| Ontario Tenants Rights Ontario Hydro Issues Ontario Electricity Articles Web site search | |
Province, Hydro Create Interim Competitive Electricity MarketOntario Ministry of Energy, NEWS RELEASE, January 16, 1998 TORONTO - Ontario Hydro is setting up an interim market for replacement power as the first step toward introducing competition in electricity supply in the province, Energy, Science and Technology Minister Jim Wilson announced today. "Establishing an interim market for replacement power is an important first step towards the introduction of full competition in the year 2000," Mr. Wilson said. "This market will provide an opportunity for suppliers to compete with Hydro generators and give all market participants valuable experience in preparation for full competition." The interim market opens up the supply side of electricity to other generators who would offer to sell power to Ontario Hydro for distribution. Hydro would compare these suppliers' prices to its own generation costs and select the least expensive alternative after consideration of transmission and other operational factors. Energy from competitively-priced renewable sources such as small hydroelectric, solar and wind power will be selected over non-renewable sources. Sales from independent producers to the interim market will supply the Ontario power pool that serves Hydro customers such as large industrial companies and municipal electric utilities. Creating this market was one of the recommendations in the government's White Paper, Directions For Change: Charting a Course for Competitive Electricity and Jobs in Ontario, and is consistent with the findings of the Select Committee on Ontario Hydro Nuclear Affairs. The interim market will be operational this month, and continue until the full opening of the Ontario market in the year 2000. Hydro staff and officials of the Ministry of Energy, Science and Technology will meet with stakeholders soon to discuss in greater detail how the interim market will work. Hydro Chairman, President and CEO William Farlinger explained that the interim market has the potential to lower costs for consumers. "Hydro has enough generating capacity to meet Ontario demand; however, if there are lower cost sources of supply, we will purchase them on behalf of Ontario customers," he said. "The creation of this market builds on our earlier initiative of issuing a Request For Proposals to identify other generation options available over the 1998-2000 period." "To ensure fairness and transparency, a set of rules defining the interim market will be established, and be subject to an external audit every three months," Mr. Wilson said. "This audit will be publicly available and will be provided to the Market Design Committee, the group of industry and customer representatives that will be established soon to design the rules for the careful and measured transformation of the market," he said. Details of the interim market will soon be available on Hydro's web site (www.hydro.on.ca). For more information, contact: Rick Jennings Media Relations | |
|
|
|