Thank you to the member for Beaches–East York. This government has a long track record of moving very quickly, breaking things, and then realizing they have made a mistake, they’ve gone too far, the public pressure is too intense and then they back track.

We have seen that with their decision to bring in strong-mayor powers and undo hundreds of years of tradition with parliamentary democracy where it is majority rule. We saw them move forward with opening up the greenbelt, even though all parties here supported the greenbelt when it was developed. We have seen them try and sabotage collective bargaining and say that the Charter of Rights and Freedoms doesn’t apply here in Ontario.

But what we also see is that when people stand up, and say, “Enough. This is not acceptable. This is not the kind of Ontario we want,” this government backs down, and I hope that this government backs down on this bill as well.

You go to the supermarket; food has never been more pricey. You pay your rent; we are at record high levels of rent. And the cost of buying a home and then paying off the mortgage has never been higher. It is a huge problem and that is why I am urging this government to rethink this bill and listen to the Ontario Energy Board and respect the decision that they have made.

The Ontario board made the right decision, based on evidence, to lower our energy bills. The Ontario government has made the decision, based on maybe backroom lobbying, to raise our energy bills in order to give Enbridge Gas a continued subsidy. Four million customers are going to see their energy bills go up so that Enbridge can continue to have their infrastructure investment subsidized. I think that is the wrong direction that we should be going in Ontario, and I urge this government to rethink this bill.

We also know that it really doesn’t work when we have politicians coming in and meddling with decisions that should be made by experts and independent electricity regulators. They have made the decision. It was a wise one. We support it. And instead, this government is heading down the path of listening to the Minister of Energy’s chief of staff, a former lobbyist for Enbridge, a staff person for Enbridge, and they are giving Enbridge what looks like a sweetheart deal. I have a lot of concerns with that.

Nothing to see here. You could make a decision that benefits four million Ontarians, or you could make a decision that benefits Enbridge, especially when your chief of staff is talking to you every single day and used to work Enbridge and now works for you—very interesting; no conflict of interest whatsoever there.

The minister’s decision will shift those upfront costs onto existing gas consumers, forcing them to pay over $1 billion in additional costs over four years, costs that the Ontario Energy Board believes they should not have to pay.

So it’s very interesting. There must be some people in the Ontario government, the Conservative government, right now who don’t like this bill. Some of you must not like this bill. You must be getting some calls from some of your constituents who are like, “You want me to pay even more for energy than I’m currently paying?” I bet you’re getting calls. And when they find out and their energy bills go up, you’re going to be getting more calls; I know it.

There are other ways in which Bill 165 would allow the Ontario government to force gas consumers to pay costs that the Ontario Energy Board would otherwise disallow. Currently, no one may construct a new gas pipeline in Ontario unless the Ontario Energy Board determines this expenditure is in the public interest and grants leave to construct. That makes sense. You just don’t want Enbridge deciding where to build gas without there being an independent regulator deciding that it’s in the public interest. That makes a lot of sense.

This rule seeks to ensure that expenditures are properly scrutinized so gas customers are not forced to pay for costly and uneconomical projects. By allowing politicians to decide whether or not a gas pipeline is in the public interest, instead of an independent regulator, there is a risk of politicizing the energy planning process and forcing consumers to pay for costly, lobbyist-driven projects they do not benefit from.

The former Liberal government did this with electricity system planning, and hydro bills skyrocketed. With Bill 165, it looks like it’s heading down the same trajectory as what we have seen with the previous government. We are very concerned that this would allow the government to do the same thing with the natural gas system.

The provision allowing the minister to bypass the hearing for a gas pipeline or overturn a refusal where the OEB deemed a project not in the public interest may be related to Enbridge’s Panhandle Regional Expansion Project in southwestern Ontario. The government might be claiming that Bill 165 is necessary for these economic priorities to proceed, but we don’t think that this is the case.

Another thing that this bill does is it establishes the concept of a generic hearing on matters affecting multiple stakeholders. The minister, with the LG in C’s approval—that’s the government—may direct the Ontario Energy Board to hold a generic hearing, including on matters that are the subject of an ongoing Ontario Energy Board proceeding.

This bill would also allow the government to prescribe additional persons who shall or may be represented during certain Ontario Energy Board proceedings—not just consumers, generators, distributors, or transmitters etc. For example, developers and the IESO have reportedly asked to participate in Enbridge’s ongoing rate application.

In essence, overall, I have a lot of concerns with this bill. I have concerns with this bill because it is not going to be keeping energy costs down; it’s going to be driving energy costs up. And this government should take note, because the previous Liberal government—one of the main reasons why they lost their election in 2018 was because of energy prices and energy decisions and people no longer having faith that decisions around electricity and energy were being made in the best interests of Ontarians.

You would hope that this government would not want to head down the same path, and I fear that Bill 165 is doing that. Because how we read it is, it looks like this bill benefits Enbridge, and it doesn’t benefit the four million consumers who are going to see their energy bills go up and they’re not going to get any direct benefit.

And what also concerns me is that the decision to further invest in gas infrastructure at a time when countries, provinces and states all around the world are moving to a different energy mix means that we could be locking ourselves into stranded assets that are no longer useful within a very short period of time.

We already have ways to generate energy and heat and cool people’s homes that don’t require gas. Heat pumps are a very cost-effective source of heating and cooling that many countries across Europe and provinces across Canada are adopting. We have alternatives that we should be investing in that are better for the environment, are better for consumers and are better for Ontario. I would much prefer to be debating a bill about that than a bill that is going to lock us into fossil fuels in and is going to lock us into assets which, if we’re heading in right direction, are not going to be needed. They’re just not going to be needed.

Thank you so much for your time.

Just before Christmas, the Ontario Energy Board issued an important decision affecting the gas bills of nearly four million Ontarians. The Ontario Energy Board ordered natural gas distributor Enbridge Gas to bear the costs of expanding its gas infrastructure, rather than imposing the costs on you and me. This is at a time when Ontario is moving away from fossil fuels. Any plan to expand natural gas infrastructure carries enormous risks, not just to the environment but also to our bills. So the OEB, the Ontario Energy Board, did the right thing and decided that Enbridge’s proposal was not in the interests of consumers.

How did the Conservatives respond? Well, the Conservatives responded with this bill, which is called the Keeping Energy Costs Down Act but really should be called the “hike your energy bills act.” That is what it really should be called. That’s the bill that we’re debating today. This bill reverses the OEB’s decision and will continue to permit Enbridge to hike energy bills and make life more expensive for everybody. In essence, this energy bill is bad for new home owners, it is bad for existing gas customers and it is bad for the environment. The only people who benefit from this bill are Enbridge Gas. They are the only people who benefit from this bill.

Right now, your gas bill includes a charge worth hundreds of millions of dollars each year to cover Enbridge’s cost of expanding gas pipelines into new developments. On December 21, the Ontario independent energy regulator decided to put a stop to this subsidy, because it raises energy bills for existing gas customers and new home buyers, while also increasing financial risks for the whole gas system.

Ending this subsidy would save gas customers more than $1 billion over four years in avoided pipeline subsidy costs, which comes to more than $300 per customer. Ending this subsidy would also encourage developers to install heat pumps in new homes, which provide much cheaper heating and cooling, instead of gas. Ending this subsidy, in essence, would be win-win-win: It would lower energy bills for existing customers, it would lower energy bills for new home buyers, it would lower carbon emissions and it would avoid even more costs down the road when homes heated with natural gas inevitably convert to heat pumps.

There is, however, one loser: Enbridge Gas. Enbridge Gas stands to lose millions of dollars in profits. It is lobbying hard against the energy board decision and it has clearly been successful in doing that. Investing in gas pipelines in 2024 for heating is financially foolish, because they will become obsolete and a massive cost to all current and future customers as we move away from gas heating.

The Ontario Energy Board has made the right decision, based on evidence, to lower your energy bills. This government is choosing to take us on a terrible course. It’s making the wrong decision, based on backroom lobbying, in order to raise your energy bills to benefit Enbridge and nobody else.

We have seen this government bend under public pressure and reverse decisions like opening parts of the greenbelt for development. I believe it is time to do that again. I encourage you to contact your local MPP, and urge them to do the right thing for affordability and vote against this bill.

I’m now going to go and explain a little bit more about the bill in detail. In essence, this bill amends the Ontario Energy Board Act to allow the government to prescribe a revenue horizon, i.e., the number of years of presumed revenue used when assessing a natural gas rate application. The prescribed revenue horizon is used for determining (a) the economic feasibility of a proposed capital investment—for example, whether the costs can be reasonably recovered within the revenue horizon; or (b) a contribution in aid of construction.

The government says it will set a revenue horizon of 40 years, extending well past 2050, which is Canada’s target date for achieving net-zero carbon emissions. I don’t know why this government would want to give a subsidy to Enbridge to invest in infrastructure when, based on what the Canadian government is doing, this infrastructure is going to be a stranded asset because we’re moving to different energy sources. It doesn’t make any sense at all.

There are other things that people have raised, that stakeholders have raised about this bill and I’m going to read them now. Let’s start with what the Ontario Energy Board had to say about this. In its recent report, Ontario’s energy transition panel made recommendations that seem inconsistent with Bill 165. It says:

“The Ontario Energy Board should employ all tools within its existing mandate to implement activities consistent with Ontario’s goals for a clean energy economy and the requirements of the energy transition for Ontario....

“The Ontario Energy Board 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.”

That’s the Ontario Energy Board saying that we need to transition to clean energy, and this government is doing the exact opposite of this by asking customers to subsidize Enbridge’s gas expansion activities in infrastructure.

This is what ResCon had to say. This is Richard Lyall. He argues that the Ontario Energy Board decision will drive up home prices. He also failed to acknowledge the stark reality that Ontario is not yet prepared for electrification and must remain dependent on natural gas for some time longer. That’s the home building industry.

Then we have Ian Mondrow, an energy and policy expert at Gowling. He wrote, “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.”

In essence, what he’s saying is why is the government meddling in independent decisions that are made by electricity experts to the benefit of customers and to the benefit of the entire electricity grid?

“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”—makes sense.

This is what Adam Fremeth and Brandon Schaufele from the Ivey Energy Policy and Management Centre had to say: “Overriding an independent economic regulator is a big deal”—it’s a big deal. “It is not something to be done lightly. The government’s decision explicitly undermines the Ontario Energy Board and threatens credibility of future energy investment in the province. Moreover, it’s not obvious that this move is in Enbridge’s long-term interests. Once a precedent to effectively overrule the regulator is established, there’s little to stop future governments from using the tactic to different ends, perhaps against natural gas infrastructure.”

This is what Environmental Defence had to say: “This legislation would be bad for new home owners, bad for existing gas customers, and bad for the environment. The only one that benefits is Enbridge gas.”

This is what Richard Carlson, the energy director at Pollution Probe had to say: “The Ontario Energy Board 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 concerning to everyone.”

There’s a lot of people in Ontario who work in the electricity industry who are pretty concerned about what this government is doing. They’re concerned about the meddling in an independent decision. They’re also concerned about this government’s move to side with Enbridge over the costs of gas prices and energy prices in Ontario. It’s pretty concerning.

Now, I’m going to go a little bit into the details of the bill and provide some further analysis. As I mentioned, this bill is in response to a December 21, 2023, decision and order by the Ontario Energy Board with respect to Enbridge Gas’s ongoing 2024-28 rate-setting proceedings. The Ontario Energy Board set some of the principles governing who should pay what during the transition from fossil fuel heating to net-zero sources. Currently, existing gas consumers absorb the capital costs of new natural gas connections based on the premise that these costs will be recovered from the new customer over the subsequent 40 years. Since Canada has mandated a phase-down of natural gas heating to reach carbon net zero by 2050, the Ontario Energy Board determined that it was too risky for existing consumers to front the costs of new gas connections that might become stranded assets. It ordered Enbridge to reduce its revenue horizon from 40 years to zero, meaning that new gas customers or developers making the choice on behalf of a future new home buyer would need to pay for their own gas connection up front if they chose to install gas. It almost gives you less choice instead of more choice.

The Ontario Energy Board noted that reducing the revenue horizon would not only reduce costs and risks for existing gas consumers; it would make the cost of natural gas connections visible to developers and new home buyers who might be better served by choosing an electric heat pump, whose lifetime operational costs are lower than that of a gas furnace. We have been proposing to the Ontario government that they move forward with bringing in the heat pump option for a low cost or no cost to consumers so that we can transition away from fossil fuel use into a cleaner energy system. It is what other provinces are doing, and it is what we should be doing here in Ontario as well.

Either way, the Ontario Energy Board decision ensures that the cost of installing a new gas connection would be paid by those who benefit from that choice and not by other consumers who don’t benefit. That makes a lot of sense to me.

The next day, the Minister of Energy, probably under some heavy lobbying by Enbridge, announced that he would overturn the Ontario Energy Board decision, arguing that it would drive up cost of new homes by an average of $4,400 per gas connection where the developer has chosen natural gas heating.

Let’s also point out the Minister of Energy’s chief of staff is a former lobbyist for Enbridge. It’s useful to point that out. Nothing weird happening there, no backroom deals happening there—

Interjection: Nothing to see here.