SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
February 26, 2024 10:15AM
  • Feb/26/24 11:00:00 a.m.

Since day one, we’ve been focused on ensuring that we have a reliable, affordable, clean energy system in this province. It’s remarkable for me, Mr. Speaker, to hear the energy critic from the NDP now standing up and championing gas in our province when at every opportunity he has slammed the use of natural gas—not just slammed the use of natural gas, but he’s also slammed our nuclear sector.

What we have done by introducing the bill last week—and we’ll debate it at second reading today, Mr. Speaker—is ensure that there’s at least one party in this Legislature that’s standing up for homeowners and new homeowners and energy customers, and that is Premier Ford and the Progressive Conservative Party of Ontario. They can be beholden to the environmental groups; they can be beholden to those who are ideological. We are not going to do that. We’re going to stand up for the people of Ontario.

Interjections.

Mr. Speaker, there’s one party in this Legislature that is standing up for those who want to enter the home market. They want to buy a home in this province. That’s this party. The Ontario Energy Board’s decision from just before Christmas would have driven up the price of a home by, at minimum, $4,400. Our party won’t stand for that. But in parts of rural Ontario, it was going to drive up the cost by tens of thousands of dollars a year.

We are in a housing crisis in this province. Every time our party brings forward plans, like the housing supply action plan, it’s the NDP that stands up against it, Mr. Speaker, and this is the latest example of the NDP and the Liberals and the Greens standing up against the ability for people to buy a home in our province. We are going to stand with those who want to get into housing, Mr. Speaker, and make sure we’re keeping shovels in the ground in Ontario.

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I’m glad that the minister, in his speech, which I thought was very impressive and spoke to a lot of the issues at stake with this legislation—he mentioned farmers. And I think in my community of Niagara West, where I have a massive greenhouse sector, I have a massive amount of traditional agricultural and dozens and dozens of commodity groups—they need access to natural gas to ensure that they’re drying their corn, that they’re able to heat their greenhouses in the winter, that they’re able to provide the food that all of us rely upon. So I’m wondering if he could talk a little bit more about that.

I have already heard about concerns around the cost of connecting to natural gas and the infrastructure costs in some of my communities. If this legislation hadn’t been brought forward, how much more in costs would have been passed along to those who want to buy groceries?

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My question for the energy minister is—and first of all, I want to say that I’m glad that he’s living in a rural area and doing fine without natural gas at his residence, and that he’s not going to have to pay for any stranded infrastructure. But I want to ask him a really particular question, because he quoted one of the commissioners—one of the three, if that’s the right term—who wrote a dissenting opinion at the end of the OEB decision and order.

My question to the minister is, would he support the position of that commissioner to reduce the revenue of horizon to 20 years, leaving approximately a third of the cost of the new connections to pay up front and not on the backs of existing households? Would the minister support that?

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I listened intently to the member from Davenport, the opposition critic. I have to say, I’m not sure what kind of dream world the members opposite are living in, but to try to say that in rural communities like mine in Niagara West, it’s going to cost $300 to pay upfront for the cost of bearing the natural gas infrastructure, and to say they can simply all get heat pumps—again, we’ve gone through this. We’ve heard from the Minister of Energy about those days when he’s at a lower temperature, he needs his natural gas to kick in, he needs to see the assistance from other areas. And I know in my riding, that’s the exact same thing.

So the member opposite, does he genuinely not understand the meaning of cost avoidance? He kept going on about this $300 and how little it’s going to cost the people of Ontario to do this. So we understand he’s in favour of forcing this on the hard-working, first-time homebuyers of Ontario. How much is it going to cost communities in my riding if the NDP had their way and they forced this down their throats?

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Thank you to my colleague for this question. Of course, like me, he knows how important it is, because we had every municipality coming to us for delegations. We hear from all across Ontario the need to increase the natural gas in Ontario.

We’ve seen these projects now these days. I know a lot of farmers in my riding who want to have natural gas for their grain dryers. Now they’re asking for a price to bring natural gas, and it costs like $2 million to do one kilometre in a concession. We have the same policies or rules from 20 years ago, so I think it’s time to revise that and make it easier for people to have access to natural gas in the province of Ontario.

Of course, we all know that a couple of months ago, your party voted against increasing our nuclear fleet in Ontario. But I think we’ve got a great plan and we’re sticking to it, and I think Ontarians are pretty happy with what we’re doing when it comes to energy in this province.

When we heard the minister talk about his heat pump—I also have a heat pump at home, but some of these days when the temperature in the afternoon goes from minus 5 to minus 25, that heat pump just won’t do the job. You need the electric backup or you need a natural gas backup, especially in rural municipalities when sometimes the grid is not that reliable because you’re really in a rural region and we’ve got power outages. You can live with a generator and natural gas, but you won’t be able to do that with a heat pump.

That’s the reason why we think it’s important to have natural gas be part of our plan to bring affordable, reliable and clean energy to Ontario. That’s the reason why we see companies coming back to Ontario manufacturing.

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Thank you to my colleague for his remarks this afternoon. I know we both represent rural ridings in different parts of Ontario, obviously, and obviously natural gas expansion is key to the success of our local municipalities, agriculture producers and families. I was wondering if he could elaborate on why it is important the government bring this piece of legislation forward to ensure that those expansions can continue.

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Thank you for the question. I was wondering also what the government really wanted to do, and the answer is in the Environmental Registry of Ontario notes. It says there that the government wants to first go right back to the 40-year revenue horizon, which means that natural gas infrastructure is completely free to the developer but is paid for by us, the ratepayers, the homeowners. They’re going back. Now, they’ve added a whole bunch of things so that they can interfere with how the OEB operates, make it redo hearings, make it hold extra, what they call, generic hearings.

But in the Environmental Registry, it says, “We first want to go back to that 40 years.” In fact, every one of the people, including Enbridge, wanted to shorten that 40 years to a shorter time.

So what we’re saying is, let’s give developers a rational economic choice. They have to feel a little bit that there is a cost that has to be recovered. So that’s why we should be protecting, we should be allowing the Ontario Energy Board to be an independent adjudicator to protect consumers.

We also need natural gas for the next few years at peak times to make sure that the electricity is reliable when supply and demand fluctuate. It’s not like we’re getting rid of natural gas tomorrow. I think if the member is suggesting that, he is wrong. There is a place.

When a developer builds a new subdivision and decides whether to put natural gas in, we want it to be a rational decision, where the cost is—

For me, what’s important is that the OEB is trying to protect consumers. This principle should apply not just to Enbridge but to all other natural gas distributors as well. So for me, what’s important is the principle. I’m not out to get anybody. What I want is this principle that if you decide to build natural gas infrastructure, you should make a rational decision based on how long it’s expected to be used. And if you’re not going to recover the cost of that natural gas infrastructure from the gas bills paid by the customers, then you need to have some fraction of that cost paid up front. That has to be a clear payment so that a rational economic decision is made.

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Thank you to my colleague across the way for his remarks. Building off of the member from Niagara West’s question, I know there is some confusion amongst the Liberal Party members, especially their leader, around answering tough questions. So yes or no to the member opposite: Do you support natural gas expansion in rural Ontario? Yes or no?

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This bill doesn’t apply to the Natural Gas Expansion Program—so yeah.

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