IPPSO News Release, April 27, 2001

IPPSO statement on government announcement of deadline for market opening IPPSO News Release, April 27, 2001

FOR IMMEDIATE RELEASE: April 27, 2001

Market opening deadline is "good news"
"Work needed" to make sure system is ready

"The Ontario government's announcement of a deadline for opening Ontario's electricity market to competition is good news for the economy, and encouraging for business in the energy sector," say the electricity producers who want to compete in the market. However, "much work still lies ahead in making sure the necessary elements are in place," said Jake Brooks, the Executive Director of IPPSO, the Independent Power Producers' Society of Ontario. "Almost everyone will be better off if the market is open sooner than May of 2002, so it's become very important to focus on completing the remaining preparations as soon as possible." He explains that, "Although major mountains have been moved to set up the market for competition, a few key issues remain to be addressed before we can truly say the market is ready for competition."

"Because we'd all like to see the market open as soon as possible, we encourage the government to keep working on the remaining issues, including ensuring that all past commitments are properly carried forward, with an eye to being ready for competition this November." The relevant regulators, the IMO and the OEB, recently published a plan which envisions having the necessary preparations in place this fall. "The plan put forward by the OEB and the IMO is feasible and has the support of all the necessary players. We'd recommend sticking with that plan and its schedule," said IPPSO's Executive Director Jake Brooks. IPPSO represents more than 300 companies and individuals active in the development of new power generation projects in Ontario. The organization has been advocating an early opening of Ontario's electricity market and a rapid process of divestiture for Ontario Power Generation's generating plants.

IPPSO describes the government's announcement as bringing the province a step closer to a more efficient and responsive electricity industry. "We have to thank the government for lifting a good part of the uncertainty that previously existed around the date for starting competition," Brooks said. "Now the challenge is resolving the remaining issues as quickly as possible, so that no one has to forgo the benefits of competition between November and May."

"Electricity competition will mean not just active competition for the consumer's dollar, but new investment and innovation across the sector." A range of environmentally-friendly energy projects become possible with an open market, in addition to new ways of doing business. "This kind of investment flow will create jobs, stabilize energy costs, and generally improve the economic outlook for Ontario. That's why it's important to resolve the remaining readiness issues as soon as possible"

IPPSO also advocates the rapid decontrol or sell-off of generating plants owned by Ontario Power Generation (OPG), the primary successor to Ontario Hydro. OPG currently dominates the Ontario market owning more than 80% of the generating plants.

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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 Internet e-mail: ippso@ippso.org

Last update: April 27, 2001 URL:http://www.newenergy.org