Thank you for the…

Thank you for the opportunity to provide feedback on Bill 4, Cap and Trade Cancellation Act, 2018 and the Government of Ontario’s broader objectives to deliver a climate change plan.

Hydro One Inc. (“Hydro One”) is Ontario’s largest electricity transmission and distribution provider with more than 1.3 million valued customers, $25.7 billion in assets, and annual revenues of approximately $6 billion. Our team of about 7,300 skilled and dedicated employees proudly and safely serves suburban, rural and remote communities across Ontario through our approximately 30,000 circuit km high-voltage transmission and 123,000 circuit km primary distribution networks. Our transmission business also connects key supply and demand centres with our neighbouring provinces, Manitoba and Quebec, as well as 11 international power lines linking to Michigan, New York and Minnesota.

Hydro One supports the government’s efforts to develop a climate change plan including a balanced approach for building a resilient Ontario, protecting communities, and conserving resources. Energy conservation and efficient use play an important part in this. Hydro One helps customers reduce their monthly bills through electricity conservation programs on behalf of the IESO. In 2017, Hydro One delivered a range of energy conservation and demand management programs to our customers, which achieved a total of 404 GWh in energy savings for Ontario.

Ontario’s climate change plan must take into account the impacts for critical energy infrastructure and Ontario’s economy. As Ontario’s leading electricity transmission company, Hydro One’s high voltage electricity transmission system accounts for 98 percent of the province’s electricity transmission capacity based on revenues approved by the OEB. This system helps deliver safe and reliable power for communities, small businesses and large employers across Ontario. However, these assets are aging and require continued investment in order to ensure reliability and to maintain service. Extreme weather events create additional risk for costly service interruptions. To illustrate, the failure of a transmission station in Ottawa or Toronto can leave tens of thousands of customers and businesses without power for days.

The Plan must also consider impacts on industry competitiveness. Regulations that govern monitoring, reporting and evaluation of environmental outcomes must be streamlined and effective for small businesses and large employers. Moving forward, it will be critical for the Government of Ontario to continue consultation with energy sector leaders to ensure that industry has the certainty needed to make long-term capital investments in the province.

Hydro One remains committed to helping the Government of Ontario achieve these important objectives. As you prepare next steps this fall, including stakeholder engagements, we would be pleased to help convene subject matter experts and to help inform targeted recommendations.