APPrO statement on the Supply Mix directive announcement of June 13 2006

For immediate release: June 13, 2006

Ontario Electricity Generators Welcome Supply Mix Decision

TORONTO, June 13, 2006 – The Association of Power Producers of Ontario (APPrO) welcomed today’s announcement on Ontario’s supply mix, saying that they are confident the power generation industry can bring forward the kind of supply contemplated by the government, on time, on budget and for a reasonable cost, said APPrO President David Butters. He added that development of this new generation will mean billions of dollars worth of new investment and jobs in Ontario, bringing environmentally sustainable new technologies and innovation, along with new jobs and a host of economic opportunities.

Butters said the industry also applauds the government’s decision because it signals a focus on results, and limits the risk borne by consumers. “We’ve said before that it’s time for action. With this decision, and with previously announced procurement initiatives, the government is making progress on closing the supply gap and assuring an electricity supply in Ontario that is safe, reliable and economically sound,” he said. “Today’s supply mix direction is a fundamental element in an Integrated Power System Plan for Ontario which will bring the province much closer to a longer term energy future based on independent and comprehensive forward planning processes – not short term thinking”.

Butters said that APPrO members will do their part to provide new generation solutions, primarily utilizing private sector resources. “We look forward to working with the OPA and other agencies to ensure that Ontario’s power supply needs are met at the best cost, both from new resources and by maximizing the output and efficiency of existing generation resources.” But it is important that the supply mix also place a strong emphasis on conservation and demand management, Butters noted. “These are essential parts of the picture, and everyone will benefit from conservation and the development of economic opportunities for increased efficiency.”

He warned that there are other challenges which must be met as well. “The greatest barrier is neither technology nor financing, but permitting and approval requirements. While the government has now clearly identified expanding the transmission capacity from Bruce County and surrounding area as a priority, the sooner we can arrive at an enduring solution to the all-to-familiar problems around approval processes and public support for vital energy infrastructure projects, the sooner we can develop and build what’s needed, when its needed and at a price Ontario can afford,” Butters concluded.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators, suppliers of services, equipment and consulting services. APPrO members produce power from nuclear, hydro, fossil, wind, waste wood and other energy sources. APPrO’s members currently produce over 95% of the electricity generated 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 or (647) 444-6549

fax: (416) 481-5785

e-mail: david.butters@appro.org

website: http://www.appro.org

Note to editors:

APPrO’s earlier comments on the supply mix are available on the What’s New section of the organization’s website, or directly through the following link: http://www.appro.org/APPrO_Submission_on_Supply_Mix_August_2005.pdf

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.appro.org