Annual Report 1994/95 - Energy

While telecommunications certainly kept us busy, other business sectors also showed significant activity. The Energy sector in Canada is undergoing a thorough examination at several levels to assess the benefits that could flow from increased reliance on market forces.

Ontario Hydro

In last year's Annual Report, I mentioned my intention to intervene in hearings of the Ontario Energy Board (OEB) on structural reorganization within Ontario Hydro and its proposed rates for 1995.

Between May and July 1994, the Bureau participated in OEB hearing H.R. 22. Key issues considered included the need for further restructuring of Ontario Hydro as well as reforms to the Ontario electricity industry regulatory framework to promote more efficient and competitive electricity supply in the province. Expert evidence about the potential implications of reorganization taking place within Hydro for competition in the Ontario electricity market was provided on my behalf by Dr. Edward Kahn.

The findings of the OEB were generally pro-competitive and consistent with the directions suggested in the evidence we provided and my Final Argument. In particular, the Board concluded that "a review of the legislation governing the regulation of Hydro should be undertaken... to address shortcomings in the current regulatory system which have emerged from the evidence in the hearing."

British Columbia Electricity Market Structure Review

In January 1995, I intervened in the British Columbia Utilities Commission Electricity Market Structure Review. The purpose of this review is to provide policy advice to the Government of B.C. regarding the benefits of, as well as options for further opening the B.C. electricity network. The Review will take place between April and June 1995.