Energy Minster Dwight Duncan today announced the framework for how the government is going to address Ontario's electricity crisis -- and conservation is a key part of the solution. Premier McGuinty is expected to provide more details on the Province's commitment to conservation next week, including the role of Ontario's volunteers, community groups and non-governmental organizations in promoting a culture of conservation.

Details of the Minister's announcement can be found at http://www.energy.gov.on.ca/index.cfm?fuseaction=english.news&news_id=59&body=yes.   

There are six parts to the government's vision:

1. A combination of a fully regulated and a competitive electricity sector
The government will use a combination of fully regulated prices for nuclear and baseload hydroelectric power and a competitive market for additional power. The combination of pricing mechanisms would result in a blended cost for all consumers.

2. Price stability for consumers who want it, and flexibility for consumers who need it.
The government will offer price stability for those who want it through a regulated rate plan where prices will be averaged out over time but would remain stable each year. Consumers will also be allowed to purchase their electricity from energy retailers.

3. Opportunities for Investors
The government will ensure that the private sector can earn a fair return on investments in the electricity sector.

4. The creation of a new independent body called the Ontario Power Authority
The Authority will forecast needs and prepare an integrated system plan for conservation, generation and transmission.

5. The creation of a new Conservation Secretariat to be housed in the Ontario Power Authority.
The Secretariat will develop province-wide programs to help Ontario's homes and businesses to conserve and save money. The Conservation Secretariat will also monitor the progress Ontario is making in reducing overall demand.

The Secretariat's work will complement additional conservation programs developed and managed through the local distribution companies under a new pricing structure that would compensate and reward the LDCs for demand reductions.

6. The Ministry of Energy will continue to set targets for conservation, the use of renewable energy, and the overall supply mix of electricity in the province.
The government has already stated its medium-term goals 5 per cent of Ontario's capacity should come from new renewable sources by 2007, 10 per cent by 2010; and electricity demand should be reduced by 5 per cent by 2007 through conservation. The Ontario Power Authority would be charged with achieving the targets set by the government, and would include them in its system planning.