APPrO statement on the report of the Electricity Conservation and Supply Task Force, January 14, 2004

For immediate release: January 14, 2004

Task Force report a “Wake up call”
for consumers and the government

The report of the Electricity Conservation and Supply Task Force (ECSTF) is an important “wake up call” for consumers and the government, says John Brace, President of APPrO, the Association of Power Producers of Ontario. “The Task Force clearly saw the magnitude of the problems we are facing here and has given us all a glimpse into the challenges the province will have to address on its way to a more effective energy system. They have provided a compelling analysis of the need for the government to take prompt action to resolve fundamental issues in Ontario's electricity sector.”

“Power producers are very pleased that the Task Force adopted our recommendations to define clear obligations to assure long term supply adequacy, including a definite transition to a less centralized contracting process, and to implement a Renewable Portfolio Standard,” Brace said. The Association also agrees that demand reduction should be able to compete on an equivalent basis with supply side alternatives. “We look forward to working with the government and other players to develop the detailed arrangements that will put these recommendations into action.”

“The Task Force came to some very sound conclusions,” he noted, stressing that while the broad findings are on target, some of the detailed recommendations need expansion. “The Task Force was absolutely right to reinforce the principle of having meaningful competitive supply options. This is the best way to serve consumers, producers and the environment. The Task Force has recognized both the problems facing investors in new generation and the need to address the concerns of those who have already made commitments to generation in Ontario based on the existing market model.”

“How the government responds from here will be critical,” Brace stressed, because “This report is just a starting point. The Task Force has laid out the big challenges, but much practical work is still ahead - government has to take the lead in bringing together the various players to address the challenges. There isn’t much time. It’s going to take all the dedication, co-operation and goodwill we can get.”

“This is not about ideologies, being pro-market, anti-market, or favouring one technology over another,” Brace stressed. “This is about maintaining the competitiveness of Ontario and ensuring that consumers continue to enjoy reliable supply and stable prices. We have to improve the reliability of the system while fully respecting the needs of consumers, the marketplace and the environment. That won’t be easy - as the Task Force itself has said, tough choices will need to be made.”

APPrO sees significant challenges ahead as government makes its policy decisions, and the OEB, IMO and other organizations develop their implementation plans. The long term sustainability of market solutions requires that the IMO maintain its independence and its freedom from conflicts of interest - and that the role of the OEB as an independent and effective regulator be confirmed. Particular attention must be given to achieving balance between generation and transmission investment, and equity between recent generation investment, ongoing generation investment and new generation investment, and between generation of various scales, types and demand side measures. Both stranded debt and heritage asset benefits need to be considered in the context of likely changes to the role of OPG and the market power mitigation arrangements.

“The Task Force is an important first step; we at APPrO are committed to working with the Ontario government and other stakeholders and consumers to develop the detailed legislative and policy responses that will provide Ontario consumers with a stable, competitive and environmentally responsible electricity sector,” Brace concluded.

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:

John Brace, President, 416-962-6262
Rob McLeese, Past President, 416-366-4820
Jake Brooks, Executive Director 416-322-6549

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: 163-C Eastbourne Ave., Toronto, Ontario M5P 2G5
(416) 322-6549 fax 416-481-5785 e-mail: APPrO@APPrO.org

Last update: January 14, 2004 URL: http://www.newenergy.org

Task Force report a “Wake up call” for consumers and the government

Task Force report a “Wake up call”
for consumers and the government