JUNE 9, 1998: FOR IMMEDIATE RELEASE:

Independent Power Producers praise government legislation on electricity competition

"The Government's move to introduce competition in electricity will bring long-lasting benefits to the people of Ontario: as consumers, as taxpayers, as workers, and as custodians of the environment," said Al Barnstaple, President of IPPSO, the Independent Power Producers' Society of Ontario.

"By allowing competition in the generation and sale of electricity, this legislation will make the electricity industry more efficient, innovative, and cost-competitive. It will also stimulate new investment and create jobs. By removing Ontario Hydro's monopoly, long-standing problems of financial accountability and environmental responsibility can be resolved.

"The announcement by TransAlta Energy Corp. and 7 Sarnia-area companies last week is just the first in a string of positive new investments that will eventually be triggered by this legislation," Barnstaple predicts. "When the legislation is enacted, the fundamentals will be excellent for new investment and job creation in Ontario's power sector. We could soon see an impressive range of high-efficiency cogeneration, community-based energy systems, renewable energy and possibly export-oriented projects set up in Ontario."

"A new era of consumer protection and choice will begin with the OEB having regulatory authority over the wires monopolies and competition practices. The wisdom of this initiative will become clearer and clearer over time, as customers begin to exercize their new right to choose their electricity supply options, and most new electricity investments become subject to market tests, and the discipline of competition."

"This legislative initiative and Minister Wilson's preceding White Paper on electricity competition could turn out to be the greatest single contribution made this decade to Ontario's economic development. IPPSO and its members fully endorse this important step and will continue to participate in the reform of the electricity sector in Ontario."

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.

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For further information:

Al Barnstaple, President 416-224-9569

Jake Brooks, Executive Director 416-322-6549

Bruce Ander, Director 416-667-5724

Tom Brett, Director 613-236-3882

Jay Shepherd, Counsel 905-629-9035

John Brace, Director 416-962-6262

Stephen Probyn, Director 416-777-2800

Independent Power Producers' Society of Ontario (IPPSO)

PO Box 1084, Stn. F, Toronto, Ont. M4Y 2T7

tel.: 416-322-6549 fax: 416-481-5785

e-mail: ippso@web.net websites: http://www.newenergy.org/newenergy/ and http://www.marketdesign.org