Ontario's deregulation plans could be moved up

- TORONTO - Ontario's plan to open its electricity market to competition could happen earlier than the May 2002 target date, but the earlier timing is contingent on the completion of a key report, a spokeswoman for the province's energy minister said on Tuesday.

"It's opening. We're just waiting to set a date and full steam ahead," said Christine Smith, a spokeswoman for the Ministry of Energy, Science and Technology.

"We would love it to be soon, but we have to make sure everybody is able to meet those deadlines."

The government will make the decision once the readiness report, which documents the preparedness of all the agencies involved in the privatization process, is completed and reviewed by both Energy Minister Jim Wilson and Premier Mike Harris.

The government is not expected to make an announcement until December or January.

Although Ontario has not yet indicated when the market will open to competition, analysts say it will probably be March 1.

"I'm in that sooner-the-better camp. This market opening has been long delayed and a further delay does not help us," said Tom Adams, executive director at industry watchdog Energy Probe.

Ontario, Canada's most populous province, has already pushed back its original deadline of November 2000 by 18 months to try to avoid the pricing and supply problems encountered in California and Alberta. In May it said it would announce the date by May 2002.

California's deregulation was followed by skyrocketing costs, bankruptcy and rolling blackouts as power demand increased dramatically while little new generating capacity had been added in the past 10 years.

In Alberta, consumers were hit with a series of cost increases as the western province deregulated its power sector.

Smith said the timing of Ontario's privatization would not be affected by the departure of Harris, who said last month that he would step down as premier and leader of the ruling Conservative party once a replacement is found. A leadership campaign is now set to get under way.

"We are still living up to our commitments. It might be affected for the better because Mike Harris is big on promises made, promises kept," Smith said. "He's going to sure that the biggest privatization in Ontario's history happens while he is on his way out. He wouldn't not open the market."

($1=$1.59 Canadian)