Toronto: Ontario PC Leader Tim Hudak reiterated his promises to move forward with new nuclear power projects and close the FIT program if the Conservative party is elected in Ontario. Speaking to APPrO’s Canadian Power Conference on November 7 in Toronto, Mr. Hudak stressed his view that a more business-oriented approach is necessary to guide policy making in the energy sector. The current Liberal government has sometimes treated energy policy as a kind of social program, he said, and that needs to be changed.
Mr. Hudak drew attention to a discussion paper released by the PC Party in which it has laid out 13 different ideas to make energy an economic fundamental in the province, "not a plaything for social engineers." Reliable and affordable energy provided through the marketplace, free from political interference, is fundamental to a strong, healthy and thriving economy in Ontario, he said. The proposals in the paper are bound together by a single belief: that electricity must be treated as a cornerstone of private-sector job creation and economic growth.
Of the party's thirteen proposals, Mr. Hudak focused on three:
• A smaller, focused, and more limited role for government.
• Winding down The Green Energy Act and why this is essential to kick-starting job-creating growth again.
• Creating a reliable long-term plan for energy supply in Ontario.
First, he said, it’s not the role of the government to micro-manage the day-to-day technical decisions in any sector of the economy. He noted the cancellations of two power plants in the Southwestern GTA, decisions made not by energy professionals but by campaign staffers and political aides, examples of "a barrage of ministerial directives and interference on everything from the most minute rules to what rates they should apply for." Such practices send a chilling signal to investors and holds the economy back from growing, he said. Government's role is to promote transparency, set the rules of the game and then get out of the way. The PC Party proposes increased reliance on private capital rather than more public borrowing.
The PC Party has suggested opening both Hydro One and Ontario Power Generation to private investment. The first step would be to negotiate a partial sale to Ontario’s major pension funds. The goal is to create more efficient companies that are not solely reliant on public money and who are held to the same high standards flourishing private companies abide by daily. It would also remove the temptation to micromanage day-to-day decisions as the owner and operator of the province's largest power plants, the entire transmission system and the biggest distributor.
On the second point, winding down the FIT, Mr. Hudak acknowledged that renewable energy is a desirable part of a balanced supply mix. However, the problem is that Ontario is awash with wind and solar power at a time when demand is declining. This has created a substantial and expensive surplus, which we sell at a loss to Quebec and US states. The Feed-in Tariff program hasn’t led to a green manufacturing renaissance or 50,000 good jobs. If elected, the PCs would immediately halt all new FIT projects still in the approval queue, while retaining all existing projects that are connected to the grid. The party would also restore local-decision making powers over the siting of new industrial wind and solar farms – powers that were removed under the Green Energy Act.
As to the large number of commitments the FIT program has made for projects that are not yet connected, he said, "We’re conservatives, we respect contracts, and we’re going to be fair and pragmatic." Under a PC government, any proposed industrial wind or solar contracts not yet producing power would be subject to a cost-benefit test, including the all-in cost of producing the power, transmission constraints, and excess capacity issues. His government would also work with municipalities to see if projects can be adjusted to reflect local community preferences and earn their support.
With respect to the PC proposal to create a long-term plan for energy supply, Hudak said this will require investing in a range of options to get the right mix and volume of energy supply. It also means working alongside energy professionals to set the plan, letting them execute on it and being transparent and accountable on achieving these goals.
Aside from renewable energy, Ontario must also be committed to maintaining nuclear power to cover half of our power needs. The needed decisions, on refurbishment and new build, must be made now. Natural gas will also continue to play a strategic role.
Other proposals in the PC's discussion paper include LDC consolidation, sensible trade agreements and eliminating the 10 percent Clean Energy Benefit. Mr. Hudak concluded with his vision of an economy that looks to business planners, not central planners, to create jobs; where the government doesn’t overstep its role, lives within its means, and there are clear rules set for its role and that of the private sector.
For a video of Mr. Hudak’s speech please see the following link on Youtube: http://www.youtube.com/watch?v=5U5V1tW2-9k.