GREY-BRUCE LABOUR COUNCIL …

GREY-BRUCE LABOUR COUNCIL

Representing the Needs of Working People Since 1956

Celebrating 60 Years of Building Communities

GREY BRUCE LABOUR COUNCIL

SUBMISSION TO

THE LONG-TERM ENERGY PLAN REVIEW

DECEMBER, 2016

WHO WE ARE

Originally chartered as the Owen Sound and District Labour Council, the Grey Bruce Labour Council (GBLC) was chartered to the Canadian Labour Congress in 1956. A labour council is an association of labour unions, lodges, associations, federations, or union branches in any given area. Most commonly, they represent unions in a geographical area. This can be at the district, city, or regional level. A list of the member Unions, the purpose, and objectives of the Grey Bruce Labour Council are included in this submission.

Several of our member unions represent members in electrical utilities. The following comments on Ontario’s Long-Term Energy Plan are based on the knowledge, expertise and experience of our membership in the energy sector.

The GBLC participated in the Guelph session (and kept abreast of other sessions) along with representatives from our member unions.

The format was good with many views being expressed on the topics with some agreement expressed on several issues.

An observation at the Guelph session is that the system does have one flaw. On the wrap up the facilitators only reported on issues that lined up with the LTEP discussion document. Issues where the group did not agree or suggested improvements were not reported.

OVERVIEW

Consumers expect to have reliable and affordable electricity. They also expect that it will be produced and delivered to them in accordance with all applicable environmental regulations and be readily available to them today, tomorrow and in the future.

The GBLC believes that striking the right balance amongst a range of electricity supply sources can fulfill these expectations. This means decision-makers must be realistic about the trade-offs amongst the various supply opportunities.  Each supply option must be considered based on its environmental impacts, cost, and contribution to meeting identified electricity system needs (baseload, intermediate and peak demands), job creation[, other economic benefits, safety, and the willingness of the community to host the facility that is sited or being sited.

Ontario’s challenge is finding the best way to add / exploit new generation technology while building on its existing low carbon base of nuclear and hydro-electric generation to ensure a clean, affordable and secure energy supply for the long-term.  The GBLC submits that nuclear energy must continue to play its current role in Ontario’s supply mix—providing over fifty percent of the province’s electricity now and into the future.  The environmental and economic benefits are too compelling to do otherwise.

CURRENT STATE OF ONTARIO’S ELECTRICITY SYSTEM

Historically, Ontario’s supply mix has benefitted environmentally and economically from the province’s hydroelectric and nuclear generation. Together these supply sources have delivered low-cost, low-carbon, reliable and safe electricity that has helped to make Ontario the industrial heartland of Canada.

Ontario’s closure of its demand-following coal generating stations and transition to wind, solar and backup natural gas generation has resulted in a number of conspicuous impacts.

Gas Emissions: With over seventy percent of the province’s electricity supply coming from hydroelectric and nuclear generation, Ontario has one of the lowest carbon electricity system footprints in the world.  CANDU reactors provide over 50 percent of this electricity.

Each year CANDU reactors help avoid about 90 million tonnes of greenhouse gas (GHG) emissions. This is about the same amount as taking 81 percent of Canada’s cars off the road.

The closure of Ontario’s coal stations was positioned as diminishing the carbon footprint even further.  Even with the closure of coal stations, the province’s increased reliance on natural gas generation has compromised its ability to achieve Ontario’s GHG targets. More than seventy percent of the time wind and solar generation are idle, and not producing and the shortfall in achieving GHG emission targets can be attributed to the role natural gas generation plays backing up wind and solar. Building more wind and solar generation will require more natural gas generation, which will result in more GHG emissions.

Electricity Prices: Looking at a variety of analyses, including one from Ontario’s Independent Electricity System Operator (IESO), Ontario’s electricity prices are on a trajectory to continue to increase. Residential, commercial and industrial consumers have reacted negatively to these rising prices. High electricity prices are not conducive to sustaining existing jobs or creating new ones. In the experience of the GBLC, rising electricity prices have put low income citizens at risk of having to choose between paying electricity bills and buying food.

Energy Security: Exploiting existing low carbon nuclear and hydro-electric sources in Ontario provides security of supply. The exploitation of these sources must be undertaken before any further dependence on wind and solar is undertaken. Ensuring that existing sources of nuclear and hydro-electric are exploited also limits further dependence on natural gas. Natural gas supplies are not entirely in the control of the province and as a result are exposed to security of supply issues.

This full exploitation equates to refurbishment of all Darlington and Bruce Nuclear units, operation of the Pickering Nuclear units for as long as possible and refurbishment along with new hydro-electric units.

Reliability: The renewal of Ontario’s electricity system is intended to replace ageing equipment and assets and to take advantage of new technologies that will modernize the system at the same time.  Adding new intermittent wind and solar generation, embedded generation and micro-grids and providing consumers with smart meters have precipitated the need for more “smart” control technologies to maintain reliability. Besides  adding undefined costs to the investments required to renew Ontario’s electricity system, new operating rules and regulations have had to be developed.  All of this makes it more challenging and expensive to maintain the future reliability of Ontario’s electricity system.

Economic Growth: Real economic growth and investment will be generated by the complete refurbishment of all units at Darlington and Bruce Nuclear Generating Stations. There is also a significant economic stimulus and GHG reduction advantage by keeping the Pickering Nuclear Generating Station operational until 2024.  The extent of the growth and investment is of[ significant benefit to Ontario. As per the Conference Board of Canada, the economic activity from refurbishing the Darlington Station will generate, on average, more than 11,000 jobs per year between 2014 and 2023. Ontario workers and businesses are expected to receive 96 percent of the economic benefits. With major component replacement, already underway at the Bruce generating stations and the refurbishment of the Bruce units set to begin in 2020 similar job creation and investment is expected.

For more than a century, Ontario has focused on developing a secure electricity supply as the foundation of its economy. Nuclear energy has, and will continue to be a major provider of reliable, low-carbon, low-cost electricity for decades to come. Recent job creation numbers for Ontario suggest the province is doing well creating new employment however most of these new jobs are part-time. Ontario continues to face a difficult challenge in replacing the over 200,000 high value manufacturing jobs that disappeared during the last decade. Continuing to rely on low-cost, low-carbon baseload nuclear energy is Ontario’s best option for all the foregoing and to create sustainable full time employment.

Pursuing firm imports from Quebec to displace low-carbon nuclear or to supplement our province’s variable, expensive wind energy doesn’t make environmental or economic sense. A key study finding, indicated that the required intertie investments would be economically undermined by the lack of winter generation capacity in Quebec and the forecasted future generation shortages in both provinces. Required transmission upgrades are estimated to cost up to $150 million per year, which is 50 percent higher than the cost of the single cycle gas turbine alternative previously identified and recommended by Ontario’s Independent Electricity System Operator (IESO).  The IESO’s earlier analyses also concluded the firm import option was too expensive

Public Acceptance: Ontario’s nuclear stations are situated in supportive communities.  Ontario Power Generation (OPG) and Bruce Power have invested significant time and resources to establish solid relationships with the communities.  Local support is evident for the refurbishment of the reactors at the Bruce and OPG. The GBLC is a longtime supporter of Bruce Power and since 2001 has appeared as a positive intervener in front of the Canadian Nuclear Safety Commission (CNSC) numerous times.

Local support for Bruce Power and Nuclear Power is demonstrated by the significant uptake by the public of the petition showing this local support. This petition is supported by the GBLC, the Canadian Nuclear Workers’ Council, the Power Workers’ Union, the Society of Energy Professionals, Young Generation Nuclear, Women in Nuclear, Bruce Power and the Bruce Power Pensioners Association and with numbers rising it has already been signed by close to 6,000 people.

OPG enjoys solid community support for refurbishment of all reactors at the Darlington site. By comparison, public opposition to new wind power developments has been evident across rural Ontario. It appears that the coal fired Nanticoke and Lambton Generating Stations will be decommissioned. Despite community support for the Nanticoke and Lambton generating stations to be converted to renewable, carbon neutral biomass and natural gas, it appears these stations will be decommissioned. The reliability of these units would exceed that of intermittent wind and solar and would contribute less in GHG as the biofuel would be the primary fuel source.

The GBLC submits that investments in the renewal and expansion of Ontario’s nuclear generating capacity must remain the first priority of the province’s Long-Term Energy Plan.  These investments are the best way to lower greenhouse gas emissions, provide stable electricity, and long-term energy security, job creation and economic prosperity.

Cost: Refurbishing all of Ontario’s remaining reactors will help replace the 3,200 megawatts of GHG emission-free electricity that will be lost with the closure of the Pickering Nuclear Generating Station in 2024.

Ensuring Ontario continues to have reliable low-carbon supply nuclear generation positions our province to benefit in other ways.Transportation is Ontario’s biggest source of GHG emissions.  The base load GHG emission-free electricity provided by CANDU reactors aligns well with the overnight off-peak charging of electric vehicles. Ontario’s CANDU reactors could also play a role backstopping hydroelectric generation in other provinces as well as helping our fossil-fuel dependent neighbors in the United States.

Economic Benefits: The economic benefits of refurbishing all of Ontario’s nuclear reactors in addition to building two new CANDU reactors are equally clear.

Analyses show that these investments would be advantageous for Ontario’s economy as this province hosts the majority of Canada’s $6 billion-a-year industry and its 160 supply chain companies and 60,000 direct and indirect jobs.  Additional benefits would flow to Ontario’s colleges and universities that are involved in nuclear research, development and training and student enrollment in nuclear related disciplines.

The Strapolec analysis indicates that refurbishing Ontario’s reactors along with the construction of two new nuclear reactors at Darlington is estimated to provide a $60 billion dollar net incremental benefit to Ontario’s economy compared to building more wind generation.  The impact of carbon pricing was not included in the study, such pricing would be expected to further favor nuclear generation.

This $60 billion net incremental benefit includes $27 billion in savings to ratepayers and $29 billion in direct investment in Ontario, including the creation of 100,000 more person years of employment in high-value jobs many of which would be in the advanced manufacturing sector.

Other Aspects of the LTEP

The GBLC further submits that Ontario’s Long-Term Energy Plan should focus on investments that: • Maximize the value of Ontario’s existing generation, transmission and distribution assets; • Spur manufacturing and expedite economic recovery and growth;

• Ensure sound planning that is based on rigorous analyses that accounts for the costs of GHG emissions, prices carbon  and provides for comprehensive, transparent public consultation.

• Renew and modernize the transmission and distribution network including  smart grid technology deployment that facilities electric vehicles and electric powered public transit systems.

• Provide assistance with plans to make the local Canada Post offices community locations for charging of electric vehicles

- Add renewable, carbon-neutral biomass as an energy resource by converting Ontario’s Nanticoke and Lambton coal fueled generating stations to use biomass, along with natural gas;

• Develop Ontario’s remaining cost-effective hydroelectric potential sites;

• Deliver conservation programs that are based on realistic targets, cost benefit-analyses; and, • Ensure Ontario has the skilled workforce it will need to operate and maintain its electricity system in the future.

•Furthermore, the GBLC calls for a moratorium on any additional wind and solar generation development until cost/benefit analyses are completed that include;

·        the full costs (including backup generation);

·        impact on system reliability;

·        GHG emissions; realistic job creation numbers; and

·        realistic economic-spin off impacts

·        fuel conversion of Nanticoke and Lambton generating stations before any further expansion of the natural gas generation fleet

-the environmental impacts of decommissioning solar and wind farms due to premature aging of components

- excess capacity issues are addressed while continuing to fully exploit Ontario’s nuclear and hydro-electric generations sources.

GBLC Conclusions and Recommendations

We suggest that a diverse mix of generation is required but the LTEP discussion document must revisit the proposed mix.

The GBLC strongly suggest that a Labour Union advisory committee be established to advise the Minister of Energy on the LTEP for Ontario.

The GBLC recommends the following:

•The amount of Wind and Solar produced electricity should be capped.

•Pump storage hydro-electric stations be seriously considered.

•The refurbishments of Darlington proceed as planned.

•The refurbishment of the Bruce Power Units proceed as planned.

•The life extension of Pickering NPP be approved.

•A new build NPP be approved for the Darlington Site.

•Bio energy be expanded for power peaking

•Existing coal power plants be considered for gas conversion.

The GBLC is prepared to answer any questions or concerns you may have with our submission.

List of GBLC Union Affiliates:

Power Workers’ Union, CUPE 1000

Society of Energy Professionals (SEP)

Ontario Secondary School Teachers Federation (OSSTF)

Ontario English Catholic Teachers Association (OECTA)

Unifor

Ontario Public Service Employees Union (OPSEU)

International Brotherhood of Electrical Workers (IBEW)

Elementary Teachers Federation of Ontario (ETFO)

National Farmers Union (NFU)

Service Employees International Union (SEIU)

Canadian Union of Public Employees (CUPE)

Ontario Nurses Association (ONA)

International Woodworkers Association (IWA)

International Association of Machinists and Aerospace Workers (IAMAW)

Canadian Union of Postal Workers (CUPW)

Canadian Union of Skilled Workers (CUSW)

List of Associated Organizations:

Chartered to the Canadian Labour Congress

Member of the Ontario Federation of Labour Executive Council

On the board of the Four County Planning Board

On the board of the Bruce Grey United Way

Purpose and Objective of a Labour Council;

The Grey Bruce Labour Council (GBLC) represents thousands of unionized workers across Bruce and Grey Counties. Operating under the umbrella of the Canadian Labour Congress, the GBLC promotes social justice, human rights, fair labour laws, safe workplaces, and is an advocate for issues affecting all workers across Bruce and Grey.

Submitted on Behalf of the Grey Bruce Labour Council

Please contact  VP GBLC for inquiries about this submission

[Original Comment ID: 206552]