On November 7 the Ontario Energy Association published two submissions it had made to the Government of Ontario, including recommendations on how to minimize electricity bills and reduce regulatory burden for energy companies.
The first submission discusses some additional options to reduce, avoid increases, or minimize electricity bills for Ontario families and businesses while maintaining the reliability, safety and resiliency of the system that customers demand. The second puts forward ideas that reduce and streamline red tape and regulations in Ontario in a way that lowers costs in the energy system, lowers the costs of utilities and businesses in the energy sector, and ultimately lowers costs for Ontario’s energy consumers.
Both submissions continue to build on the three key areas presented in the OEA’s Energy Platform: reforming the governance of energy planning, optimizing use of existing infrastructure, and lead regulatory evolution.
Reducing consumer electricity costs
A. Eliminate water rental fees
B. Move other charges to the tax base
C. Wind down the smart metering entity & MDM/R (metering data management/repository)
D. Reform the electricity planning process
E. Focus on long term cost-effectiveness
F. Optimize existing assets
G. Convene a sector efficiency panel
H. Focus assistance on those most in need: Abandon the Fair Hydro Plan
I. Reduce billing costs
J. End the policy of socializing renewable generation connection costs
K. Use competitive procurement for capacity, energy, and ancillary services
L. Review the electricity trade agreement with Hydro Quebec
M. Red tape reduction
N. Facilitate LDC consolidation
Red tape reduction
• Mandatory consideration of the full impact of a new regulation’s costs and benefits
• “One-In One-Out Policy:” any new regulation or regulatory policy is accompanied by the elimination of another regulation or regulatory policy.
• “Digital by Default:” wherever possible, requirements for paper submission, forms, etc. are eliminated and replaced with a digital option.
• Require the OEB to provide an annual Regulatory Simplification Plan.
• Review the OEB’s intervenor process.
• Require the OEB to perform an advisory function for utilities and market participants to promote compliance and efficient outcomes.
• Initiate a Review of the Affiliate Relationships Code.
• Set a materiality threshold level – a dollar amount below which a distributor’s proposed asset sales require no application.
• Cancel the OEB’s new mandatory governance reporting and record-keeping requirements for rate-regulated utilities: these would be duplicative of existing government requirements.
• Update the OEB’s leave-to-construct thresholds
• Reduce the frequency of CDM/DSM EM&V reviews.
• Allow LDCs the flexibility to offer choice in rate structure to customers based on customer engagement and behavior.
• Streamline environmental assessments
• Remove barriers to early access to land.
Facilitate incremental customer growth
• The OEA recommends that LDCs and transmitters be given the option and flexibility to offer customers alternative connection cost payment choices.
• Allow suite metering of heat for electrically heating buildings.
• Remove Building Code CHP Limitations
• Remove the Onsite Operating Engineer Requirement
• Clarify the Intent of the Ontario Energy Board Act with respect to Competition.
For details, see: https://energyontario.ca/news/.