Life returns to an eerie Chernobyl

By Toronto Star


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The three babushkas clink shot glasses and toss back overproof vodka.

They are 75, 80 and 81 years old, a trio of cackling crones who assure me – rheumy eyes crinkling with amusement – that vodka is the best antidote for radiation sickness.

They ought to know: Survivors of the worst nuclear accident in history – 400 times more radioactive fallout than the atomic bombing of Hiroshima – and living all these years since in the shadow of the sinister Chernobyl reactors, illegals in their own condemned homes.

The resettlers, they're called, reverse migrants who defied the state to take up residence again in the crumbling cottages of "black villages" located within the 30-km exclusion zone around Chernobyl, ground zero.

On their own, without a guest to impress, the ladies would be drinking samogon, a belly-burning moonshine made from fermented sugar, yeast and potatoes. But for company, they break out the good stuff, served with platters of cheese, cold cuts and dark brown bread.

The meat is from slaughtered pigs that snuffle in earth still so infused with toxins that nothing grown in this soil is permitted to be sold outside the exclusion zone, even 23 years after an accident that remains the single Level 7 incident on the International Nuclear Event Scale.

Yet the cottage gardens are lush with fruits and vegetables and flowers ablaze with colour, almost monstrous in size and vividness. For the locals, only mushrooms are considered too poisonous to be edible. Well, maybe one or two in the soup pot is okay.

"In Ukraine, it is customary to have at least three glasses of vodka," explains Valentina Kovtunko, setting her crutch aside to top everybody up for another round.

Olga Zahovna, who is stone-deaf, gasps when the visitor takes a stool at the corner of the kitchen table. "No, no, single girls are not allowed to sit in the corner chair. That means you will never marry."

Perish the thought.

Maria Shovkuta takes the guest's face in her clawlike hands and mumbles: "You remind me of someone, from long ago."

They have little beyond their memories and yet they endure, surrounded by framed photographs of children and grandchildren on the wall – relatives who are allowed to visit only one day a year because of the continuing radioactivity – their connection to the outside world a bulky radio-phone provided by the state, a bus that comes once a week for shopping trips to the bazaar in the closest "clean" town, and, jarringly in this rustic home, the flat-screen TV purchased by Kovtunko's daughter. The ladies sit around it on most evenings to watch their favourite shows while they knit.

"My children lived in Pripyat but of course they left and didn't come back," says Kovtunko, referring to the model town that the Soviets built to house workers at the Chernobyl Nuclear Power Plant, now an eerie modern-day Pompeii overrun with foliage, a tangle of trees and underbrush choking the concrete and brick, as nature reclaims its territory.

"I'm not lonely," insists Kovtunko, a former Chernobyl cleaning lady who was born nearby and moved into this house upon marriage. "I have my friends and my garden. There's so much work to do. I don't have time to get bored."

She looks fondly at her friends. "We were young together."

They are all widows. Kovtunko's husband actually died before the nuclear accident and she was loathe to leave his grave untended, just one more reason for returning; that, and her discomfort with the three-room high-rise flat outside Kyiv where authorities had placed her afterwards, a space shared with other evacuees. "Oh, the noise! I couldn't sleep. And we didn't even have a proper stove to cook on."

Upwards of 400,000 Ukrainians from around Chernobyl were evacuated and relocated in the year after the accident.

Better to come back here, Kovtunko decided, after a year living away, reunited with about 80 other elderly citizens who likewise returned to this village, Opachichi, authorities relenting because the optics of forcibly removing stubborn old folks was even worse.

"I believe that it's clean here," continues Kovtunko. "I don't think we should have ever been made to leave. Look at me – I've never been sick a day."

Officially, these villagers don't even exist. And only 14 of them are left – 13 women and one man – in Opachichi. Another nearby black village has one sole occupant, a cranky sort who achieved fame when he met with Ukraine's President Viktor Yushchenko and elicited a promise that he'd never be harassed by officials again.

What none of the Opachichi residents own is a dosimeter, the hand-held ticking Geiger counters that measure radioactivity.

"Bah, who needs it?" scoffs Kovtunko. "I'm an old lady. The radiation hasn't killed me yet. And when I die, that won't be the reason."

Her fear, an illogical paranoia, is that authorities are eyeing the region with the idea of establishing a hunting and fishing preserve, since the ecology of this contaminated environment has sprung back of its own accord, a weird post-apocalyptic biosphere rife with undisturbed wildlife: boar and lynx, the white-tailed eagle (a total newcomer), Przewalski horses, an estimated 300 wolves, birds and voles, mutantly large catfish in the Pripyat River. Some of these species had not been seen for decades. (The only "mutants" identified in Chernobyl lands have been barn swallows with partly albino faces instead of the species' typical red chins.)

While hunting and fishing are forbidden, poachers are known to bag game and sell it to restaurants in Minsk and Kyiv.

The Ukrainian government designated the exclusion zone a wildlife sanctuary in 2000, despite radiation levels up to 100 times higher than acceptable "background levels" in some hot spot locations, not all of them marked by diamond-shaped warning signs that loom like scarecrows.

A lethal exposure of radiation ranges from 300 to 500 roentgens an hour and levels around the exclusion zone vary from 15 to several hundred microroentgens. (A microroentgen is one-millionth of a roentgen.)

The risk is in long-term exposure, which is why those who continue to work at Chernobyl – including the maintenance crew at the reactor plant, officially shut down in 2000 due to international pressure – are on two-week shifts, after which they must stay outside the zone for the following two weeks. Most plant personnel live in Slavutych, built after the disaster some 50 kilometres away, arriving on a train that weaves back and forth across the Ukrainian/Belarusian border.

This district is alive with cesium, strontium, plutonium, ruthenium, hundreds of different isotopes no larger than a microdot, spewed into the atmosphere on April 26, 1986, the eruption of Reactor No. 4 caused by poor design combined with errors made by control room personnel during a testing procedure. Further explosions sent a plume of highly radioactive fallout drifting over an extensive geographical area, 130,000 square kilometres contaminated to some extent. The 12 square kilometres of evergreen woodlands that stood directly in the path of the deadliest debris immediately turned red and died. That's the "Red Forest," of which only a small portion remains, the rest buried.

Two people were killed in the initial steam explosion. According to a 2005 report by the Chernobyl Forum, 56 deaths were directly attributable to the event (47 accident workers and nine children with thyroid cancer). The World Health Organization estimates some 4,000 subsequent deaths have occurred or will arise from it, from among 600,000 people most highly exposed to the radiation. Greenpeace predicts an eventual death total of 93,000.

Cancer rates around Chernobyl are unusually high, 65 times normal according to some reports. Upwards of 4,400 Ukrainian children and adolescents have already undergone operations for thyroid cancer, the most common consequence of radiation. In neighbouring Belarus, health officials say 20 per cent of the country's 10 million people are suffering from radiation-linked ailments.

Nearly a quarter century later in this poisoned realm, the microscopic particles still adhere underfoot, which is why visitors are directed to avoid stepping on mossy patches of ground or brushing up against branches. Because dust explodes with every step, Ukraine doesn't allow any plowing or building in the zone either. No burials have been permitted in the zone since the accident and the cemeteries that were already there are sinking into wildness – sad remnants of a lost civilization. A heart-wrenching sight is a child's grave decorated with Dinky cars, now overrun with weeds.

Before they knew what they were actually doing – the wrongness of it – officials ordered much of the zone plowed under, including entire villages within the 10-kilometre radius. Equipment used in the massive cleanup operation was also interred – but not deeply – because it was too radioactive dirty to be brought out, though scavengers chopped up helicopters, trucks and construction vehicles for parts that were sold as far away as Moscow.

Decontamination, rain and the passage of time have washed off much of the radioactive grime that coated Chernobyl, though plutonium has a half-life of 25,000 years. What didn't blow away has sunk into the soil, been absorbed by plants, in turn eaten by animals, and moved on up the food chain to be part of the biological continuum.

Yet this most blighted part of the planet is so very far from a dead zone these days. With humans withdrawing, animals roam at will and the plant life is more dramatic, even if some trees have sprung strangely. As one researcher put it: "Those trees have a terrible time knowing which way is up."

Few predicted this kind of resurgence in so short a span of time. It's all still contaminated but it's abundant in the absence of human habitation, reinforcing the belief that the greatest threat to nature is man. Left to its own devices, nature finds a way to survive and thrive.

The debate about Chernobyl as Paradise Rediscovered is raging on the pages of scientific journals because the experts can't agree on what's happening and why.

Biologist Robert Baker, of Texas Tech University, was among the first to report that Chernobyl had become a wildlife haven. He has taken research teams to the region more than 30 times since the early 1990s.

"It's a fascinating and gorgeous place," Baker says in an interview. "I refer to it as a kind of aquarium for animals and plant life.

"We're of the opinion that there are, within both the 10-km and 30-km zones, more rats and mice and pigs and moose and horses and endangered species than there are outside of the zone. It's evident that human behaviour is more dangerous for that environment than radiation."

An acute radiation dose, obviously, is lethal; it kills off mammals with red blood cells. "But a chronic low dose doesn't have the same effect," Baker notes, basing his view largely on mice and rodents that, he says, have shown a remarkable tolerance for elevated radiation levels.

This not only contradicts scientists, but is heresy to the wider constituency of doomsayers who oppose nuclear energy on the grounds it is a profound safety risk and intrinsically unsound ecologically.

Baker thinks organisms can cope with the destructive effects of radiation, at least to a point, after which the damage becomes irreparable and the species might die out, with domino impacts.

A strong argument was also made for nature in balance with radiation by journalist Mary Mycio in her authoritative book, Wormwood Forest: A Natural History of Chernobyl. During her research, she made a complete U-turn on both the value of nuclear power and the assessment of Chernobyl.

"Contrary to the myths and imagery, Chernobyl's lands had become a unique, new ecosystem," she wrote. "Defying the gloomiest predictions, it had come back to life as Europe's largest nature sanctuary, teeming with wildlife. Like the forests, fields and swamps of their unexpectedly inviting habitat, the animals are all radioactive. To the astonishment of just about everyone, they are also thriving."

A starkly different view is put forth by the likes of Timothy Mousseau, a Canadian-trained biologist at the University of South Carolina. He has called Chernobyl a "sink," where animals migrate because there are so few humans around but then struggle to build new populations, rapidly dying off.

A high proportion of the birds he and his colleagues examined suffer from radiation-induced sickness and genetic damage. Mousseau's study, published in March, said populations of bumblebees, butterflies, spiders, grasshoppers and other invertebrates were low in the most contaminated areas and barn swallows – only a third of which are reproducing – have a high rate of genetic abnormalities. Scientists worry mutated birds will pass on their abnormal genes to the global population.

Mousseau has now started work on a long-term study of humans who live in the area, a study involving more than 11,000 adults and 2,000 children.

Back at Chernobyl, Reactor No. 4 is now buttressed and entombed in 10 storeys of lead-and-steel shielding, known as the sarcophagus, soon to be replaced with an even sturdier protective shell. From the Bridge of Death – its clear sightlines drew residents to watch the fireworks the night of the accident, exposing them to an uninterrupted stream of radiation – plant workers now toss breadcrumbs to giant catfish in the Pripyat River.

Near to the quartet of reactors is a spent fuel processing plant built by a French company and never used because control rods from the Chernobyl reactors don't fit into the machinery. Spent fuel is hot and there's no safe way to get rid of it.

Close by, but a world away from all the controversy and conflicting research, the women of Opachichi get on with their small, tranquil lives, a very particular species that's also dying off.

But then Kovtunko tells the story of Maria, the only child born in Chernobyl since the disaster, her parents the youngest of the returnees.

When the couple later divorced, Maria and her mother stayed put. Now 12 years old, Maria lives at a boarding school outside Kyiv but comes back on weekends, happily visiting with elders, bringing a child's laughter to these eerily quiet villages.

Says Kovtunko: "She belongs to all of us."

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Alberta gives $40M to help workers transition from coal power jobs

Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site advice for workers leaving thermal coal mines and coal-fired power plants during the provincial phase-out.

 

Key Points

Alberta Coal Transition Support is a $40M program providing EI top-ups, retraining, and tuition vouchers to coal workers.

✅ 75% EI top-up; province requests federal alignment

✅ Tuition vouchers and retraining for displaced workers

✅ On-site transition services; about 2,000 workers affected

 

Alberta is putting aside $40 million to help workers losing their jobs as the province transitions away from thermal coal mines and coal-fired power plants, a shift connected to the future of work in the electricity sector over the next decade.

Labour Minister Christina Gray says the money will top up benefits to 75 per cent of a worker’s previous earnings during the time they collect employment insurance, amid regional shifts such as how COVID-19 reshaped Saskatchewan in recent months.

Alberta is asking the federal government to not claw back existing benefits as the province tops up those EI benefits, as utilities face pressures like Manitoba Hydro cost-cutting during the pandemic, while also extending EI benefits for retiring coal workers.

Gray says even if the federal government does not step up, the province will provide the funds to match that 75 per cent threshold, a contrast to problems such as Kentucky miners' cold checks seen elsewhere.

There will also be help for workers in the form of tuition vouchers, retraining programs like the Nova Scotia energy training program that connects youth to the sector, and on-site transitioning advice.

The province estimates there are 2,000 workers affected.

 

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Nova Scotia can't order electric utility to lower power rates, minister says

Nova Scotia Power Rate Regulation explains how the privately owned utility is governed by the Utility Review Board, limiting government authority, while COVID-19 relief measures include suspended disconnections, waived fees, payment plans, and emergency assistance.

 

Key Points

URB oversight where the board, not the province, sets power rates, with COVID-19 relief pausing disconnections and fees.

✅ Province lacks authority to order rate cuts

✅ URB regulates Nova Scotia Power rates

✅ Relief: no disconnections, waived fees, payment plans

 

The province can't ask Nova Scotia Power to lower its rates to ease the financial pressure on out-of-work residents because it lacks the authority to take that kind of action, even as the Nova Scotia regulator approved a 14% hike in a separate proceeding, the provincial energy minister said Thursday.

Derek Mombourquette said he is in "constant contact" with the privately owned utility.

"The conversations are ongoing with Nova Scotia Power," he said after a cabinet meeting.

When asked if the Liberal government would order the utility to lower electricity rates as households and businesses struggle with the financial fallout from the COVID-19 pandemic, Mombourquette said there was nothing he could do.

"We don't have the regulatory authority as a government to reduce the rates," he told reporters during a conference call.

"They're independent, and they are regulated through the (Nova Scotia Utility Review Board). My conversations with Nova Scotia Power essentially have been to do whatever they can to support Nova Scotians, whether it's residents or businesses in this very difficult time."

Asked if the board would take action, the minister said: "I'm not aware of that," despite the premier's appeals to regulators in separate rate cases.

However, the minister noted that the utility, owned by Emera Inc., has suspended disconnections for bill non-payment for at least 90 days, a step similar to reconnection efforts by Hydro One announced in Ontario.

It has also relaxed payment timelines and waived penalties and fees, while some jurisdictions offered lump-sum credits to help with bills.

Nova Scotia Power CEO Wayne O'Connor has also said the company is making additional donations to a fund available to help low-income individuals and families pay their energy bills.

In late March, Ontario cut electricity rates for residential consumers, farms and small businesses in response to a surge in people forced to work from home as a result of the pandemic, alongside bill support measures for ratepayers.

Premier Doug Ford said there would be a 45-day switch to off-peak rates, later moving to a recovery rate framework, which meant electricity consumers would be paying the lowest rate possible at any time of day.

The change was expected to cost the province about $162 million.

 

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Survivors of deadly tornadoes may go weeks without heat, water, electricity, Kentucky officials say

Kentucky Tornado Recovery details Mayfield damage, death toll, power outages, boil-water advisories, shelter operations, and emergency response across five states, as crews restore infrastructure, locate missing persons, and support displaced families in frigid temperatures.

 

Key Points

Overview of restoring utilities, repairing infrastructure, and sheltering survivors after Kentucky's tornado disaster.

✅ Power, water, and gas outages persist; boil-water advisories in effect.

✅ Mayfield hardest hit; factory casualties lower than first feared.

✅ Shelter provided in state park lodges; long-term recovery expected.

 

Residents of Kentucky counties where tornadoes killed several dozen people could be without heat, water or electricity in frigid temperatures for weeks or longer, state officials warned Monday, and experiences abroad like Kyiv's difficult winter underscore the risks as the toll of damage and deaths came into clearer focus in five states slammed by the swarm of twisters.

Authorities are still tallying the devastation from Friday's storms, though they believe the death toll will be lower than initially feared since it appeared many more people escaped a candle factory in Mayfield, Ky., than first thought.

At least 88 people — including 74 in Kentucky — were killed by the tornados which also destroyed a nursing home in Arkansas, heavily damaged an Amazon distribution centre in Illinois and spread their deadly effects into Tennessee and Missouri, while ongoing nuclear worker safety concerns highlighted vulnerabilities across critical facilities. Another 105 people were still unaccounted for in Kentucky as of Monday afternoon, Gov. Andy Beshear said.

As searches continued for those still missing, efforts also turned to repairing the power grid, downed line safety education, sheltering those whose homes were destroyed and delivering drinking water and other supplies.

"We're not going to let any of our families go homeless," Beshear said in announcing that lodges in state parks were being used to provide shelter.

In Bowling Green, Ky., 11 people died on the same street, including two infants found among the bodies of five relatives near a residence, Warren County coroner Kevin Kirby said. 

In Mayfield, one of the hardest hit towns, those who survived faced a high around 10 C and a low below freezing Monday without any utilities, and awareness of power strip fire risks is critical as residents turn to makeshift heating and power.

"Our infrastructure is so damaged. We have no running water. Our water tower was lost. Our waste water management was lost, and there's no natural gas to the city. So we have nothing to rely on there," Mayfield Mayor Kathy Stewart O'Nan said on CBS Mornings. "So that is purely survival at this point for so many of our people."

Across the state, about 26,000 homes and businesses were without electricity, according to poweroutage.us, including nearly all of those in Mayfield, and the U.S. grid warning during the pandemic underscored vulnerabilities in critical infrastructure.

More than 10,000 homes and businesses have no water, and another 17,000 are under boil-water advisories, Kentucky Emergency Management Director Michael Dossett told reporters.

Dossett warned that full recovery in the hardest-hit places could take not just months, but years, noting that utilities have at times contemplated on-site staffing to maintain operations during crises.

At least 74 people have been confirmed dead across Kentucky after tornadoes tore through the state, leaving some communities nearly totally destroyed and many residents wondering if they can afford to rebuild. 2:22
"This will go on for years to come," he said. 

Amid broader economic strain, recent debates over Kentucky miners' pay highlight ongoing financial vulnerabilities for workers affected by disasters as well.

Authorities are still trying to determine the total number of dead, and the storms made door-to-door searches impossible in some places. "There are no doors," said Beshear.

"We're going to have over 1,000 homes that are gone, just gone," he said.

Beshear had said Sunday morning that the state's toll could exceed 100. But he later said it might be as low as 50.

'Then he was gone'
Initially as many as 70 people were feared dead in the candle factory in Mayfield, but the company said Sunday that eight were confirmed dead and eight remained missing, while more than 90 others had been located.

"Many of the employees were gathered in the tornado shelter and after the storm was over they left the plant and went to their homes," said Bob Ferguson, a spokesman for the company. "With the power out and no landline they were hard to reach initially. We're hoping to find more of those eight unaccounted as we try their home residences."

 

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Why Canada's Energy Security Hinges on Renewables

Renewable Energy Security strengthens affordability and grid reliability through electrification, wind, and solar, reducing fossil fuel volatility exposed by the Ukraine crisis, aligning with IEA guidance and the Paris Agreement to deliver resilient, low-cost power.

 

Key Points

Renewable energy security is reliable, affordable power from electrification, wind and solar, cutting fossil fuel risk.

✅ Wind and solar now outcompete gas for new power capacity.

✅ Diversifies supply and reduces fossil price volatility.

✅ Requires grid flexibility, storage, and demand response.

 

Oil, gas, and coal have been the central pillar of the global energy system throughout the 20th century. And for decades, these fossil fuels have been closely associated with energy security.  

The perception of energy security, however, is rapidly changing. Renewables form an increasing share of energy sectors worldwide as countries look to deliver on the Paris Agreement and mitigate the effects of climate change, with IEA clean energy investment now significantly outpacing fossil fuels. Moreover, Russia’s invasion of Ukraine has demonstrated how relying on fossil fuels for power, heating, and transport has left many countries vulnerable or energy insecure.  

The International Energy Agency (IEA) defines energy security as “the uninterrupted availability of energy sources at an affordable price” (IEA, 2019a). This definition hardly describes today’s global energy situation, with the cancellation of natural gas deliveries and skyrocketing prices for oil and gas products, and with supply chain challenges in clean energy that also require attention. These circumstances have cascading effects on electricity prices in countries like the United Kingdom that rely heavily on natural gas to produce electricity. In Europe, energy insecurity has been even further amplified since the Russian corporation Gazprom recently cut off gas supplies to several countries.  

As a result, energy security has gained new urgency in Canada and worldwide, creating opportunities in the global electricity market for Canada. Recent events provide a stark reminder of the volatility and potential vulnerability of global fossil fuel markets and supply chains. Even in Canada, as one of the largest producers of oil and gas in the world, the price of fuels depends on global and regional market forces rather than government policy or market design. Thus, the average monthly price for gasoline in Canada hit a record high of CAD 2.07 per litre in May 2022 (Figure 1), and natural gas prices surged to a record CAD 7.54 per MMBtu in May 2022 (Figure 2).  

Energy price increases of this magnitude are more than enough to strain Canadian household budgets. But on top of that, oil and gas prices have accelerated inflation more broadly as it has become more expensive to produce, transport, and store goods, including food and other basic commodities (Global News, 2022).  

 

Renewable Energy Is More Affordable 

In contrast to oil and gas, renewable energy can reliably deliver affordable energy, as shown by falling wholesale electricity prices in markets with growing clean power. This is a unique and positive aspect of today’s energy crisis compared to historical crises: options for electrification and renewable-based electricity systems are both available and cost-effective.  

For new power capacity, wind and solar are now cheaper than any other source, and wind power is making gains as a competitive source in Canada. According to Equinor (2022), wind and solar were already cheaper than gas-based power in 2020. This means that renewable energy was already the cheaper option for new power before the recent natural gas price spikes. As illustrated in Figure 3, the cost of new renewable energy has dropped so dramatically that, for many countries, it is cheaper to install new solar or wind infrastructure than to keep operating existing fossil fuel-based power plants (International Renewable Energy Agency, 2021). This means that replacing fossil-based electricity generation with renewables would save money and reduce emissions. Wind and solar prices are expected to continue their downward trends as more countries increase deployment and learn how to best integrate these sources into the grid. 

 

Renewable Energy Is Reliable 

To deliver on the uninterrupted availability side of the energy security equation, renewable power must remain reliable even as more variable energy sources, like wind and solar, are added to the system, and regional leaders such as the Prairie provinces will help anchor this transition. For Canada and other countries to achieve high energy security through electrification, grid system operations must be able to support this, and pathways to zero-emissions electricity by 2035 are feasible.  

 

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Changes Coming For Ontario Electricity Consumers

Ontario Electricity Billing Changes include OEB-backed shifts to time-of-use or tiered pricing, landlord blanket elections, LDC implementation guidance, a customer choice webpage with a bill calculator, and ENDM rate mitigation messaging.

 

Key Points

They are OEB measures enabling TOU-to-tiered switching, landlord elections, LDC guidance, and ENDM bill messages.

✅ Option to switch from TOU to tiered pricing

✅ Landlord blanket elections on tenant turnover

✅ ENDM-led bill info and rate mitigation messaging

 

By David Stevens, Aird & Berlis LLP

Electricity consumers in Ontario may see a couple of electricity rate changes in their bills in the coming months.

First, as we have already discussed, as of November 1, 2020, regulated price plan customers will have the option to switch to "tiered pricing" instead of time-of-use (TOU) pricing structures. Those who switch to "tiered pricing" will see changes in their electricity bills.

The Ontario Energy Board (OEB) has now issued final amendments to the Standard Supply Service Code to support the customer election process necessary to switch from TOU pricing to tiered pricing. The main change from what was already published in previous OEB notices is that landlords will be permitted to make a "blanket election" between TOU pricing and tiered pricing that will apply each time a tenant's account reverts back to the landlord on turnover of the rental unit. In its most recent notice, the OEB acknowledges that implementing the new customer billing option as of Nov. 1 (less than two months from now) will be challenging and directs Local Distribution Companies (LDCs) who cannot meet this date to be immediately in touch with the OEB. Finally, the OEB indicates that there will be a dedicated "customer choice webpage for consumers, including a bill calculator" in place by early October.

Second, as of January 1, 2021 low-volume consumers will see additional messaging on their bills to inform them of available rate mitigation programs.

A recent proposal posted on Ontario's Regulatory Registry indicates that the Ministry of Energy, Northern Development and Mines (ENDM) proposes that LDCs and Utility Sub-Meter Providers will be required to include a new on-bill message for low-volume consumers that "will direct customers to ENDM's new web page for further information about how the province provides financial support to electricity consumers." This new requirement is planned to be in place as of January 1, 2021. In conjunction with this requirement, the ENDM plans to launch a new web page that will provide "up-to-date information about electricity bills," including information about rate mitigation programs available to consumers. Parties are invited to submit comments on the ENDM proposal by October 5, 2020.

 

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Court reinstates constitutional challenge to Ontario's hefty ‘global adjustment’ electricity charge

Ontario Global Adjustment Charge faces constitutional scrutiny as a regulatory charge vs tax; Court of Appeal revives case over electricity pricing, feed-in tariff contracts, IESO policy, and hydro rate impacts on consumers and industry.

 

Key Points

A provincial electricity fee funding generator contracts, now central to a court fight over tax versus regulatory charge.

✅ Funds gap between market price and contracted generator rates

✅ At issue: regulatory charge vs tax under constitutional law

✅ Linked to feed-in tariff, IESO policy, and hydro rate hikes

 

Ontario’s court of appeal has decided that a constitutional challenge of a steep provincial electricity charge should get its day in court, overturning a lower-court judgment that had dismissed the legal bid.

Hamilton, Ont.-based National Steel Car Ltd. launched the challenge in 2017, saying Ontario’s so-called global adjustment charge was unconstitutional because it is a tax — not a valid regulatory charge — that was not passed by the legislature.

The global adjustment funds the difference between the province’s hourly electricity price and the price guaranteed under contracts to power generators. It is “the component that covers the cost of building new electricity infrastructure in the province, maintaining existing resources, as well as providing conservation and demand management programs,” the province’s Independent Electricity System Operator says.

However, the global adjustment now makes up most of the commodity portion of a household electricity bill, and its costs have ballooned, as regulators elsewhere consider a proposed 14% rate hike in Nova Scotia.

Ontario’s auditor general said in 2015 that global adjustment fees had increased from $650 million in 2006 to more than $7 billion in 2014. She added that consumers would pay $133 billion in global adjustment fees from 2015 to 2032, after having already paid $37 billion from 2006 to 2014.

National Steel Car, which manufactures steel rail cars and faces high electricity rates that hurt Ontario factories, said its global adjustment costs went from $207,260 in 2008 to almost $3.4 million in 2016, according to an Ontario Court of Appeal decision released on Wednesday.

The company claimed the global adjustment was a tax because one of its components funds electricity procurement contracts under a “feed-in tariff” program, or FIT, which National Steel Car called “the main culprit behind the dramatic price increases for electricity,” the decision said.

Ontario’s auditor general said the FIT program “paid excessive prices to renewable energy generators.” The program has been ended, but contracts awarded under it remain in place.


National Steel Car claimed the FIT program “was actually designed to accomplish social goals unrelated to the generation of electricity,” such as helping rural and indigenous communities, and was therefore a tax trying to help with policy goals.

“The appellant submits that the Policy Goals can be achieved by Ontario in several ways, just not through the electricity pricing formula,” the decision said.

National Steel Car also argued the global adjustment violated a provincial law that requires the government to hold a referendum for new taxes.

“The appellant’s principal claim is that the Global Adjustment was a ‘colourable attempt to disguise a tax as a regulatory charge with the purpose of funding the costs of the Policy Goals,’” the decision said. “The appellant pressed this argument before the motion judge and before this court. The motion judge did not directly or adequately address it.”

The Ontario government applied to have the challenge thrown out for having “no reasonable cause of action,” and a Superior Court judge did so in 2018, saying the global adjustment is not a tax.

National Steel Car appealed the decision, and the decision published Wednesday allowed the appeal, set aside the lower-court judgment, and will send the case back to Superior Court, where it could get a full hearing.

“The appellant’s claim is sufficiently plausible on the evidentiary record it put forward that the applications should not have been dismissed on a pleadings motion before the development of a full record,” wrote Justice Peter D. Lauwers. “It is not plain, obvious and beyond doubt that the Global Adjustment, and particularly the challenged component, is properly characterized as a valid regulatory charge and not as an impermissible tax.”

Jerome Morse of Morse Shannon LLP, one of National Steel Car’s lawyers, said the Ontario government would now have 60 days to decide whether to seek permission to appeal to the Supreme Court of Canada.

“What the court has basically said is, ‘this is a plausible argument, here are the reasons why it’s plausible, there was no answer to this,’” Morse told the Financial Post.

Ontario and the IESO had supported the lower-court decision, but there has been a change in government since the challenge was first launched, with Progressive Conservative Premier Doug Ford replacing the Liberals and Kathleen Wynne in power. The Liberals had launched a plan aimed at addressing hydro costs before losing in a 2018 election, the main thrust of which had been to refinance global adjustment costs.

Wednesday’s decision states that “Ontario’s counsel advised the court that the current Ontario government ‘does not agree with the former government’s electricity procurement policy (since-repealed).’

“The government’s view is that: ‘The solution does not lie with the courts, but instead in the political arena with political actors,’” it adds.

A spokesperson for Ontario Energy Minister Greg Rickford said in an email that they are reviewing the decision but “as this matter is in the appeal period, it would be inappropriate to comment.” 

Ontario had also requested to stay the matter so a regulator, the Ontario Energy Board, could weigh in, while the Nova Scotia regulator approved a 14% hike in a separate case.

“However, Ontario only sought this relief from the motion judge in the alternative, and given the motion judge’s ultimate decision, she did not rule on the stay,” Thursday’s decision said. “It would be premature for this court to rule on the issue, although it seems incongruous for Ontario to argue that the Superior Court is the convenient forum in which to seek to dismiss the applications as meritless, but that it is not the convenient forum for assessing the merits of the applications.”

National Steel Car’s challenge bears a resemblance to the constitutional challenges launched by Ontario and other provinces over the federal government’s carbon tax, but Justice Lauwers wrote “that the federal legislative scheme under consideration in those cases is distinctly different from the legislation at issue in this appeal.”

“Nothing in those decisions impacts this appeal,” the judge added.
 

 

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