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[cdn-nucl-l] Ontario Power Generation: Decontrol Announcement
> From: PNGS Exchange Administrator
> Sent: Monday, February 14, 2000 12:15 PM
> To: >PNGS - ALL STAFF
> Subject: Decontrol Announcement
> Following on my January 25 decontrol update e-mail, I want to inform you
> that today I will be announcing in a speech to the Canadian Club that
> Ontario Power Generation will be accelerating its decontrol plan. Our
> plan will include two of our fossil-fuelled generating stations -- Lennox
> and Lakeview. Within the next month, we will provide the plan to Jim
> Wilson, Minister of Energy, Science and Technology.
> I want to inform you of this announcement first. The full text of my
> speech is available on our intranet site at
> We are accelerating our decontrol program in response to a request by
> Minister Wilson, who asked us to speed up decontrol to encourage
> competition sooner.
> As part of the first phase of decontrol, our operating license gives us 42
> months after the market opens to decontrol 4000 MW of fossil-fuelled and
> hydroelectric generation. The second phase requires that additional
> assets be decontrolled so that we represent no more than 35% of the
> province's supply options by 2010.
> Our goal is to meet our phase one objective before the marketplace is
> scheduled to open in November. Towards this end, the Lennox and Lakeview
> generating stations together represent 3280 MW of capacity. We will
> finalize the plan to achieve the remainder and announce it to employees in
> the next month.
> It is worth repeating that decontrol can mean swapping generation, leasing
> our facilities, or selling the assets. Our decisions will be guided by
> our mandate, which is to increase the value of the company and ensure that
> the needs of our shareholder, the Province of Ontario, are met as well as
> those of our customers and employees.
> The decontrol process is obviously very significant for our employees. We
> recognize and appreciate the uncertainty created for employees by the
> process. At the same time, we want to emphasize two key facts that will
> not change.
> First, Ontario legislation ensures successor rights for the unions
> currently representing them. Neither their union representation, nor
> their existing collective agreements, will change upon the sale or
> decontrol of any of our assets.
> Second, the pensions of our employees are and will remain secure.
> Appropriate arrangements will be made with all investors to ensure
> continuation of the present fully funded plan. This is a commitment from
> Ontario Power Generation and one that is also ensured by pension
> As new information on the decontrol plan becomes available, we will share
> it with you.
> Ron Osborne
> President and CEO