January 20, 1998

Market Design Committee

The government is establishing a Market Design Committee made up of representatives of the electricity industry and customers which will provide advice and recommendations on the rules and structure for a new competitive electricity market, and on the governance and operation of an Independent Market Operator (IMO) to manage this competitive market.

As part of this mandate, the committee will investigate a broad range of technical issues involved in establishing a proposed electricity market, such as:

• power market rules and procedures
• market and transmission system reliability, codes and standards
• governance of the Independent Market Operator;
• information systems

In so doing, the Market Design Committee will be guided by the policy objectives and directions set out in the Government's White Paper "Direction for Change: Charting a Course for Competitive Electricity and Jobs in Ontario", particularly with respect to the proposals to:

• open Ontario's electricity system to competition in the year 2000;
• allow all generators, including those outside Ontario, to offer supply and all customers to have access to competing suppliers;
• allow customers to either stay with their current utility, use an electricity broker to arrange their supplies or buy electricity directly;
• have the IMO run an electricity exchange, dispatch power based on least cost bids and arrange financial settlements between buyers and sellers of electricity;
• through the IMO, ensure that suppliers have their electricity dispatched according to fair and open operating rules and ensure secure, reliable supplies, and
• consider further environmental protection measures in designing the market.

The committee will advise the Minister of Energy, Science and Technology throughout 1998 on the structure, governance, rules and procedures required for an electricity marketplace and any substantial obstacles to achieving them. Its recommendations will cover:

• issues that must be addressed in any proposed new or amended legislation establishing an Independent Market Operator and a competitive market for electricity; and
• any regulatory agency needed to reinforce and support the operation of a viable electricity market.

• the operation, decision-making, and funding mechanisms of the Independent Market Operator, including the role of market participants in governance of the IMO;
• the role of the Independent Market Operator in electricity system planning and expansion to support competition;
• a workplan for testing and establishing a viable electricity market and the IMO, including the feasibility and objectives of retail access pilot programs.

Membership

Ronald J. Daniels, Dean of the Faculty of Law at the University of Toronto will chair the Market Design Committee. Professor Daniels joined the Faculty of Law in 1988, was promoted to associate professor in 1993 and to dean in 1995. His research and teaching interests encompass corporate law, law and economics and the legal profession.

Mr. Daniels led the University of Toronto Electric Power Project in 1994, a year-long investigation of restructuring in the electricity industry, culminating in a volume he edited, called "Ontario Hydro at the Millenium: Has Monopoly's Moment Passed?". Mr. Daniels also served as chairman of the Ontario Task Force on Securities Regulation in 1994. He was called to the bar of Ontario in 1990, and has a BA (Toronto), LL.B (Toronto) and a LL.M (Yale).

The committee will have two vice-chairs, John Grant and Donald Dewees. A member of the Advisory Committee on Competition in Ontario's Electricity System, Dr. Grant played a lead role in developing the committee's financial assessment of electricity restructuring. He joined the investment firm of Wood Gundy in 1971, where he served as director and chief economist. He retired from Wood Gundy in 1993. Dr. Grant received a Ph.D. in 1964 from the London School of Economics.

Donald Dewees is the Vice-Dean of the Faculty of Arts and Sciences at the University of Toronto, where he has been a professor of economics and professor of law as well as Associate Chairman of the Department of Economics since joining the university in 1971. He has a B.S. in Electrical Engineering from Swarthmore College, an LL.B from Harvard Law School and a Ph.D from Harvard University.

Harry Goldgut is Vice President of Power Generation for EdperBrascan Corporation as well as Vice President of Planning, Great Lakes Power Inc. During the last seven years Mr. Goldgut managed and directed the growth of Jay-M's Quebec hydro-electric power company, Hydro Pontiac Inc., which was acquired by Great Lakes Power Inc. in December of 1996. He has been involved in the integration of these two companies and recently joined EdperBrascan and Great Lakes on full-time basis.

Stephen Probyn is the founder and President of Probyn & Company. This investment firm specializes in the project financing of non-utility generation and environmental infrastructure. He is also founding President and CEO of the Canadian Environmental Energy Corporation (CEEC) which owns and operates 200 MW of independent power projects in three provinces. Mr. Probyn is also a member of the Independent Power Producers Society of Ontario.

Jim Richardson is general manager of Innisfil Hydro, responsible for the planning and direction of the utility to achieve safe and efficient services to the community at an acceptable rate of return. Mr. Richardson has had extensive management experience in the local distribution sector. Since 1986, he has served as General Manager for three different municipal utilities and will bring a hands-on perspective to the challenges facing the municipal electric utilities in restructuring Ontario's electricity system. He is also a member of the Municipal Electric Association.

Karl Wahl brings the perspective of a large municipal utility to the committee. He is general manager of Hydro Mississauga, one of the largest utilities in Ontario. He's been a leading advocate for change in Ontario's electricity system for the past four years and has delivered many speeches designed to further electricity restructuring in Ontario. Mr. Wahl is director of the Canadian Electrical Association and on the Utility Performance Management Committee of the Municipal Electric Association.

Julie Girvan will bring her perspective from residential electricity customers to the committee. She has been an independent consultant and acted for the Consumers Association of Canada (CAC) at the Ontario Energy Board with respect to the natural gas utilities and Ontario Hydro. She was CAC's representative as an observer on the Direct Purchase Industry Committee and a member of the natural gas utility's recent Market Review Working Group. Ms Girvan is also a member of the Ontario Energy Board's External Advisory Committee.

Fred Hassan from Centra/Union Gas will contribute to the committee through his experiences in the natural gas sector. He has been with Centra/Union Gas since 1979 in various positions, and is now Director, Delivery Services Transition. He led Centra/Union's involvement in the Ten Year Market Review process at the Ontario Energy Board and participated in the proposed legislative changes with respect to the natural gas industry.

Peter Budd has had extensive experience in the energy field, including work relating to remote communities and energy projects with First Nations communities. A partner in Bennett Jones Verchere Barristers and Solicitors, Mr. Budd has provided specialized counsel in a wide range of energy and environmental regulatory and litigation matters at various federal and provincial regulatory boards and commissions. He is also a member of the government's Policy Advisory Committee on Energy.

Aleck Dadson is Director, Government Affairs for Enron Capital & Trade Resources Canada Corp. where he is responsible for regulatory affairs initiatives in Canada with respect to both natural gas and electricity. Mr. Dadson has extensive experience in energy and utility regulation. Prior to joining Enron, he was a partner in a Toronto law firm, and represented Ontario gas distribution and transmission companies in a wide range of regulatory proceedings. He was also responsible for Enron's recent submissions to the British Columbia Utilities Commission on the proposed restructuring of the BC electricity industry.

Mitchell Rothman will bring the perspective of the environmental community to the project. He is an energy and environmental economics consultant with extensive experience in the electricity restructuring field. His work as an independent consultant includes conference papers on renewable energy, energy conservation and environmental economics. Mr. Rothman has extensive experience in electricity planning, serving as Chief Economist at Ontario Hydro for more than 10 years.

Souit (Syd) Olvet is Manager, Energy of DuPont Canada Inc. He has been with DuPont since 1962, holding various management positions in research and development, production, strategic planning and sourcing. Mr. Olvet is Treasurer and former Vice-Chairman of the Association of Major Power Consumers in Ontario (AMPCO), a former Vice-Chairman of the Industrial Gas Users' Association (GUA), and represented AMPCO on the Non-Utility Generation Advisory Council.

Dan Pastoric is a Senior Vice President of Electricity at Energy Advantage Inc. He has a diverse knowledge of the energy sector, including broad experience with electrical utilities in Ontario and abroad.

David Goldsmith has been Manager, Planning and Development, at Ivaco Rolling Mills since 1989 and with the company since 1975. Mr. Goldsmith is a past Chairman of the Association of Major Power Consumers in Ontario (AMPCO) and led the Restructuring Committee which developed AMPCO's position on electricity restructuring in Ontario.

Rod Taylor, Senior Vice-President, Network Asset Management Group of Ontario Hydro will represent Hydro's distribution section. He was principal author of Ontario Hydro's ?Competition, Convergence and Customer Choice' paper, which called for an open retail access market structure for electricity in Ontario.

Bruce Boland will represent Ontario Hydro's generation section. He is Manager of the Regulatory Affairs Division for the Generation Company at Ontario Hydro. Prior to this, he was Hydro's Pricing Manager and has been with the organization since 1982.