Open letter to Premier Dalton McGuinty re: Ontario Energy Board decision to deny approval for Toronto Hydro conservation programs

The Honourable Dalton McGuinty, Premier
Legislative Building
Queen’s Park
Toronto ON M7A 1A1 

19 July 2011

RE: Open Letter regarding OEB decision to deny approval for Toronto Hydro conservation programs

Dear Honourable Dalton McGuinty:

I am writing to express the Green Party’s concern about the sad state of energy efficiency and conservation programs in Ontario.  

Electricity consumers are trying to save money on rising energy bills by reducing consumption. Yet last week on July 12, the Ontario Energy Board (OEB) denied Toronto Hydro’s application to fund conservation programs. This decision moves us backwards and will damage conservation efforts.

Instead of prioritizing energy efficiency and conservation, Ontario’s energy bureaucracy continues to pursue an unbalanced approach that prioritizes spending on new generation and supply. This approach can only lead to saddling future generations with increased debt – both environmental and financial–since it requires the province to invest billions more in new generation.

In the electricity sector, for example, as of December 31, 2010, the Ontario Power Authority (OPA) has spent $931 million on energy conservation, while it has contracted for electricity supply with a total capital cost of approximately $35.9 billion. That is, for every dollar that it has spent on energy conservation, the OPA has contracted for $39 of electricity supply.  This makes no sense when efficiency and conservation is by far our low cost option in addressing Ontario’s energy needs.

Even your government’s Long-term Energy Plan seems to recognize the economic, financial and environmental benefits of conservation programs.  You have stated that you want to encourage a culture of conservation in Ontario.  Unfortunately, your government’s actions contradict your rhetoric and are hurting our efficiency and conservation efforts.

On March 31, 2011, your government allowed the popular and successful Home Energy Savings Program to die.  This program helped over 158,000 households save over 6.39 million GJ on their energy bills.  In the same week, the OEB capped funding for natural gas efficiency programs.

At a time when Ontarians are struggling with rising energy costs, we need strong political leadership to turn this challenge into an opportunity. The only way to provide long term, sustainable savings is to reduce demand through energy efficiency and conservation. This approach will also help our businesses increase their energy productivity, operate more efficiently and be more competitive in the 21st century economy.

Premier, I strongly encourage your government to issue a directive to the OEB instructing them to approve all cost-effective energy efficiency and conservation programs that are proposed by municipal electric utilities and local distribution companies.  The OEB’s decision to prohibit electric utilities from developing their own or to improve OPA conservation programs is an unnecessary bureaucratic barrier to conservation.  The OEB’s decision is essentially a no innovation, no entrepreneurship rule.  I also encourage your government to give real relief to tenants, home owners and businesses by instructing the OEB to lift the cap on natural gas efficiency programs.

It’s time to save money by eliminating waste and embracing energy efficiency and conservation.  It’s time to create a positive legacy for our children and future generations by moving Ontario from being one of the least energy efficient jurisdictions to a world leader in energy productivity.  

I appreciate your attention to this important issue. 

Sincerely,

Mike Schreiner
Leader, Green Party of Ontario

CC: Rosemarie Leclair, Chair and Chief Executive Officer of the Ontario Energy Board
       Honourable Brad Duguid, Minister of Energy