Re: Ontario Deregulation - Minister Jim Wilson's Statement

Thanks for the speech. Hope to see you at the law conference. Mark

Chris Gaffney
04/23/2001 03:48 PM

To: Mark E Haedicke/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT
cc:
Subject: Ontario Deregulation - Minister Jim Wilson's Statement

Mark and Peter - Attached is a copy of the speech made today by the Ontario
Minister of Energy. Of course we would have been much happier with an
outside date or target of November 1, 2001 or an unconditional May 1, 2002
date; however, it at least shows a commitment to deregulation.

While Enron Toronto will be busy with ongoing marketing and certain major
projects in the near future (the OEFC NUG Contract Management Agreement, the
G6 retail initiative and the ENERconnect amendment), the obvious umber one
priority of this office in the short term will be negotiating an extension to
the British Energy Supply Contract.

Regards
CJG

----- Forwarded by Chris Gaffney/TOR/ECT on 04/23/2001 04:31 PM -----

Garrett Tripp
04/23/2001 04:11 PM

To: ECT Toronto
cc:
Subject: Jim Wilson's Statement

Mr. Speaker:
This Legislature passed the Energy Competition Act in 1998 to help meet the
province's long-term electricity needs and ensure that Ontarians have a safe,
reliable and affordable supply of power.
When this government came to office in 1995, we had our work cut out for us.
Ontario's electricity sector was failing us.
Consumers and businesses had no choice of who supplied them with power. And
we went from having one of the lowest prices for electricity to the third
highest in Canada.
The monopoly we had come to rely on for safe, reliable and
competitively-priced electricity was no longer working. It had become out of
date, inefficient and too expensive. Something had to be done.
That's why I'm proud to stand up in the Legislature today to announce that:
The government is confident that conditions necessary to open the electricity
market to competition will exist by May 2002. The government is committed to
an open market while guaranteeing a safe, affordable and reliable supply.
There are some who are fundamentally opposed to opening this market to
competition. Our government believes, however, that open, competitive markets
are beneficial. They keep costs low, encourage innovation and benefit
consumers.
There are others who share our desire to open the market, but who would like
to see it done even sooner. As government, we bear a responsibility to ensure
the opening is done right for all involved. To do this, we are committed to
opening the market at the earliest possible date, while ensuring all of the
conditions required for a smooth transition to competition are met.
And I'm pleased to tell you, Mr. Speaker, that the four principles guiding
the government's vision have been, or will be met, by May 2002.

First and foremost, protecting consumers and offering more choice. The
overall market design and regulatory framework for introducing competition
puts customers first. Over the long term, a competitive market will lead to
the lowest possible costs and better service for all.
Second, creating a strong business climate with a reliable supply of
electricity. Ontario already has sufficient supply to meet our current needs.
Announcing a firm market opening deadline today provides greater certainty to
potential new investors who have already announced 3 billion dollars in new
generation projects.
Thirdly, we will protect our environment. My colleague, the Minister of the
Environment has announced tough new emission caps for the electricity sector.
They will be among the toughest in North America, matching the requirements
of the U.S. Environmental Protection Agency.
Also today, Minister Witmer is announcing changes to ensure that new
electricity projects are reviewed in a clear and consistent manner under the
province's environmental assessment process.
And fourth, we will encourage new ways of doing business and support the
search for alternative sources of power. For the first time, customers will
be able to make clean air a priority by choosing the type of power they want,
including wind, fuel cells and solar. Giving them choice will help promote
the demand for cleaner, greener electricity.
And so, Mr. Speaker, I am proud to announce that Ontario's electricity sector
will open by May 2002. The government is keeping its promise to introduce a
competitive electricity market. We will do it, and we have put the principles
in place to ensure that we do it right.

Thank you.