Minister announces public consultations on the Electricity Policy Review

Mines and Energy Minister Lloyd Matthews today released the province�s electricity policy review and announced a public consultation process on the document.

Government initiated this review in 1998 to examine the structure of the electricity industry, its regulation, the pricing of electricity, how electricity could contribute to the province�s economic development, and future sources of electricity generation that may be available. It was also announced at that time that no new small-scale hydroelectric developments would be approved until the review was completed.

"The review also examined the experiences of other jurisdictions to learn from their successes and failures when they restructured their industry," said Minister Matthews. "I am pleased to announce that this review process has been completed, and that today, I am initiating a phase of public consultation on the report."

Minister Matthews stated that while the review discusses possible options for the future structure of the industry, the privatization of Newfoundland and Labrador Hydro is not an option that will be considered by government.

The review also concludes that there are many possible options available for new energy generation opportunities, but each has its own blend of economic and environmental qualities. The document concludes that any type of project which could be used in the future should not be ruled out in advance, but rather such decisions should be made when the decision on new power is needed.

The minister reiterated that this is a consultation document and no decisions will be made on future policy directions until input from the public is received and considered.

"Government is now seeking reaction from Newfoundlanders and Labradorians to this report," said Minister Matthews. "Mr. Wallace Read, a former CEO of Hydro and Commissioner of the Public Utilities Board, will be the independent consultant to whom people should make their views known. Interest groups and individuals not receiving an invitation are encouraged to contact the Department of Mines and Energy to request an opportunity to make a presentation."

Consultations will consist of meetings with departmental officials and Mr. Read. Written comments are to be forwarded directly to the consultant during this 60 day process. All comments will be reviewed by Mr. Read and he will file his report within 30 days of the end of the consultation period. The Department of Mines and Energy will formulate its final recommendations and submit them for government�s consideration.

Copies of the review document and summary document are available on the Government of Newfoundland and Labrador Web site at www.gov.nl.ca/mines&en/energy/policyreview. Printed copies will also be available from the Department of Mines and Energy.

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 03 26                        11:00 a.m.