Corporate and Electricity Finance

The electricity finance branch also assisted with the review and analysis of the NUG contracts in 2003. In the mid-1980s to early 1990s, the former Ontario Hydro entered into approximately 90 long-term power purchase agreements (PPAs) with NUGs located in Ontario. As the legal continuation of the old Ontario Hydro, OEFC is responsible for these contracts.

During the year, revisions to seven NUG contracts were negotiated to reduce their above-market costs to OEFC. In total, 23 of the contracts have been reviewed.

Finally, the electricity branch provided financial analysis to the Pickering “A” Review Panel.

Objectives for 2004-05

In 2004-05, the division will continue to be active in corporate and electricity finance issues.

The corporate finance branch will continue to assist with investment in public infrastructure including hospitals, schools, colleges, universities, housing, roads and other similar projects by assessing the fiscal and financial implications of various financing options. The branch will also support the government in its review of major provincial assets to determine whether ownership of the assets is consistent with ongoing fiscal priorities and whether the assets are being effectively and efficiently managed.

The electricity finance branch will continue to provide financial analysis, modelling and related advice on electricity sector issues, including OEFC cashflows and stranded debt. The branch will also monitor and provide financial analysis on OPG and Hydro One business plans and performance and will support the implementation of the government’s electricity industry policy decisions, as appropriate.