Enersource praises McGuinty government's action plan on electricity pricing

MISSISSAUGA, ON - Enersource Corporation is pleased with the announcements of Energy Minister Dwight Duncan yesterday, which will introduce a new pricing structure in April 2004 that encourages conservation and more accurately reflects the cost of electricity

"This is a positive step to bring electricity pricing in line with true market costs," said Gunars Ceksters, President and Chief Executive Officer of Enersource Corporation, praising the Government's action plan to remove the current electricity price freeze. "We were also pleased that the government's planned legislation will take steps to address significant financial pressures that were placed on LDCs (local distribution companies) as a result of Bill 210."

Enersource Corporation is an active proponent of increased energy conservation, as an important immediate and long-term solution to the delicate balance that exists between electricity demand and supply in Ontario. "The 4.3 cent price freeze is widely viewed throughout the industry as unsustainable and counterproductive to both the encouragement of conservation and investment in new power generation," said Mr. Ceksters, who is also a member of the province's Electricity Conservation and Supply Task Force.

The government has defined the new pricing as an "interim plan" that would be in place until the Ontario Energy Board develops new mechanisms for setting prices in the future. Enersource recognizes the complexity of unresolved electricity restructuring issues facing governments and regulators and has recently published a report Seven Steps to an Energy Efficient Ontario, which is closely aligned with yesterday's announcements. This report outlines key elements that the utility believes should be considered in relation to electricity pricing and conservation policy. Addressing myriad issues from financial protection of those LDCs that promote conservation to incentives that encourage consumers to become more energy efficient, the report is available online at the "Media Room" of the corporation's website enersource.com.

Enersource Corporation is a diversified energy, technologies and fibre optic telecommunications company. The corporation's core regulated affiliate Enersource Hydro Mississauga serves over 170,000 Mississauga customers and is a proven top performer in service delivery efficiency, safety and system reliability. Enersource is 90% owned by the City of Mississauga and 10% by BPC Energy Corporation, a subsidiary of the Ontario Municipal Employees Retirement System.