CNW
February 6, 2002

Stopping Ontario’s progress toward an open market for electricity as advocated by Mr. Hampton, Leader of the NDP, would be a foolhardy and dangerous step, Arthur Dickinson, president of the Association of Major Power Consumers in Ontario (AMPCO) said today. Dickinson cited years of mismanagement by the former Ontario Hydro, the provincially owned monopoly, that resulted in skyrocketing electricity rates, $39 billion in debt and a badly crippled nuclear fleet. “Going back to that system would be an abdication of responsibility for our future. Ontario simply can’t afford it,” he said.

“AMPCO has supported restructuring and open competition in the electricity industry for some time, because the economic prosperity and even the survival of some industries may depend on it”, Dickinson said. “An electricity market where customers have real choice would help Ontario’s economy stay competitive. With the establishment of the May 1, 2002, market opening date, investors can move ahead with plans for new electricity generation so that Ontario will have electricity when it needs it,” he said.

Dickinson noted that since 1995, AMPCO has consistently argued for the creation of real competition and customer choice in the electricity market. He said that AMPCO has been at the forefront of electricity restructuring in Ontario, and has invested resources both as an association, and through its individual members, to ensure that Ontario’s progress on this issue was forward – not backwards. Dickinson said that AMPCO unequivocally supports the electricity market opening on May 1, 2002.

“Stopping or delaying this process now, as some advocate, would be a foolhardy and backward step that would irreparably harm Ontario’s economic interests,” he said. Dickinson said that AMPCO would continue to work with the government to ensure a successful competitive electricity marketplace is achieved in Ontario. However, he cautioned that there is more important work to do to prepare the province for a move into an open market. AMPCO is recommending that the government:

1. Continue to fast track competition by rapid and genuine decontrol through sale of generating assets owned by Ontario Power Generation;

2. Reduce the burden of stranded debt as quickly as possible by ensuring that all proceeds of decontrol – including those secured through the privatization of Hydro One – go first to reducing the stranded debt;

3. Help to increase consumer understanding of provisions to ensure the continued safety and reliability of Ontario’s electricity service, as well as measures for consumer protection, and consumer choice.

AMPCO is a province-wide industry organization that advocates competitive electricity rates and promotes a reliable supply of electricity for all consumers. AMPCO members represent a wide range of resource, manufacturing and processing industries that use large amounts of electricity. Its 65 members spent over $1 billion on electricity last year.