Canada needs to shrink productivity gap: OECD

By Financial Post


High Voltage Maintenance Training Online

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today
Canada hasn't gone nearly far enough in taking the needed steps to shrink the economic productivity gap with its largest trading partner, the Organization of Economic Co-operation and Development reported.

Canadian economic production on a per-person basis compared with the U.S. "has not narrowed in recent years and remains significant, reflecting weak labour productivity performance," reported the OECD, a Paris-based economic think-tank funded by 30 countries from Europe, North America and Asia.

"The federal and provincial governments have made some progress in dealing with the OECD's list of policies that are holding back potential growth, but the backlog remains heavy," spokesman Peter Jarrett told Canwest News Service in an e-mail interview.

The report follows up on 2007 recommendations offered to all member countries suggesting ways to improve productivity. In Canada, the proposals were intended to help narrow the 15% gap between the two countries' per capita gross domestic product.

The OECD had called on Canada to remove interprovincial trade barriers, reduce higher-than-average restrictions on foreign investment, liberalize provincial electricity markets, improve the tax system's efficiency, and reform the Employment Insurance (EI) system so it doesn't force some companies to effectively subsidize other firms engaged in seasonal work.

"Specifically, electricity markets still benefit rather little from competitive forces, EI benefits are still hindering labour mobility, and the taxation of capital remains burdensome particularly at the provincial level, thereby reducing investment," according to Mr. Jarrett.

The report did point out positive steps, such as the promise by provincial premiers last year to remove by 2009 all inter-provincial labour mobility barriers involving "regulated occupations" such as doctors, dentists, architects, engineers, and tradesmen like plumbers and electricians.

Related News

Operating record for Bruce Power as Covid-19 support Council announced

Bruce Power Life-Extension Programme advances Ontario nuclear capacity through CANDU Major Component Replacement, reliable operation milestones, supply chain retooling for COVID-19 recovery, PPE production, ventilator projects, and medical isotope supply security.

 

Key Points

A program to refurbish CANDU reactors, extend asset life, and mobilize Ontario nuclear supply chain and isotopes.

✅ Extends CANDU units via Major Component Replacement

✅ Supports COVID-19 recovery with PPE and ventilator projects

✅ Boosts Ontario energy reliability and medical isotopes

 

Canada’s Bruce Power said on 1 May that unit 1 at the Bruce nuclear power plant had set a record of 624 consecutive days of reliable operation – the longest since it was returned to service in 2012.

It exceeded Bruce 8’s run of 623 consecutive days between May 2016 and February 2018. Bruce 1, a Candu reactor, was put into service in 1977. It was shut down and mothballed by the former Ontario Hydro in 1997, and was refurbished and returned to service in 2012 by Bruce Power.

Bruce units 3 and 4 were restarted in 2003 and 2004. They are part of Bruce Power’s Life-Extension Programme, and future planning such as Bruce C project exploration continues across the fleet, with units 3 and 4 to undergo Major Component Replacement (MCR) Projects from 2023-28, adding about 30 years of life to the reactors.

The refurbishment of Bruce 6 has begun and will be followed by MCR Unit 3 which is scheduled to begin in 2023. Nuclear power accounts for more than 60% of Ontario’s supply, with Bruce Power providing more than 30%   of the province’s electricity.

Set up of Covid recovery council
On 30 April, Bruce Power announced the establishment of the Bruce Power Retooling and Economic Recovery Council to leverage the province’s nuclear supply chain to support Ontario’s fight against Covid-19 and to help aid economic recovery.

Bruce Power’s life extension programme is Canada’s second largest infrastructure project and largest private sector infrastructure programme. It is creating 22,000 direct and indirect jobs, delivering economic benefits that are expected to contribute $4 billion to Ontario’s GDP and $8-$11 billion to Canada’s gross domestic product (GDP), Bruce Power said.

“With 90% of the investment in manufactured goods and services coming from 480 companies in Ontario and other provinces, including recent manufacturing contracts with key suppliers, we can harness these capabilities in the fight against Covid-19, and help drive our economic recovery,” the company said.

“An innovative and dynamic nuclear supply chain is more important than ever in meeting this new challenge while successfully implementing our mission of providing clean, reliable, flexible, low-cost nuclear energy and a global supply of medical isotopes,” said Bruce Power president and CEO Mike Rencheck. “We are mobilising a great team with our extended supply chain, which spans the province, to assist in the fight against Covid-19 and to help drive our economic recovery in the future.”

Greg Rickford, the Minister of Energy, Mines, Northern Development, and Minister of Indigenous Affairs, said the launch of the council is consistent with Ontario’s focus to fight Covid-19 as a top priority and a look ahead to economic recovery, and initiatives like Pickering life extensions supporting long-term system reliability.

The creation of the Council was announced during a live event on Bruce Power's Facebook page, in which Rencheck was joined by Associate Minister of Energy Bill Walker and Rocco Rossi, the president and CEO of the Ontario Chamber of Commerce.

Walker reiterated the Government of Ontario’s commitment to nuclear power over the long term and to the life extension programme, including the Pickering B refurbishment as part of this strategy.

The Council, which will be formed for the duration of the pandemic and will include of all of Bruce Power’s Ontario-based suppliers, will focus on the continued retooling of the supply chain to meet front-line Covid-19 needs to contribute to the province’s economy recovery in the short, medium and long term.

New uses for nuclear medical applications will be explored, including isotopes for the sterilisation of medical equipment and long-term supply security.

The supply chain will be leveraged to support the health care sector through the rapid production of medical Personal Protection Equipment for front line-workers and large-scale PPE donations to communities as well as participation in pilot projects to make ventilators within the Bruce Power supply chain or help identify technology to better utilise existing ventilators;

“Buy Local” tools and approaches will be emphasised to ensure small businesses are utilised fully in communities where nuclear suppliers are located.

The production of hand sanitiser and other cleaning products will be facilitated for distribution to communities.

 

Related News

View more

Top Senate Democrat calls for permanent renewable energy, storage, EV tax credits

Clean Energy Tax Incentives could expand under Democratic proposals, including ITC, PTC, and EV tax credits, boosting renewable energy, energy storage, and grid modernization within a broader infrastructure package influenced by Green New Deal goals.

 

Key Points

Federal incentives like ITC, PTC, and EV credits that cut costs and speed renewables, storage, and grid upgrades.

✅ Proposes permanence for ITC, PTC, and EV tax credits

✅ Could accelerate solar, wind, storage, and grid upgrades

✅ Passage depends on bipartisan infrastructure compromise

 

The 115th U.S. Congress has not even adjourned for the winter, and already a newly resurgent Democratic Party is making demands that reflect its majority status in the U.S. House come January.

Climate appears to be near the top of the list. Last Thursday, Senator Chuck Schumer (D-NY), the Democratic Leader in the Senate, sent a letter to President Trump demanding that any infrastructure package taken up in 2019 include “policies and funding to transition to a clean energy economy and mitigate the risks that the United States is already facing due to climate change.”

And in a list of policies that Schumer says should be included, the top item is “permanent tax incentives for domestic production of clean electricity and storage, energy efficient homes and commercial buildings, electric vehicles, and modernizing the electric grid.”

In concrete terms, this could mean an extension of the Investment Tax Credit (ITC) for solar and energy storage, the Production Tax Credit (PTC) for wind and the federal electric vehicle (EV) tax credit program as well.

 

Pressure from the Left

This strong statement on climate change, clean energy and infrastructure investment comes as at least 30 incoming members of the U.S. House of Representatives have signed onto a call for the creation of a committee to explore a “Green New Deal” and to move the nation to 100% renewable energy by 2030.*

It also comes as Schumer has come under fire by activists for rumors that he plans to replace Senator Maria Cantwell (D-Washington) with coal state Democrat Joe Manchin (D-West Virginia) as the top Democrat on the Senate Energy and Natural Resources Committee.

As such, one possible way to read these moves is that centrist leaders like Schumer are responding to pressure from an energized and newly elected Left wing of the Democratic Party. It is notable that Schumer’s program includes many of the aims of the Green New Deal, while avoiding any explicit use of that phrase.

 

Implications of a potential ITC extension

The details of levels and timelines are important here, particularly for the ITC.

The ITC was set to expire at the end of 2016, but was extended in legislative horse-trading at the end of 2015 to a schedule where it remains at 30% through the end of 2019 and then steps down for the next three years, and disappears entirely for residential projects. Since that extension the IRS has issued guidance around the use of co-located energy storage, as well as setting a standard under which PV projects can claim the ITC for the year that they begin construction.

This language around construction means that projects can start work in 2019, complete in 2023 and still claim the 30% ITC, and this may be why we at pv magazine USA are seeing an unprecedented boom in project pipelines across the United States.

Of course, if the ITC were to become permanent some of those projects would be pushed out to later years. But as we saw in 2016, despite an extension of the ITC many projects were still completed before the deadline, leading to the largest volume of PV installed in the United States in any one year to date.

This means that if the ITC were extended by the end of 2020, we could see the same thing all over again – a boom in projects created by the expected sunset, and then after a slight lull a continuation of growth.

Or it is possible that a combination of raw economics, increased investor and utility interest, and accelerating renewable energy mandates will cause solar growth rates to continue every year, and that any changes in the ITC will only be a bump against a larger trend.

While the basis for expiration of the EV tax credit is the number of vehicles sold, not any year, both the battery storage and EV industries, which many see at an inflection point, could see similar effects if the ITC and EV tax credits are made permanent.

 

Will consensus be reached?

It is also unclear that any such infrastructure package will be taken up by Republicans, or that both parties will be able to come to a compromise on this issue. While the U.S. Congress passed an infrastructure bill in 2017, given the sharp and growing differences between the two parties, and divergent trade approaches such as the 100% tariff on Chinese-made EVs, it is not clear that they will be able to come to a meaningful compromise during the next two years.

 

Related News

View more

Electric cars will challenge state power grids

Electric Vehicle Grid Integration aligns EV charging with grid capacity using smart charging, time-of-use rates, V2G, and demand response to reduce peak load, enable renewable energy, and optimize infrastructure planning.

 

Key Points

Aligning EV charging with grid needs via smart charging, TOU pricing, and V2G to balance load and support renewables.

✅ Time-of-use rates shift charging to off-peak hours

✅ Smart charging responds to real-time grid signals

✅ V2G turns fleets into distributed energy storage

 

When Seattle City Light unveiled five new electric vehicle charging stations last month in an industrial neighborhood south of downtown, the electric utility wasn't just offering a new spot for drivers to fuel up. It also was creating a way for the service to figure out how much more power it might need as electric vehicles catch on.

Seattle aims to have nearly a third of its residents driving electric vehicles by 2030. Washington state is No. 3 in the nation in per capita adoption of plug-in cars, behind California and Hawaii. But as Washington and other states urge their residents to buy electric vehicles — a crucial component of efforts to reduce carbon emissions — they also need to make sure the electric grid can handle it amid an accelerating EV boom nationwide.

The average electric vehicle requires 30 kilowatt hours to travel 100 miles — the same amount of electricity an average American home uses each day to run appliances, computers, lights and heating and air conditioning.

An Energy Department study found that increased electrification across all sectors of the economy could boost national consumption by as much as 38 percent by 2050, in large part because of electric vehicles. The environmental benefit of electric cars depends on the electricity being generated by renewables.

So far, states predict they will be able to sufficiently boost power production. But whether electric vehicles will become an asset or a liability to the grid largely depends on when drivers charge their cars.

Electricity demand fluctuates throughout the day; demand is higher during daytime hours, peaking in the early evening. If many people buy electric vehicles and mostly try to charge right when they get home from work — as many now do — the system could get overloaded or force utilities to deliver more electricity than they are capable of producing.

In California, for example, the worry is not so much with the state’s overall power capacity, but rather with the ability to quickly ramp up production and maintain grid stability when demand is high, said Sandy Louey, media relations manager for the California Energy Commission, in an email. About 150,000 electric vehicles were sold in California in 2018 — 8 percent of all state car sales.

The state projects that electric vehicles will consume 5.4 percent of the state’s electricity, or 17,000 gigawatt hours, by 2030.

Responding to the growth in electric vehicles will present unique challenges for each state. A team of researchers from the University of Texas at Austin estimated the amount of electricity that would be required if every car on the road transitioned to electric. Wyoming, for instance, would need to nudge up its electricity production only 17 percent, while Maine would have to produce 55 percent more.

Efficiency Maine, a state trust that oversees energy efficiency and greenhouse gas reduction programs, offers rebates for the purchase of electric vehicles, part of state efforts to incentivize growth.

“We’re certainly mindful that if those projections are right, then there will need to be more supply,” said Michael Stoddard, the program’s executive director. “But it’s going to unfold over a period of the next 20 years. If we put our minds to it and plan for it, then we should be able to do it.”

A November report sponsored by the Energy Department found that there has been almost no increase in electricity demand nationwide over the past 10 years, while capacity has grown an average of 12 gigawatts per year (1 GW can power more than a half-million homes). That means energy production could climb at a similar rate and still meet even the most aggressive increase in electric vehicles, with proper planning.

Charging during off-peak hours would allow not only many electric vehicles to be added to the roads but also utilities to get more use out of power plants that run only during the limited peak times through improved grid coordination and flexible demand.

Seattle City Light and others are looking at various ways to promote charging during ideal times. One method is time-of-day rates. For the Seattle chargers unveiled last month, users will pay 31 cents per kilowatt hour during peak daytime hours and 17 cents during off-peak hours. The utility will monitor use at its charging stations to see how effective the rates are at shifting charging to more favorable times.

The utility also is working on a pilot program to study charging behavior at home. And it is partnering with customers such as King County Metro that are electrifying large vehicle fleets, including growing electric truck fleets that will demand significant power, to make sure they have both the infrastructure and charging patterns to integrate smoothly.

“Traditionally, our utility approach is to meet the load demand,” said Emeka Anyanwu, energy innovation and resources officer for Seattle City Light.

Instead, he said, the utility is working with customers to see whether they can use existing assets without the need for additional investment.

Numerous analysts say that approach is crucial.

“Even if there’s an overall increase in consumption, it really matters when that occurs,” said Sally Talberg, head of the Michigan Public Service Commission, which oversees the state’s utilities. “The encouragement of off-peak charging and other technology solutions that could come to bear could offset any negative impact.”

One of those solutions is smart charging, a system in which vehicles are plugged in but don’t charge until they receive a signal from the grid that demand has tapered off a sufficient amount. This is often paired with a lower rate for drivers who use it. Several smart-charging pilot programs are being conducted by utilities, although they have not yet been phased in widely, amid ongoing debates over charging control among manufacturers and utilities.

In many places, the increased electricity demand from electric vehicles is seen as a benefit to utilities and rate payers. In the Northwest, electricity consumption has remained relatively stagnant since 2000, despite robust population growth and development. That’s because increasing urbanization and building efficiency have driven down electricity needs.

Electric vehicles could help push electricity consumption closer to utilities’ capacity for production. That would bring in revenue for the providers, which would help defray the costs for maintaining that capacity, lowering rates for all customers.

“Having EV loads is welcome, because it’s environmentally cleaner and helps sustain revenues for utilities,” said Massoud Jourabchi, manager of economic analysis for the Northwest Power and Conservation Council, which develops power plans for the region.

Colorado also is working to promote electric cars, with the aim of putting 940,000 on the road by 2030. The state has adopted California’s zero-emission vehicles mandate, which requires automakers to reach certain market goals for their sales of cars that don’t burn fossil fuels, while extending tax credits for the purchase of such cars, investing in charging stations and electrifying state fleets.

Auto dealers have opposed the mandate, saying it infringes on consumer freedom.

“We think it should be a customer choice, a consumer choice and not a government mandate,” said Tim Jackson, president and chief executive of the Colorado Automobile Dealers Association.

Jackson also said that there’s not yet a strong consumer appetite for electric vehicles, meaning that manufacturers that fail to sell the mandated number of emission-free vehicles would be required to purchase credits, which he thinks would drive up the price of their other models.

Republicans in the state have registered similar concerns, saying electric vehicle adoption should take place based on market forces, not state intervention.

Many in the utility community are excited about the potential for electric cars to serve as mobile energy storage for the grid. Vehicle-to-grid technology, known as V2G, would allow cars charging during the day to take on surplus power from renewable energy sources.

Then, during peak demand times, electric vehicles would return some of that stored energy to the grid. As demand tapers off in the evening, the cars would be able to recharge.

In practice, V2G technology could be especially beneficial if used by heavy-duty fleets, such as school buses or utility vehicles. Those fleets would have substantial battery storage and long periods where they are idle, such as evenings and weekends — and even longer periods such as summer and the holiday season when school is out. The batteries on a bus, Jourabchi said, could store as much as 10 times the electricity needed to power a home for a day.

 

Related News

View more

Wartsila to Power USA’s First Battery-Electric High-Speed Ferries

San Francisco Battery-Electric Ferries will deliver zero-emission, high-speed passenger service powered by Wartsila electric propulsion, EPMS, IAS, batteries, and shore power, advancing maritime decarbonization under the REEF program and USCG Subchapter T standards.

 

Key Points

They are the first US zero-emission high-speed passenger ferries using integrated electric propulsion and shore power

✅ Dual 625 kW motors enable up to 24-knot service speeds

✅ EPMS, IAS, DC hub, and shore power streamline operations

✅ Built to USCG Subchapter T for safety and compliance

 

Wartsila, a global leader in sustainable marine technology, has been selected to supply the electric propulsion system for the United States' first fully battery-electric, zero-emission high-speed passenger ferries. This significant development marks a pivotal step in the decarbonization of maritime transport, aligning with California's ambitious environmental goals, including recent clean-transport investments across ports and corridors.

A Leap Toward Sustainable Maritime Transport

The project, commissioned by All American Marine (AAM) on behalf of San Francisco Bay Ferry, involves the construction of three 150-passenger ferries, reflecting broader U.S. advances like the Washington State Ferries hybrid upgrade now underway. These vessels will operate on new routes connecting the rapidly developing neighborhoods of Treasure Island and Mission Bay to downtown San Francisco. The ferries are part of the Rapid Electric Emission Free (REEF) Ferry Program, a comprehensive initiative by San Francisco Bay Ferry to transition its fleet to zero-emission propulsion technology. The first vessel is expected to join the fleet in early 2027.

Wärtsilä’s Role in the Project

Wärtsilä's involvement encompasses the supply of a comprehensive electric propulsion system, including the Energy and Power Management System (EPMS), integrated automation system (IAS), batteries, DC hub, transformers, electric motors, and shore power supply. This extensive scope underscores Wärtsilä’s expertise in providing integrated solutions for emission-free marine transportation. The company's extensive global experience in developing and supplying integrated systems and solutions for zero-emission high-speed vessels, as seen with electric ships on the B.C. coast operating today, was a key consideration in the selection process.

Technical Specifications of the Ferries

The ferries will be 100 feet (approximately 30 meters) in length, with a beam of 26 feet and a draft of 5.9 feet. Each vessel will be powered by dual 625-kilowatt electric motors, enabling them to achieve speeds of up to 24 knots. The vessels will be built to U.S. Coast Guard Subchapter T standards, ensuring compliance with stringent safety regulations.

Environmental and Operational Benefits

The transition to battery-electric propulsion offers numerous environmental and operational advantages. Electric ferries produce zero emissions during operation, as demonstrated by Berlin's electric ferry deployments, significantly reducing the carbon footprint of maritime transport. Additionally, electric propulsion systems are generally more efficient and require less maintenance compared to traditional diesel engines, leading to lower operational costs over the vessel's lifespan.

Broader Implications for Maritime Decarbonization

This project is part of a broader movement toward sustainable maritime transport in the United States. San Francisco Bay Ferry has also approved the purchase of two larger 400-passenger battery-electric ferries for transbay routes, further expanding its commitment to zero-emission operations. The agency has secured approximately $200 million in funding from local, state, and federal sources, echoing infrastructure bank support seen in B.C., to support these initiatives, including vessel construction and terminal electrification.

Wartsila’s involvement in this project highlights the company's leadership in the maritime industry's transition to sustainable energy solutions, including hybrid-electric pathways like BC Ferries' new hybrids now in service. With a proven track record in supplying integrated systems for zero-emission vessels, Wärtsilä is well-positioned to support the global shift toward decarbonized maritime transport.

As the first fully battery-electric high-speed passenger ferries in the United States, these vessels represent a significant milestone in the journey toward sustainable and environmentally responsible maritime transportation, paralleling regional advances such as the Kootenay Lake electric-ready ferry entering service. The collaboration between Wärtsilä, All American Marine, and San Francisco Bay Ferry exemplifies the collective effort required to realize a zero-emission future for the maritime industry.

The deployment of these battery-electric ferries in San Francisco Bay not only advances the city's environmental objectives but also sets a precedent for other regions to follow. With continued innovation and collaboration, the maritime industry can look forward to a future where sustainable practices are the standard, not the exception.

 

Related News

View more

Ottawa won't oppose halt to Site C work pending treaty rights challenge

Site C Dam Injunction signals Ottawa's neutrality while B.C. reviews a hydroelectric dam project on the Peace River, amid First Nations treaty rights claims, federal approval defenses, and scrutiny of environmental assessment and Crown consultation.

 

Key Points

A legal request to pause Site C while courts weigh First Nations treaty rights, environmental review, and approvals.

✅ Ottawa neutral on injunction; still defends federal approvals

✅ First Nations cite treaty rights over Peace River territory

✅ B.C. jurisdiction, environmental assessment and Crown consultation at issue

 

The federal government is not going to argue against halting construction of the controversial Site C hydroelectric dam in British Columbia while a B.C. court decides if the project violates constitutionally protected treaty rights.

 

Work on Site C suspended prior to First Nations lawsuit

However a spokeswoman for Environment Minister Catherine McKenna said Monday the government will continue to defend the federal approval given for the project in December 2014, even though that approval was given using an environmental review process McKenna herself has said is fundamentally flawed.

The Site C project is an 1,100-megawatt dam and generating station on the Peace River in northern B.C. that will flood parts of the traditional territory of the West Moberly and Prophet River First Nations.

#google#

In January, they filed a civil court case against the provincial government, B.C. Hydro and the federal government asking a judge to decide if their rights were being violated by the dam. A few weeks later, West Moberly asked the court for an injunction to halt construction pending the outcome of the rights case, similar to other contested transmission projects like the Maine electricity corridor debate in New England.

On May 11, lawyers for Attorney General Jody Wilson-Raybould filed a notice that Canada would remain neutral on the question of the injunction, meaning Canada won't argue against the idea of postponing construction for months, if not years, while the rights case winds through the court.

Wilson-Raybould has been silent on Site C since being named Canada's minister of justice in 2015, but in 2012, when she was the B.C. regional chief for the Assembly of First Nations, she said the project was "running roughshod" over treaty rights. The Justice Department on Monday directed questions to Environment and Climate Change Canada.

 

Defence of environmental assessment

McKenna's spokeswoman, Caroline Theriault, said the injunction request is just a procedural step regarding construction and that it is B.C. jurisdiction not federal.

However, she said Canada will defend the environmental assessment and Crown consultation processes and the federally issued permits required for construction.

 

B.C. auditor general set to scrutinize Site C dam project

McKenna has legislation before the House of Commons to overhaul the process for environmental assessment of major projects like hydro dams and pipelines, arguing the former government's procedures had skewed too far towards proponents. The overhaul includes requiring traditional Indigenous knowledge be taken into account, a consideration also central to the Columbia River Treaty talks underway on both sides of the border.

However, Theriault said the commitment to overhaul the process also included a promise not to revisit projects that had already been approved, such as Site C.

"The federal environmental assessment process for the Site C project has already been upheld in other court actions," said Theriault.

 

'It feels kind of odd'

West Moberly Chief Roland Wilson said he was both excited and yet concerned by Canada's decision last week not to oppose the injunction.

"It feels kind of odd and makes me wonder what they're up to," Wilson said.

However he said all he has ever wanted was for the project to be stopped until the question of rights can be answered. Wilson said two previous dams on the Peace River already flooded 80 per cent of the functional land within West Moberly's territory and that Site C will flood half of what's left. That land is used for fishing and hunting and there is also concern the dam will allow mercury to leak into Moberly Lake, he said.

 

Retiree undaunted by steep odds against his petition to stop Site C dam

Construction began in 2015 and more than $2.4 billion has already been spent on a project that will at the earliest, not be completed until 2024 and will cost an estimated $10 billion total, with cost overrun risks underscored by the Muskrat Falls ratepayer agreement in Atlantic Canada.

The province continues to argue against the injunction and will also fight the rights case, even as Alberta suspends power purchase talks with B.C. over energy disputes. Premier John Horgan campaigned on a promise to review the Site C approval. A B.C. Utilities Commission report in November found there are alternatives to building it and that it will go over budget. Nevertheless Horgan in December said he had to let construction continue because cancelling the project would be too costly both for the province and its electricity consumers, despite the B.C. rate freeze announced around the same period.

 

Related News

View more

Hydro One bends to government demands, caps CEO pay at $1.5M

Hydro One CEO Pay Cap sets executive compensation at $1.5 million under Ontario's provincial directive, linking incentives to transmission and distribution cost reductions, governance improvements, and board pay limits at the electricity utility.

 

Key Points

The Hydro One CEO Pay Cap limits pay to $1.5M, linking incentives to cost reductions and defined targets.

✅ Base salary set at $500,000 per year.

✅ Incentives capped at $1,000,000, tied to cost cuts.

✅ Board pay capped: chair $120,000; members $80,000.

 

Hydro One has agreed to cap the annual compensation of its chief executive at $1.5 million, the provincial utility said Friday, acquiescing to the demands of the Progressive Conservative government.

The CEO's base salary will be set at $500,000 per year, while short-term and long-term incentives are limited to $1 million. Performance targets under the pay plan will include the CEO's contributions to reductions in transmission and distribution costs, even as Hydro One has pursued a bill redesign to clarify charges for customers.

The framework represents a notable political victory for Premier Doug Ford, who vowed to fire Hydro One's CEO and board during the campaign and promised to reduce the annual earnings of Hydro One's board members.

In February, the province issued a directive to the board, ordering it to pay the utility's CEO no more than the $1.5 million figure it has now agreed to, as part of a broader push to lower electricity rates across Ontario.

Hydro One and the government had been at loggerheads over executive compensation, with the company refusing repeated requests to slash the CEO pay below $2,775,000. The board argued it would have difficulty recruiting suitable leaders for anything less, even as customers contend with a recovery rate that could raise hydro bills.

Further, the company agreed to pay the board chair no more than $120,000 annually and board members no more than $80,000 — figures Energy Minister Greg Rickford had outlined in his directive last month, amid calls for cleaning up Ontario's hydro mess from policy commentators.

"Hydro One's compliance with this directive allows us to move forward as a province. It sets the company on the right course for the future, proving that it can operate as a top-class electricity utility while reining in executive compensation and increasing public transparency," Rickford said in a statement issued Friday morning.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.