The URL can be used to link to this page

Home My WebLink AboutCL 27/98_ Z�. ' r' � � �� ai . �a,,�� ' � REPORT TO CO FROM: Btuce Taylor, AMCT, CMM DATE: Town Clerk � REPORT NUMBER: SUBJECT: Nomination of Mayor Arthurs to Larga Urben Caucus of AMO RECOMINENDATION: June 24,1998 CL 27-98 ThPt tha Council of the Corporation of the Town of Pickering hereby supports the nomination of Mayor Wayne Arthurs to sit on the Large Urban Caucus of the Board of Directors af the Association of Municipalities of Ontario. ORIGIN: Request of Mayor Arthurs A[TfHOR1TY: Section 70(c) of tha Municipal Act FINANCIAL IIviPL1CAT10NS: Not Applicable BACKGROUND: Please be advised that Mayor Arthurs has expressed an interest in being nominated to the Large Urban Ceucus of the Board of Directors of the Associetion of Municipalities of Ontario. The Board of Directors is comprised of 45 members of which severt are elected es I.arge Urban Caucus Directors. All nominations must be submitted to AMO no later than July 31, 1998 and the election to the Board of Directors will take place at the AMO Annual Conference at the Royal York Hotel on August 23-26, 1998. If Meyor Mhurs is elected to the Board, his tertn of office will be for one year. One of the prerequisites for nomination to a Boerd position, is that the Council of the municipelity upon which tha nominee sits must support the nomination. Prepared : Bruce Taylor, AMCT, CMM Town Clak „' i� +'� �_ v.,, , . . �.._, . .�„u. . JUN-25-98 TNU 10,25 Afl AHO FAX N0, Q169718191 P. 02 . � 1��. .+ • h r ;, _ . '�, ..�r�_:` ... POLICY REPORT Municipal Priorities in Restructuring #he Electricity Industry in Ontario March, 1998 ,: ' Reporl98/004 ASSOCietion of aea unNer�iry n�a, swio ��o� Toronro,ON M661E6 Munlclp811ties i�e c��c� s�9•sese . - - � IaY:f/18)9T9�6191 0� Q(1�0f10 �melL•omo�amo.muotcomeom JUN-25-98 TNU 1�;26 AH Afl0 FAK A0. 4169716191 P, 03 � 'TABLE OF CONTENTS 1. . ,, _ ,-.. .. �. : ; Pnge `1. INTRODUCTION . . . . , 1 2. CONTEXT ................................,.,,... 1 3. AMO's PRINCIPLES AND INTERESTS . . , , . . , . . � . . . . . . 3 4. DETAILED COMMENTS ANQ RECOMMENDATIONS ..... 5 5. CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . 15 '_ � � ; r JUN-25-98 ?HU 10�28 AM AI10 FFlX IIO, 4169716191 P, 04 N�mIcIP,�I Pi lutllki in Ro6hUClUdnp 16a Girtlucitr InJu>ly in Onlaiie 1. INTRODUCTION Through lhe releasa of Ihn While Paper, Direcfion lor Chnnr�e: Chnrting � Cou�se forCompefifive Eler.frlcltyand Jobs fn Onfarfo ('Yhe While Paper"), Ihe Province has oullined an ambitious blueprint tor rostructurind tho eiecldclly indusiry. This is parl of a larger conlinentabwidc� dorec�ulatory trend with several major US St�tes lending tho way. � In Ont�riv, wmprehensivn repulalory reform is expocted lhrough ihe Inlroduclion ol an Omnibus Rill (nffeclinp Ihe PowerCn�omlion �ct, nnd sevoral other related Iegislntive pioces) as oarly t+a lhe 1994 Ieyislalive Spring Session. � AMO's papor exnmines Iha Implicalians ol Iho proposed chanpes 10 " municipal qovernmAnls. • AMO shnres iho Governmant's mnin ob�ectiva ol "supporl(inhJ invesirnenl ancl jobs throuqh tho lowost possible oloGricity prfcos end iho bosl possibie eloctricily cervice:' Moreover, AMO recoqnizes thnt chango in, And lor, lhe elecldc Induslry is inevilable and required il Onlario is to compete in tho noxl contury. 2. CONTEXT � Municipal governmenls are undargoiny iremendous lransition in respecl lo lhe Who Does Whal initialive, which has realignod Provinclal•Municipa� roles and responsibililies. Municipalities are examinfng all seroice dolivory struclures to achieve even greater eilfciencies, Vapa � . JUN-25-98 THU 10:27 Afl Rfl0 FAR N0, 4189710191 P. 05 11un�rlpd Pdmldri In Iloshucluilnn tlw Cknnril5' InAu�try In Amarin • From AMO's perspeclive, it is Imperapve lhat th� div�rsily of Onfario'r, munictpalilios ba racognized and respocled in any reslruclurinp c�xerciro. For examplo, in earlfor discussions with tho Provinr,e on municipal resirucluring, AMO indicated Ihal roslrucluring should bn guidod by local Initialives, local priorities and local decisiommakinp. Similarly, in reslructuring lhe eleclricily system, regional economic development preropatfves and local dreumslances necassitate a level ol local (loxibility. The Provinco needs to granl munic(palities the iloxibiliry to delemiine how eleclricity relalad sarvices should be restruclured and dolivered in locel communit(es (i.e., es a sep�rate or mer�ed munlc(pal depflrlmenl or ac municipal electric utililies). In examining Ihe implicalions of Iha roclrucluring proposals al tho local level, the Province has primarily consulted with the Municipal EloGric Association, representing 276 municipnl aleciric utililios, I1M0 recognizes that municfpal eleclric ulilities, as singlo r,pecinl purpose bodias, havo e greal deal of lechnical oxpeniso nnd play an imporl�N role (n Ihn disirihution ch�in ol Iho oleciriciry induslry. However, AMO slronyly mainlains U�at in adclition to Iho MLA, ihe Province should broaden its dlaloguo lo includo Iho �ssociation ol Municipalities ol Onlario, representing municlpal counclls across Ontario, Directly elecled Municipal Councfls aro responsible (or, and are hold accountable br palicy deciefons lhal �ffecl thc interesls ot ihelr communities nolwilhslanding lhe involvemenl or responsibility of n special purpose body. Also ae ownors of eleclricity dislribulion acsots (in Iho magnitudo of $5 billfon) munic(pnlllio3 play a crucfa� rolo ss thQ guardians ot public endowmonl, and are greally concemed aboul their polenlful roIQ in retiring Onlario Hydro's siranded debt' eslimaled al $16 billion. i Accordinp lo iha While Paper, slranded debl or cosls relers lo nssets awnecl by ulililies Ihat supposedty would become uneconomica� in e compelilive merkelpleco. For ezample, noo- deprociated panaralinp Iacllities or pre•esGablished longderm comradual o6tigaliona. Thooretieally, today as a monopoly, On�ado Hydro has no elranded debt becausa II Is nhle to e Inr�c extenl ° detarminu Ile ravenues by setling pAces. � � - � . Pepo x JUN-25-98 TNU 10:20 AH At10 FAX N0, 416971G191 P, O6 � MunlclpalPdudiic��n�oslruelurin��h�f•.tcculrirvLiduurylnOn�a�io �— 3. AMO'S Principles and Interests A numborof key principlos end inleresls have emorgod Irom the revi�w of lha Whitc, Paper, 7hese are consistent wilh the Associalion's eailier input into Iho work ul t►iu Advisory Commiflee on Compefiflon fn Onforio's [Iec►ricily Sysl�rm in ifl�6. On CompetiUon: � Beneiits • Groater compolillon in Ihe generalion sido of tho business will ullow municipalilies and olhor consumers to lako advantay� of Iho compelilive pricing edvnnluges of ollior courcon ol aupply includin,y locally generalad pawer Irom cogeneralion, � Consumcrs - AMO mainlainc thal the bosl inloresls o( r.onsumorr must guido any rolorm o( Iho syslorns, On Standards ot Delivery: • puhlic Policy Impact • Slructural chnngos lo Ihe eleciricily secl�r shoulcl not �eopardizo ihe lafmass and oquily o( rales and servfcos to tho cualomer nor shoultl il neg�tivoly impact the anvironmenl, public healUi and economic development of our communities. 0 ,;. Fair Pricing • The Prnvincr, must ensuro that olectrical aorv(cv remuins universally available and Inirly priced across Onlario. This is in response to concerns that underpopulated and geographically dfsporced rura� and notlhem residents may not have access lo clieap rales afforded lo customers in large urban markets, Rogulatory Authority • The Province shou�d rotain fts contral role of setting policies and standards ot delivery regardless o( who delivera the servfco, end relain conlrol over Ihe Iransmission grid, JUN-25-98 THU 10:28 AH Afl0 FAH IIO, 4189116191 P. 07 �iunlrl ,i r�iar�i�� i� n�oa��w<<n tlm 8lccukiro InJufl� In Qm�nn On Impact ai thc Municipal Level: Ownership ol Assete • AMQ agrees wilh the asaesemenl o( Iho Advisory Commilfeo on Compeflflon in Onfario's Eleclricily Sysfem, "a ulility commission is an agent oi the munldpaliry, and is ownod by, und unsworiblo lo, Ihe municipal council, Althouqh a MEU manaqes and cantrols municipal property, tho municipalily owns Iho �sset� o( lhc� ulilily commi ,sion". local Uecision Making • decisions respecling local services mu ,t he made by Ihe locally elected nuinicipal councils which aro ronponciblo for local utilltloc In Ihoir wrnmunilies and who aro ultimal�ly �ccountablo lo Iheir proporty tax payors. • Propo�ty Taxes • In Iho curront syslem ol public ownorahip, granl , in liou cE property taxes �ro pefd to rnunicipalilies. Novenues ere also Oenernted Ihraugh Iho business ar.livitio� ol locnl ulililies. Thereloro, ony cconario which enlorlains a lovel ol privatizalion will need to accounl for potenli�l loscns to municfpal revonuo�. Thoro(oro, privale operalors in the eleclricily business mual be luliy responsibie lor property laxes. Municipalitfes c�nnot nl(ord any furlhor erosion o( Iholr revonuo sourcos. Assot Transters - In Ihe case ol transferred assels, lhe dispos�l of publicly • owned resources and proporty should require Ihe consent ol loc�l councils and appropriate compensatlon based on markel value and revenuo polenlial. Strandod Dobl - Municipalilies will nnt accept municipal aquily, which was buill up by Ihe local ulility and lhe local rate payor, to be used lo o(fsel Ontetla Hydro's debl. MunicipallAes cannol be expected to compens�le lor Onlario Hydro's past losses. _ � . . � � vep� � . .. . JUN-25-98 iHU 10:29 AN Afl0 FAX N0. 4169716191 P. OB � � I�Lmltip�dPrinriUnlnFle5lrutWdnqlLrficc�dcnf'hidiuliYinOnb�rin - _ .. 4. Detailod Comments and Racommendatfons . The White Aeper proposes a nurnbnr ol pinns lor reslrucluring Onlado's ulecl�icity syslem. Key Govemmonl proposats and AMU's comrnenls on each ol Iho major poinls lollows: a. Proposals to croate a cotnpetitivo morket in the year 2000 lor both wholosalo and retall customers; and to Restrucfure Ontarlo Hydro into now comp�nies with clenr business mnndotes (b!/ makfng changes to the Power Corporation Acf). Tho Govornment propo�al calls for Iho followin,y: To ralain conlrol over ihe OnWrio Hydro' , transmission yrid and Ihe wiro� of aU tho Prov(nco's eleciricily dislribulion cy ,�ome os common r,f�nior ,(much , in iho �amu w�y as Iho Iclephono linos nnd yos pipolines a(ler lheir dorequlaUon), • To allow distribulion utilitiF:s lo r.onlinuo tho supply oloclricily eiUier cliror.tly or under conirncl wilh n privalu linn, sa customr.rs wouttl not bc rcquireJ io mako any purchasinq changes il thcy d� nol wish to, • To conlinue to service rural and remoto regions, and conUnua Ihe iur�i mle acslslanco program lo bo paid tor wilhin the eloctricity syslem. ': . To ereale two new commorcial corporaUons lo replace OnWrio Hydro, ona tor wires and senrices (OMado Electric 5ervices Cor�oiation) nnd the nthar lor goneration (Onlo�lo Elocldc Oeneration Corpornlion). Each will keep separale baoks and each will operate as a busfness. � . � . � ... . Vepe 5 JIIN-25-9D THU 10;29 Afl Afl0 FAX N0, 4169116191 P. 03 n��c�r,ir�+��i.�i�,no.lruclu�M�iLel•.iraui:itrindu�in�nOwmm .»_.._ AMO's Comments: • AMO supporls the GovernmenCs propocnl to supnrate lransmicr,lon;ind local dist8buli�n munopolioc Irom �Icclricity {�enornting cnlilies. • Tha residonls ol deneo largu urban murkels, �nr111iose closasl to sources ot power will bo ablo to liako advanlapo of c�roator choice and cheaper ruios (similar I� tlio r.urront shoppfng choico ler long dislance lelephonr, carriars). hlowovor, nol ali Onlario residonls may benefil from wido•open c�mpclilion. Thoretore, AMO is pleasod Ihat Ih� Provinco is committiny lv continue provfdin� rarvfce to rural and remoto rr,gions, nnd provide r�le suh ,idie�. On Ihe issuc ol fnlroduCinq competillon in supply of powr,r, AMn bnli��vus municipalitier, r,houtd hnva Ilio uulhoiily to capftalizo on Iheir uwn lor.al power producinp polonti�la and be enabled lo aeni�nle e�ar,trtcity Ihrou,yh cogonoraqon, and �Iher enerc�y Irom w�ialo m�iene. • Morcover, municipalitios should bo able lo u�5lhersr, a;r.iuCO � of enr.rc�y �ur their own corporato prepeAy uso3 or lo sell on Ihe open market. This would bo an innovelivo melhod nl culliny coets nnd providiny appropri�ta now rovenue sources (or municipalities. Ohvioucly, the decision to unde�lake such venturea will be mado by la;a�ly elect�d municipil councHs based �n local needs and circum&Innces. RECOMMENDATION 1 That muniCipalilies shouid have the authority to generate own electricity through locally nvailable means for Ihcir own uso or to sall on the open market. vna. e JUN-25-88 THU 10�30 Afl RNO FAX NU, 4169716191 P, 10 ' Munitiptlf'doiidttinFlU61NCWdn�llmEkcld:liylndus�p'LiOntaiio _ � b. Proposals to establlsh en Independont Market Operator, and to Expand the Mandato o} the Onlario Encrgy Board This proposal calls }or tho iollowing: 7ho esleblishmenl of a now, nonpro(il Crown Corporati�n lo run nn eloctricily exchange, dispatch powor b�sed on least cost bids, ond arran�e linancial sotllemenls b�tween buyers and sellers. Earlier Ihis year, th� Qovernrnenl ostablishod e 12•member Markot Design Commilleo lo provida e lormal mechanicm Inr eteclricily induslry ancl r,uslomer reprosontativns to colleclively advise on tho rules and structures tor Iho new oloclricily markol, (ncluding lho l�rms of ar.cess for genorators Iocaled outsid� QN�{rio. �fhe Comm4laa fs also charc�ed wilh aclvising tho Oovernmenl on lhe c�ov�mance and operalion oi lhe proposed Independenl Markot Operator (IMO). � Tho Onlario Enon,�y Board (OED), with an expanded mandalc�, will be thr. key rogulalar of tho Indepenclent Market Operalor, Irensmission ond dictrihulion larllls, and roc�ulnling Iho naturnl gas businoss. AMO'a Comments: � The eslablishment ol ihe IMO and lhe Maiket Design CommiUeo, and Ihe new OEEi are signfficant lor ensuriny Ihal fair nilos ol compollUon and consumer prolecifon are astablished. The Associalion is encouraged Ihal MEA membors ropresenling municipal electdc utilil(es ere reproserded on tlie Market Dosign Commitleo. Mowever, Ihe municipal inlerest in Iho now system is broador than one ot being an agenl of sper,ial service delivery. Given the multiple roles ol Munlcipal Gorporations as large consumer ol eloclricily, egenta of delivery, and fn some cases soon to be producers of efeclrieily (e.g., cogenemtlon), AMO beiieves Ihal municipalilie3 should be represented on the Market Design Commitlee, and any olher Mfnisterial advisory lorum such as Minisler's Eleclricfty Transitlon Commillee at lheir early stagos. eage 7 � JUN-25-98 TfIU 10�31 RH Afl0 FAX tIO, 4169716191 P, I I \funicip�l Pdoriiicf In RaelnicNri�9 �hr Elc.mdrv Indutuy in Ont�do _._ RECOMMENDATION 2 Thet Ihc Province appofnt a municipal representative scloctod by AMO to Joln lhe Market Deaign Committeo, nnd eny othor Minisleri�l adWsory torum such as the Ministcr's Hlaclricity Transftion CommNtoe 2t their carly stagos, c, ` Proposels lo Rostructuro Local Ulililies 7ho Whito Paper indicales lhe lollowinp: • Tho Govommont haa concluded Ih�t geographic raUona�izatinn in Iho ' distributlon sector should proceed on a commerclal and voluntfiry basis. • The GoVemment oxpocta municfpal eleclric uliliNos lo achteve significanl ' geoprnphical r.oncofldations ovor Ihe noxt live y�nir,. • The Ciovemmenl will work wilh Iho MEA, Onl�rio Hydro and ils succecsor companioh, Ihe UEE3, end othors to dovetop bnnchmorks and guidelinns lor elficiency, roliability and accountabllily lo facilitato locallydrivon roforrns. • Amalgomallon� �vil� be drivan locatly; how�ver, il thoro is no cnnsensus among utiiilios, �t Iheir rnquoct, the Onlario Cnerpy Board will incililalo Ihe procass, AMO's Comments; • Over lhe last two years both municipalities and municipal olectric util(Ilos have consolidatod and restructured their aporaUons, and reduced Iheir ` numbers, There are now 651 municipaliNes down trom 413 in 1997, and 276 municipal eleclric ulilities down from 305 a year ac�o. rnqo e JUN-25-88 TIIU 10;31 Afl Afl0 fAB N0, 41G9716191 P, 12 Munlcio:d Prionucs In Reslruclurinn �hc Grnnci�y Indmtty Li Out.riu _� � • While somo municipnlllios conlinuo to look lo Ihe municipal oleclric utililies to doliver hydro sarvicos, olhors arv axploring omalgumalinq Ihr.Ir electricity wilh water sorvices. Municip�lilles �houW he given tho Ilexibilily lo delermino how seNicea Fire Jelivered in their �urisdiclion, lhat is, be ablo lo delermino il lhey wish lo Iranchisa dislribulion ta municipal electde utiliG�s. emaly�m�to Ihe service or pads of iho sorvice wilh another municipal doparimonl or provide a(ranchise lo nn altomalive servic� delivery provider. • Thorelore, es a slarling point, AMU ury�s Ihr� Provinco to dolulu ser.liun t (6) ol Ontario HegulaUon 25/98 (Bill 26 amondmenl lo tho Munlr.lpcd 11cQ respeclinp dissolullon ot Iacal boards, which denies municipalilies Ihe power to dissolvo a public ulili,y commission so Ihal municipalilfos h�ve Ihe il�xlbiliry to implemenl a moro olficienl service dnlivnry oplion if ono is delorm(nod. • AMO urpas lho Provinca to include Iho Associalinn and munidpalitios in discussions on Ihe rnelrur.luring and cunsohJalion of munlcipal electric utilltios. HECOMMENDATION 3 Munfcipalities br. givon tha flexibility to rearrangc thoir aleclric ulility ,ervices accordfng to Iheir own local circurnslnnces gufded by the principles ot consumer protection, ollfciency, and cost e(Icc(iveness. Therebro, �t a mfntmum AMO urgos the Province to remove barrfers to more tnnovativo and cosl etfective sarv(ce del(very models by deleting section 1(G) ot Ontario RegulaUon 25/96 (under Section 210A of tho Munlcfpal AcQ lo en:,�le lacal govornments lo dissolve pubiic utflity commissions. . . . � .. aoyc e JUN-25-98 TfIU 10:32 Afl Afl0 FAX IIO, 4169716191 P. �3 , blu ii'p�l P�iai�IH In Fl¢iUuclmlM Ihc F:�abi:ilr Indnury in UNarin , d. Praposnls to estabiish o level pinying tiold on taxr.s and regulntions and lo introduce measuros to put the cleclricHy compnnies on a sound cconomic and finnncial tooting. Currenlly Ontario Hydro and eloclric utilities mako paymonis in Ilou ol property t�ixas to local governmant �(aboul $90 million/yonr). Tha �o paymonts, in some cnsos, lall significantly �horl o( Ihe lax thnt would Uu paid by a privale ulilily. Tho Govamrnenl Is proposing lhat Iho now ol�clricily compnnies (including ONado Hydro successor companies) and Iho municipai oiectric ulilily companles make payments in Ileu of laxos. Payments would go lowerd slr�nded debl rop7yment ol Onlario liydro's eslimaled at $16 biltion, 7he Onlario Enorgy oonrd would ancuro local dislributora moke oppropriale 711owanco loc a norma� ralo ot roturn. AMO's Comments: . At iho oulsol, il is importanl lo recoynizo Ilial municip�lilies hoslinc� Fiydro (ACililies have for many y��us complained thal Flydro was not making adaquate paymeNs in Iiou ol properly tax�c, and Ihe Govemmenl hns acknowled�ed lhis as o valid polnt. . Howover, as stated abovo Iho new Provincial cloctricity companies, tognther wilh municipal electdc utilitios, and olher privalo generators woulJ rnfike higher payments in lieu. Yel, any Increase in paymeMS in Ilou of propc�ity laxes resulling from n move to lair levels of property taxatlon would yo l� Iho Province, nol to municipal c�ovemmenls. Tho Govemmanl's rntionale fs Ihal Ihis avoids crealing unreasonable tax windfalis for a small numbar ol municlpal governmenls with vaiy larqe eleclricity facilities, rMa m JUN-25-98 TIIU 10;32 AH AHO FAX t10, 416971EI91 P, 14 � NunicipalFdoiiiiulnFleSUuclwinqtlMriunfclivlm�uurvinqntaAo • . As indicalod ondior, municipaliNos cannol be expocl�d Iv cumpnncalo lur OnWrio Hydro's past lonsoa, 7hereforo, AMO is concomod lhat tho GovernmenCs priorilies of ratlrfng lhe massivo 3lrunded clobt nl Qnlario Hydro will to some extenl be accompil3hod al llie oxpon�o ol rnunicipalities' legilimate Aourcos of neeJed rovonuos. In tiio currenl clunalA oi fiacal conslrainls municipalilies need all availablo suurces ol funding to help covc:r lhe c�sls resultinc� Irom lhe Who Dons Whal initialive. This is especfally imporlanl fnr Ihoso communilies wilh lar�e olectricity generalion lacilities. . Gains through incre�ses in payment , in Ilou ol proporty taxes should �o lo municipalitie�. Similarly, yains rosultfn� from increasor, in paymenls in lieu ol comor�lo laxes belong lo the Provinco, und can bo cpenl al Iha Qovornmenl's discrotion. Furthermoro, in anqcipntion of electricily gonomtfon growlh and dev�lopmenl of relaled hr.ililios, AMU belioves Ihal Iho Frovinco musl onsure Ihal thr. principles ol Iho Dovelopment Charges Ar,l apply, principally ihal is, c�rowlh musl pay ils lair sharo (nr flrowlh. RECOMMHNOATION 4 Thal the Prov(nco commit to e tair system ot tax f4localion, whcroby any gai�s rosulting from incrCases in paymants in I(eu o( corporote taxas would bo channelied lo lhc Government, whilc municipalitios wouid be ablo to recuperale all increasea resulting lrom Increases fn paymenls In lieu oi property taxes. And, �f`� RECOMMENDATION 5 That In anticipat(on oi future growth oi electriGty , ;: , ;: generation facflities, nloctric(ty restrucluring .�o- legislalion bo consistent wilh ihn pr(nciples oi <; Dovofopmont Charges Acf in componsalfng � :;. M.- municipalities for lhc cost ot growth. rs'+�:� . �-:�'r r �- .. . . � bf Pn�e t t s P � '� � ! ��i}Fx� .. . L��3�`r'4�r ',. ' JUN-25-98 THU 10:33 Ah Afl0 FAX N0, 4169716191 P, 15 �tuninp�Ilhioilile�InRcclruCWrinqihefilradriw6iJuaryinOmad�� _,,,_ e. Proposais to Ensuring Environmental Protection Tho Province propo3es to ensure unvironmunlal proloction throuph n num6or o( moasures, The proposals and AMO's commonls ere as fo�lows: i) Environmental Protecqon nnd Approvals AMO has �onp advocal�d Ihat envfronmenlal approvnla should becomo moro r;osl elleclive, limely and strenmlined wilhout compromisinc� sound nnvironmonlal pratecpon praclices shouid not becomo compromised. Thoroloro, Ilie Associnlion ia pleasQd ihal lhrough the While Paper, ihe Province is . Commilling lo honour Iho oxisling commilmentc an onlorcinc� slandards on harmful Amissions ol sulphur dioxide, nitro�en oxides, nnd carbon dinxldo Irom electricily generalion in Ihe now rompolilivo fmvirnnmonl. . CommiUiny ln ensiun Ihat roviaws o( Ihn environmenlal Impacts new olaelriciry conslruclion projocls ��re conducted in � timely end nflir.ienl manner, • Plnnnfng to oxamino markAl mochanisms which cnn bo used to encoura�o praduclion Irom sources thnt havo less impacl on lha environm�nt . .. .. � : . . . Papo 12 . JUN-25-98 THU 10;33 RM Afl0 FAR N0, 4169716191 P, I6 • Munici nll'rinddeslnHosltutWrin ihtC•Itciriuryhidu.I�zlnOnl.vin._ 0 . il) Consorvation The diverso dynumic aconomy, end concumef hatits In OnlArio hnvo resulted In high consumpAon rales of eleclricily. Innovullons in technoloyy, pelroloum shocks ot Ihe 1970's nnd 1980's, end public oduc�lion o(forts have somowhal helped Improvo consoivatfon measuros, Flowever, Ihe Whit� Pnper's locus on promoting a greater rupply ol nv�n choapur oier.lrfcily Ihrouph compelilion could huve Ihe negative impact ol discuura�ing conservalion ot enorgy, a carnorslune of environmental proleclion. Thorefore, AMO urgos ihe Provinco to commil to an eclivo proc�ram of educalional campaign5 on enerpy consorwilion, pHCOMMENDATION 6 That the Pravinca commit lo an active progr�m u} enurgy conservation oducalion. iif) Fossil Fuols • Global warminc� �nd air qu�lily aw now univereal concem,. In Iha now onvironment, suppliers ol eleciricily will sook tho choapnsl sourcea sevailaUle, Whlch at lonet in Ihe medium term will be fossil fuols. While Ihe Province may be able to ensure lhfll emission conlrols are up to standards, il will havo no such re�ulatory control ovor sources of supply originalin� (rom elsowhere. Therefore, In order to mitigate cross conlinenlal onvironmenlal impacls, ihe Provinco should work closely wilh Ihe Federal Govemmenls in Ottawa nnd Washington, ai � olher Provfncos to develop an inlergovommental ayreement framework tor lhe enlorcemenl ol good environmenl�l resulations, Similarly, power supplir,ra fmm alher jurisd(ctiona should ho roquired lo demonslrato that lhey meel Ontarlo environmental prolection standards. , .. . . . . . . Poqe t� � . JUN-25-98 TfIU 10;34 AH Afl0 FAX IJO, 4169716191 P, 17 , _ 1lunkio:dl'umiiic�in(leshucludn IIL'L•ICUfIiIIYIINi1N11Y1q(10111I0 � pECOMMENDATION 7 Thal lhR F'rovince Investigate an intorflovcrnmontal rogulatory iramework far the control of hnrmful omisalons (rom oloctricily supply sources. Moreover, thal lhe Province requfre same stand�rds of environmental vigil�nco from suppliers of electrlcity outside oi Onlerio who wiFh to soll power herc. 5. �ONCLUSION The Provinco is urged to ontor inlo diroct discussions with AMO and municipalitfos in ardor lo ensure thal lho impondiny Iegfslalion is consislanl With the re�lipnmenl ol provincial•municipal roles and roeponsihililios and daec not impinc�o direcUy or indiroclly munieipal governmenfs rosponsibility lor lor.al services delivory. On lho dl:�tribulion sido ol thu pnwer oqualion, municipalilie, nro seekinc� Iho flexibiiily flnd ihe nulhorily lo roarruige iheir oleclricily �dility functions nccordinc� lo tho crit�ria o( concumar protoction, w;st elfec.tivanoss flnd ellicionr,y. As direcUy eleclod and accountable decision•makers, mimicipal councils should have �ho aulhorily to delermino how to delivor the besl possiblo s�rvice at lowest r.ost:, lo Iheir residonis and prope�ty tax payers. Moroover, Ihe Whito Papor must adopl a rationni melhnd of taxation so Ihat Iha reliremenl ol Ontario Flydro's slrandod debt is nol done al Ihe expensa of legilim�lo sources of future municip�l reve;iues. AMO (s commilled to work wilh Ihe Govemmenl lo ensuro a smoath, praclicai, and tair Iransition to a new era of power supply. Paqa 14 JUN-25-88 THU 10:35 Afl AHO FAX N0, 4169718191 P. 18 � The Association of Municipalities of Ontario : 7he Aasociation ol Municipalities of Ontario (AMO) is a non•pro(it arganization. Its momber municipalities reprosenl over 95 per cent of the province's population, Tha mandale of the orc�anization is to promot�, support and enhance stronc� and oftectivo municip�l government in ontaria Towards fulfilling thls mandate, AMO uridertakos a rnnge of activities on bohalt of ils membership; dovolnps policy pnsilions and reports on issues having nn impact nn, and of panernl interesl to, municipal governments; ropresenls And expresses lho municipal viewpoint to other levels nf qovernmQnt and aulhorities; reprosents Iho municipal soctor in inlergovernmenlal discussions and nepolialions; inforrns ancl educates governments, thQ media and the public on municipal Issues; markels innovative and beneficial sarvices lo tho municipal sector; and ma(ntains a resource centre on issues ol municipal c�ovarnance. Additional information about AMO and Ns activiUos can be lound on the world wide web at : http://www.amo.on.ca