11/25/2003

Toronto, Ont., November 25, 2003 – The increased cost of electricity from today’s announcement will affect the operational costs of municipal government and as a result many municipalities are anticipating an impact on the property tax base.

“Municipalities, like others in Ontario, will be impacted by the increase in price, but AMO will work with the government and our members to mitigate these costs through conservation efforts and other measures,” said Ken Boshcoff, AMO President. “Municipal governments want a sustainable supply of electricity at an affordable price, and we know our communities’ health, safety and economic growth requires a dependable supply of electricity.”

The fact that municipal Local Distribution Companies (LDCs) will be able to begin to collect in 2004 the “regulatory assets” owed to them that were previously frozen is most welcomed.  Having the ability to move to the final increment of the Ontario Energy Board’s approved market-based rate of return of 9.88% will also strengthen the fiscal condition of LDCs and their municipal shareholders.  

Ann Mulvale, AMO Incoming President noted, “We are pleased that the Province recognizes the real costs incurred by our LDCs, and the legitimate charges they need to recover so that our infrastructure is maintained and improved.  The Minister of Energy, the Honourable Dwight Duncan has listened to our concerns.”  AMO looks forward to working with the Province in the months ahead to help get the job done properly.  

The Association of Municipalities of Ontario (AMO) is a non-profit organization with member municipalities representing 95 per cent of Ontario’s population.  AMO supports and enhances strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada’s political system.

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