SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
February 27, 2024 09:00AM

In her remarks, was the member proposing that we go back to the green energy deal that the former Liberal government proposed—the same green energy deal that saw the cost of energy three and a half times more expensive in Ontario than our U.S. counterparts; that made people in Ontario choose between heating and eating—and one of the primary reasons that the former Liberal government lost government?

We were brought in, and we stabilized electricity prices; we stabilized the grid. We’re diversifying our energy; we’re reducing greenhouse gas emissions and meeting our targets, versus our federal counterparts, who are not. And we’re doing this without a carbon tax, unlike the federal government.

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And their staff.

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It’s interesting how this government wants public engagement now. How much did you have for the greenbelt debacle? How much did you have for the “notwithstanding” clause? How much did you have for Bill 124? How much did you have for severing of the farmland? All of a sudden, now you want community engagement, you want public engagement.

Well, as I told you, there were tens of thousands of pages of documents analyzed in public hearings, dozens of interviews with experts across the energy industry—and hearing from stakeholders such as the Federation of Rental-housing Providers of Ontario and the Building Owners and Managers Association, as well as the IESO. That’s a heck of a lot more engagement than this government has ever done.

Walk the talk.

We have these regulatory bodies, which are supposed to be independent and arm’s-length, for a reason: because, unlike what some people think in this chamber, we don’t know it all. We need checks and balances. And that’s what the OEB is.

I cannot believe that this government has the audacity to meddle with the Ontario Energy Board’s decision. Who do you think you are?

Now, with the judges—you’re going to appoint your judges. Are you going to look at the FAO and all of a sudden have your buddy on there—the Auditor General, the Integrity Commissioner?

We need unbiased regulators.

How about you look at deep energy retrofits and subsidies for that—heat pumps, cooling—actual concrete action to help people and to prevent the crisis that’s upon us right now?

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It is a pleasure to rise in the House this afternoon, on behalf of the hard-working residents of Simcoe–Grey, to join the debate on Bill 165, Keeping Energy Costs Down Act, 2024.

In light of the debate and discussion I have heard so far, my comments today are going to focus on the question of a sustainable Ontario and the competing challenges of housing and energy costs for the residents of our beautiful province.

After listening to the debate yesterday, I’d like to start by reviewing the mandate of the Ontario Energy Board, or OEB, and the December 21, 2023, decision and order in Enbridge Gas Inc. application for 2024 rates – phase 1 that is the reason for Bill 165.

The OEB is a statutory creature of the province with a mandate to regulate Ontario’s energy sector as required under provincial legislation. It is, in fact, governed by seven separate pieces of provincial legislation, including the Ontario Energy Board Act, 1998, the Electricity Act, 1998, and the Energy Consumer Protection Act, 2010.

The fact is that the OEB is a regulator, not a consumer protection agency. The OEB has regulated the natural gas sector since 1960 and the electrical sector since 1999. As a government agency, the OEB has been delegated the authority and responsibility for setting the delivery rates that electricity and natural gas utilities can charge and to monitor the financial and operational performance of these utilities.

According to its website, the OEB’s vision is to be a trusted regulator that is recognized for enabling Ontario’s growing economy and improving the quality of life for the people of this province, who deserve safe, reliable and affordable energy. And its mission statement is to deliver public value through prudent regulation and independent adjudicative decision-making processes that contribute to Ontario’s economic, social and environmental development. Indeed, these three headings are central to the sustainability of our province—economic, environmental, and social sustainability. They are part of a continuum and cannot be considered in isolation, and any change in one will impact the others.

The OEB’s decision in the Enbridge rate application of December 21 last year was phase 1 of a multi-phase process to determine the parameters for Enbridge’s 2024 rates. Rate-setting is a complex process in which the utilities provide detail and extensive information about their maintenance plans, their projected capital costs for expansion, the cost of supply, the long-term market for their utility and forecasted changes to their sector, all of which is subject to scrutiny by interested stakeholders or intervenors, such as industry groups, consumer groups, environmental groups, municipalities, First Nations and others. In all, there were 33 organizations that applied for intervenor status, of which 20 were approved by the OEB.

Speaker, the decision itself is 145 pages. It is technical and extensive, and it refers extensively to the OEB’s guidelines for assessing and reporting on natural gas system expansion in Ontario, otherwise known as EBO 188, which sets out the factors and parameters the OEB must take into consideration in deciding such rate applications.

Section 2 of EBO 188 sets out the standard test for financial feasibility and has a number of subsections. Subsection 2.2 is of particular relevance to our discussion today and sets out the specific parameters for the common elements, including the following subsections:

“(a) a 10-year customer attachment horizon;

“(b) a customer revenue horizon of 40 years from the in-service date of the initial mains (20 years for large volume customers);...”

Speaker, the intent of these provisions is to set the assumptions for the horizon or, as referred to in the OEB decision, the amortization period for the recovery of the capital costs of the common elements or lateral infrastructure necessary to connect the customer to the utility service. In fact, the term “amortization” will be familiar to anyone in this House or in this province who has a mortgage, and it allows the customer to spread these capital costs over a set period of time rather than pay them all at once, up front. The amortization period is there to make life more affordable. Without this mechanism, many would not be able to afford to connect to an essential service to heat their homes, their water heaters and their clothes dryers.

To cut to the chase, Speaker, EBO 188 sets out the parameters for the OEB to determine the utility rates based on two critical and essential considerations: first, that a customer will use the utility for 10 years; and, second, that the capital costs of the necessary infrastructure to service the clients will have a 40-year horizon for standard clients or 20 years for large-volume customers such as industrial clients. That distinction—to shorten the amortization period for large industrial clients—makes perfect sense. Larger industrial clients will have more consumption and have the ability to pay their share of the capital costs faster. They can afford to pay faster, and the corollary to that is that the residential customers need a longer period in which to pay those costs. This practice has been in place for many, many years and, until this recent decision of the OEB, has been a guiding parameter for the OEB.

The amortization of capital costs has been central to the OEB’s process to make access to safe, reliable and affordable energy, as set out in its mandate. We, on this side of the House, think it should remain that way, pending further discussion.

That is why Minister Smith and this government are introducing Bill 165 to pause the implications of the OEB’s decision in phase 1 of Enbridge’s ongoing application, pending review of the regulations and policy, and then send it back to the OEB for reconsideration.

To be very clear, at issue in the recent OEB decision, which was a split 2-to-1 decision, which is very unusual in the context of the OEB—to not only ignore the amortization period parameter, but to eliminate it entirely and rule that all capital costs for connecting a new Enbridge customer must be paid forward up front. The OEB found that the connection cost of a new home will increase by approximately $4,400, on average, across the province, at a time when this province and this country is facing a housing shortage and the cost of home ownership is beyond the reach of so many Ontarians, young and old. That cost will be significantly more—tens of thousands, in fact—for farms and residents in rural ridings like my riding of Simcoe–Grey.

For example, a recent 311-home subdivision in eastern Ontario would see an upfront connection cost of approximately $925,000, and those costs will need to be carried by the builder for multiple years until those homes are occupied, at which point they will be passed on to the purchaser in the upfront purchase price.

A small greenhouse in eastern Ontario will have an upfront connection charge of approximately $36,000, a crippling charge in an industry that is growing in Ontario and is, in fact, one of our largest economic drivers—$45 billion annually, one in 10 jobs across this province in the agricultural sector. This is a stumbling block which will prohibit many from going into that sector.

A recent seven-year commercial strip mall plaza in southwestern Ontario has an upfront cost of approximately $49,000.

And a recent restaurant project in a commercial plaza, also in western Ontario, would have upfront connection costs of $18,000.

Speaker, these are just a few real-life examples of the scale and scope and the impacts of the OEB’s decision to eliminate the amortization period completely. They are untenable, they are unaffordable, and they will cripple the development across all sectors, be it residential, commercial, agricultural or industrial.

Subsection 2.2(b) of EBO 188 requires the OEB to consider a horizon for the amortization of the capital costs, and in its decision the OEB disregarded that completely. In her dissent, Commissioner Duff spoke to that issue and made the following comments:

“I do not support a zero-year revenue horizon for assessing the economics of small volume gas expansion customers. I do not find the evidentiary record supports this conclusion. The CIAC comparison table filed by Enbridge Gas did not even consider zero within the range of revenue horizon options. Zero is not a horizon. It is fundamentally inconsistent with the intent of EBO 188 by requiring 100% of connection costs upfront as a payment, rather than a contribution in aid of construction. There was no mention of zero in EBO 188—yet a 20- to 30-year revenue horizon was considered. To me, the risk of unintended consequences to Enbridge Gas, its customers and other stakeholders increases given the magnitude of this conclusive change.”

Speaker, I agree with Commissioner Duff’s comments. Zero is not a horizon. The OEB decision chose to ignore the status quo, ignore the current and long-standing practice, and it did so despite the lack of evidence as to the impacts of such a drastic departure. As Commissioner Duff stated, the risk of unintended consequences to Enbridge, its customers and other stakeholders is massive because of—in her words—“the magnitude of this conclusive change.”

It is for this reason that the Minister of Energy has introduced Bill 165 to pause the impacts of the OEB’s decision, to maintain the current status quo, and to look at changes to the policy framework for the OEB, in consultation with stakeholder groups across the province, and then to send the issue back to the OEB for reconsideration. This is the responsible thing to do, given the magnitude of this conclusive and drastic change and the dearth of evidence before the OEB about the potential unintended consequences.

No one in this government, despite what they might say on the other side, disputes climate change, its dramatic impacts on Ontarians and the importance of meeting our commitments to reducing our carbon footprint by 2030 and beyond. We’re committed to ensuring Ontario fulfills its obligations to make our province more sustainable, more resilient and better equipped to meet the challenges of climate change.

As I said in my comments on my private member’s motion to push the federal government to eliminate the carbon tax on transportation fuels—a motion, I’m proud to say, that was supported by the official opposition. Interestingly, the minivan caucus of the Liberal Party sat on their hands and abstained from voting—perhaps they had a minivan mechanical that day.

As I stated at the outset, sustainability is a critical topic for Ontarians and for hard-working residents of Simcoe–Grey, and it comes in many forms: environmental, economic, and social.

And 2030 is a big year for Ontarians, for a number of very important reasons. It is the year by which we are to reduce our GHG emissions by 30% from 2005 levels, and it is the year by which the CMHC, in its 2023 housing update, made a stark prediction about the housing shortage in Canada and Ontario.

Starting with greenhouse gas emissions, based on the Auditor General’s report of last spring, the State of the Environment in Ontario, we have reduced our greenhouse gas emissions by 27%. We’re 90% of the way to our target with six years to go now, and I’m proud to say that we will exceed that target, when we look at our projects in terms of converting our steel producers to green steel through arc furnaces and eliminating coke furnaces—a deal that is costing this province approximately $1 billion.

And I’m very proud to say that we have one of the most diversified electrical grids in Canada, utilizing nuclear energy for approximately 60%, hydroelectric for about 24%, renewables for 9%, and natural gas and biomass for approximately 8%.

These numbers in aggregate show that we are over 90% GHG-free in Ontario, and those numbers will increase when we get our four new small modular nuclear reactors online, which will power 1.2 million homes. The first one will come online by 2028.

I’m also very proud to say that Ontarians have one of the smallest per capita GHG footprints in Canada—we’re 10.1 tonnes per individual; the national average is 17.7, so we’re 43% below that. Ontario, with approximately 38% of Canada’s population, only emits 22% of our greenhouse gases.

We are being proactive, and we are being aggressive, and we have a plan to move forward.

Recently, at COP28, Minister Guilbeault was able to sign an undertaking to increase our nuclear capacity as a nation by 300%; he could only do that because, two days earlier, our very capable Minister of the Environment and Minister of Energy signed the very same one. Ontario has 90% of Canada’s active nuclear reactors.

Speaker, the real crisis facing Ontarians and Canadians is a housing shortage, and that is why it is a priority for our government. We are committed to building 1.5 million new homes by 2030. We ran on that in the last election, and we won convincingly—so convincingly that we bulged our caucus so that it sits between the NDP and the independents.

But let’s be very, very clear. CMHC predicted, in its recent 2023 housing update, that if Canada continues along its current rate of 200,000 new housing starts per year, 100,000 of which are in this province, we will be 3.5 million homes under-housed by 2030. At the same time, we’ll be crushing our GHG emissions. That is a crisis of massive proportions. If we look at issues of homelessness and affordability and food security today, if you magnify that, on the projection by CMHC, it will be a much more dire situation in 2030.

That is why this government is focused on making housing affordable. That is why this government is trying to push down upfront costs and eliminate barriers to new homeowners moving forward. And that is why the OEB decision that brings us here today is another roadblock to housing affordability. It disrupts the status quo by eliminating the long-standing 40-year horizon to amortize the cost for new customers. It forces homebuyers to pay for these costs upfront and puts another significant financial barrier in the way of prospective purchasers.

In the recent report on barriers to housing supply in Ontario, the Fraser Institute said, “Housing affordability has eroded significantly in many parts of Ontario in recent years, prompting a more thorough review of governments’ role in facilitating or impeding the construction of needed homes. While recent policy initiatives signal positive shifts, formidable obstacles persist.” And the OEB has just dropped another major obstacle in the way of home purchasers.

Ontario is now the third-biggest economy behind the US and Canada only. We’re attracting international attention and investment as a safe, reliable and sustainable partner for global businesses. This is all part of our plan to build a sustainable province environmentally and economically. So that third branch, social sustainability and housing, faces the real crisis, and that is why it is a priority for this government.

Speaker, this government is committed to the sustainability of our province and making life more affordable for Ontarians. We are committed to protecting our environment, meeting our GHG emissions targets. I have every confidence that we will not only meet that target, but we will exceed it, and we will do that while continuing to grow our economy and make us one of the most dynamic, diverse and sustainable economies in North America and internationally. To do that, we must solve the housing shortage. We must get critically needed homes built so that our residents, our workers, our students and our future can live there and continue on the path that we are on today.

If we contrast ourselves with the now-empty seats over there and their green energy program that drove 300,000 jobs south of the border, we know—and we heard it this morning in debate from our Minister of Economic Development—that we have brought 700,000 jobs back to this province since 2018, that we have made Ontario the third-biggest economy in North America behind the US and Canada, that we are seen internationally as a safe haven for industry and commerce.

We, on this side of the House, believe that the environment and the economy can go together. That is why we are focused on growing a green economy, reducing our greenhouse gas emissions.

The big roadblock to getting us where we need to go is housing supply, and we’re seeing that across—when I go to town hall meetings in my riding, I hear from the social sector, from the commercial sector, from the retail sector: “We can’t attract employees here, because they have nowhere to live.” The speed bump for this great province is that we need to make sure we have housing for our residents and for our future.

This OEB decision is putting a major roadblock in the way of our prospective homebuyers. We are not usurping the jurisdiction of the OEB. We’re pausing their decision. We’re re-looking at their policies. We’re going to stakeholder engagement, and we are going to go back to them to re-examine their decision, with new policies in place to ensure that we can continue to grow while respecting the need to reduce our greenhouse gas emissions and our carbon footprint.

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Would the member agree that the Ontario Energy Board is an independent regulator? When you decide to get natural gas, you cannot go to the competition and see if you get the best prices. We get the best price because we have an agency that oversees Enbridge and that says, “Yes, this is reasonable,” or “No, this is not reasonable.”

Now, with this bill, we will have politicians who welcome all sorts of lobbyists into their office—

Do you think that the method where we have an oversight agency, the Ontario Energy Board, that is there to protect the public is a safer method than leaving it to the government?

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Thank you to the member opposite for your question.

It is a regulator. It’s not a consumer protection agency. It has to consider a broad spectrum. When I went through the implications and the process for rate reviews—and I can tell you, in the town of Collingwood, we sold our local electrical distributor, and both transactions had to be approved by the OEB. The test is to see what the impacts are for the local ratepayers, given the long-term needs of the area.

There’s a balancing act in the pricing process, not just about the current supply, but about updating your current infrastructure to make sure that you are ready for the needs of tomorrow. In the electrical sector, it’s like looking at the smart meters, where you can now understand where a power outage is without even leaving your office.

To invest in those up-to-date types of infrastructure—that has costs, and those costs have to be borne by the ultimate user on a responsible timeline, not up front.

It goes, again, to the long-term viability of our utility providers, which serve our residents. If you have an out-of-date utility, you’re going to have brownouts, power outages and heating losses.

Infrastructure is a critical process, and it costs millions and millions of dollars to put in the ground. The whole exercise on the pricing regulation regime is, how do you amortize those costs responsibly to make sure that the residents of Ontario have access to safe, reliable and affordable energy? “Safe energy” means you’re not having explosions in your power boxes, or gas leaks; “reliable” means it’s going to happen when you flip the switch—and “safe” means it gets there with up-to-date processes. Those costs have to be borne and amortized over an appropriate period of time; otherwise, connecting becomes unaffordable.

This government, on this side of the floor, has the clean home energy heating initiative, which is giving a grant to people to buy heat pumps, but many heat pumps require backup sources, whether it be electrical or gas.

Let’s be very clear: 70% of Ontarians heat their homes with gas. They use gas for their dryers; they use gas for their water heaters. Gas is not going to disappear. We need to maintain that infrastructure, and we need to give Ontarians a choice about how they wish to heat their homes.

Heat pumps are more expensive. I can tell you that in my family, we recently had a discussion. In my area, a heat pump is $14,000 and still requires a backup of gas. So you can buy a $5,000 heating system, or you can upgrade. Many have chosen to upgrade, as have our minister and the PA. It’s a good thing. We’re not discouraging that. We’re promoting—

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When we look at what the tendency in the world is that is happening, we’re heading more in the direction of green energy. We have the energy board saying that we should not go to natural gas; that we should go more to green energy—and we need to protect the consumer, because we know it’s a dying industry. Go back 20 years, when coal—and then we went to natural gas. Well, guess what? Natural gas is the coal now. So we need to go to green energy.

What do you have against protecting the consumer? It doesn’t stop you from building houses. All you need to do is put an incentive to put heat pumps and other energy-efficient things. But no, you prefer protecting Enbridge, to the cost of consumers. Why do you do that?

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We’re going to go to questions.

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I listened intently to the government member’s speech, and I have to admit I was a little surprised to hear that quote—“The OEB is a regulator, not a consumer protection agency.”

My question is this: Do you believe that the job of a regulator is to simply look at the interests and to benefit the interests of the people they’re regulating and not the actual people of Ontario, who in many cases are the consumers? What the OEB said in their ruling was that this was not in the best interests of consumers. Why does this member think that the decisions of the OEB should be so much in favour of the energy providers and not at all for the consumers themselves? Please explain this.

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I listened intently to the remarks, so far, from everyone.

I’d like the member from Simcoe–Grey to speak to something that probably won’t be asked by too many others: about the leave to construct, about the changes in there. I think that’s important. I don’t know whether anyone else will touch on it.

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To the member opposite: The Canadian government has mandated a phase-down of natural gas heating and to have carbon zero by 2050. This cost that Enbridge is asking for—the OEB has decided that it’s not fair to ask the ratepayers to pay into something that is actually so risky and not going to be able to be built over years and years, since natural gas will eventually phase out.

We’ve seen $16 billion in profit to Enbridge. Why does the government think that the ratepayers, the people who pay the bills every month, can afford to pay more instead of taking it from a monopoly corporation that made $16 billion in profit last year?

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Thank you for the applause. I appreciate that.

We are debating Bill 165. It is called the Keeping Energy Costs Down Act, which is a little bit of creative writing, I think, and we’re going to get into it.

I was here during the kickoff debate. I listened to the minister speak, I listened to our critic speak—and I have to tell you, Speaker, I’m pretty aligned with our critic. He said several times, when he kicked off his debate, “Premier Ford wants to raise your gas bill. That’s what this is about.” Quite frankly, that is the beginning and end of this debate. There’s a lot of meat to put on the bones about explaining why, but that is what this is about. This is a track history with the Conservative government, where they continually put billionaires ahead of average Canadian people. For the average person in Ontario who is worried about putting food on the table, they couldn’t care less—but for billionaires like Uber, billionaires like developers, they cannot do enough for them.

There is an article that was in the Toronto Sun—as we know, a very far-left-leaning paper. I want to read this too. It was an op-ed by Peter Tabuns. It starts off: “Doug Ford Wants to Raise Your Gas Bill....

“Just before Christmas, the Ontario Energy Board (OEB) issued an important decision affecting the gas bills of nearly four million Ontario consumers.

“The OEB ordered natural gas distributor Enbridge Gas to bear the costs of expanding its natural gas infrastructure,”—basically saying, Enbridge Gas, you pay for this; it’s your infrastructure—“rather than imposing these costs on existing consumers.

“The OEB decision acknowledged the obvious: 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 to your pocketbook. And so, the OEB decided Enbridge’s proposal was not in the interests of consumers.”

I’m going to just repeat that—it’s not in the article, but this is not in the interests of consumers. We keep hearing from the Conservative government how great this is for consumers, but this non-partisan independent organization clearly spells out that, no, it’s not. You’re being sold a plastic carrot. This is not good for the consumers.

The article goes on: “The next day the” Conservative “government announced that it would reverse the decision and protect the interests of Enbridge. It plans to pass legislation in February that will raise energy bills across the province and make life more expensive for new home buyers.

“It all goes back to a subsidy that most gas customers don’t even know they are paying. Right now, your gas bill”—if you’re paying a 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 Dec. 21”—just before Christmas—“Ontario’s 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.”

So you have a system in place where affordability is top of mind for everybody. It doesn’t matter if you have a decent middle-class income—especially if you’re really struggling to make ends meet. But if you have a double income and you’re making good wages, you’re feeling it at the grocery store. Your price of natural gas, if you have natural gas—there’s not a person who says, “Oh, I don’t know roughly what it is.” They know it’s a lot, and when they look on that fee, they see that one of the fees is basically for the consumers, the ratepayers, to pay for Enbridge to carry their freight. What this independent board has said is that is not fair; that is not in the best interests of the consumers.

I was telling my colleagues earlier: This is no different, their argument about how if we amortize this and pass the consumers on to everybody—when I bought a house, it came with shingles, and the shingles were passed on to the cost to me. We didn’t amortize it by everybody who had shingles in the neighbourhood. It’s the cost of doing business.

And so what they’re telling Enbridge—Enbridge, which is incredibly wealthy. Enbridge’s profits last year—this isn’t just in general—was $16.507 billion. It’s not a mom-and-pop shop—$16.507 billion for Enbridge. We’re talking literally about billionaires here. What the Conservative government is saying: “Well, we can’t have Enbridge pay for this. Do you know who should pay for this?” The Conservative government is saying seniors should pay for this, renters should pay for this; everyone should pay for it except for the billionaires.

As New Democrats, we’re not into helping billionaires. They’ve got two parties already bending over backwards to help billionaires. We’re going to stay with working-class people. We think they need to have fewer hands in their pockets and keep a little money to themselves.

Going on: “Ending the 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.” I talked to our critic about this. It ranges between $300 and $600. Honestly, I don’t want to get into that debate because I can’t do the math on it—but $300 is a strong number that you can count on. So, imagine you’re paying your bill, you’re heating your house, you’re paying for a service, you’re understanding it, and then somebody like Peter Tabuns comes along and explains to you, “What’s happening with the Conservative government is, they’re adding $300 to your bill.” You would be outraged. And when you say, “Why? What’s the rationale for this?”—the rationale is that the Conservative government wants to keep developers and wants to keep Enbridge happy, and so they want you to pay for their expenses. That’s what they think is fair. You pay $300 out of your pocket so that billionaire companies can increase profits to their shareholders.

“Ending the subsidy will also encourage developers to install heat pumps in new homes, which provide much cheaper heating and cooling, instead of gas.”

Basically, what they’re saying is, you have your thumb on the scale. Natural gas is starting to phase out. When I first got my first house, it was mainly heated by electricity, and electricity prices were going up. We had a little natural gas fireplace. There was a time when natural gas was cheaper, but the world is moving on. There are new technologies that are less expensive, and more and more people are going to be looking at heat pumps as they move along. As the end of life for your natural gas furnace starts to decline, you have to look at other alternatives.

The same way that people moved from oil furnaces to natural gas or to baseboards, people will start looking at things like heat pumps and other energy sources to heat their house. That’s just the reality.

What the OEB is saying to the people of Ontario and to Enbridge is, this trend is ending. We cannot sign up people and have people pay for this for decades as they transition away from it. It’s not fair to the ratepayers to carry the freight for something—that you need to invest in your own infrastructure.

The article continues: “Ending the subsidy would be a win-win-win-win. It would lower energy bills for existing customers,” because we wouldn’t be paying the $300 each. It would “lower energy bills for new homebuyers, lower carbon emissions,” which more and more people in Ontario are very concerned about. It is the end of February, for anyone watching at an earlier time or reading Hansard. It is the end of February, and we’re in the middle of a rainstorm in Toronto. In Sudbury, which is northern Ontario—not as far north as my colleague here, but Sudbury is northern Ontario—it was raining on Christmas day. I walked my dogs in the mud.

Climate is affecting what’s going on here, and people are moving along, and more and more people, especially youth but, as well, people who are older, are opening their eyes to the fact that we have to do something about carbon emissions. It is not a tomorrow problem. It’s a today problem. We had youth here yesterday talking to me, basically saying that they’re not sure if they should have kids because they don’t know what world they’ll be bringing their kids into, when it comes to how carbon is affecting our environment.

This plan basically is about avoiding even more costs down the road when homes heated with natural gas convert to heat pumps. The loser, though—and the article basically says—is Enbridge Gas. We get this. Enbridge Gas is a billion-dollar company—and just to repeat, it’s a $16.507-billion company, one-year profit. It’s the loser in this decision. And first out of the gate, Doug Ford and the Conservative government—“We’ve got to stand up for these billionaires, man.” They are front and centre. And we saw this during the greenbelt grab. We saw this in the last Working for Workers bill, when their members voted down an amendment to have misclassified independent contractors as workers so they can make at least minimum wage, right? Billionaires are always first in line when it comes to the Conservative government. They cannot wait to do enough for billionaires. They don’t care about regular people. They’re helped; they’re hurt—it doesn’t matter. It’s billionaires, it’s donors, front and centre.

So, Enbridge Gas, absolutely, is the loser. It would lose millions of dollars in profits, and it’s lobbying hard against the energy board decision.

“It’s no surprise that the Premier’s Minister of Energy”—whose name is here, but I won’t say it, because we can’t for parliamentary reasons—“has announced that they will pass legislation to overturn the decision.” This is what we’re debating right now.

The reality, though, is 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 move away from gas heating.” That’s not to say that you can’t invest in gas. There’s this false choice that’s being presented by the Conservative government—where, because we’re not supporting these fees being downloaded on ratepayers, we’re against natural gas. If somebody wants natural gas—if that’s the alternative for them, absolutely they can. We’re saying that everyone else doesn’t have to pay for it.

Interjection.

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Thank you. We’re going to move to the next question.

I need to apologize to the member. I need to interrupt the proceeding to announce that we’ve reached six and a half hours of debate.

Pursuant to standing order 50(c), I am now required to interrupt the proceedings and announce that there has been six and a half hours of debate on the motion for second reading of this bill. This debate will therefore be deemed adjourned unless the government House leader directs the debate to continue.

The minister?

You can resume your answer, member for Simcoe–Grey.

We’re going to move to further debate.

Interjections.

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I want to thank the minister for her hard work and for the question.

She’s absolutely right; we’ve seen the carbon tax impact the drying operations of our local farmers. A lot of those drying operations are using gas. These facilities are in place, and the intent here is to make sure—

At the same time, we have massive, massive plans to expand our nuclear sector, which will increase our already clean grid from over 90% upwards to 98%. It’s all part—

For years and years, implementation of capital costs have been paid. So if you’re on gas now, you’re paying for the infrastructure that you use and everybody else uses across the province. It has been going on for years. This is not new.

And if you want to tell us about the federal government—you’re taking us backward decades. We’re going to meet our target. We’re going to crush it; the federal government is not. They are so woefully behind, so we will not take any lessons on GHG emissions from the federal government.

I’ll tell you another thing. In Alliston, Ontario, when the federal government switched from hybrid cars and GHG emissions for the automotive sector to electric vehicle quotas, they’re crushing the industry and they’re kneecapping a planned way forward—and this is a planned way forward—just like the feds. The feds should be watching this. They should be listening to us, because we’re leading the country.

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I want to thank the member first for his motion that he passed. I know he has spoken to a lot of Ontarians and a lot of farmers who use natural gas; actually, they rely on that. They feed us, and we rely on them for food security. Those same farmers—and I speak to many of them—also say that the carbon tax is holding them back from investing in things that would actually reduce greenhouse gas emissions, and hurting their ability to invest in innovative technology. But do you know what else stymies their growth? Access to energy.

I know the member’s riding is adjacent to mine. While we grow lots of onions and asparagus, he has a lot of the potatoes.

I want to ask him, what is he hearing from his local agricultural sector on the need for natural gas?

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The member opposite is heckling me about heat pumps or something. What I’m saying is that people should have choice, and the people who are paying for natural gas in their house—people like me. I have a natural gas furnace. I have a natural gas fireplace. I don’t want to pay for Enbridge to have more profit. I’m going to pay for what I get and that’s all. That company is doing okay. They can get their hand out of my pocket and put it in their pocket and pay for the expansions they want to make.

Natural gas is no longer the cheapest heating source; it’s financially foolish. Now, this creates a cycle as well, because as people move away from natural gas—the same way people moved away from oil in the past, people are going to begin to move away from natural gas, and as they move away from natural gas, there will be fewer and fewer ratepayers. There will be fewer and fewer people using natural gas, and the cost of natural gas will go up; it will climb. There are fewer and fewer people paying for it.

When I was 15 or 16 years old, my parents had an oil furnace with this big oil tank, and I remember they would do the math and try to figure out how much we needed. If it was a cold winter, we would come get a little bit more oil because it was so expensive, but we didn’t fill it up; we got a little bit more because the cost was so high compared to everything else, and eventually, that cost forced us to abandon oil completely. And that’s what’s going to happen to these ratepayers.

The Conservative government is telling people for natural gas to get in there—and if they need to, if people want to, they can, but saying you should, recognizing that independent organizations are saying, “This is going the way of the dinosaur.” This is a gas source that came from the dinosaur, but it’s going back the way of the dinosaur. People are moving to new technologies. They’re moving on, just like we always have in the province, and that cost is going to amplify for these people. The government’s own expert electrification panel noted “growing indications that it is unlikely that the natural gas grid can be decarbonized and continue to deliver cost-effective building heat.”

So this isn’t just us sitting around coming up with this in a backroom. What we’re doing, as New Democrats, is, we’re listening to experts. We’re listening to the Conservative government’s own expert electrification panel. We are listening to the OEB. We’re listening to independent voices telling us stuff. We’re not making up our facts and choosing the ones we want. Independent organizations have no stake in the game, aside from being experts. We’re listening to them and making good decisions. Quite frankly, that’s what the government’s role is to do—listen to good voices and make good decisions.

It’s cliché to talk about the eagle and the owl, but the idea is, the owl is supposed to make wise decisions, and the eagle, representing the opposition, is supposed to help make improvements. It’s really tough if you’re not making wise decisions in the first place—a lot of heavy lifting on the eagle’s side.

Our neighbours like New York state and Montreal are prohibiting gas in new construction. The world is moving on, like I said. Passing legislation to reinstate a subsidy is completely out of step and risks financial disaster down the road. The Ontario Energy Board made the right decision. It’s based on evidence. I want to highlight that: It’s an evidence-based decision to lower energy bills.

The Ontario government is on course to make the wrong decision, based on backroom lobbying, to raise your energy bills. That’s what it comes down to.

We don’t want people on natural gas to have to pay more so that Enbridge can have more profit because apparently $16.507 billion isn’t enough for them.

What we’re saying for people who are having a hard time making ends meet is that Enbridge should keep their hands out of their pocket and the Conservative government shouldn’t be helping them take money out of your pocket.

I am almost at the end—two more paragraphs.

Over the years, we’ve seen government bend under public pressure and reverse decisions like opening parts of the greenbelt for development. And so, they have bent to pressure. I think this is going to be rushed through as quick as they can so the public doesn’t find out about this, but when the public finds out they’re going to be paying more and not getting anything for it, they’re going to be outraged, especially when they’re having a hard time making ends meet. I’m outraged that this is happening. I cannot believe the backlash when people find out what’s going to happen with this—that they’re paying for a billion-dollar company to be subsidized.

Where’s the subsidy for the person at home? Where’s the subsidy that we brought forward? We brought forward a subsidy so people would have heat pumps and access to them, like they’re doing in the Maritimes, and they voted against that. They said, “No, no. You’ve got to stick with Enbridge. Enbridge is our pal.”

The Conservative government has made this argument several times about, “We’re going to lower the cost for homes because the cost of having natural gas in the home is going to be passed on to the homebuyer.” They are out of their mind if they think that any homebuyer is going to think that that money is going to leave developers’ pockets and be passed on to them. There is no way that’s going to happen. Do you know where it’s going to be? It’s going to be in the developers’ pockets. It’s going to be a couple of grand in their pocket, and they’re going to peel off a couple of grand and they’re going to feed it back into donations for their buddies who helped them out. That’s what this is about. This isn’t about helping regular people. This is about helping people who donate to this party. This is about helping people who are billion-dollar companies.

“Hopefully the evidence and the truth will prevail, the government will respect the independent decision of the Ontario Energy Board, and you”—I’m talking to the people of Ontario—“will be protected from this rate increase.” That was by our energy critic. I’m not supposed to say his name, but it’s just spelled here: Peter Tabuns, “the NDP MPP for Toronto–Danforth and is the party’s critic for energy and climate action”—just for credit on what was in there.

So what we’re talking about in this bill, and I’ve said it again and again—and really, I started with this statement. I stole it from our energy critic, because he started with it: “Premier Ford wants to raise your gas bill. That’s what this is about.”

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Thank you for that interesting speech you just did.

My question is, do you have faith in this government with their climate action? Are you proud of their climate action?

Interjections.

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I would like to ask a really simple question to the member for Sudbury. He mentioned that he actually uses natural gas to heat his home. I was wondering how much he paid to get it connected to the natural gas network.

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It’s a pleasure to join the debate. I really do enjoy the member opposite, and I’ve had an opportunity to be in Sudbury, when I was cabinet minister, to do some announcements with him.

What shocks me is, he is saying one thing to his constituents and another thing to this Legislature.

What I think is a problem with the New Democratic Party, obviously, is the two-headed monster that they’re wrestling with, which is the environmentalists and then those who are from northern Ontario, like the member from Nickel Belt, like the member from Sudbury.

I want to know from the member from Sudbury, Mr. West—he has asked in this Legislature, he has asked the minister for expansion of natural gas. We’re offering the expansion of natural gas, and he is speaking, now, against natural gas expansion. We all know from those who live in rural Ontario and those who live in northern Ontario that they need natural gas because of the escalation in prices in the province of Ontario.

So my question to the member opposite: Is he going to vote for this act so his constituents can gain access to reliable and affordable energy in his community?

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