November 11, 2002

EVES TAKES ACTION TO LOWER HYDRO BILLS

News Release

MISSISSAUGA -- Ernie Eves, Ontario's Premier, took action today to lower hydro bills for consumers and businesses across the province. His plan would, if passed by the Legislature, lower and freeze the price consumers pay for power and retroactively refund consumers for price increases.

"It is unacceptable that families are being hit with hydro bills they can't afford, and businesses are facing cost increases significantly larger than they can handle," said Eves. "The problem requires immediate action and we are taking it. From now on, the only time your electricity bill will go up is when you use more power."

The government will introduce an action plan to lower hydro bills. If passed by the Legislature, the action plan would:

• Lower the price residential and small business consumers pay for power to 4.3¢ per kilowatt hour, effective December 1, 2002, and freeze it there. Consumers on fixed contracts for more than 4.3¢ would now pay only 4.3¢.
• Refund every penny of the difference between the 4.3¢ price of power and what consumers actually paid, retroactive to May 1, 2002, when things changed. The first instalment of the refund would be sent out as soon as possible -- in most cases before the end of this year. Local distribution companies would credit the remainder on consumers' bills as soon as they are able. Until March 31 of next year, no one would have their power disconnected for failure to pay their hydro bill.
• Cap the price consumers pay for delivery at current levels.
• Order an independent review of how other charges on electricity bills are calculated to ensure they are reasonable, including the fixed monthly charge, and create a standard province-wide electricity bill that is easy to read and understand.
• Continue to repay the multi-billion dollar debt created by mismanagement and inefficiency at the old Ontario Hydro under previous governments, and plan to accelerate payments as soon as new supply is on stream.
• Demand the federal government stop its outrageous practice of charging the GST on electricity bills.
• Ensure lower bills for those who conserve -- from now on, the only time consumers' hydro bills would increase is when they use more power.
• Include a plan for stable, long-term electricity supply at reasonable prices. Within days, the government will announce changes to the board of Ontario Power Generation and further details of an independent investigation into delays in restoring Pickering Generating Station to full operation.
• Include incentives for conservation, clean energy and alternative fuels including tax incentives and tax holidays. Scarborough East MPP Steve Gilchrist will be appointed as Commissioner of Alternative Energy, with a mandate to spearhead the introduction of alternative sources of power.

"I expect all MPPs to do the right thing and give our plan speedy approval when it is presented to them, so we can help families and businesses as soon as possible," said Eves. "We will continue to work towards a long-term solution that keeps prices reasonable, and ensures a stable supply of electricity in Ontario."

The immediate measures of this plan would be in place at least until 2006 and would remain until there is a sufficient electricity supply, at reasonable prices, to meet Ontario's long-term needs.

On Tuesday, Energy Minister John Baird will announce further details of the government's action plan for new electricity supply. On Wednesday, Baird and Gilchrist will announce initiatives to encourage conservation, clean electricity and alternative energy.

"While we are acting to protect consumers, we also need to do whatever it takes to encourage investment in new, clean generation," said Baird. "There are a number of wind and gas generation projects being developed throughout the province, but more must be done to ensure we have the generating capacity we need."