From promise to crisis : lessons for Atlantic Canada from Ontario's electricity liberalisation

This report synthesized some lessons learned from Ontario's electric power restructuring and showed how they can be applied to reform the Atlantic Canada's electricity sector. Since the opening of Ontario electricity markets to competition, numerous problems have threatened the potential of the power sector to deliver reasonably priced, reliable and environmentally responsible electricity to consumers in Ontario. The original vision of power restructuring in Ontario called for the break-up of Ontario Hydro, the privatisation of major components of the power system, major regulatory improvements, more stringent environmental rules, the creation of an independent agency responsible for power system reliability, and the opening of electricity markets to competition. This original vision has failed for many reasons, including failure to establish a firm date for the opening of the electricity market, a lack of financial accountability, continued subsidies to industrial customers, local distribution rate shock, lack of investment, politicizing transmission tariffs, aggressive marketers exploiting consumer uncertainty and ill-advised deregulation of fossil emissions. It was emphasized that Atlantic Canada could benefit from any eventual electricity restructuring by avoiding these mistakes made in Ontario. This report also described the contents of an 8 point program that was recommended by the author. 21 refs