Stability foreseen for energy policy following re-election of Wynne government

 

Toronto: The re-election of the Liberal government in Ontario under Kathleen Wynne is likely to be seen as an indication of stability in provincial energy policy. Prior to the provincial election of June 12, the Wynne government had not made major changes to the energy policy of its predecessor, preferring to focus on modest efforts to refine existing policy directions set out by the previous administration under Dalton McGuinty.

Ontario Premier Kathleen Wynne   Steadiness seems to be important to the Wynne government. For example, in 2013 the government allowed a moderation in the pace of the province’s green energy program to take place, and reduced the scale of its commitment to the Korean Consortium. Yet it maintained the general policy direction in both cases. The intention to phase out coal-fired power and the support for community-based and Aboriginal-led power initiatives continued largely unchanged from that established under the previous administration.

          The most significant stabilizing force in provincial energy policy comes from the 2013 Long Term Energy Plan (LTEP). Most recently updated in December 2013, the LTEP sets out the province’s general plans with respect to generation, transmission and demand management over the next two decades, until 2032. Relatively few if any governments in Canadian history have begun a term of office with such a detailed energy plan as part of their policy platform. Although the LTEP is to be reviewed and updated every three years, it is a framework of decisions established by its predecessor, refined by the Wynne administration and effectively tested in the course of the most recent election. As such, it has achieved a degree of continuity and technical review not often found in plans made at the political level of government.

          One area where the Wynne administration is making significant changes is in the siting and local engagement processes for new power projects. Premier Wynne has indicated a much greater effort will be required to achieve local support before proceeding with power projects, saying “We need to ensure that we get the siting decisions right the first time.” In October 2013 she officially adopted the recommendations of the OPA and IESO contained in a report released in August 2013 titled, “Engaging Local Communities in Ontario’s Electricity Planning Continuum.” (See the article “Agencies propose techniques to enhance community engagement in power planning,” from IPPSO FACTO, August 2013.) The provincial government has taken a number of additional steps to increase the role of municipalities in the development of renewable energy projects. These include changes to the OPA’s Large Renewable Procurement process so as to engage municipalities before contracts are offered, funding for eligible municipalities to develop Municipal Energy Plans or enhance existing plans, and new FIT program rules, for projects between 10 kW and 500 kW, to give priority to projects partnered with or led by municipalities. In addition, the Ministry of Finance is working with municipalities to implement a property tax rate increase for wind turbine towers.

          A more detailed enumeration of the Liberal Party’s energy policies is contained in a bulletin released by Borden Ladner Gervais LLP in June 2014 under the title “Election 2014: Energy Policies Of The Ontario Liberal Party, The Progressive Conservative Party and The New Democratic Party,” available from BLG or APPrO.

          Ontario’s cabinet was announced on June 24, and changes were moderate in that respect as well. Bob Chiarelli continues as Energy Minister. Bob Delaney will be the Parliamentary Assistant to the Minister of Energy. The influential Priorities and Planning Committee, which sets strategic direction and priorities for the government, includes the following Ministers: Kathleen Wynne, Charles Sousa, Deb Matthews, Bob Chiarelli, Brad Duguid, Glen Murray, Dr. Eric Hoskins, Liz Sandals, Jeff Leal, Dr. Helena Jaczek, Steven Del Duca, Ted McMeekin, and Reza Moridi.