Ontario Deregulation Industry Reform Update

Gateway To North America's Electrical Industry -

OEB and IMO "Stay the Course" for Fall 2001 Market Readiness In a joint letter issued April 27th to all electricity market participants, the OEB and IMO stated they are committed to their existing schedule for participants to be market ready by the fall 2001, and will continue to monitor progress towards this goal. The milestones and timelines related to the OEB/IMO Electricity Market Readiness Plan are available on the organization's respective web sites (http://www.oeb.gov.on.ca and http://www.theIMO.com).

On April 23rd, Energy Minister Jim Wilson announced that the government is "confident that conditions necessary to open the electricity market to competition will exist by May 2002" - or possibly earlier, if the all necessary conditions exist. One of the necessary conditions is for market participants to be market ready. Therefore, the OEB and IMO intend to maintain the momentum towards readiness and to hold to their existing schedule that targets market readiness for the fall 2001.

MEA Creates Web Site Market Readiness Discussion Forum for Members The MEA has created a forum on its web site for members to discuss market readiness issues and resolutions, and to share experiences. This dedicated forum is in response to the needs of members who have come across issues that need to be resolved as they prepare their utilities to meet the target dates in the OEB/IMO Market Readiness Plan. Members are welcome to post issues or provide their views on how the issues can be resolved. MEA staff will also provide input on the issues and seek input from other relevant parties such as the OEB, IMO, and Hydro One. If it is necessary to have a more in-depth discussion on an issue, the MEA may organize conference calls/meetings to address the specific issue.

If you wish to remain anonymous in the discussion, please type the word "anonymous" or any name you choose for the name field. As well, the name of your organization or your E-mail address is not required. However, it is important that you enter a title/subject for the posting.

The forum is under "Industry Changes - Market Readiness" on the MEA web site, and is accessible only to utility members.

A collection of useful market readiness documents is also posted in this area. Update - OEB Activities Transmission Pricing for Multiple Transmission Licence Holders The OEB has decided to adopt a pooled revenue requirement tariff approach, following the consultation on its discussion paper entitled "Treatment of Multiple Transmitters For OEB-Regulated Transmission Pricing In Ontario". Board staff received written comments from the MEA and 10 other parties - and noted that all parties generally supported the Board staff-recommended option of uniform rates derived from a pooled revenue requirement. LDCs presently served by Hydro One transmission should not expect any significant impact on their transmission rates from this tariff approach. The Board will require all licensed transmitters to file or re-file for pooled transmission rates and is convening a meeting on May 7 and 8 to consult with parties directly affected (i.e. transmitters, IMO) to develop the appropriate filing requirements. MEA staff will be attending this meeting and will report back any relevant information to members. Update - OEB Activities Transmission Pricing for Multiple Transmission Licence Holders The OEB has decided to adopt a pooled revenue requirement tariff approach, following the consultation on its discussion paper entitled "Treatment of Multiple Transmitters For OEB-Regulated Transmission Pricing In Ontario". Board staff received written comments from the MEA and 10 other parties - and noted that all parties generally supported the Board staff-recommended option of uniform rates derived from a pooled revenue requirement.

LDCs presently served by Hydro One transmission should not expect any significant impact on their transmission rates from this tariff approach.