August 20, 1998: FOR IMMEDIATE RELEASE:
"Bill 35 is a huge and very positive step in the direction of
competition and customer choice for electricity in Ontario," said
Al Barnstaple, President of IPPSO, the Independent Power
Producers' Society of Ontario. Appearing before the hearings into
Bill 35 at the Ontario Legislature today, IPPSO Director and
Legal Advisor Tom Brett, proposed amendments to Bill 35 that
would "go further to implement the full promise of competition in
electricity for Ontario."
"This legislation needs to go further, to achieve competition,
investment and jobs in Ontario," Barnstaple said. "Beyond the
financial restructuring of Ontario Hydro, which is a necessary
first step, measures will be needed to address Ontario Hydro's
market power." As drafted, Bill 35 would transfer all of Ontario
Hydro's generation assets into a single publicly-owned generation
company which would own more than 85% of the generating capacity
in Ontario when competition begins. IPPSO is proposing that the
government transfer its assets to at least four separate but
provincially-owned companies to help ensure competition and to
avoid the market power problems of a single large generation
company. "The Ontario Energy Board will also need special powers
to deal with Hydro's pre-existing market dominance, and to ensure
that consumers benefit fully from the competitive system."
"It's crucial that the process include getting control over
Hydro's so-called stranded debt, without giving a competitive
advantage to Hydro's successor companies," Barnstaple added.
Ontario Hydro is the world's largest non-sovereign debtor.
"If Ontario Hydro's debt is assessed and managed in a fair and
objective manner, we are confident that there won't be a
significant amount of stranded debt to be recovered through
special charges on consumersand the effect on competition will be
minimal," Barnstaple says, acknowledging even so that such a job
will not be easy. "It's really worth the effort to make sure that
old debts don't inhibit the competitive market that we're
building here."
Barnstaple also noted that "This is the best time to introduce
environmental measures that support competition." IPPSO advocates
mechanisms that will actively encourage the use of market-based
environmental measures and the fuller use of cleaner, more
environmentally-friendly technologies in the competitive system.
The current legislation facilitates the purchase of cleaner power
by environmentally-conscious consumers, but does not yet address
other significant barriers to entry faced by green power
producers. "If we do it right, with competition we can introduce
the cleanest and most economic sources of power to Ontario's
system at the same time. There will never been a better chance to
get the right blend of good prices and environmental protection
than when this legislation is finalized."
IPPSO is a non-profit organization representing over 500 individuals and companies involved in independent power production and related efforts such as equipment supply, consulting and environmental work. IPPSO members produce power from cogeneration, small hydro, wind energy, waste wood and other sources.
For copy of IPPSO's brief to the Committee, Click here for html version or Click here for wordperfect version
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For further information:
Al Barnstaple, President 416-224-9569
Jake Brooks, Executive Director 416-322-6549
Tom Brett, Director 613-236-3882
John Brace, Director 416-962-6262
Bruce Ander, Director 416-667-5724
Rob McLeese, Director 416-366-4820
Linda Bertoldi, Director 416-367-6700
Independent Power Producers' Society of Ontario (IPPSO)
websites: http://www.newenergy.org/newenergy and
http://www.marketdesign.org
PO Box 1084, Stn. F, Toronto, Ont. M4Y 2T7
tel.: 416-322-6549
fax: 416-481-5785
Internet e-mail:
ippso@web.net