APPrO statement on the Minister of Energy's announcement about CES contracts, April 13, 2005

For immediate release: April 13, 2005

Clean Energy announcement good news for ratepayers, the economy and the environment, power producers say

TORONTO, April 13, 2005 -- Ontario's power producers welcome the announcement of the first installment of successful proponents and projects in response to the Request for Proposals (RFP) for 2500 MW of Clean Energy, said David Butters, President of the Association of Power Producers of Ontario (APPrO). Butters commented that APPrO was also pleased to see that the winners specifically included a cogeneration facility and a province-wide demand response initiative, in addition to new high-efficiency gas-fired generating facilities.

"Ontario faces a critical shortage of generating capacity over the coming years, and making significant reinvestments in our electricity infrastructure has become one of the key public policy challenges facing the province. So this is good news in terms of Ontario’s energy needs, good news for the environment as higher efficiency and cleaner fuels improve air quality, good news for ratepayers through improved reliability and efficiencies in our economy -- and of course good news for Ontario’s power industry. We are looking forward to the announcement on the second installment of successful proponents which will complete the RFP's 2,500 MW capacity objective," Butters said.

He said that while the competitive process for contracts has been arduous for those involved, the government went to great lengths to ensure the process was fair, and that it reflected economic merit in conjunction with locational constraints, system reliability and cost impacts. "The RFP process also provided for direct comparison of proposals for new supply with those for demand management and conservation measures and we commend the government for this," he added.

“However the complexity and length of time it has taken to get to this stage clearly points to the opportunity for significant improvements to the procurement process.” He noted that APPrO looks forward to working with the government and the OPA in this area.

Butters stressed that today’s announcement underscores the need to treat fairly those who have already invested in Ontario based on previous rules, and for the Ontario Power Authority to move forward with an Integrated Power System Plan as the cornerstone of a stable energy framework for Ontario that recognizes the role of all existing and potential Ontario generation facilities including existing NUGs, cogeneration and distributed generation, as well as untapped hydraulic and other renewable energy resources, together with nuclear restarts and new nuclear build.

"This will ensure that we provide Ontarians with the right balance of solutions for new energy supply going forward, keeping cost, reliability and the environment in mind," he said.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators and suppliers of services, equipment and consulting services. APPrO members produce power from co-generation, hydro-electric, gas, coal, nuclear, wind energy, waste wood and other sources. APPrO's members currently produce over 95% of the electricity made in Ontario.

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For further information contact:

David Butters, President
Association of Power Producers of Ontario (APPrO)
25 Adelaide St. E., Suite 1602, Toronto ON M5C 3A1
tel: (416) 322-6549
fax: (416) 481-5785
e-mail: david.butters@appro.org
website: http://www.appro.org

Association of Power Producers of Ontario (APPrO)
PO Box 1084, Stn. F, Toronto, Ont. M4Y 2T7
tel.: 416-322-6549 fax 416-481-5785
e-mail: appro@appro.org website: http://www.newenergy.org

For queries or suggestions, please forward to:

APPrO, PO Box 1084 Station F, Toronto, Ontario, M4Y 2T7 Canada.
Street address: 25 Adelaide St. East, Suite 1602, Toronto, Ontario M5C 3A1
(416) 322-6549 fax 416-481-5785 e-mail: APPrO@APPrO.org

Last update: April 13, 2005 URL: http://www.newenergy.org