Brief to

Honourable Chris Stockwell
Minister of Energy, Science & Technology

June 21, 2002

Ottawa, Ontario

Presented by

Murray L. Moore, President of Ottawa River Power Corporation

  Alternative Solution to Hydro One

Mr. Minister and Panel Members, thank you for this opportunity to make a verbal presentation today as well as the opportunity that has been afforded to utilities, by staff and yourself, to present our opinions and the opinions of many of our customers.

We realize this may be our last "kick at the cat" as the expression goes; however, we do feel we have a "made in Ontario solution" to the problems that the people and the Government of Ontario face.

As published, the Government is considering the following three options:

• Getting a "strategic partner"
• An income trust
• Selling 49%

Today we wish to address only a portion of Hydro One's assets; namely, the Hydro One Networks. The Networks presently consists of distribution (under 50,000) volts and transmission (over 50,000 volts).

We must reiterate the reasons already stated by the EDA (Electrical Distributors Association of Ontario) and others. Transmission must remain in public control in order to protect the consumers of Ontario. It has a similar function to supplying the needs of the Province of Ontario as does the Independent Market Operator (IMO).

Hydro One's distribution network is a system that has been expanded in the past few years to consume numerous municipal utilities in Ontario. These utilities were operating debt free, now to be added to the debt of Hydro One.

We believe there is a solution that will address the many problems that our Government is primarily faced with at present:

Some of these are:

• Debt
• Customer Service
• Availability
• Accountability
• Reliability
• Public Ownership
• Trust
• Need for competition to maintain high level of service and rates

What do we see as a solution?

The MacDonald report stated it very clearly – "wall to wall" county utilities.  At that time, utilities completed many studies proving this idea as a viable option.

Presently, there are amalgamated, municipally-owned utilities throughout the province. These utilities are very capable of assuming this responsibility while still providing benefits to the customer and the Province of Ontario.

How can this option meet your criteria?

Debt

• Through a lease purchase or other negotiated means, the debt would be transferred to the companies, away from provincial responsibilities. 

Customer Service

• Regardless of the distance, our customers are continually amazed how fast the response time is for trouble calls, service calls and underground locates.  The response time ranges from minutes to hours, not days.

Availability

• In our utility, we have local offices for local contact. Our customers are still able to pay at an office, with staff at their service. Our dispatchers know the localities, circumstances, and conditions.  Our staff is available to respond to inquiries.

Accountability

• Because we are locally owned, staff produces the required results and, if not, management and/or the Board of Directors are subsequently replaced. Our shareholders are local councils, they want their return and they want the required level of service.

Reliability

• Our customers depend on our reliability and we have a proven record with them. Our reliability is strengthened by the pride, commitment and ownership that our staff has with our company.  With a locally-controlled utility, designs are local and construction may be scheduled on a local needs basis.

Public Ownership

• Public ownership is maintained in this scheme; however, it is transferred to the lower tier where there may be accountability, while simultaneously provincially supervised by the OEB. 

Trust

• The local utility has developed a very high level of trust in our communities. This is emphasized every day by the questions our staff respond to on a daily basis.

Need for Competition

• By dividing the Province into units, it will provide each of us with benchmarks indicating levels of efficiency, for competition.  With the large utility approach, there is little to compare to.

The Ottawa River Power Corporation is a proud, municipally-owned company with ancestor history dating back to 1884 (prior to the formation of Ontario Hydro). Our present Municipal shareholders are Mississippi Mills (adjacent to Ottawa), Killaloe, Beachburg and Pembroke.  Municipalities do not want to relinquish control or their annual return on their investment. We are a company that has been challenged and met the rigorous rules and codes set out by the OEB.

We provide stability for a local work force, profitability for our shareholders, maintain a high quality plant, an enviable safety record, coupled with a very high level of community spirit.

Due to the location of our offices and level of computerization for billing, etc., we are in a position to provide a very efficient and competitive utility to the County of Renfrew, as well as Lanark County. There would be negotiable boundaries with the adjacent "wall to wall utility" concept to achieve maximum efficiency for all concerned.  This same scenario may be replicated throughout the Province.

We realize there will be various challenges before us in this process, such as remote areas in the Province, boundaries, metering, labour, culture, etc.  However, we have faced and conquered a number of these challenges in the past and we will overcome.

In summary, we are not consultants, economists or experts from outside of our borders. We are the roots of Ontario that have actually worked and operated very successful municipally-owned utilities. We believe the answer is before us and we believe we can work this out together. Our customers are Ontario taxpayers and we both want what is best for Ontario. Our record stands for itself.

We merely request to be given the opportunity to address these issues and provide the Government with a "made in Ontario, owned by the residents of Ontario, controlled by the people of Ontario, solution."

Once again, I truly appreciate the opportunity to provide you with what we feel is the best solution to this situation.  Thank you. 

I would be happy to respond to any questions you may have pertaining to this presentation.