Thanks to the Hamilton Spectator for picking up this op-ed on April 20, 2024: Bill 165 will increase energy costs and fuel global warming (thespec.com)
Prepared by Michael Adamson and Kim Perrotta
Premier Ford’s Bill 165 – Keeping Energy Costs Down Act, is the epitome of double-speak. Bill 165 will actually increase energy costs for gas customers. It will lock-in outdated technologies for new buildings. And it will fuel climate change that is harming the physical and mental health of people across the country.
Last year, the Ontario Energy Board (OEB)—the independent body that regulates Ontario’s energy sector—rejected Enbridge’s request to finance new gas connections by increasing rates across their customer base. This request is not new. For years, Enbridge has subsidized new connections to its gas lines by spreading those costs over their customer base and over time.
The rejection, however, was new. The OEB determined that Enbridge’s proposal did not reflect the need to transition away from fossil fuels such as natural gas, and risks leaving ratepayers across Ontario paying for new gas connections that are soon to be either stranded, or underutilized, assets. Ontario’s Minister of Energy, Todd Smith, vowed to override the OEB’s decision and is now doing so with Bill 165.
The OEB’s decision was sound. Forcing customers to subsidize gas connections for new buildings is irresponsible because there are alternatives that are less expensive and climate friendly. The Canadian Climate Institute estimates, for example, that standard heat pumps that run on electricity are already the least expensive home heating option in most Canadian cities. Also, while estimates vary on the timeline, there is agreement all around that we will have to transition away from natural gas sooner or later. So, why would we lock-in new home-owners and others, on a fuel that must be phased out?
Cold climate air-source heat pumps, that can operate to temperatures as low as -25°C, can completely replace conventional heating systems in buildings. Run on electricity, heat pumps are much more efficient than both natural gas furnaces and baseboard heaters. They use up to 70% less energy than conventional heating systems so they can cut energy costs for businesses, homeowners, and renters. Heat pumps have the added advantage that they can cool our buildings in the summer months to protect us from increasing temperatures and longer heat waves, something that is particularly important for older populations and those who live on low incomes.
As more people opt for heat pumps and the energy transition proceeds, Enbridge will have fewer customers to cover the new gas connections that Bill 165 will permit. And since heat pumps have higher upfront costs, the remaining customers are likely to be those who live on lower incomes.
Bill 165 will also fuel climate change. Extreme events, such as wildfires, heat waves, and floods, that have become more frequent and more intense with climate change, are already costing us in many different ways. Last summer, wildfires placed 200,000 people on evacuation orders. They forced tens of thousands from their homes. They displaced Indigenous communities from land that may take decades to recover. And they exposed millions of people across the continent to extremely harmful levels of air pollution.
Buildings are a major source of climate emissions in Canada. In the Greater Toronto and Hamilton Area (GTHA), which is home to about 20% of Canada’s population, buildings are responsible for nearly one half (44%) of all climate emissions. Most of those emissions come from the burning of natural gas to heat our buildings. These emissions are no longer necessary.
Instead of forcing natural gas customers to subsidize hook-ups for new buildings, that will increase energy costs, tie new buildings to dated technology, and fuel climate change, the Ontario Government should listen to its independent experts and update our building codes to move us into a new era that protects people, the planet, and our pocketbooks.