TORONTO, ON -- The Ontario Energy Association said today that it agrees with the Independent Electricity Market Operator (IMO) Market Surveillance Panel that the province faces a serious shortage of electricity supply.
"Action must be taken quickly to avoid serious reliability problems next summer and upward pressure on prices at times of peak demand," said Bernard Jones, OEA President and CEO, noting that the Panel indicated in its report yesterday that of 5,800 megawatts of projected new capacity by 2005, only 1,000 megawatts is under construction.
"The greatest obstacle to new supply is the uncertainty faced by investors in new generation--uncertainty over the timing of return to service of 3,500 megawatts of off line nuclear units, over the pace of decontrol of Ontario Power Generation's assets, and over unreliable electricity price signals in the current spot market operated by the IMO," said Jones. "We agree with the Surveillance Panel that the sale of OPG assets to mitigate undue market power would be a major boost to investor confidence and to conditions conducive to reliable power supply at competitive costs in the future."
Noting that the IMO is exploring early action to address spot market pricing issues, the Association urged the Eves Government to take action on decontrol. "There is no reason for Ontario to face power supply shortages provided more electricity suppliers are given the confidence to leave the sidelines and come on to a more competitive playing field," said Jones.
The Ontario Energy Association is a unique trade association representing major participants in the converging natural gas and electricity industries in Ontario. Its members include energy producers, transmitters, distributors, marketers and retailers; manufacturers and suppliers of equipment, appliances and services; and consultants providing a range of services to the energy industry. The Association's mission is to: (i) serve the province's energy industry as a united force for development, growth, advocacy, communication, and environmental stewardship; (ii) serve energy consumers as a knowledgeable and credible source of information; and, (iii) be a champion for competitive and efficient gas and electricity markets and a high level of customer service and satisfaction.
