"Our revenues and earnings during the quarter increased primarily as a result of our current regulatory structure. We continued to improve the reliability of our generating stations, which also favourably impacted earnings. Despite lower Ontario electricity demand caused by a warmer than normal winter, electricity production was only marginally lower than in the first quarter of 2005," said President and CEO Jim Hankinson.

Earnings for the three months ended March 31, 2006 were favourably impacted by an increase in gross margin from electricity sales because of an increase in OPG's average sales price compared to the same period in 2005. OPG's average sales price increased as a result of the introduction of regulated prices and other related regulatory changes effective April 1, 2005. However, OPG continued to be a moderating influence on Ontario electricity prices, receiving an average sales price for the three months ended March 31, 2006 of 4.7 cents/kWh, which was lower than the weighted average hourly Ontario spot electricity market price in the first quarter of 2006 of 5.2 cents/kWh. OPG's average sales price in the first quarter of 2005 was 4.3 cents/kWh. The impact of the improved gross margin on earnings was partly offset by an increase in pension and other post employment benefit costs primarily caused by changes in economic assumptions.

OPG's earnings during the three months ended March 31, 2005, were unfavourably impacted by an impairment charge of $202 million related to its Lennox generating station. At the time, it was determined that due to its relatively high variable costs, the Lennox station would not be able to recover its carrying value from the wholesale electricity market in the future.

Electricity generated in the first quarter 2006 of 28.4 terawatt hours

(TWh) was slightly lower than first quarter 2005 generation of 28.8 TWh. Electricity generated from OPG's nuclear generating assets increased primarily as a result of the return to service of Unit 1 at the Pickering A generating station. Hydroelectric generation increased slightly due to higher water levels at stations in northern and eastern Ontario. Fossil generation declined as a result of lower Ontario electricity demand caused by a warmer than normal winter.

"Hydro One remains on track to achieve our 2006 financial targets. Strong and stable financial performance enables us to make the necessary investments to ensure the reliable supply of electricity to the people of Ontario," said Hydro One President and CEO Tom Parkinson. "Projects such as the $116 million investment we are making to reinforce the transmission system in the Niagara region are needed to provide access to new sources of generation in the public interest. The Niagara upgrades will increase our ability to import electricity by up to 800 megawatts and accommodate the expansion of the Sir Adam Beck facility in Niagara Falls."

During the quarter there were several industry developments and company initiatives, some of which are highlighted below:

Capital expenditures of $177 million for the first three months were higher than the comparative period by $21 million, or 13%. Expenditures made to expand the transmission system increased as a result of higher demand for customer connections and two critical investment programs: the Niagara Reinforcement Project and a project to construct an underground transmission line in downtown Toronto that will improve reliability. Asset replacement costs related to storm activity in north-central Ontario in early February 2006 also contributed to the increase.

Total revenues for the period were $34 million, or 3% lower than last year primarily due to the reduction in our transmission tariff revenues. Distribution revenues were marginally lower, reflecting lower purchased power costs, partially offset by improved tariff revenues attributable to a previously deferred rate increase effective April 1, 2005. Net cash from operations was $146 million for the first three months of 2006. During this period we paid $159 million in dividends to the Province of Ontario.

Glen Miller Hydro Facility Will Power 4,000 homes

TRENTON, ON - The Ontario government is delivering on its plan to ensure safe, clean, reliable, and affordable power for the future with the opening of the Glen Miller Hydro Electric Station near Trenton, Energy Minister Donna Cansfield announced April 26.

"This is another example of a clean power project that will help make renewable energy a key part of Ontario's future energy supply mix," Cansfield said. "All Ontarians will benefit as we increase our renewable generation supply."

The eight-megawatt, $21 million hydro project on the Trent River will generate enough electricity to power up to 4,000 homes. Glen Miller is the first new hydro power station and the fifth new renewable energy project to open in the last year as a result of the government's renewable energy RFP process.

"We're very pleased to be helping the province meet the energy needs of Ontarians," said project developer Michel Letellier, executive vice president, Innergex. "We support the Ontario Government's initiative to execute long-term contracts with independent power producers. It enables us to invest in sustainable development in the province."

"I want to congratulate the government for its continuing efforts to support the hydro power sector," said Paul Norris, President, Ontario Water Power Association. "Hydro power has been and continues to be a key component of Ontario's generation mix."

The Glen Miller Hydro Electric Station is one of the 19 new, renewable energy projects the province has contracted to date. Combined, these projects will help Ontario reach its goal of generating five per cent of its electricity capacity through renewable generation by 2007, and ten per cent by 2010.

"We are proud that since 2003 we have significantly increased the amount of renewable energy generation and brought an estimated $3 billion in new investment to Ontario," Cansfield said.
www.energy.gov.on.ca

Backgrounder

Glen Miller Hydro Electric Station

One of the oldest hydroelectric sites on the Trent-Severn waterway, Glen Miller Hydro Electric Station, has been revitalized. The 8-megawatt, $21 million project will generate enough electricity to power up to 4,000 homes.

Located in the community of Glen Miller on the Trent River north of Trenton, Glen Miller Hydro Electric Station was one of 10 winning proposals in the government's first renewable energy Request for Proposals (RFP) in 2004. The station developer, Innergex II Income Fund, is a private open-ended trust, that builds, own and operates hydroelectric power plants and wind farms in North America, especially in Canada. The Innergex Group contracted with Sonoco Canada, the owner of the site to revitalize the project.

Government of Ontario's Progress on Renewable Energy

The McGuinty government has set a target of generating five per cent of Ontario's total energy capacity from new renewable sources by 2007, and 10 per cent by 2010.

Through its renewable RFP process the government has contracted 19 projects for a total of 1,370 megawatts of clean renewable energy from wind, water, landfill gas and biogas projects.

Glen Miller Hydro Electric Station is the first new Ontario hydro station and the fifth renewable energy project to open as a result of the RFP process. Erie Shores Wind Project (99 megawatts) opened on April 13, 2006, Kingsbridge I Wind Project (40 megawatt) opened on April 6, 2006, Melancthon Grey Wind Project (67.5 megawatts) became commercially operational on March 4, 2006 and Eastview Land Fill Gas Project (2.5 megawatts) began operations on August 18, 2005.

Where:
RenewABILITY Energy Inc., 60 Baffin Place, Unit #2, Waterloo (see map below)

Directions:
RenewABILITY Energy Inc. is located 1 mile from the King Street Exit of the Conestoga Parkway/Provincial Route 85 North - Waterloo. Exit the Conestoga Parkway on King Street North (RR-15 North). After exiting Conestoga Parkway, proceed .4 miles on King Street making a right onto Northfield Drive East (RR-22). Travel .2 miles and turn left onto Davenport Road. Follow Davenport Road for .2 miles and turn left on to Baffin Place.

Who:
David Suzuki
Donna Cansfield, Ontario Minister of Energy
John Milloy, MPP (Kitchener Center)
Corey McBurney, Director of Operations, EnerQuality Corporation
Gerald Van Decker, RenewABILTY Energy Inc.
Hans Schreff of London Hydro

Reuters reports “the World Bank is urging its steering committee to approve a new breed of loans and grants that would go to developing countries to help them make power generation cleaner and more efficient. A report drafted for this weekend's meeting of the International Monetary Fund and World Bank at the request of Group of Eight leading nations already seems to have gained traction among some emerging countries.”

“The World Bank said developing nations need to invest some $300 billion each year for the next 25 years to meet their energy needs -- largely in electricity -- so the report focused on ways to make projects less environmentally taxing. ‘It's quite clear we have a number of technologies but the private sector has walked away,’ World Bank chief scientist Robert Watson said. ‘The problem is to induce investment.’ … ”

“One idea floated by the World Bank is the creation of a grant to help developing countries cut the cost of buying new high-efficiency energy technology and infrastructure. Another would see existing power plants upgraded, with the gains from more efficient production going to repay the loans that funded the original overhaul. The Bank also suggested establishing a venture capital fund to finance the development of promising new clean energy technologies as well as bringing them to market.”

Agence France Presse further reports that “British Chancellor of the Exchequer Gordon Brown said in March that at the meeting in Washington Sunday he would propose a World Bank fund under which $20 billion would be invested to develop alternative energy sources in poor countries. But Steen Jorgensen, the Bank's acting vice president for sustainable development, said that while Brown's idea had been welcomed it was not debated by the Development Committee on Sunday. ‘We think the needs will be much larger,’ he said of the 20-billion-dollar price tag on Brown's idea.”

Dow Jones add the World Bank study noted that “‘large developing countries must improve their regulation of energy markets to remove the biggest obstacle to investment in clean energy … Rapid policy and regulatory reforms could increase private-sector investment in the electricity sector in developing countries, as would better risk management tools, like political risk insurance, the World Bank said. Removal of broad energy subsidies would promote conservation. Public funding could concentrate on clean energy technologies that are not quite economically viable but which have potential for wider use to mitigate greenhouse gas emissions, the World Bank said. ‘There is a wide range of technologies,’ Robert Watson, chief scientist at the World Bank, said at a press conference. ‘The problem seems to be the private sector has walked away.’”

Further covering the World Bank and IMF Spring Meetings, The New York Times writes that “rich nations and Russia are responsible for at least 70 percent of greenhouse gases, and developing countries that are expanding energy production to feed economic growth and reduce poverty say it is unfair to expect them to bear the financial burden of producing clean power, said Robert Watson. ‘The developing countries say if you want us to be climate friendly, we have to be compensated for the additional costs,’ he said. The Bank estimates it will cost $10 billion to $200 billion per year to reduce greenhouse gas emissions, depending on the rate of the reductions. To help meet those costs, Bank officials authorized a proposal for accelerating investments in clean energy, to be drafted in the next five months.”

Agence France Presse finally reports that “the Bank plan has provoked criticism in some quarters. Some "find the (project) to be biased toward the development of alternative, renewable sources of energy not yet commercially viable while neglecting the bigger picture of aiming for cleaner, more efficient traditional energy sources."

The news agency further notes that “Dutch Development Minister Agnes van Ardenne noted that the project principally targets middle-income countries where there is a potential market for the development of clean energy. She said she would have preferred an "energy for all" initiative that would embrace the millions of people -- 500 million living in sub-Saharan Africa alone -- who have no access whatsoever to electricity. Her German colleague, Heidemarie Wieczorek-Zeul, meanwhile called for the creation of a fund at the African Development Bank to which oil producers would contribute for the promotion of renewable power sources in African countries.”

The Los Angeles Times and The Associated Press report that “finance ministers endorsed proposals Sunday intended to make it easier for international lending institutions to deal with soaring oil prices, trade gaps and other problems that threaten to derail growth. The policy-setting committee for the 184-nation International Monetary Fund and the World Bank told the agencies to attack corruption and, in the IMF's case, give tougher advice to member countries. Oil prices, now at a record $75-plus per barrel, were among the developments causing officials from Europe, the US and other countries at the institutions' weekend meetings to worry about the prospects for long-term growth.”

Agence France Presse reports that “World Bank policymakers for their part launched a new anti-corruption drive and gave final approval to the cancellation of $37 billion in debt owed the Bank by 17 poor countries, most of them in Africa. The World Bank in addition unveiled a two-year project aimed at promoting the use of clean energy in developing countries.”

Reuters meanwhile notes US Treasury Secretary John Snow said on Sunday that “as wealthy nations offer debt relief to the poorest, they must be sure not to trigger a new lend-and-forgive cycle that becomes endless. The US Treasury chief said global lenders must find ways to ‘unleash the power of the private sector’ to help the poor while also fighting corruption in countries where they lend and increasing access to financial services for their citizens.”

Agence France Presse also reports that “energy needs were … very much on the minds of the Group of Seven industrial powers, who on Friday declared that it was ‘crucial’ for oil producing countries to boost infrastructure investment in the face of soaring crude oil prices. While G7 finance leaders agreed that the global economic outlook remained favorable, they warned that oil prices were a menacing cloud on prospects. Stepped-up pressure for increased oil production prompted a blunt reminder from the Organization of Petroleum Exporting Countries

(OPEC) that oil consuming nations bore a responsibility to build more refineries in order to ease supply constraints.”

The Wall Street Journal Europe meanwhile reports that finance ministers on the IMF's policy-steering committee Saturday endorsed Managing Director Rodrigo Rato's proposal for formal ‘multilateral surveillance’ for countries whose policies have important spillover effects on others. The change seeks to address limitations the IMF has encountered in dealing with issues such as the US trade deficit or China's exchange-rate policy. At the same time, the steering committee endorsed Rato's proposal to give more votes at the fund to countries whose economies have grown rapidly. Ministers said they expected to consider proposals to accomplish this at the IMF annual meeting in Singapore in September.

The Guardian (UK) suggests that the new role for the IMF heralds a drop in status for the G7. The emergence of China and India in recent years has made the G7 unrepresentative of the new global economy and unable to offer solutions to global imbalances.

The Financial Times suggests that “the weekend agreement to establish ‘multilateral surveillance’ and ‘multilateral consultations’ to address global trade imbalances may not sound like a breakthrough. But even the most skeptical finance ministers and central bank governors viewed the IMF meeting as a great success. There was finally a shared understanding that huge trade gaps represent the biggest threat to the world economy, they said and a willingness to do something about them.”

Here's a quick review of some of the key issues:

Replacement power.

The Globe says the coal phase-out will leave Ontario reliant on power imports. The fact is, however, that Premier McGuinty has repeatedly stated that Ontario will not phase-out its coal plants until we have the necessary clean replacement supplies to meet our electricity needs. Ontario is making good progress in securing Made-in-Ontario replacement power and the potential to produce more through increased efficiency, combined heat and power generation and new renewables is huge. These sorts of initiatives would put Ontario in a much better competitive position than wasting hundreds of millions of dollars on end-of-pipe half-measures.

Clean coal really just slightly less dirty coal

According to the Globe: "While true 'clean' coal does not exist yet, there is 'cleaner coal,' which has reduced levels of pollutants such as sulphur and mercury."

You don't have to look further than the Lambton Generating Station to see the gaping hole in this argument. Lambton's Unit 4 is the "cleanest" coal-fired boiler in Ontario, but it is far from clean. Its sulphur dioxide emissions rate, for example, is 49 times greater than that of a new natural gas-fired power plant. Sulphur dioxide causes smog, asthma attacks, heart disease, lung disease and death.

AMPCO, meanwhile, has asked Premier McGuinty to replace the province's existing coal plants with "new high-efficiency coal units with all possible, best available emissions control technologies installed by 2011." According to AMPCO, under this so-called "clean coal" option, Ontario's electricity-related, climate change causing greenhouse gas emissions would rise by 27% between 2006 and 2025. On the other hand, according to AMPCO's analysis, if Premier McGuinty keeps his coal phase-out promise, Ontario's electricity-related greenhouse gas emissions will fall by 77% by 2025 and by 90% by 2011. Which is the better solution?

Phasing-out coal is the lowest cost option for Ontario to achieve dramatic reductions in its smog-causing emissions and to achieve compliance with its Kyoto Protocol climate change target for 2010.

TORONTO - The April 12 announcement of a hike in electricity costs for consumers is just a taste of things to come, says the union representing workers in the electricity field. "The impact of Ontario Energy Board's announcement is that electricity prices are going up," comments Power Workers' Union President (PWU) Don MacKinnon. "It would appear that people using air-conditioning in the summer will be the first to feel the effects of the higher rates."

Ontario Premier Dalton McGuinty recently distanced himself from the anticipated rate hike saying that his government would not step in to soften the blow. This week the government made public an incentive plan for Ontarians to make their air-conditioning more energy efficient.

"Conservation is certainly important," continues Mr. MacKinnon. "But it will never be enough on its own to meet Ontario's future electricity needs." "Experts in the private and public sector have criticized Ontario's approach to the future demand for electricity," says Mr. MacKinnon. "The government's fixation on closing coal-fuelled plants and replacing them with natural gas ignores what countries like Denmark and Germany are achieving by installing clean-coal technologies at existing coal-fuelled plants. Without reliable back up generation in place, Ontario residents and businesses will be hit again and again with price hikes like those announced today."

Ontario could save $11 billion over the next 20 years if Ontario upgrades existing coal-fuelled plants with clean coal technology instead of replacing them with natural gas, says Mr. MacKinnon.

The government's own agencies - Ontario Power Authority (OPA) and Independent Electricity System Operator (IESO) - have in recent reports outlined the significant risks and challenges that will result from the government's decision to shut down existing coal facilities, observes Mr. MacKinnon. "Last week, the president of TransAlta said that Ontario's inability to meet future electricity demand was a key factor in deterring businesses from operating here."

The PWU is calling on the government to direct:

<< - OPA and the IESO to develop a workable contingency plan to ensure reliability and price protection for Ontario's citizens and businesses;
- Ontario Power Generation to start an Environmental Assessment process on new nuclear construction and clean-coal technology, and
- OPA to issue a Request for Proposal on clean-coal technology. >>

The Power Workers' Union believes that Ontarians require an energy supply that derives electricity from a number of sources, including clean coal, hydroelectric and nuclear, along with other economical renewable options. The PWU's better plan - (www.abetterplan.ca) - also includes a review of the province's natural gas strategy, investment in green power and the promotion of energy efficiency. This approach will guarantee the people of Ontario, and the businesses that operate here, an affordable, clean and secure supply of energy all year round.

The Power Workers' Union is the largest electricity union in Ontario, representing employees in electricity generation, transmission, distribution, regulations, and research and development.

OTTAWA - Canada's wind energy industry has already broken its annual growth record in 2006 and is set to shatter it before the year is out. As of April 2006, Canada had installed 260 MW of new wind energy capacity, breaking the existing record of 239 MW established in 2005. An additional 250 MW of new wind energy capacity is expected to be installed in Canada before the end of 2006. Canada currently has 943 MW of installed wind energy capacity, enough to power more than 285,000 homes(1).

"With Canada's installed wind energy capacity expected to grow by more than 70% this year, it is clear that growth in Canada's wind energy production is rapid and accelerating", says Robert Hornung, President of the Canadian Wind Energy Association. "A solid foundation is being built in 2006 that puts Canada's wind energy industry on track to meeting and exceeding current provincial government objectives that seek a minimum of 8,500 MW of wind energy to be in place in Canada by 2015."

Projects already installed this year include the Kettles Hill Wind Farm in Alberta, the Centennial Wind Power Facility in Saskatchewan, the St. Leon Wind Farm in Manitoba, and the Kingsbridge and Melancthon Wind Power Projects in Ontario. These projects represent a total investment of $503 million and provide a number of local economic benefits in the form of lease income to landowners, tax revenues to municipal governments, and new investment and jobs in rural communities across Canada. There are also significant environmental benefits.

The Federal Government's Wind Power Production Incentive (WPPI), coupled with provincial government procurement processes for wind and renewable energy, has played a key role in facilitating wind energy development in Canada to this point. The 2005 Federal Budget commitment to expand the objective of the WPPI program to a level of 4,000 MW of wind energy development in Canada by 2010 will help ensure that Canada's wind energy industry will continue to grow rapidly for the remainder of 2006 and beyond.

"Even though the growth of Canada's wind energy industry is impressive, we must not lose sight of the fact that wind energy continues to develop more quickly in other countries", says Hornung. "With Canada's unparalleled wind resource, there are still opportunities to do more to maximize the economic, industrial development, and environmental benefits associated with wind energy for Canada."

Natural Gas Plant Will Provide 500 Megawatts Of Clean Electricity By Summer Of 2007

BRAMPTON - The Government of Ontario took another step in its plan to provide more reliable energy for Ontario today when Energy Minister Donna Cansfield helped launch the construction of Sithe Global Power's Goreway Drive Generating Station.

"We're building a new energy future that will keep the lights on and ensure our children have cleaner air," Cansfield said. "This facility, and others being built across Ontario, will allow us to maintain a stable supply of power while closing down our dirty, coal fired generating stations."

When it is completed, the facility will be capable of producing 875 megawatts of electricity, enough to power about 330,000 homes. The project will provide 500 megawatts of electricity by the summer of 2007 and the remaining 375 megawatts will be ready by the summer of 2008. It will be one of the largest combined cycle natural gas generating stations in Canada. The project will create about 900 construction jobs and about 30 full time positions.

"We are honoured and pleased that the Government of Ontario and the Ontario Power Authority have placed their confidence in Sithe Global Power to help meet the electricity supply needs of this fast-growing region of the province," said Bruce Wrobel, Sithe Global Power's CEO.

The Sithe plant is being built to meet a directive issued by the government to the Ontario Power Authority to address a vital need for electricity in the western part of Greater Toronto Area. This directive is part of the McGuinty government's plan to close all the coal fired generating stations in Ontario by the end of 2009 and replace them with cleaner sources of electricity. The Lakeview coal fired plant in south Mississauga closed in April 2005. It was among the largest polluters in the GTA.

"The Goreway natural gas fired power plant will help Ontario to phase out it's dirty coal fire power plants, reduce air pollution and protect public health," said Jack Gibbons, Chair of the Ontario Clean Air Alliance. The McGuinty government has signed contracts for 18 renewable energy projects that will add about 1,300 megawatts of clean energy to the system by 2008. These projects were the result of two successful Requests for Proposals operated by the government.

Since taking office, the government has set the wheels in motion to bring online over 11,000 megawatts of new, cleaner electricity generation - more than any other jurisdiction in North America. The government also recently introduced a Standard Offer Contract program, which is expected to add another 1,000 megawatts of renewable energy sources over the next ten years.

New Act Sets Stage For Smart Meter Installation, Helps Ontario Households Conserve

QUEEN'S PARK - Legislation giving Ontarians important tools to manage electricity use and save money on their energy costs has received Royal Assent, Energy Minister Donna Cansfield announced.

"This legislation is an important step in creating a conservation culture in Ontario," said Cansfield. "Through tools like smart metering, consumers will have better information and more control over the cost of the electricity they consume. Taxpayers will save too, as institutions like schools and hospitals become more energy efficient thanks to the Energy Conservation Responsibility Act, passing the savings on to all Ontarians."

The Energy Conservation Responsibility Act establishes the legislative framework for the installation of smart metering in Ontario homes and small businesses. The government has committed to installing 800,000 smart meters by 2007, and ensuring that smart meters are installed in all homes and small businesses by 2010.

"During our recent public consultations on Ontario's energy future, citizens said time and time again that conservation was an effective way to ensure a safe, clean, secure and reliable supply of electricity," said Cansfield. "This legislation will help make increased conservation a reality." As a result of this legislation, ministries, agencies and broader public sector organizations can be required to prepare and publish energy conservation strategies on a regular basis, reporting on energy consumption, proposed conservation measures, and progress on achieving results.

"This legislation represents important progress on conservation matters," says Peter Love, Ontario's Chief Energy Conservation Officer. "This is an important step in the right direction and we look forward to working with all Ontarians as we continue to build a culture of conservation."

The legislation also contains an amendment, introduced as a result of legislative hearings, that will enable individual metering of condominium units, through local distribution companies or third party companies, all of whom would be licensed by the Ontario Energy Board. Individual meters would allow condominium owners to control their own energy costs.

"Rather than continuing to bury rising energy costs in ever escalating condo fees, this legislation allows an important segment of our province's home owners a real say in energy conservation, and their own energy costs," Cansfield said.

The legislation builds on other government initiatives intended to increase conservation in the province. These include:

- Directing the Ontario Power Authority (OPA) to undertake programs that will further boost energy conservation in Ontario including developing an appliance exchange program, conservation outreach and education and a low-income and social housing program. These measures could reduce overall electricity consumption by as much as 200 megawatts - enough power for 125,000 homes

- Directing the OPA to obtain 300 megawatts of conservation in Toronto. Combined with the 250 megawatts of conservation programs by Toronto Hydro, this more than doubles the conservation programs for the city

- Directing the OPA to obtain up to 500 MW of demand response and demand side management projects across the province, in addition to 300 MW of conservation and demand management projects targeting the residential, commercial and public (municipalities, universities, schools and hospitals) sectors

- Directing the OPA to obtain up to 1000 MW of combined heat and power projects

- Partnering with Ontario's utilities to launch powerWISE, an initiative to help consumers achieve energy conservation and savings

- Enabling Ontario's local distribution companies to invest more than $160 million for energy conservation measures across Ontario

- Being well on the way to reaching the government's target of achieving a 10 per cent reduction, by 2007, in its own electricity use

- Creating a net metering program that allows farmers, small businesses, and consumers that generate renewable electricity to receive credit for the excess power they produce

Undertaking a public consultation on proposed changes to Ontario's Building Code to increase the energy efficiency of buildings. The consultation is led by the Ministry of Municipal Affairs and Housing.

"A conservation culture is vital to Ontario's future," Cansfield said. "We see conservation as a real opportunity to help Ontarians prosper, by reducing costs to individuals and to business, by creating new jobs and new industries, and by reducing our use of a precious resource."

Backgrounder

SMART METERING AND ELECTRICITY CONSERVATION IN ONTARIO

The Energy Conservation Responsibility Act implements two major conservation initiatives: the introduction of smart metering technology in Ontario and conservation leadership.

SMART METERING

The Energy Conservation Responsibility Act enables the McGuinty government to install 800,000 smart meters in Ontario homes and businesses by 2007 with installation in all homes and businesses by 2010. These meters will revolutionize the way Ontario consumers track and manage their energy use. Smart metering provides consumers with greater control over their energy costs that can lead to system-wide savings through reduced demand.

With smart metering, customers can choose to control their energy costs through moving usage to off-peak periods (running the dishwasher at night) or lowering energy use during all periods (setting the air conditioning a few degrees higher). Customers may be able do this manually by adding control devices themselves (i.e. programmable thermostats) or by contracting others who may control load remotely.

The legislation also sets the framework for an entity that will oversee Ontario's smart metering communications systems and technologies. The responsibilities of this organization could include facilitating the procurement of smart meter systems and the collection and management of data. Local distribution companies will own, install, operate and maintain the new meters, and they will retain their important role in working for their customers.

The legislation gives the government flexibility to determine the best options for the governance, ownership and regulatory structures of the smart metering initiative as it goes forward. These options will be the subject of consultations over the next two months.

CONSERVATION LEADERSHIP

The second component of The Energy Conservation Responsibility Act is conservation leadership. This legislation will help Ontario's public sector lead the way in energy conservation and help it manage energy costs.

The legislation promotes public sector leadership in conservation, helps remove barriers to conservation and strengthens the conservation culture in Ontario. Some of the highlights of the bill include:

- Promoting Conservation Planning Ministries, agencies and broader public sector organizations can be required to prepare and publish conservation plans on a regular basis. The plans may include reports on energy consumption, proposed conservation measures, and progress on energy conservation.

- Demonstrating Conservation Leadership The government is committed to removing barriers and promoting opportunities for energy conservation and energy efficiency in its operations. For example, the bill would require government ministries and agencies to factor in conservation and energy efficiency in their procurement and capital investment decisions.

- Encouraging Conservation Actions The legislation will help remove barriers to energy conservation that may exist in current codes or by-laws. It could also require energy efficiency and usage information to be made available when homes are being sold.

- Facilitating Conservation Co-operation The legislation will facilitate agreements between the government and other sectors to collaborate on conservation programs. Agreements could involve co-operation on research, conservation benchmarking and improvements to facilities.

On March 21, the Ontario government announced it will "lead the way in using clean, renewable electricity by setting a standard price" for small projects feeding into the provincial grid.

The Standard Offer Program will set a fixed price of 11 cents per kilowatt-hour for wind, biomass or small hydroelectric and 42 cents per kilowatt-hour for solar power.

DSEA chairman Michael Angemeer says the Government's announcement provides small businesses a unique opportunity. Durham Region, he adds, can provide the conditions for those businesses to thrive.

"Durham provides an ideal home base for small manufacturers and generators through the synergies created within the current energy cluster," Mr. Angemeer says. "In Durham Region, there is a symbiotic relationship built on a thriving energy industry, progressive local government and energy-focused research and training at the University of Ontario Institute of Technology. UOIT is the first Canadian university with a school dedicated to energy systems and nuclear engineering."

With its historic links to Ontario's electricity production, Durham offers the physical infrastructure and the human resources to support fledgling projects.

"The energy industry is at home in Durham Region," says Mr. Angemeer. "We have supportive local government and a supportive community. Through DSEA we have pooled the strengths of the private, public and education sectors to create a support network for businesses looking to create innovative solutions to the province's energy challenges."

Statement by Myron Ebell, Director of Energy Policy, Competitive Enterprise Institute on opening the Arctic National Wildlife Refuge to Energy Exploration

CEI congratulates the Senate on its passage of yesterday’s budget resolution containing provisions to open limited areas of the Arctic National Wildlife Refuge to oil and gas exploration. In order to realize the benefits of the Senate’s move, however, the House of Representatives must act quickly to adopt the same provisions.

The ANWR authorization in the current budget resolution is one of the key policies to address responsibly the nation’s long term energy needs. The American people are looking to Congress for leadership in adopting affordable energy policies. Now is the time to act.

The ANWR provisions were passed in both the House and Senate last year, but were derailed from final approval by an obstructionist minority unable to offer any viable alternatives. We hope that the House leadership will now be determined to overcome that obstructionist minority and pass legislation to open ANWR.

CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government. For more information about CEI, please visit our website at www.cei.org.

"Teaming between organizations like the St. Joseph's Health Care London and Honeywell make it possible to make great strides in energy efficiency in the healthcare environment where dollars are scarce," said Love. "These upgrades are going to create a more comfortable environment, help protect the environment and, of course, save money."

The energy management/facility renewal project received funding from Natural Resources Canada's Office of Energy Efficiency and Union Gas totaling over $80,000.

Delivering a Certificate of Recognition, Love said, "The Conservation Bureau is pleased to recognize the efforts of St. Joseph's Parkwood Hospital to improve the healthcare environment for both patients and staff. The upgrades that have occurred throughout this project will ensure that more healthcare dollars will go to benefit patients, and not to pay utility bills."

The renewal initiative of Parkwood hospital is a good template for other Ontario healthcare facilities. Addressing much needed facility improvements through a guaranteed approach makes sense.

The solutions implemented to achieve the savings include: ventilation improvements through zonal air control, thermal blanket for the therapeutic pool, electric light retrofitting and upgrades, and enhancements to the centralized control system solution.