar on Toronto properties/homes. Crane installed arches are made to go over homes, with anchors at property lines, without working on roofs. Fuel cells provide winter electricity supplement to feed heat pumps. While indoor farming is a main profit center, it uses space that would require setback to other properties for temporary ammonia storage. 80mw facilities use a lot less area (per mw) than 20mw ones, but food production supported by cheap electricity, free heat, are game changers for indoor agriculture, and using more acres near ammonia/FC plants pay for themselves even at high Toronto land values.

[-] humanspiral@lemmy.ca 0 points 1 week ago

OPG will charge 20.7c/kwh in 2027 before Toronto Hydro adds its own extortion layer. This is result of Darlington refurbishment already completed. Pickering refurbishment will cost double. Ontario government does plan to hide this cost increase with debt financed subsidies, but this is a shithole debt spiral that must be escaped.