Capital Power is pleased to…

Capital Power is pleased to provide for consideration by the Ministry of Environment, Conservation and Parks (“MECP”) the following submission providing Capital Power’s perspectives regarding amendments to transition Ontario industrial facilities from the federal Output-Based Pricing System (“OBPS”) to Ontario’s Emissions Performance Standards program (“EPS”).
Capital Power supports the Government of Ontario (“Government”) and MECP efforts to transition Ontario industrial facilities from the OBPS to Ontario’s EPS. Regarding the electricity benchmark, Capital Power believes the current EPS electricity benchmark of 0.42 tonnes of carbon dioxide equivalent per megawatt-hour (“tCO2e/MWh”) is appropriate for Ontario’s electricity market and balances environmental objectives with ratepayer considerations. Capital Power believes that the EPS should be revenue neutral, and that proceeds should be returned to industry to invest in GHG emission reduction projects that meet specific criteria developed by the Government and via a proposed framework discussed below. In addition, the Government should allow offsets as a compliance option under the EPS.

Capital Power recommends that GHG emissions from imported electricity should be subject to the same GHG charges that Ontario generators are subject to. Charing GHG emissions from imported electricity will ensure a level playing field and also avoid carbon leakage and resource shuffling that might otherwise arise.