The much hyped Don Drummond Report released
Wednesday is an appeal for a more sustainable and rational approach
to fiscal policy in Ontario.
Energy features prominently in Drummond's report. Beyond a
general emphasis on maximizing efficiencies across the board, there
are specific recommendations regarding the FIT review, energy
procurement, and the future of Ontario Power Generation (OPG),
Hydro One, and local distribution companies (LDCs). The focus is on
sending more efficient price signals to the marketplace to
encourage more optimal levels of investment in electricity
infrastructure and capitalize on export opportunities for domestic
goods and services.
FIT Review
The Drummond report advocates for the reduction or elimination
of various energy subsidies, most notably the Ontario Clean Energy
Benefit, and takes aim at the above-market-level rates that have
been offered through the feed-in tariff (FIT) program for renewable
energy generators.
