Hydro One

1
Hydro One

• Presentation to Standing Committee on Government
  Affairs
• September 7, 2006

2
AMPCO

• Our mission to promote the competitiveness of
  Ontario industry by advocating for reliable
  supplies of electricity at affordable rates
• We represent 56 of the largest power consumers in
  Ontario in forestry, chemical, mining and
  minerals, steel, petroleum products, cement,
  automotive and manufacturing industries

3
Legislative framework

• Adequacy, safety, sustainability and reliability
  of electricity supply
• Efficient use of electricity
• Protect the interests of consumers with respect
  to prices and the adequacy, reliability and
  quality of electricity service
• Promote economic efficiency and sustainability in
  the generation, transmission, distribution and
  sale of electricity
• Facilitate the maintenance of a financially
  viable electricity industry

4
AMPCOs interests

• Prices
• Like all consumers, AMPCO members want reliable
  electricity supplies at affordable prices
• Prices, plus uplifts, tariffs, levies total
  cost of power
• Already seeing negative impacts of high and
  rising electricity costs on economic
  competitiveness
• Adequacy, reliability and quality of service
• Aging and inadequate transmission infrastructure
• Costly interruptions to electricity service
• Critical needs in specific locations
• Long lead times

5
Ontario industrial rates since 2001
6
Power costs in perspective
7
Hydro One general comments

• Significant improvement overall
• Management
• Operational focus
• Financial performance
• Customer satisfaction

8
Hydro One - Current issues

• Transmission rates
• Seeking changes in the tariff structure to
  encourage demand management and peak load
  shifting
• Capital programme
• Clarity on planning roles and responsibilities
• Prioritization
• Cost control
• Business case prudence
• Performance benchmarking

9
Thank you

• Adam White
• President
• Association of Major Power Consumers in Ontario
• 162 Cumberland Street, Suite 305
• Toronto, Ontario  M5R 3N5
• e awhite_at_ampco.org
• t 416-260-0225
• f 416-260-0442
• c 416-999-5781