Lower prices, more jobs goal of competitive energy bill

Ontario Ministry of Energy, NEWS RELEASE, June 12, 1998

TORONTO - Through legislation introduced today by Jim Wilson, Minister of Energy, Science and Technology, the Ontario Government is moving to keep its promise to ensure a reliable, affordable and safe supply of electricity while increasing opportunities for investment and job creation.

Subject to approval by the Legislature, the proposed Energy Competition Act would end Ontario Hydro’s 90-year monopoly, bring full competition to the province’s electricity market and reform the natural gas sector.

"We are following through on the vision of our White Paper and introducing legislation that is consistent with the recommendations of our Market Design Committee of industry and customer experts," said Minister Wilson. "Electricity customers stand to benefit most from a competitive electricity market, with greater choice, lower prices and a safe and reliable power supply. As well, these proposed reforms will boost the economy by encouraging jobs and investment."

The proposed legislation would reorganize Ontario Hydro into two commercial corporations -- the Ontario Electricity Generation Corporation and the Ontario Electric Services Corporation -- and set up a new non-profit crown corporation, the Independent Electricity Market Operator, which would ensure reliable electricity supplies and fair access to this $10-billion consumer market.

Under the proposed legislation, the electricity generation business would also be open to power producers who meet the province’s environmental standards and receive a licence to generate electricity. "By allowing access to Hydro’s transmission grid, we’ll be opening up investment opportunities for new generators, co-generation and renewable forms of energy production," Mr. Wilson said.

The bill also proposes amendments to the Ontario Energy Board Act which would provide continued rate protection for rural and remote electricity consumers and ensure that distribution companies fulfill their obligations to connect and serve their customers.

Under the proposed rules, companies participating in the new electricity market would be licensed by the Ontario Energy Board and all marketers selling electricity or natural gas to residential consumers would also require licences.

Subject to the approval of the Legislature, the proposed Energy Competition Act would ensure that strong environmental protection measures are built in to the new electricity market. This is in keeping with the government’s commitments in the White Paper to maintain and enforce its standards for environmental protection; maintain existing limits on emissions; and to meet its national and international commitments. These measures would ensure that greater competition does not threaten environmental protection.

The legislation closely follows the direction of the White Paper - Direction for Change: Charting a Course for Competitive Electricity and Jobs in Ontario - released last November.

"The energy industry’s future has been the subject of extensive public consultation. These consultations highlighted a number of areas in urgent need of reform, which this bill addresses," Mr. Wilson said.

For the electricity sector, this consultation took place through the Advisory Committee on Competition in Ontario’s Electricity System, chaired by the Hon. Donald S. Macdonald, and subsequently by the all-party Select Committee on Ontario Hydro’s Nuclear Affairs.

For the natural gas sector, the government had the benefit of an Ontario Energy Board report advising on legislative change and the Ministry of Energy, Science and Technology conducted consultations based on the board’s recommendations.

"There is an unprecedented level of support for the changes that this bill proposes," Mr. Wilson said. "Public opinion strongly endorses the idea that the status quo is not working."

Copies of the legislation are available in print only from Publications Ontario at 1-800-668-9938.

For more information, please contact:

Brian LeGrow
Communications Branch
Ministry of Energy, Science and Technology
416- 327-5555

Michael Krizanc
Minister's Office
Ministry of Energy, Science and Technology
416-327-3550

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