Ontario Premier Ernie Eves’ controversial plan to cap electricity prices paid by residential and small business consumers at C4.3 cents through 2006 moved one step closer to becoming a reality last week after the province’s energy minister introduced a bill implementing the proposal.

Eves last month unveiled a proposal that would cut the price residential and small business consumers pay for power to C4.3 cents per kWh effective Dec. 1, 2002 and freeze it there. Consumers on fixed contracts for more than C4.3 cents would now pay only C4.3 cents. It would also cap the price consumers pay for the delivery of power at current levels (see Power Market Today, Nov. 12).

The proposal will need to be approved by the province’s legislature. To that end, Ontario Energy Minister John Baird on Monday introduced the Electricity Pricing, Conservation and Supply Act 2002.

Along with lowering and freezing the price of electricity at C4.3 cents per kWh for families, small businesses, and farmers, the legislation also offers measures — including tax incentives and tax holidays — to promote conservation, encourage alternative fuels and support clean energy production. Baird detailed the proposed legislation’s call for huge tax breaks for renewable and alternative energy earlier this month (see Power Market Today, Nov. 13).

As for handicapping the chances of the bill’s becoming law, a spokesperson for the province’s electricity grid operator is laying heavy odds in favor of the measure. “Once they introduce a bill — unless they change their mind — there’s no chance of it not passing,” Ted Gruetzner, a spokesperson for the Ontario Independent Electricity Market Operator, said recently (see Power Market Today, Nov. 25).

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