Ministry of Energy Announcement

Toronto, Ontario - Friday, February 03, 2006

Ensuring a Diverse, Clean, Reliable and Afforable Supply of Electricity

The public consultations being held across Ontario by the Ministry of Energy are an important step in putting into effect an energy plan that ensures Ontarians have a safe, clean, reliable and affordable supply of electricity for generations to come.

In December 2005, the Ontario Power Authority tabled a report with the government that recommended key considerations in setting the province’s future electricity supply mix. The public consultations provide an opportunity for Ontarians to share their views and will help the Ontario Power Authority determine the supply mix the province will strive to achieve.

Over the past two years, the Ontario government has been strengthening Ontario’s electricity system with a focus on long-term stability, reliability and sustainability. The government’s comprehensive energy plan focuses on supply and conservation measures with a clear aim of ensuring the province develops a diverse, clean, reliable and affordable supply of electricity.

Key Elements of Ontario’s Energy Plan

Strengthening System Planning

Ontario’s energy plan addresses the long-term needs of the province by establishing an overarching supply management system that brings together key partners to provide reliable electricity supplies for the people and businesses of Ontario.
Securing Ontario’s Electricity Supply

With a sound infrastructure in place, the government is focusing on securing the province’s energy supply. Over the course of 2004 and 2005, the government advanced projects that will provide the province with over 10,000 megawatts over the next five years – enough power for 4.1 million homes. Since October 2003, approximately 2,800 megawatts have come online. Between 2004 and 2007, Ontario will have created more new generation capacity than any other jurisdiction in North America.

Diversifying Supply for Stable, Competitive Prices

Diversity of supply is key to ensuring prices remain stable and competitive as the government works to maximize Ontario’s current electricity supply assets and as it builds new generation.

In addition to procuring new capacity, the province is also maximizing Ontario’s existing electricity assets by:

Investing almost $1 billion in a new tunnel from Niagara Falls to the Adam Beck generating complex that will add 1.6 billion kilowatt hours of clean electricity by 2009
Reaching an agreement with Bruce Power to restart Bruce A, units 1 and 2. That agreement will see Bruce Power invest $4.25 billion in Ontario’s economy and the creation of as many as 1,500
jobs
Taking a leadership role in developing an east-west electricity transmission grid. This will reinforce and expand our transmission infrastructure and increase Ontario’s ability to supply our energy
needs through clean hydro power
Signing an agreement with Manitoba to purchase 200 megawatts of electricity. It also includes a commitment to upgrade the existing transmission lines to 400 megawatts by 2009. A second phase
would see hydroelectric sites being developed starting early next decade in northern Manitoba, including the 1,250 megawatt Conawapa hydro development
Working with Quebec to develop a major hydroelectric generation project at the Lower Churchill River in Labrador, from which 945 megawatts would come to Ontario.

Focusing on Clean Renewable Energy and Encouraging Investment

The province is also encouraging homeowners, farmers and schools to set up renewable energy systems by letting them sell clean power into the grid. The government is reviewing an approach megawatts of renewable power to the system.
Part of the government’s commitment to new, clean energy is its plan to replace coal-fired generation — the single-largest greenhouse gas reduction initiative in Canada. Coal closure will reduce Ontario’s emissions by up to 30 megatonnes of CO2 a year — comparable to taking almost seven million cars off the road. Ontario is the first jurisdiction in North America to commit to phasing out all coal-fired generation.

Building a Culture of Conservation

The government is making it possible for local distribution companies to invest over $160 million in conservation in their local communities over the next three years, and has invested in a diverse portfolio of conservation outreach pilots in social housing, agriculture, schools, home construction and small business. Recent initiatives include:

Introducing the Energy Conservation Responsibility Act
The government introduced the Energy Conservation Responsibility Act in November 2005. The legislation would establish conservation leadership in the public sector, encourage conservation practices and support the building of a conservation culture in Ontario. The proposed legislation would also help achieve the government’s commitment to install 800,000 smart meters in Ontario by 2007 and for all homes and small businesses by 2010

Issuing Program Directives to the Ontario Power Authority
A number of energy conservation directives have been issued, including procurement of 250 megawatts or more of demand side management and/or demand response initiatives, and procurement of up to 1,000 megawatts of high efficiency combined heat and power projects across the province. Directives have also been issued for conservation programs of up to 200 megawatts for the low-income and social housing sector, as well as programs to take energy-inefficient appliances out of service and to encourage energy-efficient lighting primarily in the residential and small commercial sectors.

Ontario is pursuing two short-term conservation targets: a five per cent reduction in the growth of peak electricity demand across Ontario, and a 10 per cent reduction in consumption by government operations by 2007. We are already more than half way there through innovations like Deep Lake Water Cooling, energy retrofits across the government’s real estate portfolio and engaging the Ontario public service in energy conservation initiatives. The government is expanding renewable generation and is well on its way to meeting its target of adding five per cent (1,350 megawatts) of renewable generating capacity by 2007. To date, the province has entered into agreements to purchase power from 19 renewable energy projects, including three waterpower projects, three landfill gas and biogas projects and 13 wind farms – enough to power 350,000 homes. The new projects are expected to bring almost $3.5 billion in new investment and jobs to Ontario. As the province moves forward, it is creating a new industry. In November 2005, for example, DMI Industries of North Dakota announced that it will locate its new wind tower manufacturing facility in Fort Erie, creating both local investment and local jobs.