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Power Industry
Poised for Growth

Ontario's power industry got a gigantic boost in 1998 with the passing of the Energy Competition Act, which de-regulates and effectively privatizes power in the province. According to the MEDT, the objective is to increase opportunities for investment, provide tools for environmental protection and ensure a safe, reliable and low-cost supply of electricity.

Ontario Hydro, long a provincial powerhouse, was reorganized into two commercial corporations, the Ontario Hydro Services Company (OHSC) and the Ontario Power Generation (OPG), and one non-profit corporation, the Independent Electricity Market Operator (IMO).

Mitsopulos reports that the IMO will guarantee reliable supplies and fair access to the C$10 billion consumer market, meaning it will oversee competition in the marketplace and has authority to set guidelines. Consumers will be able to "get the best prices and services, and competition for their business will put greater cost-pressure on providers, encouraging savings through new ideas, technological innovations and best-management practices," Mitsopulos maintains.

The new Act also specifies that the OPG must reduce its share of the generating capacity in the market to no more than 35 percent over the next 10 years (down from 85 percent), a stipulation designed to increase growth and investment opportunities in the power industry. According to the MEDT, to-date more than US $2 billion in new investment is being planned in the power industry. The American-based Sithe, Inc., recently announced an investment of $1 billion for two new power plants in the Greater Toronto Area (GTA).