In April 2012, the Ontario government launched a comprehensive
review of the province's electricity sector with the goal of
exploring options to improve efficiencies. The Ontario Distribution
Sector Review Panel (the Panel), led by Murray Elston, David
McFadden and Floyd Laughren, was assembled to accept submissions
from various stakeholders, including municipalities, local
distribution companies (LDCs), the Electricity Distributors
Association and other energy experts, in order to examine a range
of issues including the potential for LDC consolidation. To be
clear, the Panel's mandate is to "provide advice and
make recommendations to the Minister of Energy regarding issues
related to Ontario's electricity distribution sector and
distribution models, including opportunities for consolidating
Although the submissions to the Panel have been provided on a
confidential basis, a few stakeholders have published their
submissions on their respective websites, including but not limited
to, the Ontario Chamber of Commerce, the Society of Energy
Professionals, the Electricity Distributors Association, the
Consumer Council of Canada, the Association of Municipalities of
Ontario and the Ontario Energy Association. As can be expected, the
views on the matter range from complete support for the
consolidation of LDCs to a full opposition of a mandated
consolidation plan. One particular group, the Society of Energy
Professionals (the Society), even proposes a unique idea to
consolidate the industry. The Society suggests creating one entity,
which they call the "Ontario Electricity Delivery
Company" (the OEDC), that would combine the transmission and
distribution assets of Hydro One with those of all the other LDCs
in the province, regardless of their current ownership, into one
entity. In return for transferring assets to the OEDC, current
Hydro One and LDC owners would receive equity in the consolidated
company in proportion to their contribution.
The Panel has been given 12 months to review all of the
submissions and report back to the Minister with any
recommendations. As of right now, a list of submitters is not
publicly available and there is no mention of whether the final
report will include a submission list. The entire energy industry
is following the matter quite closely and will be very interested
to read the final report.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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