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Bhutila Karpoche

  • MPP
  • Member of Provincial Parliament
  • Parkdale—High Park
  • New Democratic Party of Ontario
  • Ontario
  • 2849 Dundas St. W Toronto, ON M6P 1Y6 BKarpoche-CO@ndp.on.ca
  • tel: 416-763-5630
  • fax: 416-763-5640
  • BKarpoche-QP@ndp.on.ca

  • Government Page

My question is to the member from Beaches–East York. When the Liberals were in power, they politicized electricity planning. Liberals disregarded evidence. Liberals disregarded professional independent analysis. The Liberals directed the IESO to write blank cheques for new gas plants and signed hundreds of overpriced private contracts with no OEB hearings to find out if these were a good deal for consumers. As a result, hydro bills skyrocketed. We all remember also the gas plant scandal where hard drives were damaged and deleted and a staffer went to jail, Speaker.

My question to the member is, what lessons did your party learn that you can share with the Conservatives so they can avoid making the same mistakes?

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I thank my colleague from the Conservatives for that question. First, let me start by saying I did receive many emails on this issue and, by far, the main concern expressed by Ontarians is that this is an unprecedented move by this government interfering with an independent regulator.

Think about what that message sends to anybody who is interested in making investments in this province. They’re going to now move forward knowing that, depending on who has the direct line to the minister’s office, this is the government that is completely controlled by influence rather than the interests of what is good for the people of this province.

Unifor workers have raised the issue that when there is a gas leak, Enbridge has been contracting out that problem so that they can evade the Ontario Energy Board regulations. Think about that. And what happens? It’s the taxpayers, it’s the public who foots the bill. So we have added costs and all Enbridge has is more profit.

Speaker, the government can also listen to their own energy panel, which has said that Ontario must transition to clean, green energy.

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I want to thank my colleague from Nickel Belt for her question. She’s absolutely right: There is nothing in this bill that actually addresses the affordability crisis.

As I stated at the start, Ontario is in an affordability crisis. Energy costs are high, and consumers, the people in this province, are struggling to pay their bills. So why would the Conservative government, during an affordability crisis, bring forward a piece of legislation that actually drives up energy costs, that actually increases the bills that Ontarians are faced with, and on top of that, making matters worse, is also interfering with an independent regulator’s decision at great legal risk? Thank you.

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I rise today to speak to Bill 165, the Keeping Energy Costs Down Act.

Ontario is in an affordability crisis. Energy costs are high and consumers are struggling to pay their bills. And yet, the Conservatives are bringing forward this legislation that is going to drive energy bills up by forcing nearly four million natural gas consumers to pay costs that the Ontario Energy Board says they shouldn’t have to pay. Not only that; this Conservative government is making the unprecedented move of interfering with a decision of the Ontario Energy Board, an arm’s-length independent regulator.

Conservatives claim that they’re keeping energy costs down, but this legislation is doing the exact opposite and is doing it at great legal risk.

Speaker, when looking at this bill, Bill 165, a big question came to mind, and thanks to the recent investigation by the Narwhal, I believe we have an answer. But before I get to that, I’d like to first ask the most obvious question presented in this legislation: Keeping energy costs down for whom? Not for Ontario consumers. They’ll be forced to pay costs the OEB has ruled they shouldn’t have to pay.

Right now, gas customers’ bills include charges worth hundreds of millions of dollars each year to cover Enbridge’s costs of expanding gas pipelines into new developments. The OEB decided to put a stop to this subsidy because it raises consumers’ energy bills and increases financial risks for the whole gas system.

Bill 165 would allow the government to add $1 billion in costs to the gas bills of nearly four million consumers, costing each an average of more than $300. It would also allow the government to approve a gas pipeline project that the Ontario Energy Board has deemed too expensive, not economically viable or otherwise not in the public interest. This would leave consumers on the hook for costly, uneconomical projects they don’t even benefit from.

Energy lawyer Kent Elson explained this clearly in the Globe and Mail, as he said, “Gas pipelines are paid off over roughly 60 years ... so a pipeline built today will be paid off in the 2080s ... long beyond the point at which fossil fuel use is set to drastically decline. Investments in new gas pipelines today will almost certainly go bad, and Bill 165 forces Ontario’s gas customers to make that bad investment.”

The OEB has a mandate of protecting consumers and making sure they aren’t gouged or silently stolen from. By listening to the experts, this Conservative government had the opportunity to put money back in people’s pockets and finally start addressing the realities of climate change. Instead, at a time when the world needs to move toward renewable energy, they are using their majority to drive up carbon emissions and gas bills and to undermine an independent regulator. This legislation does not keep costs down for Ontario’s consumers.

So then who does it keep them down for? Not for Ontario homebuyers. If we want to make housing more affordable, we need to give people access to sustainable, low-cost energy sources like electric heat pumps that are much cheaper to operate in the long term than gas furnaces. The NDP put forward Bill 172, the Affordable Energy Act, which creates the framework to set up large-scale programs to finance and organize deep home energy retrofits, including installation of heat pumps.

We are in a cost-of-living and climate crisis. A focus on conservation and community-based distribution for renewable energy can substantially cut energy costs down. We have the technology to build a reliable and sustainable energy future in Ontario that does not leave Ontarians with a pricey bill.

The OEB’s decision tried to protect homebuyers by making the costs of natural gas connections visible to them and to developers. They wanted to ensure that the costs of installing a new gas connection would be paid by those who benefit from that choice, and not by consumers who don’t benefit. With Bill 165, Conservatives are ensuring that when a developer chooses to install a gas connection, they are not required to consider the cost consequences to homebuyers and tenants. They aren’t keeping costs down for Ontario’s homebuyers.

Who are they keeping them down for? Not for Ontarian taxpayers. They’re the ones who are going to foot the bill for the high costs of climate change and the damage to highways, bridges, hospital buildings and other infrastructure if we don’t get serious about the clean energy transition. Climate change is already costing us a lot, and it’s going to get so much worse. The Financial Accountability Office estimates that it could add more than $4 billion per year to the cost of maintaining Ontario’s public infrastructure over the rest of the century if we don’t adapt. And the FAO warns that this cost impact estimate should be considered in the lower range since it doesn’t factor in costs incurred by hazards like river flooding and wildfires.

There are already warnings that Canada is at risk of another devastating wildfire season this year. Taxpayers are already paying the price through devastating property damage, health emergencies, and more.

Methane gas, the fossil fuel used in natural gas connections, accounts for one third of Ontario’s carbon emissions. According to Environmental Defence, 19% of Ontario’s greenhouse gas emissions comes from heating our homes and buildings with methane gas. The NDP’s Affordable Energy Act will help us to stop burning it and will give residents and tenants the tools to cut their energy usage and costs. As has been said many times in this House by the NDP, “The cost of doing nothing is billions of dollars higher than the cost of proactively investing in our public infrastructure for climate adaptation.”

Bill 165 does not keep costs down for Ontario’s taxpayers. So keeping energy costs down for whom? Not for young Ontarians.

As this Conservative government’s own energy transition panel observed, the global energy landscape is evolving at an unprecedented pace. To take advantage of the economic opportunities that this change presents, the panel concluded that Ontario should commit to electrification and a clean energy economy by 2050. This includes following the transition panel’s recommendation that the Ontario Energy Board “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.”

Bill 165 carries economic costs for young Ontarians. It slows our move to a green energy economy and foolishly invests in gas pipelines that are going to become obsolete and present a massive cost to customers as we move away from gas heating.

This is not to mention the broader costs of climate change that young Ontarians will bear the brunt of, from the infrastructure maintenance that I mentioned earlier to mental health distress and health emergencies linked to extreme weather events, negative impacts on air quality and the increase in vector-borne diseases. We know that young people and people in marginalized communities will suffer the most from these effects as the climate crisis creates more instability in housing, food, employment and quality of life.

I tabled the Climate Crisis Health Action Plan Act, which would require the government to ensure that Ontario is prepared to address the current and future health impacts caused by climate change. The cost for young Ontarians and for all of us is simply too high, and Bill 165 is going to drive it higher.

So if not for homebuyers, if not for consumers, if not for taxpayers, if not for young Ontarians, who exactly does this Bill 165 keep energy costs down for?

Speaker, we have a pretty clear answer to that question. The Narwhal reports that hours before the government announced its unprecedented decision to overrule an independent regulator, senior officials from the Premier’s office worried that the OEB’s decision would create a “magnitude” of costs for developers and for Enbridge Gas.

Yes, you heard that right. An independent board of people with expertise and experience and a mandate to protect consumers made a decision to put money back in your pockets, and this Conservative government jumped into action and went to extraordinary lengths to keep energy costs down for a giant gas monopoly.

Hours before the OEB decision was even announced, the Minister of Energy’s chief of staff set up an urgent touchpoint meeting to strategize the government’s response. An official response was drafted, talking points were agreed upon and legislation was brought into the works, all before the OEB’s decision was made public. Staff from the minister’s office even consulted with Enbridge executives for input on the minister’s statement.

The government’s lawyers warned the Premier’s staff that intervening in the OEB’s decision carried legal risks. Their warnings were ignored. This Conservative government was just that determined to overrule an independent regulator and drive up gas bills for Ontario consumers.

At the committee meeting last week, a number of amendments were brought forward by the NDP to protect people from higher bills. Every amendment meant to protect consumers from higher energy prices was defeated by the Conservatives. So even when there were opportunities to include actual measures to keep costs down, this Conservative government voted against them.

Speaker, the Ontario Energy Board did its job. Its decision would protect consumers and the public interest by lowering energy costs and carbon emissions for current and future Ontarians. It is a win for almost everyone. But with Bill 165, the government is interfering with an independent regulator to raise gas bills for Ontarians so that a multi-billion-dollar gas company can make more profit.

This bill is giving the government the power to push energy costs up, and it’s forcing four million natural gas consumers to pay the costs that the Ontario Energy Board would otherwise disallow. This bill enables unprecedented political interference with an independent regulator in order to help a powerful gas monopoly at the expense of consumers. It does exactly the opposite of keeping energy costs down.

When the Liberals were in power, the Conservatives used to criticize their politicization of electricity planning. The Liberals disregarded evidence, disregarded professional independent analysis. The Liberals directed the IESO to write blank cheques for new gas plants and sign hundreds of overpriced private contracts with no OEB hearing to find out if these were a good deal for consumers. As a result, hydro bills skyrocketed.

We’re seeing now this Conservative government do exactly the same thing with the natural gas system. Speaker, this bill should not be titled Keeping Energy Costs Down Act. It actually should be titled “pushing energy costs up act,” because that’s what this bill is doing. It’s a shame that they are pushing energy costs up on behalf of a gas monopoly.

The government still can do the right thing for Ontario’s consumers, for Ontario’s homebuyers, for Ontario’s future generations and not proceed with this bill. This is the wrong direction. I urge this government to keep the interests of the people of this province and not their well-connected insiders before they make this grave mistake.

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I thank the member from Mississauga–Lakeshore for his presentation. I will ask a question similar to the question I asked my colleague from Toronto–Danforth.

When the Liberals were in power, the Conservatives used to criticize their politicization of electricity planning, and the Liberals’ disregard for evidence and professional, independent analysis. The Liberals directed the IESO to write blank cheques, renew gas plants and sign hundreds of overpriced private contracts, with no OEB hearing to find out if these were a good deal for consumers, and hydro bills skyrocketed.

So my question to the member is: Why is your government doing exactly the same thing with natural gas systems and driving energy costs up?

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I first want to thank my colleague from Toronto–Danforth for his presentation—I would say, an hour of good, solid argument as to why this legislation should not move forward, and if the government wanted to do the responsible thing for Ontarians, they should not proceed with this bill.

The member reminded the House that when the Liberals were in power, the Conservatives criticized the politicization of electricity planning and the Liberal disregard for evidence and professional, independent analysis. The Liberal government directed IESO to write blank cheques for new gas plants and sign hundreds of overpriced, private contracts with no OEB hearing to find out if these were a good deal for consumers, and what happened? Hydro bills skyrocketed.

So my question to the member is, are we seeing history repeat itself, and what is going to happen to consumers with this legislation moving forward?

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  • Feb/27/24 10:10:00 a.m.
  • Re: Bill 165 

I want to thank the member from University–Rosedale for her excellent presentation. And I have to say, I agree.

The Ontario Energy Board is an independent regulator whose mandate is to protect the interests of consumers, and with this decision, the OEB could not be more clear. They have told Enbridge that they cannot pass the cost down to the consumers and we cannot lock Ontarians to relying on fossil fuels for the next 40 years.

My question to the member is, we know that it is important to have faith in an independent regulator, and the government overturning the decision undermines it. We know that if this moves forward, it will harm the environment and it will hurt Ontarians. Could the member expand a little bit on what it means for tenants and homeowners at the end of the day if this bill goes through, in the context of the affordability crisis?

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I’m sorry to interrupt the member, but it is now 6 p.m.

Second reading debate deemed adjourned.

The House adjourned at 1800.

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Questions?

The member from Niagara West on a point of order.

Interjections.

Again, I’m going to ask the member from Ottawa Centre to please watch out for his language.

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Next question?

I’m moving on to the next question.

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Sorry to interrupt the member. The side conversations on the government’s side are getting very loud. I ask that you keep it quiet or take it outside the chamber.

Please resume.

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