Drummond Report Considers Ontario's Electricity Sector

As part of the much-anticipated Drummond Report last week, the Ontario government has been given some specific guidance on how it can manage the electricity sector as part of its efforts to reduce the provincial deficit and control government finances in the long term.  As discussed below, the Drummond Report makes a number of recommendations aimed at rationalizing government support for the sector, reducing stranded debt, controlling price increases, and managing publicly-owned Hydro One and OPG.  To implement the recommendations, the government will have to plan for the long term, look for efficiencies across the sector, and make some politically difficult choices regarding high profile policies (including the FIT program, the 10% refund on electricity bills, and time-of-use pricing).