Sudbury

Ontario's energy minister defends Hydro One CEO salary

Ontario's energy minister says despite repeated questions in the legislature about the salary of the CEO of Hydro One, the millions being paid in compensation has no effect on people's energy bills.

Glenn Thibeault says rates are set by Ontario Energy Board, not tied to Hydro One salaries

Power lines are show against a blue sky.
The Ontario Liberals are fielding questions from the opposition about the salary of the CEO of Hydro One. (Chris Seto/CBC)

Ontario's energy minister says despite repeated questions in the legislature about the salary of the CEO of Hydro One, the millions being paid in compensation has no effect on people's energy bills.

"The rates are set by the Ontario Energy Board, they're not set by the company," Glenn Thibeault said.

"The salary of the CEO has nothing to do with the rates that we're seeing on our bills."

Mayo Schmidt, the CEO of Hydro One took home more than $4.85 million last year in salary and benefits.  The combined five-person executive made a total of $11 million.
Ontario Energy Minister, Glenn Thibeault says the multi-million dollar salary of Hydro One's CEO has no effect on people's hydro bills. (Peter Power/Canadian Press)

"If we were to take all the salaries out, it still wouldn't even take one full cent off of everyone's bills," Thibeault said.

The Progressive Conservatives and the NDP have been asking questions about those salaries when people are struggling to pay their bills.

Thibeault touted the Liberals' 'Fair Hydro Plan' as a response to those complaints about the cost of electricity. The plan promises to reduce hydro bills by 25 per cent by refinancing long-term projects.

A complex system

Thibeault called Hydro One a complex organization, adding that qualified people need to be in charge. That costs money, he said.

"I know the salaries are high, especially when you compare it to everyday Ontarians, but the way I'm also looking at it is the CEO salaries are big on paper, but there is value in it becoming a better run company," he said.

The new executive has made strides in areas like advocating for cost reductions and conserving energy, he added.

"I get that it's concerning for people but really, if we were to look at taking all of the salaries away of all the executives, we wouldn't be addressing one cent on any one bill," Thibeault said.