The McGuinty Government’s “Green Energy Act” Will Raise Your Hydro Rates

March 24, 2009

 

  • This bill will raise your hydro rates by about 30%. The government proposes to spend about $5 billion to launch this plan - about $1200 per consumer. This is equivalent to about 100% of the average annual electricity bill. Spread over three years, that's at least a 30% increase.

  • More than 40% of the 50,000 jobs will be in construction of new transmission and distribution lines. These are short-term temporary jobs.

  • Your local council will have no power to stop clean energy projects such as windmills. The bill takes rights away from municipal governments who are directly affected by these projects

Introduction

On February 23, 2009, the so-called Green Energy and Green Economy Act (Bill 150) was introduced in the Legislature. The bill is 65 pages long and contemplates changes in 15 other pieces of existing legislation. I want to be clear - I support the concept of green energy, but it has to be affordable, it has to supply all of our needs and it should not drive up our hydro bills. Bill 150 fails these tests.

Energy is more than lights and air conditioning; it is the major stimulus necessary for jobs in this province. Ontario has had a history of reliable and relatively inexpensive electrical power. It was an important feature in attracting major industrial and commercial activities to our province. Sadly today, the energy landscape has changed dramatically.

Read the bill here

Background

For years Ontario's energy supply has been a mixed supply, including nuclear, coal and hydro as the main sources with a growing amount from renewable energy. In 2001, the PC government announced through our then Minister of the Environment Elizabeth Witmer, the closure of the Lakeview coal generation plant. We agreed that old style coal-fired furnaces should be replaced. When the Liberals campaigned in 2003, they promised to close all coal-fired generation by 2007. Nothing closed. They promised by 2009. Nothing closed. Next was 2014. Nothing has happened since the closure of Lakeview. Only the Ontario PC Party has ever closed a coal-fired plant in Ontario.

Both the need to replace coal-fired furnaces and aging nuclear plants as well as the opportunities for greater renewable generation have created pressing needs for Ontario's demand for power. To find out the demand for power, the generation mix and the cost on an hourly basis seven days a week, twenty-four hours a day check the Ontario Power Generation website.

Concerns about our Power Supply:

  1. Supply shortfalls are predicted by 2013, 2014 due to plant retirement
  2. 80% of our current generation must be replaced by the mid 2020s
  3. Wind and solar are expensive in part because neither is full-time and because each requires expensive distribution and transmission upgrades in order to connect to the grid

Concerns about the Bill:

  1. the Green Energy Act would give increased powers to the Minister
  2. Section 15 of the bill creates powerful agents and inspectors - "energy police" - who with a warrant may enter any place without notice. A fine of up to $25,000 is permissible for interfering with the inspector or even failing to assist is an offence
  3. Section 2 of the bill requires every person trying to sell a home to hire an inspector or auditor to conduct an energy efficiency audit of the property and provide that to purchasers and the government
  4. It eliminates municipal role in planning and approvals for renewable energy projects by providing province-wide standards
  5. Costs will increase as more expensive generation is added to the mix
  6. Creating a grid system smart enough to work with new technologies and energy sources will be costly
  7. While the government has said that 50,000 jobs will be created, there is no analysis to support that suggestion - and most of the jobs would likely be temporary

What others say:

Lawrence Solomon: Gangreen energy act

Terence Corcoran: Ontario's war on carbon

Bill Process

Currently the bill is in second reading debate. When the vote for second reading has taken place, there will be public hearings held. These will take place in April. You can find details of the hearing process, a copy of the bill and follow the debates on the Legislative Assembly website. After the public hearings the bill will be called back to the legislature for third and final reading vote. Let me know what you think.