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Political Issues in the Ontario Power Sector an In-Depth Discussion on How Politics Operates

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Political Issues in the Ontario Power Sector an In-Depth Discussion on How Politics Operates Special Feature: Excerpt from the APPrO 2012, the 24th Canadian Power Conference IPPSO FACTO Political issues in the Ontario power sector An in-depth discussion on how politics operates Sean Conway Rob Silver Will Stewart Reiterating parts of what was said by the most unclear of any period.” dation and private/public ownership, Energy Minister Chris Bentley the Silver then posed a set of coun- where are we heading? night before, Moderator Sean Con- ter-questions which highlight major • Consolidating central agencies? way from Queens University, opened issues: Would this make sense in 2014, 2018? the session with a question to Rob • Are we pro- or anti-nuclear and Ever? Silver: what’s the future? • Natural Gas: Were Oakville and Where are we in the here-and-now, • Green Energy Act: Huge mistake or Mississauga unfortunate slip-ups or is in terms of the politics of the Ontario inspired visionary policy? there something amiss with the gas fa- Energy file? • Should the risk for new generation cilities that could pose future concerns be borne by the private sector or by for province? Rob Silver, Crestview Strategy: “Let public crown corporations? It’s unclear what any of the major me say something somewhat provoca- • Transmission: Should it be public political figures will say about any of tive. Every year at APPrO we talk about or private? that in the coming months, Silver said. uncertainty and unpredictability in the • Private sector competition for east- The political uncertainty in the prov- Ontario energy sector, and since I have west connection: Good thing or not? ince is casting a large shadow over the been paying attention to the Ontario • Should the province sell any major future of energy policy and, there- energy sector, the period we’re in right Hydro One assets? fore, it is difficult to forecast where now, is bar-none the most uncertain, • Distribution: In terms of consoli- we might be by the time APPrO 2013 Excerpt from APPrO 2012, Canadian Power Conference Proceedings: Navigating Turbulent Waters — Page 1 comes around. options on the table. The parties are housing around the proposed site, but Will Stewart, Navigator Limited starting to crystallize their positions there hasn’t been a new house built agreed about the uncertainty, adding on centralization, privatization, or around there in 35 years. It was little that after two years into the McGuinty reorganization, approaches which are more than a “seat-saver program” for government we don’t know where generally associated with the NDP, the Kevin Flynn, Stewart believes. McGuinty’s policies actually stand. Conservatives and the Liberals, respec- With the proliferation of social “This is a time for strong, bold state- tively. media and campaigns-in-a-box, you ments for setting policy direction and To convince government to leave can find campaigns ready-made to stop then letting it go,” he said. the sector alone to do its job, Macaluso new generation plants. The energy Until we shut down the “directive suggested, we have to give them a rea- sector needs to do a better job at run- machine” in the Minister’s office that son to stay out. That reason is price. ning its own grassroots campaigns. continually fires off pieces of paper to All the plans—whether centralization, Sean Conway mentioned that his the OPA and OEB, we will never get privatization or reorganization— are old electoral district had 7 or 8 big hy- politics out of the Energy Sector, he focused on getting price to where it is dro dams, none of which could be built suggested. Politics will stay in energy affordable, competitive and reliable. today because the public opposition until the people in the energy sector Once we can accomplish that, we can would be too high. Accepting that we can manage the politics of the sector have more freedom and independence don’t live in an ideal world, he asked: themselves, without the politicians from whoever forms government, and “How do we do a better job of trying to feeling the need to get involved. we’ve got probably 20 weeks before we site this infrastructure in communities Mr. Conway asked Dave Butters find out who that is. when the ability today to stop things where we stand, as of November of The distribution sector has pro- seems to be greater than the ability to 2012, and what kind of advice he posed a number of plans that would complete things?” would give someone thinking about collectively save half a billion dollars a Will Stewart: The short answer entering the Ontario energy space. year on the electricity bill, which would is “I don’t know.” The government APPrO’s Dave Butters responded leave a lot of room for some of the tried to expedite the development of saying, “I think we are in a transitional things we do need to do, he said. wind turbines by limiting community period though I’m not quite sure what Some of the things that have been involvement, and that hasn’t worked we’re transitioning to. It’s not clear accomplished: either. The electoral map of Ontario what will happen after the Liberal • A cultural shift in favour of energy shows all the blue outside the cities party selects a new premier and a new conservation and all the red inside. For one thing, cabinet.” We have a reasonably clear • Short term supply has been bolstered just don’t site power plants beside idea of the conservatives’ energy policy (though long-term is still uncertain) homes and schools. from Tim Hudak. • The air is cleaner. Rob Silver: You can blame the He noted however that, behind all The area in which Mr. Macaluso proponents for what happened in the political rhetoric, we have actually would like to see more government Oakville; they should have done a bet- accomplished a lot: the lights are on, leadership is in infrastructure renewal. ter job consulting the community and we can afford to send Hydro One crews Our sector is aging across all parts, getting people onside. You can blame down to help our American cousins. particularly in the distribution sector, the design of the OPA’s process – there We have new gas plants, and new he stressed. We need to cultivate an should have been more points awarded wind farms. We have done what the environment that’s more conducive to for local support. Third are the people government has asked us to do, and investment in infrastructure renewal of Oakville themselves, who demand we’ve taken a lot of that risk and put it and we will see who provides that lead- the reliability but won’t put up with on the private sector. We are kind of ership. the facility, and had the political clout. plateauing on the system and we won’t And fourth, we can blame crass politi- have a lot of new build in the immedi- How to better manage siting of gen- cal decisions. I think the reality is this ate future. However, at the same time, eration in the future issue is a combination of all of those we have a lot of political turmoil that is Sean Conway asked what went things. clouding decisions - and that is a chal- wrong with the siting of the south- Sean Conway: What can you lenge. west GTA generation plants, and how suggest to help produce a better result Charlie Macaluso, Electricity should a new government deal with for next time based on this unhappy Distributors Association agreed that that kind of problem? experience? there have been quite a few accom- Will Stewart said you can keep Rob Silver: No two projects are plishments in the last 4 or 5 years. the politics out of it by recognizing the same. We have communities near Whether under Liberals, Conserva- warning signs. Press releases about Darlington and Bruce who are begging tives, or the NDP, there are always the Oakville plant mentioned new for new nuclear plants. It’s a pretty Page 2 — Excerpt from APPrO 2012, Canadian Power Conference Proceedings: Navigating Turbulent Waters understand the opportunities that plant or that windmill presents for the community; let them understand what it does not present; and let them know the options. Sean Conway: If that community is Rosedale, Oakville, Caledon, Rock- cliffe Park, what do we do? Macaluso: Same answer. Sean Conway: Government policy seems to be “if it’s rural Ontario you take it, and like it or lump it.” If Oakville, Mississauga sneeze, the world stops. There’s clearly a double standard. So what do we do about equity and fairness? Dave Butters: Others have been successful siting plants – Halton Hills, York Energy Centre, and Sithe-Gore- way. For every wind project that is Dave Butters Charlie Macaluso controversial there are three that are unique situation where siting a new built and in operation. So it’s not that have understood. If you’re a munici- nuclear plant is easier than gas. You we don’t know how to do it. We get pality and you have growth, you have 3 might have a new transmission line, bogged down when it looks as though choices to manage this growth within and no local opposition because it’s a decision isn’t really based on rational your area: on an existing corridor. Each project balancing of factors like siting or loca- • Expand your own capacity, wastewa- is unique and it is hard to give a single tion, and appears to have other drivers ter plant answer that will apply in all situations. such as short term political gain.
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