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Tories to end Hydro dynasty

Toronto Sun - October 2, 1997
By James Wallace


The Tories are poised to carve Ontario Hydro into three new independent agencies.

A long-awaited white paper detailing government plans for Hydro will be released in the next few weeks, Premier Mike Harris said yesterday.

It proposes to end Hydro's monopoly and create agencies responsible for power generation, distribution and retail sales, sources told The Sun.

The white paper, which is still being revised, proposes the greatest overhaul of Ontario's electricity market since Hydro was created in 1906.

The key theme of the white paper is competition.

Private companies would get the right to generate and sell electricity to Hydro's 2.8 million customers.

New measures will encourage the amalgamation of Ontario's 306 municipal utilities.


3 AGENCIES

Hydro itself will be folded into three new agencies.

One agency will operate the power grid - 29,000 km of transmission lines and 109,000 km of distribution lines.

A second agency will manage Hydro's 69 hydroelectric stations and its five nuclear and six fossil fuel stations.

A third will be the utility's principal retail agent.

Premier Harris, speaking to the chief stewards of the Power Workers' Union yesterday, said outright privatization has been ruled out for now but "should be considered an option in the future."

Meanwhile, Hydro executives, including chairman Bill Farlinger and hired-gun nuclear expert Carl Andognini, will appear next week before a legislative committee to answer questions about the scathing report that found Ontario's nuclear stations operate at "minimally acceptable" levels.



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