Lower Costs and Better Service for Ontario`s Electricity Consumers

www.eda-on.ca
Key Benefits
Project Green Light is a made-in-Ontario
PROJECT
GREEN
LIGHT
solution that would deliver significant benefits
to all electricity consumers:


Electricity delivery would remain under
local control, and in the hands of
The EDA is the voice of Ontario’s local electricity
companies that have earned public trust
distribution sector, which consists primarily of
All customers would have the benefit of
superior cost-management and customerservice track records of local electrical
utilities
municipally and privately owned local distribution
companies. The distribution sector delivers power
to Ontarians through 4.9 million residential,
commercial and institutional customer accounts.
The sector employs 10,000 people directly and


It would provide a basis for the most
holds $19 billion in assets; it has $1.9 billion in
efficient re-structuring of the distribution
annual capital spending and $1.6 billion in annual
sector, involving the further voluntary
operational spending; and makes hundreds of
consolidation of local electrical utilities
millions in direct contributions to both municipal and
The province would get fair value for the
assets it sells, allowing for investments in
other key areas such as public transit
provincial revenues.
1100 – 3700 Steeles Ave. West
Vaughan, ON L4L 8K8
905-265-5300

A transaction involving local electrical
[email protected]
utilities would be tax efficient, and would
maximize revenues to the province
March 2015
Lower Costs & Better
Service for Ontario’s
Electricity Consumers
The Need
Project Green Light
How it Would Work
Ontario’s electricity distribution system is
The Electricity Distributors Association (EDA) is
Participating local electrical utilities would
fragmented – with neighbours even within the
calling for policy change to facilitate the most
first expand their service territories to their
same municipality sometimes receiving power
significant re-structuring of the electricity system
municipal boundaries.
from a mix of a local electrical utility and
since Ontario Hydro’s breakup in 1998.
Adjacent areas currently serviced by Hydro
The EDA is calling for Hydro One’s distribution
One would instead be acquired and serviced
Large swaths of Hydro One service areas
assets to be acquired, at a fair value, by local
by local electrical utilities, through an orderly
surrounding urban municipalities have also
electrical utilities throughout the province.
allocation process.
Delivery of electricity would remain in trusted,
Further voluntary consolidation among local
local hands, and the strong customer
electrical utilities would be encouraged, and
experience provided by these local electrical
would in fact likely be a natural outcome of
utilities would be extended to more customers.
this process.
creating a more efficient distribution system for
The end result would also be more robust and
Hydro One would continue to operate the
the benefit of electricity consumers. It is also a
better-resourced distribution companies, with
provincial transmission system – a business
high-cost operator relative to local utilities.
service territories within which they could
line where its performance has been
operate more efficiently and at lower costs.
stronger – and could also focus on a much-
provincially owned Hydro One.
impeded what would often be a logical and
cost-reducing expansion of the areas served by
local electrical utilities.
Hydro One’s continued participation in the
distribution sector is therefore a major barrier to
Improvement is needed, to both address cost
needed industrial strategy.
pressures, and to better ensure sustainable
investment in the infrastructure we all rely on to
Rate subsidies for the benefit of customers
power our homes and businesses. Active
in remote areas would be maintained.
provincial government consideration of the
future of its distribution assets makes this the
ideal time to move forward with decisive action.
www.eda-on.ca
www.eda-on.ca
Key Benefits
Project Green Light is a made-in-Ontario
PROJECT
GREEN
LIGHT
solution that would deliver significant benefits
to all electricity consumers:


Electricity delivery would remain under
local control, and in the hands of
The EDA is the voice of Ontario’s local electricity
companies that have earned public trust
distribution sector, which consists primarily of
All customers would have the benefit of
superior cost-management and customerservice track records of local electrical
utilities
municipally and privately owned local distribution
companies. The distribution sector delivers power
to Ontarians through 4.9 million residential,
commercial and institutional customer accounts.
The sector employs 10,000 people directly and


It would provide a basis for the most
holds $19 billion in assets; it has $1.9 billion in
efficient re-structuring of the distribution
annual capital spending and $1.6 billion in annual
sector, involving the further voluntary
operational spending; and makes hundreds of
consolidation of local electrical utilities
millions in direct contributions to both municipal and
The province would get fair value for the
assets it sells, allowing for investments in
other key areas such as public transit
provincial revenues.
1100 – 3700 Steeles Ave. West
Vaughan, ON L4L 8K8
905-265-5300

A transaction involving local electrical
[email protected]
utilities would be tax efficient, and would
maximize revenues to the province
March 2015
Lower Costs & Better
Service for Ontario’s
Electricity Consumers
www.eda-on.ca
Key Benefits
Project Green Light is a made-in-Ontario
PROJECT
GREEN
LIGHT
solution that would deliver significant benefits
to all electricity consumers:


Electricity delivery would remain under
local control, and in the hands of
The EDA is the voice of Ontario’s local electricity
companies that have earned public trust
distribution sector, which consists primarily of
All customers would have the benefit of
superior cost-management and customerservice track records of local electrical
utilities
municipally and privately owned local distribution
companies. The distribution sector delivers power
to Ontarians through 4.9 million residential,
commercial and institutional customer accounts.
The sector employs 10,000 people directly and


It would provide a basis for the most
holds $19 billion in assets; it has $1.9 billion in
efficient re-structuring of the distribution
annual capital spending and $1.6 billion in annual
sector, involving the further voluntary
operational spending; and makes hundreds of
consolidation of local electrical utilities
millions in direct contributions to both municipal and
The province would get fair value for the
assets it sells, allowing for investments in
other key areas such as public transit
provincial revenues.
1100 – 3700 Steeles Ave. West
Vaughan, ON L4L 8K8
905-265-5300

A transaction involving local electrical
[email protected]
utilities would be tax efficient, and would
maximize revenues to the province
March 2015
Lower Costs & Better
Service for Ontario’s
Electricity Consumers