Hydro One
Encyclopedia
Hydro One Incorporated delivers electricity across the Canadian
province of Ontario
. It is a Corporation established under the Business Corporations Act (Ontario) with a single shareholder, the Government of Ontario
.
Hydro One traces its history to the early 20th century to the establishment of the Hydro-Electric Power Commission of Ontario, renamed "Ontario Hydro
" in 1974.
In October, 1998 the provincial government passed the "Energy Competition Act" which restructured Ontario Hydro with the aim of privatizing
all electrical generating and transmission/delivery.
, Hydro-Québec
, Minnesota Power, Detroit Edison
/ITC
, Niagara Mohawk Power and the New York Power Authority
.
, or Ontario Hydro
, which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara Falls
. The first chairman was Adam Beck
, minister without portfolio
in the provincial government of Sir James P. Whitney. Beck had been a prominent advocate of a publicly owned electricity grid.
In the 1920s the commission began generating and distributing its own power when it was given the mandate to electrify rural areas. Besides building its own generating stations, it bought the transmission lines and generators of the largest private electricity company.
In 1974 the Power Corporation Act reorganized the system as a crown corporation called Ontario Hydro, the name it was most usually known by.
In 1998, the PC
government of Mike Harris
passed the Energy Competition Act which authorized the establishment of a market in electricity. In April 1999, Ontario Hydro was re-organized into five successor companies: Ontario Power Generation
, the Ontario Hydro Services Company (later renamed Hydro One), the Independent Electricity Market Operator (later renamed the Independent Electricity System Operator
), the Electrical Safety Authority, and Ontario Electricity Financial Corporation. The two commercial companies, Ontario Power Generation
and Hydro One, were intended to eventually operate as private businesses rather than as crown corporations.
By 2001, Hydro One had acquired 88 municipal utilities. In December 2001 the provincial government announced the intention to sell Hydro One under an initial public offering
, however by April 2002 various groups in opposition to the plan were able to successfully challenge the government in the Ontario Superior Court
, forcing a halt to the IPOhttp://www.energyprobe.org/energyprobe/index.cfm?DSP=content&ContentID=4140.
In 2002 an electricity market began operating. However, critics questioned, among other things, whether the market was truly competitive or could ever become competitive, given that an electricity grid is not a private good. Public dismay at an increase in prices led the government of Harris's successor, Ernie Eves
, to freeze electricity prices for residential and small business consumers. This freeze was maintained after the Liberal party of Dalton McGuinty
replaced the PC government in 2003. The freeze was removed and prices were raised in April, 2004, and have been increased again subsequently.
, the Ontario Hydro Services Company, the Independent Electricity System Operator
(originally named the Independent Electricity Market Operator), the Electrical Safety Authority, and Ontario Electricity Financial Corporation.
On May 1, 2000 the Ontario Hydro Services Company was renamed Hydro One Incorporated and reorganized as a holding company with four subsidiaries:
Between 1998 to 2000, Hydro One acquired 88 municipal electrical utilities. Numerous local/municipal distribution companies were also consolidated during this time.
In May 2002 the provincial government went ahead with the launch of an open electricity market, even though generating and distribution remained under control of the government.
Effective December 8 2006, President and CEO Tom Parkinson's resignation was acceptedhttp://www.hydroone.com/en/media_centre/news_releases/archives/2006/2006_12_08.asp. His resignation was prompted by a controversy surrounding use of company property and improper processing of personal expenses uncovered by the Ontario Auditor General.http://lfpress.ca/newsstand/CityandRegion/2006/12/08/2686258-sun.html
Hydro One also owns the distribution Utility for the city of Brampton Ontario. This is another Subsidiary known as Hydro One Brampton. This subsidiary operates separately from the main Hydro One corporation and operates only in the city of Brampton.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
province of Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. It is a Corporation established under the Business Corporations Act (Ontario) with a single shareholder, the Government of Ontario
Government of Ontario
The Government of Ontario refers to the provincial government of the province of Ontario, Canada. Its powers and structure are set out in the Constitution Act, 1867....
.
Hydro One traces its history to the early 20th century to the establishment of the Hydro-Electric Power Commission of Ontario, renamed "Ontario Hydro
Ontario Hydro
Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara...
" in 1974.
In October, 1998 the provincial government passed the "Energy Competition Act" which restructured Ontario Hydro with the aim of privatizing
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
all electrical generating and transmission/delivery.
System Information
Hydro One's Transmission Line voltages are 500,000 volts, 230,000 volts and 115,000 volts. Hydro One has interconnections with Manitoba HydroManitoba Hydro
Manitoba Hydro is the electric power and natural gas utility in the province of Manitoba, Canada. Founded in 1961, it is a provincial Crown Corporation, governed by the Manitoba Hydro-Electric Board and the Manitoba Hydro Act. Today the company operates 15 interconnected generating stations. It has...
, Hydro-Québec
Hydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
, Minnesota Power, Detroit Edison
Detroit Edison
The Detroit Edison Company, founded in 1903, is an investor-owned electric utility which serves most of Southeast Michigan. Its parent company, DTE Energy , provides energy services to a variety of clients beyond Detroit Edison's service area.- History :...
/ITC
ITC Transmission
ITC Transmission , also known as International Transmission Company, is an electric transmission company based in Novi, Michigan, a Detroit suburb...
, Niagara Mohawk Power and the New York Power Authority
New York Power Authority
The New York Power Authority , officially the Power Authority of the State of New York , is a New York State public benefit corporation and the largest state-owned power organization in the United States. NYPA provides some of the lowest-cost electricity in New York State, operating 17 generating...
.
History
Hydro One was originally part of the Hydro-Electric Power Commission of OntarioOntario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, or Ontario Hydro
Ontario Hydro
Ontario Hydro was the official name from 1974 of the Hydro-Electric Power Commission of Ontario which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara...
, which was established in 1906 by the provincial Power Commission Act to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara Falls
Niagara Falls, Ontario
Niagara Falls is a Canadian city on the Niagara River in the Golden Horseshoe region of Southern Ontario. The municipality was incorporated on June 12, 1903...
. The first chairman was Adam Beck
Adam Beck
Sir Adam Beck was a politician and hydroelectricity advocate who founded the Hydro-Electric Power Commission of Ontario.-Biography:...
, minister without portfolio
Minister without Portfolio
A minister without portfolio is either a government minister with no specific responsibilities or a minister that does not head a particular ministry...
in the provincial government of Sir James P. Whitney. Beck had been a prominent advocate of a publicly owned electricity grid.
In the 1920s the commission began generating and distributing its own power when it was given the mandate to electrify rural areas. Besides building its own generating stations, it bought the transmission lines and generators of the largest private electricity company.
In 1998, the PC
Progressive Conservative Party of Ontario
The Progressive Conservative Party of Ontario , is a right-of-centre political party in Ontario, Canada. The party was known for many years as "Ontario's natural governing party." It has ruled the province for 80 of the years since Confederation, including an uninterrupted run from 1943 to 1985...
government of Mike Harris
Mike Harris
Michael Deane "Mike" Harris was the 22nd Premier of Ontario from June 26, 1995 to April 15, 2002. He is most noted for the "Common Sense Revolution", his Progressive Conservative government's program of deficit reduction in combination with lower taxes and cuts to government...
passed the Energy Competition Act which authorized the establishment of a market in electricity. In April 1999, Ontario Hydro was re-organized into five successor companies: Ontario Power Generation
Ontario Power Generation
Ontario Power Generation is a public company wholly owned by the Government of Ontario. OPG is responsible for approximately 70% of the electricity generation in the Province of Ontario, Canada. Sources of electricity include nuclear, hydroelectric, solar, wind, and fossil fuel...
, the Ontario Hydro Services Company (later renamed Hydro One), the Independent Electricity Market Operator (later renamed the Independent Electricity System Operator
Independent Electricity System Operator
The Independent Electricity System Operator is a Crown corporation responsible for operating the electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada...
), the Electrical Safety Authority, and Ontario Electricity Financial Corporation. The two commercial companies, Ontario Power Generation
Ontario Power Generation
Ontario Power Generation is a public company wholly owned by the Government of Ontario. OPG is responsible for approximately 70% of the electricity generation in the Province of Ontario, Canada. Sources of electricity include nuclear, hydroelectric, solar, wind, and fossil fuel...
and Hydro One, were intended to eventually operate as private businesses rather than as crown corporations.
By 2001, Hydro One had acquired 88 municipal utilities. In December 2001 the provincial government announced the intention to sell Hydro One under an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, however by April 2002 various groups in opposition to the plan were able to successfully challenge the government in the Ontario Superior Court
Ontario Superior Court of Justice
The Superior Court of Justice is the superior court of general jurisdiction for the Province of Ontario, Canada. It is the successor to the former Ontario Court of Justice , and was created on April 19, 1999...
, forcing a halt to the IPOhttp://www.energyprobe.org/energyprobe/index.cfm?DSP=content&ContentID=4140.
In 2002 an electricity market began operating. However, critics questioned, among other things, whether the market was truly competitive or could ever become competitive, given that an electricity grid is not a private good. Public dismay at an increase in prices led the government of Harris's successor, Ernie Eves
Ernie Eves
Ernest Lawrence "Ernie" Eves was the 23rd Premier of the province of Ontario, Canada, from April 15, 2002, to October 23, 2003.-Beginnings:...
, to freeze electricity prices for residential and small business consumers. This freeze was maintained after the Liberal party of Dalton McGuinty
Dalton McGuinty
Dalton James Patrick McGuinty, Jr., MPP is a Canadian lawyer, politician and, since October 23, 2003, the 24th and current Premier of the Canadian province of Ontario....
replaced the PC government in 2003. The freeze was removed and prices were raised in April, 2004, and have been increased again subsequently.
Restructuring
Ontario Hydro was restructured on April 1, 1999 into five separate entities: Ontario Power GenerationOntario Power Generation
Ontario Power Generation is a public company wholly owned by the Government of Ontario. OPG is responsible for approximately 70% of the electricity generation in the Province of Ontario, Canada. Sources of electricity include nuclear, hydroelectric, solar, wind, and fossil fuel...
, the Ontario Hydro Services Company, the Independent Electricity System Operator
Independent Electricity System Operator
The Independent Electricity System Operator is a Crown corporation responsible for operating the electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada...
(originally named the Independent Electricity Market Operator), the Electrical Safety Authority, and Ontario Electricity Financial Corporation.
On May 1, 2000 the Ontario Hydro Services Company was renamed Hydro One Incorporated and reorganized as a holding company with four subsidiaries:
- Hydro One Networks Inc.
- Hydro One Remote Communities Inc.
- Hydro One Telecom Inc.
- Hydro One Brampton.
Between 1998 to 2000, Hydro One acquired 88 municipal electrical utilities. Numerous local/municipal distribution companies were also consolidated during this time.
In May 2002 the provincial government went ahead with the launch of an open electricity market, even though generating and distribution remained under control of the government.
Effective December 8 2006, President and CEO Tom Parkinson's resignation was acceptedhttp://www.hydroone.com/en/media_centre/news_releases/archives/2006/2006_12_08.asp. His resignation was prompted by a controversy surrounding use of company property and improper processing of personal expenses uncovered by the Ontario Auditor General.http://lfpress.ca/newsstand/CityandRegion/2006/12/08/2686258-sun.html
Hydro One also owns the distribution Utility for the city of Brampton Ontario. This is another Subsidiary known as Hydro One Brampton. This subsidiary operates separately from the main Hydro One corporation and operates only in the city of Brampton.
See also
- Ontario electricity policyOntario electricity policyOntario electricity policy refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the electricity sector involves...
- Helicopter AirStairHelicopter AirStairThe Helicopter AirStair, designed in house at Hydro One Inc, Ontario, Canada, can be attached to a Eurocopter AS 350 B2 helicopter.It enables safe access to the top of high voltage transmission towers for power line technicians. These towers range in height from 50 feet to over 350...
External links
- Hydro One
- Historical timeline produced by Hydro One
- Hydro One annual reports available from 2000-2005
- Ontario Ministry of Energy
- Ontario Power Generation
- Ontario Electricity Financial Corporation