APPrO comments on the OEB Gas Market Review

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For immediate release: October 15, 2010


APPrO comments on the OEB Gas Market Review


TORONTO, October 15 2010 - The Ontario Energy Board (OEB) has begun an extensive stakeholder process that will review and examine changes in the North American natural gas market to identify potential implications for Ontario. An overall objective of the review is “to assess how natural gas markets in Ontario are responding or adapting to changing market conditions.'

             The Board intends to assess the impact of changing dynamics in North American natural gas supply markets, particularly due to increased shale gas production at Marcellus, on the Ontario energy sector. The Review will look at impacts over the next 3-5 years including the potential impact on prices, services and transportation infrastructure utilization.

             A specific objective of the initiative is to determine the need for regulatory changes, if necessary, in response to potential impacts identified. Through the review the Board will consider, for example, what might be the implications of increased shale gas production:

• Will it change the flow pattern of natural gas? If so, will this increase the need for new pipeline services and routes and reduce the attractiveness of others?

• Will it impact the price of natural gas in Ontario arising from incremental supply and a potential increase in pipeline and storage facilities?

• Are there any regulatory implications? Is there a need for greater inter-jurisdictional regulatory alignment?

• Are there risks that, if realized, will change the outlook for shale gas (e.g., potential environmental issues that may impact shale gas exploration and development)?

             To begin the process, the OEB commissioned ICF International to prepare a review of the North American market. The report emphasizes the importance of the growth in unconventional gas supplies, expectations for gas demand growth, changes to gas pipelines and storage, the impacts of supply and demand changes on natural gas price, and how all these market changes may impact the Ontario gas market.

             APPrO made a submission to the OEB during the early stage consultations, emphasizing that gas-fired generators could be 1/3 of the total Ontario gas consumption by 2020, and that they are looking for the “lowest all-in landed cost at the burner tip.'

             APPrO President Dave Butters identified key concerns of major gas consumers from the power sector as follows:

• Balance is needed between market mechanisms for rational development of upstream infrastructure and the public interest in assessing new long term supply arrangements.

  Transition in supply sources results in costs that are distributed inequitably as compared to the benefits.

             In addressing these concerns, Mr. Butters recommended while the Board should carefully consider potential unintended consequences of approving new supply projects, such reviews should not discourage the need for pipeline systems to operate efficiently, and the fact that “ongoing evolution of storage, distribution and transmission services' will be necessary to meet generator needs. “Access to adequate competitively priced supply critical for the success of this market and Ontario’s power requirements,' he said.

             For further information, please see the OEB website, or the APPrO magazine online: https://magazine.appro.org

             Click here for a copy of APPrO’s presentation to the Ontario Energy Board’s Natural Gas Market Review (EB-2010-0199) delivered October 7 and 8, 2010.

             APPrO is a non-profit organization representing more than 100 companies involved in the commercial generation of electricity in Ontario, including generators, suppliers of services, equipment and consulting services. APPrO members produce power from nuclear, hydro, fossil, wind, biomass and other energy sources. APPrO's members currently produce over 95% of the electricity generated in Ontario.

 

 

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For further information contact:

David Butters, President

Association of Power Producers of Ontario (APPrO)
25 Adelaide St. E., Suite 1602, Toronto ON M5C 3A1
tel: (416) 322-6549 ext 231
fax: (416) 481-5785
email: This email address is being protected from spambots. You need JavaScript enabled to view it.

website: https://www.appro.org

 

 

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Ontario power producers welcome Green Energy and Green Economy Act

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For immediate release: February 23 2009


Ontario power producers welcome Green Energy and Green Economy Act

Toronto: Ontario's power producers congratulated the Government of Ontario and Minister of Energy and Infrastructure on the introduction of the Green Energy and Green Economy Act today.

The legislation, if passed, will give a major boost to Ontario’s reputation as a world leader in renewable energy and result in increased investment in new renewable sources of electricity generation for Ontario in the coming years, APPrO president Dave Butters said.

Butters said that a “best-in class renewable energy feed-in tariff' combined with streamlined approvals processes and service guarantees has the potential to deliver Ontario's renewable energy targets faster than previously planned. He also noted that these changes could lead to significantly improved project certainty, which would in turn result in lower cost projects.

“APPrO members companies have been responsible for most of Ontario’s contracted renewable energy projects so far. Renewable energy is good for the environment and the economy -- we intend to work closely with the government over the next several months to make sure that the feed-in tariff is as big a success as it possibly can be,' Butters said.

But he also emphasized that Ontario needs a balance between reliable emission-free nuclear and other lower-emissions generation together with renewable generation, which acting in combination, will lead Ontario to the lowest carbon energy system in North America. “We need to keep this important fact in mind if we are to continue to ensure reliable, low cost and secure energy for consumers of all kinds, whenever they need it,' Butters added.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators, suppliers of services, equipment and consulting services. APPrO members produce power from nuclear, hydro, fossil, wind, waste wood and other energy sources. APPrO's members currently produce over 95% of the electricity generated in Ontario.

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For further information contact:

David Butters, President or Jake Brooks, Executive Director
Association of Power Producers of Ontario (APPrO)
25 Adelaide St. E., Suite 1602, Toronto ON M5C 3A1
tel: (416) 322-6549 or (647) 444-6549
fax: (416) 481-5785
e-mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.
website: https://www.appro.org


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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: This email address is being protected from spam bots, you need Javascript enabled to view it mailto:This email address is being protected from spambots. You need JavaScript enabled to view it. website: https://www.appro.org
 
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Ontario power producers welcome the FIT program

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For immediate release: September 24, 2009

Ontario power producers welcome Ontario’s Feed-in Tariff Program

TORONTO, September 24, 2009 - Ontario's power producers congratulated the Government of Ontario and Minister of Energy and Infrastructure on the introduction of Ontario’s new Feed-in Tariff (FIT) program today.

“This is a very bold step toward the future and it will change the way we think about the electricity system and its relationship to our society,' APPrO president Dave Butters said.

APPrO was one of the earliest advocates of a standard offer program for small scale renewable and clean energy facilities as part of a balanced supply procurement program. The new FIT program is capable of bringing out a wide range of renewable energy projects, both large and small scale, commercial and community based, and has the potential to encourage the growth of a very diverse renewable energy industry based in Ontario, Butters said.

However, he expressed disappointment that the government has not changed the proposed setback of 550 metres for wind turbines. APPrO has recommended a more flexible approach based on decibel levels. It believes this would be the right balance between program success and health and safety issues, and would encourage quieter technologies. While he predicted that the setback will have a negative impact on program uptake and success initially, Butters said that generators were hopeful that over time, working with the government, a more effectively targeted set of rules producing more satisfactory results for all concerned could be achieved.

Overall APPrO is encouraged that with this announcement and other announcements earlier in the week about transmission and distribution investments Ontario can achieve an environmentally and economically sustainable electricity sector that ensures adequacy, reliability, and the optimal environmental footprint and electricity cost for Ontario consumers – and supports the business interests of electricity generators. “If our energy policies are forward-looking and well balanced we will be able to ensure the right kind of energy for consumers of all kinds, whenever they need it, at a price they can afford,' Butters said.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators, suppliers of services, equipment and consulting services. APPrO members produce power from nuclear, hydro, fossil, wind, biomass and other energy sources. APPrO's members currently produce over 95% of the electricity generated in Ontario.


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For further information contact:

David Butters, President
Association of Power Producers of Ontario (APPrO)
25 Adelaide St. E., Suite 1602, Toronto ON M5C 3A1
tel: (416) 322-6549 or (647) 444-6549
fax: (416) 481-5785
e-mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.
website: https://www.appro.org


--------------------------------------------------------------------------------
 
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: This email address is being protected from spam bots, you need Javascript enabled to view it mailto:This email address is being protected from spambots. You need JavaScript enabled to view it. website: https://www.appro.org
 
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