Rob 
 
What's the deal on Deregulation in Ontario.

-----Original Message----- 
From: Presto, Kevin 
Sent: Fri 1/26/2001 12:29 PM 
To: Lavorato, John J. 
Cc: 
Subject: Fwd: Fw: Deregulation Delays



FYI

---------------------- Forwarded by Kevin M Presto/HOU/ECT on 01/26/2001 12:32 PM ---------------------------


Tom May@ENRON

01/26/2001 09:00 AM

To:     Kevin M Presto/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT

cc:      

Subject:        Fwd: Fw: Deregulation Delays

FYI, 

It looks like Ontario may be delaying the opening of the markets.  I am not sure whether this will be more than the expected delay to a fall opening.  Apparently, some of the media are speculating that it will be delayed until after the next election which is likely in 2003.

Tom.

> > Ken J. Nadeau  

> > Authorization Training Specialist  

> > ) ENTC, TSSD PO-6  

> > % 701-3006  

> >  

> >  

> > Subject: Deregulation Delays  

> >  

> > Tories study California electricity crisis  

> >  

> > Deregulation plans for Ontario delayed again  

> > Richard Brennan QUEEN'S PARK BUREAU  

> >  

> > Ontario is delaying its move to a competitive electricity market in the  

>wake  

> > of blackouts in California associated with deregulation, Premier Mike  

>Harris  

> > says. ``I think there are some steps that we are committed to do to  

>achieve  

> > the advantages of competition . . . but our primary concern is for our  

> > consumers and industries here in Ontario,'' Harris said yesterday. Both  

> > California and Alberta consumers have faced brown-outs and unexpectedly  

>high  

> > price hikes since their electricity markets were deregulated. ``There's  

>no  

> > artificial deadline that I can see but we are studying California, we're  

> > looking at Alberta, we're looking at what the other jurisdictions are  

> > doing,'' the Premier said. Critics have said California's problems stem  

> > largely from a botched 1996 deregulation plan - the first in the U.S. -  

> > which saw the establishment of two transmission utilities, Southern  

> > California Edison and Pacific Gas and Electric, both of which are now  

> > claiming bankruptcy. Harris said California's rolling blackouts, have  

>been  

> > caused, in part, by a power shortage and high natural gas prices - neither  

> > of which, he said, will affect Ontario. ``We have a very low dependence  

>on  

> > natural gas so far in Ontario although we are looking at it into the  

> > future,'' Harris said, noting that the Pickering nuclear plant is expected  

> > to reopen next year, giving the energy supply a boost. Energy Minister  

>Jim  

> > Wilson said Ontario has delayed the market opening once and is prepared to  

> > do it again. ``We're aiming for later this year but if conditions aren't  

> > right for Ontario we won't move forward until we're satisfied we can bring  

>a  

> > market in that consumers will benefit from,'' Wilson said. Ontario's  

>market  

> > opening was scheduled for last November. No new date has been set. The  

> > electricity crisis in California is blamed in part on the American  

> > Northwest's limited supplies of hydroelectric power and on deregulation of  

> > its electricity industry. Wholesale prices on the open market soared and  

> > rate caps imposed under the deregulation plan have prevented utilities  

>from  

> > passing on those costs to customers. ``Given that we have the opportunity  

> > of learning from California and Alberta, and other jurisdictions, we are  

> > going to take our time,'' Wilson said, insisting that rate-capping is not  

> > being considered for Ontario. ``We don't want to get stuck in a supply  

> > crunch like California.'' But critics say the real reason behind the  

>delay  

> > is that the Harris government realizes that any hopes of consumers getting  

>a  

> > break in a deregulated environment have been dashed. ``I think that  

> > Ontarians' confidence in this plan has to have been shaken quite a bit  

> > because of the delays in the implementation here . . . and what we are  

> > seeing in California and to a lesser degree in Alberta,'' Liberal MPP  

>Gerry  

> > Phillips (Scarborough-Agincourt) said. Tom Adams, of Energy Probe, said  

>the  

> > longer the government drags its feet on deregulating the market the  

>greater  

> > the chance of power disruptions in Ontario. ``The further we delay the  

> > opening of the market the more likely power shortages are . . . because  

> > we're not building adequate new generation.''  

> >  

> >  

> >  

>  


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