Glenn Thibeault, Ontario Minister of Energy, stepped up to the microphone at the Timmins Chamber of Commerce luncheon to discuss the Liberal government’s plan for lowering electricity bills by up to 25 percent for homeowners and business, and more for low income, rural and northern communities.
“The changes we are introducing in the Fair Hydro Act, 2017 (FHA) will deliver the single-largest reduction in electricity rates in Ontario’s history,” Thibeault told the noon-time gathering.
“Today I have come to address the elephant in the room, electricity prices,” said Thibeault. “Electricity prices have become a major concern for Ontario ratepayers, families and business and large industries like mine in the North.”
“That is why our premier is committed to doing more to lower electricity costs and our government launched the Fair Hydro Plan,” he said.
In January, Ontario Premier Kathleen Wynn announced an immediate reduction of eight per cent on hydro bills as it was waiving the provincial portion of the HST. This was an interim measure until the FHA takes effect.
Thibeault said it is important to look back to see what was the problem that created the high electricity costs.
“Prior to 2003, Ontario struggled with an outdated system, because of underinvestment by all governments of all three political stripes to the point where we had an unreliable system,” said Thibeault.
“We first formed the government in 2003 and were presented with a unique set of problems and challenges — like the significant rebuilding of our electricity system just to meet the demands of the province,” added Thibeault. “That challenge became an opportunity to provide cleaner energy, upgrade our electricity infrastructure.”
Thibeault acknowledge that during the 14-year reign of the Ontario Liberals (2003-2017), they had their share of problems administering Ontario’s electricity system and those the miscalculations catapulted Ontario electricity prices to among the highest in North America.
“We listened to the Northern Ontarians, about the need to do more to lower electricity costs,” Thibeault said. “The the Fair Hydro Act, 2017 will also provide more relief for the most vulnerable –for lower income Ontarians, cost savings will be even greater and those living in eligible rural and northern communities would receive reductions, as much as 40 to 50 percent.”
“Under the proposed legislation electricity rates would come down, stay down and make life more affordable for families and businesses in Timmins, ” declared Thibeault. “Rate increases will be held to the rate of inflation for the next four years,”
Under the McGuinty premiership (2003-2012), the wheels were set in motion to invest in modernize the aging Ontario electricity system.
Nuclear plants were refurbished and rebuilt at Pickering and refurbishing Darlington commenced in October, 2016.
Heavy polluting coal plants were closed and to be replaced by cleaner natural gas plants, including two west of Toronto in Mississauga and Oakville commissioned in 2009 by the Ontario Power Authority (OPA), an entity created by the McGuinty government in 2004 to plan for Ontario’s energy future.
During a hotly contested in election in 2011, the two natural gas plants were suddenly cancelled as local opposition increased and threatened to vote against the Liberals. As the Liberals needed to win ridings in Oakville and Mississauga, they cancelled the plants. The Conservatives and the NDP had also promised to stop the plants if they won.
After McGuinty’s sudden resignation in October, 2012 and upon winning the leadership of the Liberal Party, Wynne apologized for the cancellations of the two projects.
The cancellations have been estimated to have cost the province $2B.
McGuinty also oversaw the introduction of the Green Energy Act.
The overly generous feed-in tariff, under the Green Energy Act, meant Ontario paid extremely high prices for the electricity from solar and wind.
Thibeault said these problems with the Green Energy Act have been corrected.
In the late 1990s, the Ontario Conservative government introduced chaos into the electricity system when it replaced Ontario Hydro with three, at times disjointed entities known as Ontario Power Generation (OPG) to produce power; Hydro One to manage transmission and distribution; and the Independent Electricity System Operator (IESO) to calculate the demand, supply and price of electricity.
The Ontario Power Authority was established in 2004 by the McGuinty government to manage future trends and needs of the electricity system.
However, the fallout from the cancelled gas plants scandal led to end of the OPA in 2015, with some functions absorbed into the IESO.
Questions directed to the Minister after his speech, focused on assurances mining companies and other northern business would have lower electricity prices so they can be competitive.
Concern was also expressed about the government’s plan to sell the remaining 51 percent stake in Hydro One to the private sector.
Thibeault assured the audience, that even if the private sector controlled Hydro One, it was the Ontario Energy Board that approve increases.
“Selling Hydro One shares was the right thing to do, because we have undertaken the largest infrastructure renewal in Ontario’s history,” explained Thibeault. “That means new schools, hospitals and improved roads.”
Thibeault also fielded a question about the Wynne government's commitment to bringing the Ring of Fire into production.
The province is ready to proceed, said Thibeault, and a major announcement will be made by Kathleen Wynne in the next several weeks.
