To the Premier: In December, the Ontario Energy Board decided to protect Enbridge Gas customers from unreasonable rate increases for new gas line installation. We’re talking about $300 per customer over the next four years. The next day, the Premier’s Minister of Energy said he would bring in a bill to overturn the decision and crank up the gas bills.

Will the Premier protect gas customers from higher Enbridge charges?

Speaker, just to be totally clear, Premier Ford wants to raise your gas bill. That’s what this is about. Premier Ford wants you to pay more month after month, year after year. That’s what this is about. He has decided to protect higher profits for Enbridge by taking more money out of your pocket and the pockets of millions of others across this province. He’s protecting his buddies at Enbridge, and he’s sticking you and all the other customers of Enbridge with the bill, and that bill is going to be about $300 per customer over the next four years.

So if you think you should pay more on your gas bill, you should support the minister. And if you think you shouldn’t be stuck with that bill, if you think Enbridge should be the body that actually coughs up the few billion dollars that are going to be necessary, then you should oppose this bill that’s been brought forward.

I don’t know how to make it any plainer. I don’t know how to make it any plainer: He wants to raise your gas bill; he wants you to pay more so that Enbridge makes more money. That is what this is about. He wants to reverse the decision the Ontario Energy Board made in December to protect you from higher gas bills.

Now, it’s the job of the Ontario Energy Board, the regulator, to look out for consumer interests when energy companies apply to raise their rates. That’s their job. That’s their mandate. They are told, “Look out for consumers. Look out for the public. Make sure they aren’t gouged, they aren’t ripped off, they aren’t pillaged, they aren’t silently stolen from. Look after those customers. Whether they’re electrical utilities or gas utilities, protect the customers.” And that’s what they did. They did their job.

And now, the government is horrified that people are going to be protected from higher gas bills. They’re horrified that Enbridge will not continue to make the crushingly huge profits that they have been making, and they want to reverse that.

Enbridge is a multi-billion-dollar company. And frankly, there’s a bigger Enbridge that runs gas transmission lines across North America and there’s the smaller multi-billion-dollar corporation here in Ontario—not exactly on the edge of poverty; companies that have a few bucks available if they wanted to actually help customers. That isn’t what we’re dealing with here. What we’re dealing with here is a company that wants to squeeze every last penny out of you.

This bill will strip you of protection from Enbridge’s attempts to gouge customers across this province. The minister doesn’t have to do that. The Premier doesn’t have to do that. The Premier could protect you, could protect your family and protect families across this province. He knows that people are having a tough time. We have those debates, those discussions, here in the Legislature all the time. People are pushed hard. They’ve got rising rents. This government won’t protect them from rising rents. They’re having a tough time with mortgages. They’re having a tough time with grocery bills. You’ve got major retailers that have been engaged in squeezing people, squeezing their suppliers, squeezing the customers. He knows that people are having a tough time staying afloat, and yet—and yet—today what we’re doing is debating a bill that would protect the profits of Enbridge and raise the gas bills that people have to pay. It will take money out of people’s pockets. That’s the reality.

I have to say this: I’m saying that I’m impressed, and not in a good way, that the minister kept a straight face while he made that speech. That was extraordinary. I am impressed—not in a good way, but I am impressed.

Let’s go back a little bit. Just before Christmas, the Ontario Energy Board announced a decision that would make Enbridge Gas responsible for the cost of expanding its gas system and protect almost four million customers from hundreds of millions of dollars in higher heating bills. This is a very important point. Enbridge has investors; it has cash flow. If it wanted to put the money into those new connections and collect from those customers over 40 years, they could do that. They don’t have to take the money out of your pocket or your pocket or my pocket. They could do it out of their own cash—no sweat. But, instead, they wanted it to come from the existing gas customers. The Ontario Energy Board, whose job is to protect customers from gouging, whose job is to protect customers from being taken advantage of, said, “No, we’re not going to support this increase that’s going to cost $300 per customer over the next four years. We’re going to say, ‘Enbridge, it’s yours. It’s yours.’” And the very next day, the minister announced that they—this government—would be taking steps to reverse the decision of the Ontario Energy Board, the regulator that they put in place.

Now, I have to say, for those who are around for a while, I used to refer to the Ontario Energy Board under the Liberals as the glove puppets. You had the Minister of Energy’s hand there stuck up an energy board regulator and saying whatever the minister needed to have said. I was astounded that this regulator, this board, actually stood up for customers, stood up for consumers—astounding. They actually did their job. They read their mandate. They listened to the evidence and they said, “Damn, we gotta protect people.” Of course, this party that used to attack the OEB for not standing up for customers realizes that, “Boy, if they stand up for customers there are going to be some pretty heavy-duty private interests that are going to be really cranky.” So that’s why we have this bill before us today.

Now I want to go back a bit further. There’s a subsidy that gas customers do not even know they’re funding. If you talk to most people, they look at their gas bill and they see “gas” and then they see “distribution,” the cost of getting it through the pipes to their house. They don’t know that part of those rates is paying the cost of expanding the system. They think, “No, I just want to pay for the pipe that comes to my house. Why do I have to pay for these investments that you’re making that you’re going to make money off of?” That isn’t where their heads are at. I tried this out on my nephew at Christmastime. I said, “Do you know you’re subsidizing these new expansions?” He was outraged. He said, “Why? I just want to pay for my gas bill. I just want heat, that’s all. They want to expand, they can pay for it.”

I have to say, the independent energy regulator decided to put a stop to this subsidy because it raises energy bills for existing gas customers and for new homebuyers. This is not a wonderful gift for them. It sets them up for higher costs in the years to come and it also increases financial risks for the whole of the gas system.

Ending the subsidy would save gas customers over a billion dollars over the next four years in avoided pipeline subsidy costs. That comes to about $300 per customer. There are about four million customers on the system. Of course, that billion dollars doesn’t include the interest and the profit payments that go to Enbridge. So I’m talking the bare minimum, right? I’m just talking the minimum number that was cited by the Ontario Energy Board.

What ending the subsidy would do, aside from protecting existing customers from being gouged, is that it would encourage developers to install electric heat pumps in new homes instead of gas, which would provide cheaper heating and cooling for new homebuyers. And that is based on a variety of studies showing the reality of comparing the cost of capital and operating for gas-centred systems with capital and operating for heat pump systems.

So ending that subsidy would be a win, a win, a win and a win. It would lower energy bills for existing customers—wildly popular—and lower energy bills for new homeowners because they would be getting a less expensive system. It would lower carbon emissions—and actually, I think that matters. And it would avoid even more costs down the road to convert away from fossil fuel heating in the houses that were built with heat pumps from the start.

But there is a loser in all this. I have to be clear. There is a loser: Enbridge Gas. They would lose a lot of money. Frankly, they can afford it. They’re not exactly on the ropes. They’re doing well. I would say that if they are not making super gazillions of profits, but just billions in profits, they can probably survive, but many, many tenants and homeowners are having a tough time surviving. So our task, I believe, is to protect those tenants, those homeowners and not protect these multi-billion-dollar, multinational corporations.

Now, Enbridge is lobbying hard to stop that decision, to overturn that decision, and it has launched two challenges. Its court challenge boldly complains that the decision will mean “Enbridge Gas has no right or ability to invest and earn a return on capital for new customer connections.” In other words, it’s going to reduce their profits. Actually, I don’t think the OEB said you couldn’t invest; you just couldn’t invest with money provided by your existing customers. If their investors wanted to put money in, hey, there’s no barrier to doing that. They could go ahead. Now, there are questions they would ask, and frankly, the consultants who they quote in their submissions to the Ontario Energy Board raised big red flags about the potential for a lack of return in the future on those investments.

Minister Smith is trying to pass this legislation, the bill before us, to overturn that decision. The government of Ontario has decided to stand with Enbridge and its lobbyists, using the argument that change will reduce housing supply and affordability. But developers can just forgo gas and install heat pumps instead. If they have a customer who really wants gas, they can do that, but everyone gets an electrical connection in any event. So why wouldn’t you take the opportunity to install an electric heat pump and forgo that extra cost of putting in gas? And even if you didn’t want to go there, why do people around this province have to subsidize this? Why do people in Kingston or Ottawa, Hamilton, London, Windsor have to pony up an extra 300 bucks over the next four years to subsidize this multi-billion-dollar corporation?

You don’t have to take my word about the fact that this is not going to affect the cost of housing. I’m glad I went to public school in Ontario. It gave me at least one skill: I can read; sometimes I can do math—although people challenge me.

Ian Mondrow is a partner at the law firm Gowling WLG, practising in the area of energy regulation policy, and he wrote an op-ed that was published in the Globe and Mail. He can see that leaving the regulator’s decision in place would protect current gas customers and new home owners. Now, this is not the NDP research department—and, frankly, you should know that that is an excellent department. I’m just saying that they’re not ideologically ours; Gowling is not known as an NDP firm. But I’m going to quote the op-ed from this lawyer who specializes in energy regulation policy:

“While including gas connection costs to developers up front would marginally increase the cost of a new house, an offsetting rate credit recognizing the upfront payment would lower ongoing gas rates, resulting in a wash for homebuyers. The other choice would be to forego gas servicing in favour of electric heat pumps, thus lowering the operating costs of the house—a win for homebuyers.” The member from Perth–Wellington was talking about new home buyers. Well, you’ve got someone who specializes in energy policy saying this would be better for new home buyers. “Either choice would reduce Enbridge capital costs, and potential stranded assets, in the range of $1 billion over the proposed five-year gas rate plan period, significantly reducing delivery rates and customer risk.”

Two associate professors, Brandon Schaufele and Adam Fremeth of the Ivey Business School, wrote a post about this as well: “The government’s decision to override the OEB should have virtually no effect on affordable housing in the province.”

So if this bill passes, this ain’t going to make housing any cheaper. It is not going to be to the advantage of homebuyers. In other words, the government’s action will make you pay more and will not help new homebuyers, but it will mean higher rates for your gas bills. The Premier wants you to pay more. The Premier wants to raise your gas bill. Don’t get confused. Be very clear and plain about this. The Premier wants you to pay more.

Now, gas is no longer the cheapest heating source. Investing in gas pipelines for heating is financially foolish because they will become obsolete and a massive cost to all current and future customers as we stop burning gas to heat our homes and other buildings. Even the minister was talking about electrification of home heating. He knows it’s coming. What that means, over the next few decades, is that fewer and fewer people will be burning gas, and the people who leave the system will not have to carry the burden of the cost of those pipes that are in the ground, but the ones who stay will be stuck with it. There are cheaper alternatives to what’s been before us.

The OEB recognized that, like rotary dial phones, like Blockbuster Video, natural gas furnaces are coming to the end of their time—not tomorrow, not in 2025, but over the next 20 years, cheaper alternatives such as home heat pumps are undermining Enbridge’s market for home heating. The minister said exactly that. We’re going to be electrifying our homes. So the OEB ruled that Enbridge can’t spread the cost of hooking up new homes over decades or charge it to current gas customers like you, like the people who are watching this, like the people in this room who actually are still Enbridge customers. They’re going to be stuck with this cost. That’s what the Premier wants to do. He wants to increase your gas bill. The OEB said that Enbridge or new home developers have to take the risk, not new home buyers or current Enbridge customers. It recognizes that this would likely mean many more people installing the cheaper heat pumps to provide heating.

It was interesting to me that, again, the minister said he’s got a heat pump. He said when it gets really cold, the electric furnace backup in the installation comes on. Fair enough. I’ve got a heat pump at home. I’ve never been cold; I’m assuming the backup comes on when it gets really cold. But he didn’t say he was freezing in the dark. He said the system worked. If he had been freezing in the dark, believe me, all of you would have heard it. You would have heard the descriptions of the frozen bowl of water for the cat in the kitchen. You would have heard about the need to bundle up the kids and whisk them off to a hotel somewhere. No, he’s totally comfortable at home because he’s got the backup right there. Most of the time, the heat pump—probably all the time because the newer heat pumps are good down to minus 30—they’re totally fine in our climate.

I’m going to go back to Ian Mondrow about the question of how we can actually deal with the issues before us. Because passing legislation to reinstate a subsidy that’s completely out of step and risks financial disaster down the road doesn’t make sense.

The minister, in his statement, in his speech, said that the decision of the OEB would increase the cost of energy, increase the cost of a new home, and the facts do not support that claim. When you look for those facts, when you round them up, when you put them together and you compare them to the minister’s statement, they are not related; they’re not distant cousins. There is no blood relation between the facts and the minister’s statement. It’s just not there.

I’m going to go back to the energy-regulator lawyer from Gowling, Ian Mondrow, who had this to say about the claim by the minister. He writes in a more formal style than me but I think he’s quite good: “Early the following day after the release of the OEB decision, Ontario’s Minister of Energy released a statement expressing that he was ‘extremely disappointed’ with the OEB’s decision.... The minister asserted that the OEB’s determination on this point ... ‘could lead to tens of thousands of dollars added to the cost of building new homes, and ... would slow or halt the construction of new homes, including affordable housing.’” Well, good God. That’s a scary thought.

The lawyer, Ian Mondrow, goes on: “If those facts were true”—and I like the “if”—“then the minister could well have a legitimate and immediate housing policy concern. The facts as determined in the OEB’s decision do not, however, support a ‘tens of thousands of dollars’ increase in home costs, and it does not appear that the decision will in fact ‘slow or halt the construction of new homes.’ The conclusions expressed in the minister’s statement”—and, frankly, his speech today—“are inconsistent with the facts relied on, and determinations made, by the OEB’s three-member expert panel of commissioners as a result of the comprehensive hearing process undertaken.”

I want to say a few other things about the area of charges. I’m speaking to you gas customers who are going to get stuck with a higher bill if this legislation passes. One is that claim that gas heating is the cheapest option. Numerous studies now show that, when you compare the combined costs of equipment and energy, heat pumps provide cheaper heating than gas heating. Just look at putting in a heat pump or putting in a furnace or an air conditioner—those capital costs and then the cost over the lifetime, it’s cheaper to go with a heat pump.

In fact—and the minister referenced this in his speech—Enbridge, which keeps spreading the claim about gas being cheaper, is now facing an investigation and hearing at the Competition Bureau for false advertising.

As my colleague expressed, it’s shocking, the thought that a multinational corporation that makes huge amounts of money by squeezing cash out of homeowners and tenants might mislead people. I know it’s incomprehensible to many here but, in fact, it could well be true.

The National Observer reports, “Enbridge has a new fight on its hands as Competition Bureau Canada officially launches an investigation against the gas giant over allegations the company is misleading customers about the role of gas in the energy transition.

“Specifically, Enbridge has promoted new gas hookups as the cheapest way for Ontarians to heat their homes, while branding natural gas as ‘low carbon’ and ‘clean energy.’”

That’s being challenged by the environmental organization Environmental Defence.

The National Observer reports, “‘Enbridge’s dishonest marketing is duping people into’” installing new gas hookups and spending thousands of dollars on new gas furnaces and other appliances, “‘falsely claiming it’s cheaper than heating with electricity, which is just not true,’ said Environmental Defence program director Keith Brooks in a statement.” It’s good that the Competition Bureau has agreed to investigate Enbridge.

“The complaint filed by Environmental Defence, Ontario Clean Air Alliance, the Canadian Association of Physicians for the Environment and a group of Ontario residents” in September, “accuses Enbridge of falsely claiming gas is the most cost-effective way to heat homes. Enbridge has made this claim online and in communities it has pegged for expansion in an attempt to increase its customer base.”

Environmental Defence summarized the situation this way: “Enbridge is misleading consumers into connecting to its gas system using false and misleading representations.... Enbridge is telling potential customers that gas is the most cost-effective way to heat their homes and suggesting”—and this I find totally entertaining—“that it is ‘clean energy’ and ‘low carbon.’ None of these representations are true.” That lack of honesty about what’s real and not real when it comes to home heating is something that people should keep in mind.

But the other issue—and this is a big one because, as the minister has said, we’re moving away from gas heating in our homes: People get caught paying as gas heating fades away. People are increasingly deciding to save money and protect the climate by switching from gas to electric heat pumps. As this process expands, the cost of the gas grid for those who stay with gas is going to increase, and new gas lines, installed to service new customers, will increasingly not have customers to serve. That was a finding by the Ontario Energy Board.

We’ve had these transitions before. This is not unique or novel in the world. Most of you have not followed energy history. I am a strange person; I actually look at the history of energy in this province. About 1958 or 1959, the TransCanada pipeline came through to Ontario from Alberta, bringing natural gas. This opened a whole new way to heat homes that was cleaner, more convenient and probably cheaper than coal. From 1960 to 1970, the portion of homes that used coal for home heating went from 30% to 1%. Within a decade, 30% of Ontario homes no longer used what had been a very popular fuel.

So I want to say to people here that you can have a very rapid transition from one technology to another, frankly, probably, with very little in the way of government programs in this case. People looked at, “Hey, we can spend all this money on coal, or we can go with an option that we don’t have to shovel, that is more convenient, that is just a flick of a switch on a thermostat in the wall. I’m going to go with gas”—a decade. And I have to tell you, just in that same report I looked at, that 1% at the end? Man, they were spending a fortune, because the whole of the coal delivery infrastructure shrank and became a much more expensive fuel to get. I don’t know why those 1% held on, but they did.

We’re facing a situation in Ontario where as we move away from gas home heating, something that the minister has said we’re doing, people who stay on the gas system, who get sold on to the gas system, are going to be stuck with much higher bills, and the pipes that are put in the ground are going to be paid for by those who can’t afford to buy a new heating system, ones whose furnace is eight years old. They’ve got about a 15-year lifespan. If your furnace is eight years old, you’re not going to get rid of it and buy a new furnace. Mostly, people can’t. They only buy when they have to, and they will get stuck with those higher bills. That’s a risk for homeowners and tenants. That is a problem that people are going to face in the future.

Frankly, continuing the subsidy from the existing consumers—and remember, Premier Ford wants to increase your heating bill. He wants to drive up your gas bill. He wants you to pay more so that he can create deeper problems for you in the years to come. I want—

Interjections.

There’s another reality. A number of you who are gas customers—in fact, almost four million of you who are gas customers—know that around 2022, the price of gas went up dramatically. Now, what was happening in world events at that time? Russia’s invasion of Ukraine, the disruption of the supply of natural gas to Western Europe, and frankly, you had a situation where the world market was setting the price.

We in Ontario pay a much lower price than people do on the world market. But something that you need to know—a few things you need to know. One, about 60% of the gas we use in Ontario comes from the United States. It used to come from western Canada; it’s coming from the United States. And in the United States, there are large numbers of liquefied natural gas export terminals that are shipping that gas out. In fact, recently, there was a pause put on a few of those in part because industrial manufacturers in the United States were saying, “These exports are killing us. They are killing us. You need to stop exporting all the gas, because it’s changing our cost picture.”

Well, in 2022—and I remember this, because (a) I got a bill, and (b) my constituents came to me about it—a big spike in gas prices. If you will remember your gas bill, about half is the cost of getting the gas to your house; that’s the pipes in the ground. The other half is the gas, and that other part comes from the price of gas out on the open market.

I want to say to all of you that although it’s unpredictable as to whether or not we will see other spikes—and I have to say, wars happen and disruptions of energy supplies happen, and if I knew what the price was going to be, I would be running a side deal in gas futures and making a lot of money, so I won’t predict that. But I will predict this: the potential for great volatility. That is a huge problem for people, the inability to be certain what it’s going to cost them in the year to come to heat their homes. That is an issue, and to the extent that we stay with gas or expand the use of gas in this province, we expose more and more people to the volatility of those gas prices. That is not a good thing.

I had said at the beginning, and I want to say this again: The OEB didn’t say you can’t have a gas connection to a new house; it wasn’t a ban on gas. If Enbridge wanted to install new gas connections to new homes, they could do it with the capital that’s provided by their investors, and they could try and recover it over the next few decades. But I have to say, they understand the volatility of the world; they understand the uncertainty of the world and the potential that within two decades or three decades, you’ll have a dramatically smaller market for gas heating in this province—again, I follow the minister’s statement talking about electrification of heating—so that it may not be a good investment for those people who are backing Enbridge. No, they want to put the burden on you. They have asked the Premier to put the burden on you, the customers of Enbridge Gas, the multi-billion-dollar risk.

So Premier Ford wants to raise your gas bill. He has decided that higher profits for Enbridge Gas are more important than protecting you. He wants to increase the money that goes to Enbridge, and he wants to take that money out of your pocket. He’s protecting his buddies at Enbridge and sticking you with the bill, and that’s about $300 for each gas customer over the next four years. And that’s why we’re debating this legislation today, legislation to allow the government to overturn a decision by the energy regulator, the body set up to protect you, the customers, from the actions of utilities that want to squeeze as much money out of you as they can.

Speaker, high price is certainly at the heart of what we’re dealing with here—no getting around it. It’s an issue that people have very immediately on their minds. They go to the grocery store; they try to buy something electronic; they have to pay higher rents; they’re paying their energy bills; they’re squeezed.

However, there are other issues here, even if they’re not as top of mind as cost of living. The reality is the world is getting hotter. Weather is getting more extreme. It’s getting more unpredictable. Those climate changes are affecting the price of food, of insurance and a variety of other things. They are increasing the cost of operating government because they’re causing more damage to infrastructure. Drought and higher temperatures are reducing food production in many places, and we see the impact at the grocery store.

It’s not just climate change that’s affecting us at those grocery stores. There are retailers—big ones—that are taking the opportunity to squeeze as many pennies out of people as they can. But the reality is that as the world gets hotter and our climate more unpredictable, food prices will increase. As insurers face higher claims from catastrophic weather events, they pass the cost on to their customers. I’m sure many of you have seen those higher insurance bills.

I’ll just say there are three jurisdictions right now where the rise in those bills has led to some really dramatic changes: Louisiana, Florida and California. Many insurance companies are leaving those jurisdictions because they can’t charge premiums high enough to cover the replacement cost of the houses destroyed in extreme weather or in wildfires. Those places are having to provide a very limited state-sponsored housing insurance, where an awful lot of the risk is left with the homeowner and where those states are not happy that they’re having to provide that insurance, because I’m sure it doesn’t actually pay for itself.

As we get hotter, as weather becomes more extreme, people are not going to be able to afford the premiums that insurance companies will charge to protect their homes and their property. This is not a distant problem; this is a problem happening today in the southern United States and which will make its way north into Ontario and into Canada. Already in Canada, the insurance bureau has said something like a million homes are facing the potential of losing home insurance because of flood risk.

So we’ve got a situation where day-to-day life is going to become more and more difficult. In order to stabilize the climate and protect us all from rising food costs and to make sure that things like insurance are affordable, the world is engaged in an effort to reduce carbon emissions by 50% by 2030. To do that, we have to move away from fossil fuels like gas. That means many things, but one of them is that when we have a chance to reduce future gas burning—from heating, for example—we should take it. We’re in a situation now where new homes, if they get a heat pump rather than a furnace and an air conditioner, can actually have lower-cost heating and cooling than if they went down the gas route. The OEB recognized that in its decision.

Happily, this would mean lower costs for homeowners. Let’s assume that Ontario actually does build one million new homes over the current decade. Given that so far the targets are not being met, I think there are real questions about that. Let’s just say you didn’t reach 1.5 million but you reached a million. We have about four million homes in Ontario now. If all new homes were gas-heated, then we would face a very large new source of carbon pollution in Ontario. I don’t know how the government would meet its very weak target of a 30% reduction, but we would be making the world hotter and we would be paying for it out of higher gas bills. That’s what this legislation means.

Premier Ford wants to raise your gas bill, take more money out of your pocket and make the world hotter, more volatile and more difficult for all of us. That’s what we’re debating today: the whole question of whether we will protect customers, whether we will let the Premier increase your gas bill or not. He’s protecting his buddies at Enbridge Gas and he’s sticking us with the bill, and we’re talking about $300 over four years. Anyone who wants to pay an extra 300 bucks to help Enbridge Gas, please put up your hand. I’m sure that when the vote comes there will be a chunk of people in this room who will stand up and say, “Yes, I want to pay more and I want to help Enbridge.”

Now I’ve talked about the direct cost and the, let us say, absence of facts in the arguments made by the government in the minister’s presentation, but I also want to talk about the impact of effectively restoring the previous situation where the Ontario Energy Board is just a glove puppet for the Minister of Energy—not a good thing.

It’s bad news to change the law so that all future energy decisions or regulations through the Ontario Energy Board will be made in the same way the Premier made his decision about the greenbelt or about Staples or about privatizing health care: out of public sight, by politicians on a massage table or in Vegas or at a wedding party where they’re celebrating and drinking wine with lobbyists. Do we want that to be the way decisions are made around energy?

Let’s look at how the decision was made by the Ontario Energy Board on protecting people from higher Enbridge rates. Again, I’m going to go back to the excellent article by the energy lawyer Ian Mondrow:

“At 6 p.m. on December 21, the OEB publicly issued a comprehensive decision on an application by” Enbridge “for approval of Ontario gas distribution rates commencing January 1, 2024. The decision is the result of a thorough public hearing process, which involved more than a year of review, thousands of pages of company and expert evidence, a comprehensive oral hearing and a thorough process for submissions by” Enbridge, “OEB staff, and a number of informed, indeed expert, customer and public interest intervenor representatives. The comprehensive, well-written and fully reasoned decision is 147 pages long....”

So what do we have? We had a public process that people could attend or follow. I followed it for the last year. Thousands of pages of evidence were introduced—I have to say, I didn’t read thousands of pages; I read quite a few hundred, but not thousands. Interesting stuff. The consultant for Enbridge—two consultants. One consultant, their economic consultant, talked about the threat of a death spiral for this particular utility, because as the cost of heating by gas went up, more and more people would leave the system, and as more and more people left the system, those who were left behind would pay a higher fee, and more and more people would leave.

So, real risk to the system—how do you manage that? Part of the way you manage it is, you actually focus on repair rather than expansion, so you control your costs. That’s something the OEB was very interested in.

Again, you had a public process. You had people who were trained in adjudication and had familiarity with the energy system listening to presentations by those who had expertise with energy, who were hired as consultants to give information. These were not lobbyists who were wining and dining the board. They weren’t taking the board out for lunch, getting them drunked up and then sending them back into the room. No. They were trying to present evidence so that, in fact, you could have a rational assessment of the options before us.

What does the Premier want in the place of a public hearing with evidence that could be challenged by numerous intervenors and by adjudicators themselves?

Well, first of all, this bill gives the government power to overturn the key decisions within that OEB order that’s under discussion. This gives the government the power to increase your gas bill, to take money out of your pocket and put it into the pockets of Enbridge investors so they get richer. That’s what this is about. The government wants to have the power to make Enbridge richer and you poorer. It allows the minister, with the approval of the Lieutenant Governor in Council—that’s the cabinet—to direct the Ontario Energy Board that the construction of a new natural gas transmission line is in the public interest.

Normally, the Ontario Energy Board would hold a hearing to determine whether a proposed project is in the public interest—does it actually do what it should do; will it put a financial burden on the other customers; is there a justification for this that allows an investment of the money that’s taken out of the ratepayers’ pockets?

This provision in the act would oblige the Ontario Energy Board to grant leave to construct without a hearing. In other words, we go to energy decision-making by lobbyists and members of the government’s cabinet, or maybe just by the Premier’s staff—I’m not sure which; only the RCMP knows for sure who makes these decisions. It means that the ability to actually have decisions or proposals reviewed in public, with evidence presented, considered, challenged and adjudicated doesn’t have to happen anymore. It’s just lobbyists bringing home the bacon for their clients, and that bacon is you and me paying more out of our pockets to make Enbridge richer. It allows the minister, with the approval of the cabinet, to overturn any OEB order that either refused to approve a gas transmission line or required the beneficiaries of the expansion to pay upfront capital costs. In other words, if the OEB determines that a gas pipeline project is not in the public interest, then the cabinet can force the OEB to let it proceed anyway.

At this point, you have to ask: Why do you have a regulator? Because, frankly, they’re just scenery. They’re a mountain picture painted on a wall. They are of no consequence, because the real decisions will be made by lobbyists, cabinet members and the chiefs of staff who report to the Premier and those ministers.

There are other ways that Bill 165 would allow the Premier to force gas customers to pay costs that the OEB would otherwise not allow. Currently, no one can construct a new gas pipeline in Ontario unless the OEB determines this expenditure is in the public interest and grants leave to construct. This rule seeks to ensure that expenditures are properly scrutinized so gas consumers are not forced to pay for costly, uneconomical projects. So by deciding to allow politicians to make that ultimate call as to whether or not a gas line is in the public interest, instead of an independent regulator, there’s a risk—man, sometimes I really understate. This politicizes the energy regulation process. It just says, “Nope.” Thoughtful consideration—may I even say, just businesslike consideration—is out the window; it’s who has got the pull, who knows who and who can actually get the decision that you need.

There is an example of a previous government that operated this way: the Liberal government. For those who weren’t here when they were in power—

We would tag-team going after them, yes. We used to go after them. We would go after them in committees, we’d go after them in the House, because we knew they politicized the process. And you guys are following that road—sorry; this government, Speaker, is following that road of politicized energy decisions. The outcome is not good.

So not only does the current government want you to immediately be stuck with a bill for a massive subsidy to Enbridge Gas—and I’m talking $300 per customer over the next four years—it also wants you to be stuck with the cost of future projects that the OEB, the regulator, might dismiss because they hurt the interests of gas consumers. The process of hearing evidence in public by a board of people with experience and a mandate to protect the public interest is replaced by a process where the best lobbyist, as I said before, brings home the bacon—your bacon—to whatever company wants access to a subsidy from you. This is not well received in many quarters and, frankly, is contrary to advice that the government has received. I’ll go to the advice first, and then I’ll go to comments from other quarters.

In its recent report, Ontario’s energy transition panel, appointed by this government to look at the transition—frankly, again, to the minister’s comment, a transition away from gas home heating to electrification of home heating; the minister made that clear—made a recommendation that is inconsistent with Bill 165. They recommended the OEB “should conduct reviews of cost allocation and recovery policies for natural gas and electricity connections, as well as natural gas infrastructure investment evaluations to protect customers and facilitate development of the clean energy economy.”

Well, this isn’t protecting customers. I didn’t hear the minister say once that when we change this, it will mean that the rate reduction that the OEB mandated will be maintained. No, no. The rate reduction the OEB maintained is out the window. Customers will not be protected. You can go all around the mulberry bush, you can do the ring-around-the-rosie, you can be the jack in the jack-in-the-box—whatever. It ain’t protecting customers. It means higher bills. That’s what this legislation delivers. Their own electrification panel recommended the OEB make the kind of decision that the OEB made, and that’s the one that this government is working hard to reverse.

Other organizations in the energy field had comments like this: Adam Fremeth and Brandon Schaufele from the Ivey Energy Policy and Management Centre wrote—again, Ivey school is not your left-wing hotbed, right? It ain’t. They wrote, “Overriding an independent economic regulator is a big deal. It is not something that should be done lightly. The government’s decision explicitly undermines the OEB and threatens credibility of future energy investment in the province.”

Note that: “future energy investment.”

When you have a government that operates in a way that is capricious, that is not open, that is not rules-based but is influence-based, then—it’s not true with all investors; maybe some think they can get that influence and get what they want, but a lot will say, “Ehh.” You put money into that province, you don’t know if you’re going to get it back. You don’t know if actually you’re going to get a return on your investment. You could be side-swiped by someone else who’s got more powerful lobbyists. I think their comment is a good one.

“Moreover, it’s not obvious that this move is in Enbridge’s long-term interests. Once a precedent to effectively overrule a regulator is established, there’s little to stop future governments from using the same tactic to different ends, perhaps against natural gas infrastructure.”

Interesting comment, very interesting comment.

Do you have rules-based, law-based regulation in Ontario, or do you set it up so it’s influence- and lobbyist-based? I think that’s the choice before us. We know what the government has proposed. Not only do they want you to pay more on your gas bill—320 bucks over the next four years—they are also setting up a situation where you don’t know what the rules are. The rules are whatever the lobbyists and the influencers can make happen.

I’m going to quote Mr. Mondrow again, energy regulation policy expert at Gowling: “Minister Smith would be well advised to consider the wisdom of the energy panel’s recommendation and leave the matter of further consideration of new energy connection cost recovery policies with” the Ontario Energy Board. I don’t know; he seems to know regulation. He seems to know energy policy. “Leaving this in the hands of the independent regulator would maintain transparency, consistency, public accountability and a thoughtful and reasoned balancing of interests. That, after all, is the reason for an independent energy regulator.”

I think that’s a pretty good summary. Why do you have a regulator?

The logical last step in this bill, really, is dissolving the Ontario Energy Board, because frankly, you realize they’re of no use to you. They’re an impediment to you, actually, just dictating what energy policy will be, based on what lobbyists and other influencers want to do. Those lobbyists—Enbridge—want to take money out of your pocket. They want to raise your gas bill.

Adam Fremeth and Brandon Schaufele from the Ivey Energy Policy and Management Centre also noted “the government’s decision to override the OEB should have virtually no effect on affordable housing in the province.” In other words, they fundamentally disagree with the Minister of Energy in his arguments that he made earlier today.

Now I’ll quote an environmental organization. Environmental Defence wrote, “This legislation would be bad for new homeowners”—true enough—“bad for existing gas customers”—yes, because they’re going to pay more—“and bad for the environment. The only one that benefits is Enbridge Gas.”

Richard Carlson, energy director at Pollution Probe, said, “The OEB was clear, correctly in my opinion, that the energy transition is under way and there’s uncertainty about the future of natural gas use in the province.”

Also, “As far as I know, the government has never intervened this directly in trying to alter an OEB regulatory decision, and that should be incredibly concerning to everyone.”

I think those are all fair comments. You have a government that, in order to look after its friends at Enbridge, is going to rewrite the law to make the regulator irrelevant and make sure that you pay a higher bill. No wonder people are concerned.

I want to take just a few minutes, because I don’t have a lot of time left, to comment a bit on the other items that came up in the minister’s speech earlier today. The minister said he wants to protect consumer choice. Well, frankly, consumer choice hasn’t changed. People can put in gas furnaces if they want. Developers can put in gas furnaces if they want. There are two options. One is that the investors, who receive billions of dollars from their investment in Enbridge, can put in a little more money to pay for those hookups and pay themselves back over 20 or 40 years. If they think that Enbridge Gas will still be in the home heating business in 40 years, they could do that. They could charge money to a new homeowner, if the new homeowner actually wanted that, but I would say if the new homeowner actually looked at the economics of a heat pump versus a gas furnace, they would go with a heat pump because it’s a better deal—no getting around it.

To say that he’s protecting consumer choice—not the case. Consumer choice isn’t being removed. What’s being removed is the subsidy paid for by all the other gas customers—just to be clear, $300 per customer over the next four years. Not a good deal for those who are customers.

This OEB decision would increase costs: I’ve already gone through the evidence—not the case. In terms of homeowners, the OEB determined it would be a wash, a very minor change one way or the other, and frankly, other commentators have said it wouldn’t be of great consequence.

Predictable energy environment: Well, I have to say, I noted earlier about the fact that increasingly we will be integrated into the world market for natural gas. To the extent that we stay with gas, our costs become more and more unpredictable. We don’t know what’s going to happen. Frankly, to say that it would be predictable doesn’t make sense. I think you’re far better off setting up a situation in Ontario where people depend on energy generated in Ontario—electricity—rather than depending on gas imported from the United States. Again, about 60% of our gas is from the States, and we are competing with others around the world who might want to buy that gas at a much higher price. If you’re talking about predictability, a predictable energy environment, you want to move away from fossil fuels and you want to move away from natural gas.

He talked about a common-sense approach. Well, I think a common-sense approach is that existing gas customers don’t get stiffed with a bill—$300 over the next four years—to make Enbridge richer. Frankly, the common-sense thing to do would be to look at the OEB decision, which was a very reasonable decision based on an awful lot of evidence, and say, “Yep, that makes sense.” The best deal for new homeowners is to direct them towards an electric heat pump. The best deal for existing gas consumers is not to charge them more money, not to raise their bills. That would be the common-sense approach.

Let me see. There were some—oh, yes, I just have to note the minister’s satisfaction with his own home heat pump: that he didn’t freeze in the dark, that it kept him warm through the winter. Hey, that’s great.

Interjection.

No, I thought the point was really good, that he was endorsing it, that it worked and it worked well. I think that’s what we need for people across Ontario, something that works well that they can afford.

Interjection.

He wants to keep heating costs down. Well, look at the evidence. The evidence is that to keep heating costs down, you go to electric heat pumps. The technology is changing rapidly.

One thing that people should be aware of is that in the United States, the Inflation Reduction Act that’s in place now is investing heavily in advancing the technology for heat pumps so that heat pumps that already are quite functional at minus 30 will be even more efficient, more effective in the years to come. Places like Norway—Norway, people know about it, near the Arctic Circle—60% of the households have heat pumps. That’s how they heat themselves—60%. Finland, pretty close, around 50%. Sweden I don’t have the number for, but my guess is it’s in that range. They seem to be able to function, and they’re up by the Arctic Circle. If you want to be practical about cost, if you want to be practical about a system that gives you a more predictable kind of heat or energy basis or security, go to heat pumps.

He was talking about how this decision would discourage developers from using cost-effective and efficient gas. Well, frankly, it would encourage them to use cost-effective and efficient heat pumps. They’re going to put in an electricity line anyway; let’s face it. So if you’re putting in an electricity line, don’t worry about the gas, unless you’ve got a customer who really wants gas. Then you can offer it to them. It isn’t barred by anyone. If Enbridge believes what it says in its filings, in its claims, it’s certainly happy to invest in it. They can do that. They don’t have to come to us, the other gas customers, to pay for it.

Also, the pragmatic approach of the government to energy: Interestingly, the Electricity Distributors Association and the Royal Bank of Canada, who are not noted, again, as particularly radical organizations, both said that when it came to dealing with the immediate crunch in Ontario for meeting demand, it was far more cost-effective and far faster to invest in conservation and efficiency—both of them—and not just faster and more effective, but substantially cheaper. This government has totally ignored that advice. The Independent Electricity System Operator has said numerous times that energy efficiency is cost-effective. It is a great deal. That minister is ignoring the electricity distributors who, frankly, know a fair amount about electricity in this province, and the Royal Bank of Canada, that has an interest in this matter. His own organization, the IESO, has talked about the value of conservation and efficiency in terms of low cost and the ability to deliver quickly the sorts of reduction in demand so that we don’t have any power shortage. So I can’t say that his approach is really that pragmatic.

And just briefly about difficulties in both Alberta and Texas for failure of electricity systems in deep cold: In the most recent problem in Alberta, two gas plants went off-line in the middle of that crunch—two gas plants. They couldn’t be depended on. And in storm Uri in Texas, when they had those blackouts, again, it was the gas system that couldn’t handle the cold. The pumps for the gas systems were frozen. So in both cases we’re talking about problems with the gas infrastructure; that was the biggest issue.

I’m going to wrap up, Speaker. Don’t forget; this is really plain: The government wants you to pay more on your gas bill. It wants to raise your gas bill. It wants to ensure that Enbridge has higher profits. It wants to take money out of your pocket to the tune of 300 bucks over the next four years. Everything else is just smoke. All the other arguments are strange-looking scenery and don’t bear on the guts of it. This government wants to raise your gas bill. That’s it.

The OEB didn’t say, “No. You can’t put your money in and supply people with that 40-year loan.” Go ahead—no sweat. But you can’t take it from the existing gas customers. They are tapped out. So I say to you right now, your government should go to Enbridge and say, “Look, you’ve got big pockets. You put the money out. You try and collect it over 40 years.” Because 25 or 30 years from now, that system will have shrunk dramatically, and whoever is left holding the bag is going to have very big expenses, and I think Enbridge knows that.

Well, it shouldn’t be shocking—

What’s happening with this is that the government has decided that they do not want an energy board that actually regulates based on rules, regulations and evidence. They want energy decisions made based on lobbyists and influencers who get to cabinet ministers and the Premier. That’s the basis of what’s going on.

I do find that shocking because I thought after our experience with the Liberals and them playing around with the energy board that this government, even if I disagree with them, might have more interest in a regulator that actually functions—

Interjections.

He’s clearly the minister for Enbridge—there’s no two ways about it—just as the Liberals were the ministers for TransCanada Energy. They were the ministers for whatever power producers wanted to build a gas plant. That’s who they were the ministers for. Yes, this is the minister for Enbridge. He’s looking out for Enbridge. He’s not looking out for you. He wants you to pay more. He wants you to have a higher gas bill. That’s the reality.

No, I don’t support the 20-year time horizon. I think, increasingly, it’s going to be unpredictable how long those lines will actually be functional. I think to be fair to gas consumers around the province who will have to pay more to subsidize this, they shouldn’t be the ones who take the risk that there will not be repayment.

As I noted earlier, coal use in this province for residential heating collapsed within a decade. Frankly, as we see improvements in other technologies and if heat pumps see substantial advances in the next few years, I can see mass abandonment of the Enbridge gas heating system. That would mean that in 20 years, it may not be there as an investment that you can collect on; it may simply be gone.

So zero seems the appropriate risk level—