Staff
The province has said it will not force Local Distribution Companies (LDCs), such as the Fort Frances Power Corp., to consolidate as recommended by an expert panel late last year.
This was made clear by Energy minister Bob Chiarelli, who delivered a speech at a dinner with the Electric Distributors Association (EDA) yesterday evening.
“The panel undertook a comprehensive review of the distribution sector and presented recommendations that it believes would position the sector to meet the challenges of the future,” Chiarelli noted.
“The report suggests there may be $1.2 billion in savings to be realized over the first 10 years,” he said. “Many of you have told me this is a very achievable target.
“The panel’s analysis also suggests there are substantial efficiencies to be found in the sector through consolidation of our distribution companies,” Chiarelli added.
“[But] let me say very clearly that our government will not legislate forced consolidation,” he stressed.
“We want you to keep in mind that while we are interested in promoting consolidation on a voluntary basis in the sector, we must find ways to deliver the savings to ratepayers that the panel identified.”
The panel had recommended in December that Ontario’s 80 local electricity distribution companies (LDCs) should voluntarily amalgamate into larger, regional agencies within the next two years.
The panel has said the changes to the electricity distribution system would save $1.2 billion over 10 years and make it less costly for regional utilities to borrow money to upgrade their systems.
But the FFPC and members of town council actively have been voicing their opposition to the proposal, citing any merger negatively could affect local hydro rates, as well as jeopardize the historic power agreement with H20 Power.
