IPPSO statement on the announcement of tax changes March 28, 2003

For immediate release: March 28, 2003

Power producers support tax changes

"The tax changes announced yesterday are another step forward towards establishing supply reliability in Ontario, although to be effective they will need to be complimented by further changes in the regulatory regime," said John Brace, President of IPPSO, the Independent Power Producers' Society of Ontario. "We appreciate the government's efforts to consult with stakeholders in designing the new measures, and encourage them to use more of that approach in addressing the remaining issues associated with bringing about a healthy market for investment in the energy sector. We particularly look forward to working with the government through the Electricity Conservation and Supply Task Force that was announced."

The Ontario government formalized some of its previous announcements about tax changes related to Bill 210 in its economic statement of March 27 including a ten-year income tax holiday for power sales related to new generation, tax deductibility for self-generation, and a sales tax rebate for renewable energy systems.

Mr. Brace reiterated the importance power producers place on the government's "recognition of the benefits that can come from a market-based system. We look forward to the continued evolution of the competitive wholesale market and to the restoration of retail market conditions by 2006. Active competition provides a framework for reliable supply and is the best way to ensure that consumers get the best possible prices in the long run."

"IPPSO is pleased with the emphasis the government is placing on environmentally-preferable sources of new power, and urges the government to follow this up with clear long-term renewable energy supply objectives that will allow for competitive and orderly investment in cleaner energy systems."

Brace stresses that building a competitive market is a long-term process. "We look forward to using these announcements as a solid basis for working with the government and with other stakeholders on market evolution in order to create the conditions necessary for investment in new generation in Ontario".

IPPSO 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. IPPSO members produce power from co-generation, hydro-electric, gas, coal, nuclear, wind energy, waste wood and other sources. IPPSO's members currently produce over 90% of the electricity consumed in Ontario.

For more information, contact:
John Brace, President, 416-962-6262
Jake Brooks, Executive Director, 416-322-6549
Rob McLeese, Past President 416-366-4820

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Independent Power Producers' Society of Ontario, PO Box 1084, Stn. F., Toronto, Ontario M4Y 2T7 Canada, tel. 416-322-6549 fax 416-481-5785 e-mail: ippso@ippso.org http://www.newenergy.org

For queries or suggestions, please forward to:

IPPSO, 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: ippso@ippso.org

Last update: March 28, 2003 URL: http://www.newenergy.org