Tom Adams

September 13, 2000

Mr. John Brooks
President, Toronto Hydro

Dear Mr. Brooks,

In comments before the OEB at RP 2000-0069 on August 10, you made the following comment:

I think if you look at going back to the market design committee process and the Ministry of Energy’s own process in terms of how the components of the cost of electricity are going to be redistributed, it was always intended that distribution rates would go up and that generation rates and some of the other things would come down and, in the long run, it would all balance out. [Transcript v. 2, p. 422, ll., 18-25]

This comment was repeated in your counsel’s closing submissions [p. 19].

The history of Ontario’s electricity reform process is opposite to what you have suggested. The Minister’s speech in releasing the White Paper referred to one of the goals of the restructuring as leading to electricity rates at “the lowest possible cost”. The third sentence of the White Paper referred to the goal of “lower electricity prices”. The White Paper also noted, “The Government will work with Ontarians to ensure that the electricity industry is restructured in a timely and well-managed way, with the necessary protections for both business and residential customers.” In another expression of concern for the interests of ordinary consumers, the White Paper says, “Under the Government’s plan, when consensus on amalgamation among utilities cannot be reached, the Ontario Energy Board would be available, at the request of the utilities, to facilitate the process and ensure that the interests of the consumer are met.” (p.20)

The MDC’s mandate, including the objective of minimizing costs, arose from the White Paper. During my tenure on the MDC, I can assure you that at every turn, with every element of the electricity bill, the purpose of the exercise was to achieve the lowest sustainable cost of electricity. On the specifics of distribution rates, rather than endorsing higher rates as you claimed, the MDC did not express a view, leaving the matter to the OEB.

Your statement at RP 2000-0069 is factually wrong. I urge you to correct the record in a manner that reflects the prominence of your previous statement.

Sincerely,

Thomas Adams
Executive Director

c. Dean R. J. Daniels, U of T Faculty of Law
Dr. B. B. Purchase, Deputy Minister of Energy Science and Technology
Mr. F. Laughren, Chair, OEB
Mr. J. Rusk, Globe and Mail