Minister releases Electricity Policy Review consultation report

Mines and Energy Minister Walter Noel today released the report that was compiled by Mr. Wallace Read summarizing the submissions made during the Electricity Policy Review consultations held in 2002. This phase of the Electricity Policy Review consultations was announced in March 2002 and took place throughout the Spring and Summer of last year.

Government initiated the Electricity Policy Review 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. The privatization of Newfoundland and Labrador Hydro was not an option and was not considered by government.

"Since the Electricity Policy Review was announced, many changes have occurred in the North American electricity industry," said Minister Noel. "Many issues have arisen over the past couple of years that were not originally anticipated, such as the deregulation problems in California, Alberta and Ontario, and the collapse of major electricity companies such as Enron. During the time between the consultation process and the release of this report, government thought it prudent to analyze current events and their impact on our own review. Government is of the opinion that it is important to avoid the kind of situations that have occurred in other jurisdictions when new initiatives were implemented."

The minister emphasized that Mr. Read�s report is another stage in the process that will eventually shape the province�s electricity policy. "This document summarizes the submissions put forward by interested parties during the consultation process. The Department of Mines and Energy will take these submissions into account as it formulates recommendations for government�s consideration. This document merely reflects specific responses to various options and is not a report on the policy review process itself.

"With the release of this report, the recent public issues regarding the electricity industry, and the limited public reaction to the earlier consultation process, I feel it is important to provide an opportunity for broader public input. In this regard, I will be holding a number of town hall meetings in the near future. This process will provide Newfoundlanders and Labradorians with an opportunity to discuss matters of public interest with respect to the province�s electricity industry. Government is committed to ensuring that the development of an electricity policy for this province is as open and transparent as possible.

"I would like to thank Mr. Read and all of those who participated in the development of this report for their commitment and interest in the creation of an electricity policy for Newfoundland and Labrador. We will ensure that the viewpoints contained in this report receive the appropriate level of consideration, and I look forward to this second round of public consultations. "

Copies of the report are available on the Government of Newfoundland and Labrador website at //www.gov.nl.ca/mines&en/policyreview/ Printed copies are also available from the Department of Mines and Energy.

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

2003 04 11                                     1:30 p.m.