Ontario Hydro split
Canadian power utility Ontario Hydro was split into five companies on April 1 1999 in the first step toward deregulation in the state`s power market. The provincial restructuring forms part of a plan to bring competition to Ontario`s electricity market from the beginning of 2000.
The two largest successor companies are Ontario Power Generation Inc. and Ontario Hydro Services Co. The other companies to emerge from the provincially-owned monopoly utility are a debt-holding company, an electrical inspection operation and a clearing house. Other measures that have been taken to enhance competition in the market include reducing the generation company`s market share from 85 to 35 per cent over ten years.
Ontario Power Generation Inc. will run the province`s 80 power generating stations while Ontario Hydro Services will run the province`s 29 000 km transmission network, and supply power to around one million customers. Around C$20bn ($13.2bn) of debt will be transferred to the new debt-holding company, reflecting stranded costs – investments that will not be profitable in a competitive market.
$#8226; Air Liquide is to invest C$150m in a gas processing and electricity generating complex near Edmonton, Canada. The 80 MW power plant will provide electricity and steam to Shell Chemicals Canada`s chemical plant, with excess power sold to the Alberta power pool.