APPrO statement on the release of the Standard Offer Rules, Nov 9 2006

For immediate release: November 9, 2006

Power Producers welcome release of Standard Offer Program

TORONTO: The Association of Power Producers of Ontario (APPrO) welcomed yesterday's release by the Ontario Power Authority (OPA) of its Renewable Energy Standard Offer Program (RESOP). "This standard offer program has the potential to deliver a wide variety of new small renewable power projects which can help to meet Ontario's renewable energy targets," APPrO president David Butters said.

Butters noted that the standard offer initiative will allow many small power renewable producers to supply power to the Ontario grid at a guaranteed price, assuming certain conditions are met. "APPrO has been very supportive of the Standard Offer model and we are continuing to work with the Ontario Power Authority and industry stakeholders on broadening the program to include small, high-efficiency gas fired projects as well," he added.

"Today’s announcement is a good start, but the fact that there are significant areas of the province where the transmission system has limited or no ability to accepted new generation is a major concern to APPrO and its members," Butters said. "The OPA has begun to address this issue for RESOP projects in its published rules, but more can be done," he noted.

"The transmission constrained zones contain some of Ontario's best renewable energy resources and these constraints could severely limit the number of RESOP projects that will actually be able to obtain a contract and move forward. Therefore a large number of otherwise viable projects could fail to materialize," Butters emphasized.

"Options to connect additional projects in constrained zones must be evaluated on a high priority basis in order to avoid stranding those projects – otherwise we may see a negative impact on Ontario's renewable energy targets. APPrO looks forward to working closely with the OPA and other stakeholders to find innovative ways to open up the constrained zones for RESOP projects”, he said.

The APPrO 2006 conference, the leading Canadian power generation event, will be a prime opportunity for RESOP applicants to gain information and business contacts to move their projects forward. Taking place November 14 and 15, along with the Canadian Power Trade Show, it will allow new power producers to meet a range of experts and equipment suppliers in the field, and to discuss the RESOP rules with representatives of the Ontario Power Authority. Several sessions and meetings are planned with a specific focus on the Standard Offer Program. More information about the event is available online at http://conference.appro.org

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.

-30-

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 Standard Offer and a number of resources for Standard Offer proponents are available on the organization’s website, or directly through the following links:

http://www.appro.org/SOCresources.html

http://www.appro.org/APPrO_Submission_to_OEB_on_Standard_Offer_Program,_%20December_5,_2005.pdf

and

http://www.appro.org/APPrO_Perspectives_on_Standard_Offer_Contract,_Nov_16_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