Message-ID: <21847092.1075857693293.JavaMail.evans@thyme> Date: Tue, 30 Jan 2001 16:14:23 -0800 (PST) From: lavorato@enron.com To: rob.milnthorp@enron.com Subject: FW: Fw: Deregulation Delays Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lavorato, John J. X-To: Milnthorp, Rob X-cc: X-bcc: X-Folder: \jlavora\Sent Items X-Origin: Lavorado-J X-FileName: jlavora.pst 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.'' > > > > > > > Get Your Private, Free E-mail from MSN Hotmail at <> .