Governor signs bill boosting utility bill discounts

Ontario Clean Electricity Regulations accelerate renewable energy adoption, drive emissions reduction, and modernize the smart grid with energy storage, efficiency targets, and reliability upgrades to support decarbonization and a stable power system for Ontario.

Key Points

Standards to cut emissions, grow renewables, improve efficiency, and modernize the grid with storage and smart systems.

✅ Phases down fossil generation and invests in storage.

✅ Sets utility efficiency targets to curb demand growth.

✅ Upgrades to smart grid for reliability and resiliency.

Ontario has taken a significant step forward in its energy transition with the introduction of new clean electricity regulations. These regulations, complementing federal Clean Electricity Regulations, aim to reduce carbon emissions, promote sustainable energy sources, and ensure a cleaner, more reliable electricity grid for future generations. This article explores the motivations behind these regulations, the strategies being implemented, and the expected impacts on Ontario’s energy landscape.

The Need for Clean Electricity

Ontario, like many regions around the world, is grappling with the effects of climate change, including more frequent and severe weather events. In response, the province has set ambitious targets to reduce greenhouse gas emissions and increase the use of renewable energy sources, reflecting trends seen in Alberta’s path to clean electricity across Canada. The electricity sector plays a central role in this transition, as it is responsible for a significant portion of the province’s carbon footprint.

For years, Ontario has been moving away from coal as a source of electricity generation, and now, with the introduction of these new regulations, the province is taking a step further in decarbonizing its grid, including its largest competitive energy procurement to date. By setting clear goals and standards for clean electricity, the province hopes to meet its environmental targets while ensuring a stable and affordable energy supply for all Ontarians.

Key Aspects of the New Regulations

The regulations focus on encouraging the use of renewable energy sources such as wind, solar, hydroelectric, and geothermal power. One of the key elements of the plan is the gradual phase-out of fossil fuel-based energy sources. This shift is expected to be accompanied by greater investments in energy storage solutions, including grid batteries, to address the intermittency issues often associated with renewable energy sources.

Ontario’s new regulations also emphasize the importance of energy efficiency in reducing overall demand. As part of this initiative, utilities and energy providers will be required to meet strict energy-saving targets and participate in new electricity auctions designed to reduce costs, ensuring that both consumers and businesses are incentivized to use energy more efficiently.

In addition, the regulations promote technological innovation in the electricity sector. By supporting the development of smart grids, energy storage technologies, and advanced power management systems, Ontario is positioning itself to become a leader in the global energy transition.

Impact on the Economy and Jobs

One of the anticipated benefits of the clean electricity regulations is their positive impact on Ontario’s economy. As the province invests in renewable energy infrastructure and clean technologies, new job opportunities are expected to arise in industries such as manufacturing, construction, and research and development. These regulations also encourage innovation in energy services, which could lead to the growth of new companies and industries, while easing pressures on industrial ratepayers through complementary measures.

Furthermore, the transition to cleaner energy is expected to reduce the long-term costs associated with climate change. By investing in sustainable energy solutions now, Ontario will help mitigate the financial burdens of environmental damage and extreme weather events in the future.

Challenges and Concerns

While the new regulations have been widely praised for their environmental benefits, they are not without their challenges. One of the primary concerns is the potential cost to consumers, and some Ontario hydro policy critique has called for revisiting legacy pricing approaches to improve affordability. While renewable energy sources have become more affordable over the years, transitioning from fossil fuels could still result in higher electricity prices in the short term. Additionally, the implementation of new technologies, such as smart grids and energy storage, will require substantial upfront investment.

Moreover, the intermittency of renewable energy generation poses a challenge to grid stability. Ontario’s electricity grid must be able to adapt to fluctuations in energy supply as more variable renewable sources come online. This challenge will require significant upgrades to the grid infrastructure and the integration of storage solutions to ensure reliable energy delivery.

The Road Ahead

Ontario’s clean electricity regulations represent an important step in the province’s commitment to combating climate change and transitioning to a sustainable, low-carbon economy. While there are challenges to overcome, the benefits of cleaner air, reduced emissions, and a more resilient energy system will be felt for generations to come. As the province continues to innovate and lead in the energy sector, Ontario is positioning itself to thrive in the green economy of the future.

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Manitoba Hydro Interim Rate Increase faces PUB scrutiny as consumers coalition challenges a 5% electricity rate hike, citing drought planning, retained earnings, affordability, transparency, and impacts on fixed incomes and northern communities.

Key Points

A proposed 5% electricity rate hike under PUB review, opposed by consumers citing drought planning and affordability.

✅ Coalition backs 2% hike; 5% seen as undue burden

✅ PUB review sought; interim process lacks transparency

✅ Retained earnings, efficiencies cited to offset drought

The Consumers Coalition is urging the Public Utilities Board (PUB) to reject Manitoba Hydro’s current interim rate increase application, amid ongoing debates about Hydro governance and policy.

Hydro is requesting a five per cent jump in electricity rates starting on January 1, claiming drought conditions warrant the increase but the coalition disagrees, saying a two per cent increase would be sufficient.

The coalition, which includes Harvest Manitoba, the Consumers’ Association of Canada-Manitoba, and the Aboriginal Council of Winnipeg, said a 5 per cent rate increase would put an unnecessary strain on consumer budgets, especially for those on fixed incomes or living up north.

"We feel that, in many ways, Manitobans have already paid for this drought," said Gloria Desorcy, executive director of the Consumers’ Association of Canada - Manitoba.

The coalition argues that hydroelectric companies already plan for droughts and that hydro should be using past earnings to mitigate any losses.

The group claims drought conditions would have added about 0.8 per cent to Hydro’s bottom line. They said remaining revenues from a two per cent increase could then be used to offset the increased costs of major projects like the Keeyask generating station and service its growing debt obligations.

The group also said Hydro is financially secure and is projecting a positive net income of $112 million next year without rate increases, even as utility profits can swing with market conditions, assuming the drought doesn’t continue.

They argue Hydro can use retained earnings as a tool to mitigate losses, rather than relying on deferral accounting that shifts costs, and find further efficiencies within the corporation.

"So we said two per cent, which is much more palatable for consumers especially at the time when so many consumers are struggling with so many higher bills,” said Desorcy.

According to the coalition’s calculations, that works out to a $2-4 increase per month, and debates such as ending off-peak pricing in Ontario show how design affects bills, depending on whether electricity is used for heating, but it could be higher.

The coalition said their proposed two per cent rate increase should be applied to all Manitoba Hydro customers and have a set expiration date of January 1, 2023.

Another issue, according to the coalition, is the process of an interim rate application does not provide any meaningful transparency and accountability, whereas recent OEB decisions in Ontario have outlined more robust public processes.

Desorcy said the next step is up to the PUB, though board upheaval at Hydro One in Ontario shows how governance shifts can influence outcomes.

The board is expected to decide on the proposed increase in the next couple of weeks.

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China Coal-Fired Power Consolidation targets capacity cuts through mergers, SASAC-led restructuring, debt reduction, asset optimization, and retiring inefficient plants across state-owned utilities to improve efficiency, stabilize liabilities, and align with energy transition policies.

Key Points

A SASAC-driven plan merging utility assets to cut coal capacity, reduce debt, and retire outdated, loss-making plants.

✅ Merge five central utilities' coal assets to streamline operations

✅ Target 25-33% capacity cuts and >50% loss reduction by 2021

✅ Prioritize debt-ridden regions: Gansu, Shaanxi, Xinjiang, Qinghai, Ningxia

China plans to slash coal-fired power capacity at its five biggest utilities by as much as a third in two years by merging their assets, amid broader power-sector strains that reverberate globally, according to a document seen by Reuters and four sources with knowledge of the matter.

The move to shed older and less-efficient capacity is being driven by pressure to cut heavy debt levels at the utilities. China, is, however, building more coal-fired power plants and approving dozens of new mines to bolster a slowing economy, even as recent power cuts highlight grid imbalances.

The five utilities, which are controlled by the central government, accounted for around 44% of China’s total coal-fired power capacity at the end of 2018, a share likely to be tested by rising electrification goals, with electricity to meet 60% by 2060 according to industry forecasts.

“(The utilities) will strive to reduce coal-fired power capacity by one quarter to one third ...cutting total losses by more than 50% from the current level to achieve a significant decline in debt-to-asset ratios by the end of 2021,” the document said.

The plan, initiated and overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), follows heavy losses at some of the utilities, amid a pandemic-era demand drop that hit industrial consumption.

Some of their coal-fired power stations have filed for bankruptcy in recent years as Beijing promotes the use of renewable energy and advances its nuclear program while opening up the state-controlled power market.

The SASAC did not immediately respond to a fax seeking comment and the sources declined to be identified as they were not authorised to speak to the media.

The utilities - China Huaneng Group Co, China Datang Corp, China Huadian Corp, State Power Investment Corp and China Energy Group - did not respond to faxes requesting comment.

Together, they had 474 coal-fired power plants with combined power generation capacity of 520 gigawatts (GW) at the end of last year.

Their coal-fired power assets came to 1.5 trillion yuan ($213 billion) while total coal-fired power liabilities were 1.1 trillion yuan, the document said.

The document was seen by two people at two of the utilities and was also verified by a source at SASAC and a government researcher.

It was not clear when the document was published but it said the merging and elimination of outdated capacity would start from 2019 and be achieved within three years, aiming to improve the efficiency and operations at the companies, reflecting a broader electricity sector mystery that policymakers are trying to resolve.

Utilities with debt-ridden operations in the northwestern regions of Gansu, Shaanxi, Xinjiang, Qinghai and Ningxia would be the first to carry out the plan, it said, even as India ration coal supplies during demand surges.

The government researcher said the SASAC has been researching possible consolidation in the coal-fired power sector since 2017, but added: “It’s easier said than done.”

“No one is willing to hand in their high quality assets and there is no point in merging the bad assets,” the government researcher said.

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Canada Nuclear Power Expansion highlights SMRs, clean energy, net-zero targets, and robust regulation to deliver safe, reliable baseload electricity, spur investment, and economically decarbonize remote communities, mines, and grids across provinces securely.

Key Points

Canada Nuclear Power Expansion grows SMRs and reactors to meet climate targets with safe, reliable baseload power.

✅ Deploys SMRs for remote communities, mines, and industrial sites

✅ Streamlines regulation to ensure safety, trust, and timely approvals

✅ Provides clean, reliable baseload to hit net-zero electricity goals

Canada must expand its nuclear power capacity if it is to reach its climate targets, according to Canadian Minister of Natural Resources Seamus Oregan.

Speaking to the Canadian Nuclear Association’s annual conference, Seamus O’Regan said the industry has to grow.

“As the world tackles a changing climate, nuclear power is poised to provide the next wave of clean, affordable, safe and reliable power,” he told a packed room.

The Ottawa conference was the largest the industry has run with dozens of companies and more than 900 people in attendance. Provincial cabinet ministers from Saskatchewan and Ontario were also there. Those two provinces, along with New Brunswick, signed a memorandum in December as part of a premiers' nuclear initiative to work together on small modular reactor technology.

People need to know that it’s safe

Small modular reactors are units that produce less power than large generating stations, but can be constructed easier and are expected to be safer to operate. Canadian firms have about a dozen of the proposed reactors working their way through the regulatory process, with New Brunswick's SMR plans drawing scrutiny.

The smaller reactors could be used in groups to replace large units, but the industry also hopes to use them in rural or isolated communities, mines or even oilsands projects, potentially replacing the diesel power generators some remote communities use.

The Canadian government issued a road map to support the industry in 2018 and O’Regan committed Thursday to putting some teeth on that proposal later this year, as provinces like Ontario explore new large-scale nuclear plants to meet demand, with specific steps the government will take.

“We have been working so hard to support this industry. We are placing nuclear energy front and centre, something that has never been done before.”

O’Regan said the government’s role is a clear, streamlined regulatory system that will promote the industry, but also help the Canadian public to trust the reactors will be safe.

“People need to know that it’s safe. They need to know that it’s regulated. They need to know that it’s safe for them,” he said.

The Liberals promised during the campaign that they would gradually reduce Canada’s carbon emissions even after hitting the targets in the Paris Agreement by 2030. By 2050, Prime Minister Justin Trudeau said he expects Canada to be carbon neutral, mindful of lessons from Europe's power crisis on reliability.

The government hasn’t outlined how it will achieve that goal. O’Regan said more detail is coming, but it’s clear that nuclear is going to have to play a major part, echoing the UK’s green industrial revolution approach to reactor deployment.

“I have not seen a credible plan for net zero without nuclear as part of the mix. I don’t think we are going to be relying on any one technology. I think it’s going to be a whole host of things.”

O’Regan said large investors are looking for countries that are on the path to net zero.

“Everybody has their shirt sleeves rolled up and we know we need to work on this, not only do we have to work on this for the urgency of the planet, but we have to work on it for Canadian jobs.”

He added, “We must focus on those areas where Canada can and should lead, like nuclear.”

Canadians are ready to take a fresh look at nuclear

John Gorman, president of the Canadian Nuclear Association, said he was thrilled with O’Regan’s comments.

“I took the minister’s remarks this morning as being perhaps the strongest language of support for the nuclear industry in a number of years.”

Gorman said the industry is in strong shape and is working with utility companies such as Ontario Power Generation and regulators to move projects forward.

“It’s this amazing collaboration and coordination that is enabling us to beat others to the roll out of these small modular reactors,” he said.

He said provinces that might not have looked at nuclear before now have an incentive to do it, because of climate change. A former solar industry executive, Gorman said solar and wind power are important, as Ontario plans to seek new wind and solar power to ease supply pressures, but they won’t be able to keep up with rising power demands.

“Globally we are seeing increased recognition that climate change is real and that it’s a crisis, we are also seeing recognition that we are not making as much progress on decarbonizing our electricity system as we thought,” he said. “Canadians are ready to take a fresh look at nuclear and see the real facts.”

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Nova Scotia Cap-and-Trade Program joins Western Climate Initiative to leverage emissions trading IT systems, track allowances, and manage compliance, while setting in-province caps, carbon pricing signals, and third-party verified reporting for industrial and fuel suppliers.

Key Points

A provincial emissions trading system using WCI services to cap GHGs, track allowances, and enforce verified compliance.

✅ Uses WCI IT system to manage allowances and registry

✅ Initial trading limited to in-province participants

✅ Third-party verification and annual reporting deadlines

Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.

Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.

Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program, with Hydro-Québec's U.S. sales highlighting cross-border dynamics. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.

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Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.

Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.

Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.

"By keeping our system internal it ensures that our greenhouse gas reductions are happening within our province," said Rankin. "But we do have that opportunity (to join) and if there are new entrants or we need more access to credits then that may shift our strategy."

The use of the system will cost Nova Scotia about US$314,000 for 2018-19, with an annual cost in subsequent years of about US$228,000 or more, if the province requests modifications.

"If we were to do something like that internally we would have to build a full database and hire more people, so this was an obvious choice for us," said Rankin.

Nova Scotia has already met the national reduction target of 30 per cent below 2005 levels and says it's on track to have 40 per cent of electricity generation from renewables by 2020, underscoring how cleaning up Canada's electricity supports climate pledges.

Stephen Thomas, energy campaign coordinator for the Ecology Action Centre, called the province's move an "important small step," stressing the importance of using the same administrative rules as the other jurisdictions involved.

But Thomas said Nova Scotia should go further and trade emissions with California, Quebec, and Ontario, and also put a price on carbon by auctioning credits as they do.

Thomas said Nova Scotia's system stands to be volatile because of the smaller number of participants -- about 20 including Nova Scotia Power, Northern Pulp, Lafarge, and large oil and gasoline companies such as ExxonMobil, Imperial and Irving.

"It's very likely to favour Nova Scotia Power as the largest single emitter with the most credits to sell here, and that would change if we had a linked system, at a time when Canada will need more electricity to hit net-zero according to the IEA," Thomas said.

He said it's important to have a linked system and a regional approach in Atlantic Canada, which has more emissions per person and more emissions per GDP than places like Ontario, Quebec and California, and where policies like Newfoundland's rate reduction plan can influence electricity strategy.

"Reducing emissions, because we are so emissions-intensive here, is a little bit cheaper," said Thomas. "So it's possible that Ontario, Quebec and California could pay Nova Scotia to reduce its emissions."

Under its program, Nova Scotia requires industrial facilities generating 50,000 tonnes or more of greenhouse gas emissions per year to report emissions.

Regulations also cover petroleum product suppliers that import or produce 200 litres of fuel or more per year for consumption and natural gas distributors whose products produce at least 10,000 tonnes of greenhouse gas emissions a year.

Companies were to have reported to the Environment Department by May 1 but Rankin said the deadline has been pushed back to June 1, a deadline that was to be followed in subsequent years in any event. Reports must be verified by a third party by Sept. 1 every year.

The Liberal government passed enabling legislation for cap and trade last fall.

As for the upcoming emissions caps, Rankin isn't tipping the province's hand yet, even as B.C.'s 2050 targets face a shortfall in some forecasts.

"Those caps will recognize the investments that have already been made and therefore will be the most cost-effective program that we can put together to meet the federal requirement," he said.

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Sudbury Microburst Power Outage strains hydro crews after straight-line winds; New Sudbury faces downed power lines, tree damage, and hazardous access as restoration efforts, mutual aid, and safety protocols aim to reconnect customers by weekend.

Key Points

A microburst downed lines in New Sudbury, cutting power as crews tackle hazardous access and complex repairs.

✅ Straight-line winds downed poles, trees, and service lines

✅ Crews face backyard access hazards, complex reconnections

✅ Mutual aid linemen, arborists, and crane work speed restoration

About 300 Sudbury Hydro customers are still without power Thursday after Monday's powerful microburst storm, part of a series of damaging storms in Ontario seen across the province.

The utility's spokesperson, Wendy Watson, says the power in the affected New Sudbury neighbourhoods should be back on by the weekend, even as Toronto power outages persisted in a recent storm.

The storm, which Environment Canada said was classified as a microburst or straight line wind damage, similar to a severe windstorm in Quebec, downed a number of power lines in the city.

Now crews are struggling with access to the lines, a challenge that BC Hydro's atypical storm response also highlighted, as they work to reconnect service in the area.

"In some cases, you can't get to someone's back yard, or you have to go through the neighbour's yard," Watson said.

"We have one case where [we had] equipment working over a swimming pool. It's dicey, it's really dirty and it's dangerous."

Monday's storm caused massive property damage across the city, particularly in New Sudbury. (Benjamin Aubé/CBC)

Veteran arborist Jim Allsop told CBC News he hasn't seen damage like this in his 30-plus years in the business.

"I don't know how many we've done up to date, but I have another 35 trees on houses," Allsop said. "We'll be probably another week."

"We've rented a crane to help speed up the process, and increase safety, and we're getting five or six done in our 12-hour days."

Scott Aultman, a lineman with North Bay Hydro, said he has seen a few storms in his career, and isn't usually surprised by extensive damage a storm can cause.

"When you see a trailer on its side, you know, you don't see that every day," Aultman said.

But during the clean up, Aultman said the spirit of camaraderie runs high with crews from different areas, as seen when Canadian crews helped Florida during Hurricane Irma.

"We were pumped. It's part of the trade, everybody gets together," Aultman said. "We had a big storm in 2006 and the Sudbury guys were up helping us, so it's great, it's nice to be able to return the favour and help them out."

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