TORONTO - An expert panel is recommending some major changes to Ontario's electricity system that it says will save $1.2 billion over ten years.
The panel wants to see voluntary mergers among 80 local distribution companies, often municipally owned utilities, so Ontario ends up with only eight to ten regional electricity distributors.
There would be two distributors in northern Ontario, and Toronto Hydro is large enough to be considered its own region so would remain unchanged.
The panel admits Hydro One, the provincially owned transmission company, would end up being the dominant player in all the new regional distribution utilities outside Toronto.
The panel did not take a position on allowing more private players into electricity distribution, but the NDP says the report does clear the way for more privatization which they warn will mean higher rates.
The Progressive Conservatives like the idea of voluntary mergers of electricity distribution companies, but want to make sure local voices such as mayors still have a say in the operation of the new utilities.
