New Electricity Rules To Increase Air Toxins From Coal Power Plants, Says Pollution Probe.

(Toronto, ON) Proposed new electricity rules which would compel Ontario electrical utilities to buy wholesale power on the spot market will lead to increased health problems for the Ontario public from coal-fired power plant pollution, according to Pollution Probe.

In submissions filed today with the Ontario Energy Board, Pollution Probe says:

The proposed rule requiring that the Ontario Hydro Services Corporation and all municipal electrical utilities must purchase all of their electricity supplies on the spot market will favour dirty, coal-fired electricity and thus increase dangerous air emissions, as compared to a more flexible policy which would allow the utilities to buy and offer cleaner power, such as from natural gas power plants.

The spot market purchase rule is part of a proposed new electricity market regime which eliminates Ontario Hydro's monopoly and allows open competition in the electricity market. The Ontario Energy Board is considering the proposed new rule in a hearing on the structure of the market. However, says Murray Klippenstein, legal counsel for Pollution Probe, this proposed part of the new regime overshoots the mark. "You do not increase competition and consumer choice by prohibiting utilities from buying and offering clean power."

The proposed new rules allow unregulated energy companies to offer cleaner power, but not regulated utilities. The new rules will effectively force all consumers who buy power from a utility to buy dirty coal power, whether they want to or not.

Says Mr. Klippenstein for Pollution Probe: "It is ironic and a little offensive that a new regime supposedly focusing on consumer choice should be compelling millions of Ontario electricity users by force of law to buy dirty coal-fired power unless they are willing to switch away from a regulated utility. Yet most studies show that most consumers prefer to stick with a regulated utility, because of reasonable prices and convenience."

The Ontario government, in its policy paper on the new electricity market entitled Direction for Change, stated that when implementing electricity competition, "the Government will ensure that the province's environmental protection record is maintained and improved." (pg. 12)

Pollution Probe argues that utilities should be allowed to offer cleaner power options to consumers who would prefer to stick with their utility.

For more information, contact:

Murray Klippenstein
Iler, Campbell, Klippenstein
Legal counsel for Pollution Probe

(416) 598-0103

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