Hydro One commissions Report detailed with political foibles

- Hydro One commissioned a report that instructed the utility's top executives on the foibles of senior Conservative politicians and their leadership ambitions that might affect the privatization of the government transmission grid company.

The unusual report, produced by Monitor Group, a consulting firm associated with Tom Long, a senior Progressive Conservative strategist, and John Toogood, a policy adviser to former Ontario premier Mike Harris, read much like an episode of Yes, Minister, the British political comedy.

It suggested that the best outcome for Hydro One on the privatization would be the marginalization of the province's energy minister at the time, Jim Wilson. It also wanted to shunt aside Ernie Eves, who was then running to replace Mr. Harris, so he wouldn't interfere in the process.

The report said the "desired behaviour" for Mr. Eves would be if he would "stay out of the way." It also said he would view the privatization process as a personal victory if leadership rival Jim Flaherty failed to get credit for the sale.

Mr. Eves would want to ensure that the "present regime (esp. Flaherty) doesn't get the credit," the report said. It also noted that Mr. Eves would likely form views on the sale based on the thoughts of his companion, Isabel Bassett, and his close associate, Michael Gourley.

The Globe and Mail obtained the report, titled Preparing for IPO, Government Constituent Portraits and dated Jan. 17, 2002, under a Freedom of Information Act request. The document, marked "strictly confidential," was included in the written work produced by a group of senior Tories who received $5.6-million in untendered contracts from Hydro One to work on the utility's proposed privatization.

The report also outlined the likely positions of other Conservatives who were hoping to replace Mr. Harris as premier, including cabinet ministers Elizabeth Witmer, Tony Clement and Chris Stockwell. The report didn't want any of them messing around with the privatization file. It told Hydro One that for all of them the "desired behaviour is to stay out" of the privatization.

The document noted that Mr. Clement would want to ensure that Mr. Flaherty wouldn't get any credit for the sale, while Mr. Stockwell might try to make the sale a losing issue for Mr. Flaherty by warning that a privatization would cause electricity rates to go up.

On Ms. Witmer, the report predicted there were only slim chances she would offer opinions. "Some risk of involvement if environment becomes an issue, but signs so far are for little involvement," it said.

The report also said that her close advisers, Paul Boniferro, Paul Rhodes and Glen Wright, had little understanding of financial matters.