Ontario power industry frets over authority

The Association of Power Producers of Ontario told a legislature committee recently that the Liberal government's plan to create a new Ontario Power Authority is acceptable in the short term, but shouldn't be regarded as a long-term solution.

Proposed legislation would set up the authority to estimate the long-term electricity demand and to take steps to make sure the needed power is delivered. That could include signing long-term contracts with generators.

The power producers warned that the authority, along with proposals for an enhanced Ontario Energy Board, will result in "large organizations and a large regulatory burden."

Local electricity utilities in Greater Toronto have been wary of the new authority. They told the committee recently that the new power authority should be a "transitional" body.

"We want to make sure that these organizations don't become institutions in and of themselves and have some kind of long-term life," said Dave Butters, president of the power producers.

He said the new authority should consider drawing on existing expertise such as staff of the Independent Electricity Market Operator.

Butters said his group is "reserving judgment" on what portion of Ontario's electricity should be generated by Ontario Power Generation Inc.

The government plans to regulate the price of power generated by OPG's Niagara-area hydro-electric stations, and by its nuclear plants.