1 18 th World Energy Congress Energy Markets : The Challenges of the New Millenium Mr. Paul Vlahos Vice Chair, Ontario Energy Board (OEB) / Past President, CAMPUT RoundTable 10-B : Energy Regulators - The Role of the Regulators in Energy Sector Development ENERGY MARKET RESTRUCTURING AND REGULATORY REFORM IN CANADA (Presented by : Mr. Robert Meunier, Régie de l’énergie du Québec)

2 Introduction  Canadian situation on :  energy market restructuring  regulatory reform  First World Forum on Energy Regulation Montreal - May 2000

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4 CAMPUT CANADIAN ASSOCIATION OF MEMBERS OF PUBLIC UTILITY TRIBUNALS  Members from coast to coast  Objectives :  improve public utility regulation in Canada  improve education and training of commissioners

5 Regulatory and Institutional Framework  Federal regulator : National Energy Board  jurisdiction  Provincial regulators : 10 provinces and 3 territories  jurisdiction

6 Regulatory History  1970 ’s :  heavy handed regulation  1980 ’s :  deregulation of natural gas prices  1990 ’s :  from cost of service regulation to new regulatory approaches  restructuring of Canadian electricity industry

7 Market Reforms  Electricity market reforms :  Alberta  Ontario

8 Does Canada Need a Super Regulator?  Canadian interests  Canada - United States issues  FERC vs NEB jurisdiction  Regional transmission organisation (RTO)

9 Market Restructuring in Ontario  1998 : Restructuring of electricity industry  Former Ontario Hydro :  Ontario Power Generation (OPG)  Hydro One  Independent Market Operator (IMO)

10 Market Restructuring in Ontario (continued)  Open access expected in 2002  Ontario Energy Board jurisdiction  Regional transmission organisation with US states

11 Regulatory Challenges  Shift away from quasi-judicial process  Adoption of alternative processes