Hydro users get $4M jolt

MPP wants inquiry; Tories say loophole fixed

Toronto Sun - Tuesday, August 20, 2002
By Alan Findlay - Queen's Park Bureau

Ontario New Democrat Leader Howard Hampton is demanding an inquiry into $4-million worth of questionable electricity charges soon to hit consumers' bills.

According to the province's new hydro market regulator, companies were importing high-priced electricity into Ontario, collecting a subsidy at the expense of local power users and then exporting the same amount of power.

The price-tag on such so-called "implied wheel" trades totalled $4 million before the Independent Electricity Market Operator (IMO) banned the practice two weeks ago.

Hampton said the province should call an investigation into the issue because it should have never happened in the first place.

"This is just another in a long line of hydro ripoffs," he said.

Diana Arajs, press secretary for Energy Minister Chris Stockwell, said the issue doesn't need to be further investigated because it was quickly identified and fixed by the regulating IMO.

"We're very happy with the success of their market surveillance," Arajs said. "If something is going on that is not beneficial to ratepayers, they're stepping in and doing exactly what they're supposed to do."

Bruce Campbell, VP of corporate and legal affairs for IMO, likened the situation to plugging an unanticipated tax loophole. Under the new rules, power wholesalers will not be able to claim the import subsidy (intended to ensure sufficient power supplies for Ontarians) on electricity that does not stay in Ontario.

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