SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
May 8, 2024 09:00AM

Speaker, just so that you’re entirely clear about this, this bill is about making sure that Enbridge customers pay more and get poorer and that Enbridge makes a lot more money and gets a lot richer. That’s what this bill is about.

The Premier is planning to raise your gas bill this year. That’s what this bill makes possible. That’s what this bill is set up to do.

The Premier decided to protect Enbridge to make sure it could bring in billions of dollars from its customers and take money out of the pockets of those customers across this province. His buddies at Enbridge are being protected, and he’s sticking you, each and every Enbridge customer in this province, with the bill. That bill is calculated to be between $300 and $600 over the next four years.

Everyone in this room is well aware of how stretched people are, well aware of how they’re pushed hard by high rents, by mortgages that are difficult to cover, by rising grocery prices. They need this like they need a hole in their wallet. They need protection from Enbridge, and this government is not only not protecting them, it is making sure that Enbridge gets to collect billions of dollars from them—billions of dollars.

If you think that you should be paying more on your Enbridge bill, then you should support this legislation that’s come forward. And if you don’t think you should be stuck with those extra charges, if you think that Enbridge should be the body that actually coughs up the few billion dollars that they want to expand the gas supply system, then you should oppose this bill. Enbridge pays. That’s the situation that we would have if this bill did not go through. If the bill goes through, the customers pay, just as they have in so many other circumstances.

I don’t think I’ve made it plain enough: This bill is about raising your gas charges, making life more expensive for you and making sure that Enbridge shareholders make a lot more money.

This bill reverses the decision by the Ontario Energy Board—the agency set up in this province to regulate utilities and protect customers—the decision they made in December to protect people in Ontario from higher gas bills. Now, it’s the job of the Ontario Energy Board, that regulator, to look out for consumer interests when energy companies apply to raise their rates, as they do constantly. The job of the Ontario Energy Board, their mandate, is to protect the customers. They’re told, “Look out for the consumers. Look out for the public. Make sure they aren’t gouged, they aren’t ripped off, they aren’t pillaged, they aren’t silently stolen from. Look after those customers.” That’s their mandate, and that’s whether that utility is electrical or gas: protect the customers. And that is what the Ontario Energy Board did last December in, I would say, a Christmas surprise, a Christmas gift. They stood up and said, “We can read our mandate. We think this charge against the customers can’t be justified. We’re not going to approve it.”

Now this government is completely horrified that those customers are being protected. They’re horrified that Enbridge will not continue to make the crushingly huge profits that they’ve been making. And this government wants to reverse that. They know what has to be protected at all costs, and that’s the profits going to Enbridge. The customers? Not an issue, not a concern.

Since we had this bill before committee, the news service Narwhal published an article on the close co-operation between senior Conservative government staff and Enbridge. It was as if they were working in collusion. It was pretty clear from the article that the first concern of the government was to protect Enbridge and its profits. In what they reported, there weren’t big issues about, “How do we protect rural ratepayers? How do we look after small businesses? How do we make sure that new home buyers don’t pay more than they would have paid before?” No, their focus was on Enbridge’s profits and how expensive this decision was going to be for Enbridge, and then they looked for stories that would buttress the argument that they made.

Enbridge is a multi-billion-dollar company, and frankly, the one that we deal with in Ontario is a subsidiary of the larger Enbridge that runs gas transmission lines across North America—both of them multi-billion-dollar operations with multi-billion-dollar profits, not exactly on the edge of poverty. These companies have a few bucks available if they wanted to actually help customers, but that is not what we’re dealing with here. This is not about the government trying to protect customers and trying to keep energy bills low. This is about making sure that the company that wants to squeeze every last penny out of you is protected and given licence to do that. In fact, this government will ensure that your gas bill is going to go up.

Two weeks ago, we asked the Premier about his government’s efforts to ensure that Enbridge was protected and consumers got stuck with the bill. What do you have to say, Premier, on this?

So we asked: “In December, the Ontario Energy Board ruled that consumers should no longer have to subsidize Enbridge’s gas expansion. But instead of listening to the experts, the government decided to keep forcing consumers to pay the subsidy.

“Yesterday, the Narwhal revealed that the Premier’s top officials weren’t just communicating with Enbridge on this; they were actively coordinating their response together.”

Question for the government: Did the government give preferential treatment to Enbridge when it intervened pre-emptively to undermine the regulator and drive up costs for customers?

I’ll go on to the other two questions that were asked because I’ll summarize the response of the government.

The next question: On the morning of the Ontario Energy Board ruling, the chief of staff to the Minister of Energy reached out to the Premier’s staff and called an urgent meeting to prepare a response in case the OEB ruled against Enbridge in favour of consumers. Oh, horrors, protecting consumers; what has the world come to?

It just happens that the minister’s chief of staff is a former lobbyist for Enbridge. Was this chief of staff in a conflict of interest when he decided to put the interests of his former employer ahead of Ontario’s gas consumers?

Third part: Government lawyers warned the Premier’s staff and the former Enbridge lobbyists now working as the minister’s chief of staff that intervening in the OEB decision carried legal risks. They did it anyway. That’s why we’re debating this bill today.

They announced the plan to overrule the Ontario Energy Board, the regulator acting to protect customers—overrule them only 15 hours after the decision was published. I’ve never seen a government so determined to overrule an independent regulator and drive up gas bills for Ontario consumers.

Why is the government risking legal action in order to give preferential treatment to a gas monopoly over the interests of hard-working Ontarians?

Speaker, you had to be there to enjoy the show. No one will be surprised to hear that the Minister of Energy was bobbing and weaving like crazy to avoid answering the question. There were all kinds of diversions. Rabbits were pulled out of hats, red herrings were dumped on carpets, smoke was blown. The minister was a cat on a hot tin roof.

My experience around here is that when a minister can’t answer a question—and I’ve seen many over the years not be able to answer a question—then you have a minister with a big problem on their hands, because they like to be able to say, “You’re totally wrong; here’s the reason,” but when they dance and bob and weave and get into the red-herring stuff, you know that they understand they have a big problem on their hand.

We all remember the kind of—and I’ll just call it ambiguity in answers from ministers at the start of the greenbelt scandal. They wandered all over the landscape, sort of like a subdivision with no clear idea where it wanted to go. Why? Because what they were doing was wrong, wrong enough that they had to back off, bring in legislation to nullify those decisions, wrong enough that there’s now an RCMP investigation of the whole thing.

So far, we haven’t heard about Enbridge executives showing up at a wedding hosted by the Premier, but we’ve heard enough to know the government’s whole efforts are directed at enriching Enbridge and making life harder for families in this province.

This bill will strip Ontarians of protection from Enbridge’s attempts to gouge customers across Ontario. The minister, the Premier don’t have to do that. The Premier could take another course. The Premier could protect you, the Enbridge customers. He could protect your families and protect families across this province.

He knows that people are having a tough time. He talks about it regularly. We have debates, discussions, here in the Legislature, about the difficulties people are facing. People are pushed hard, as I said in the beginning. They’re facing rising rents. My colleague from Parkdale–High Park raised that just a few minutes ago. People are pushed to the limit.

They’re having a tough time with grocery bills. You’ve got major retailers that have engaged in squeezing people, squeezing their suppliers, squeezing the customers. The Premier knows that people are having a tough time staying afloat, and yet, today, we’re debating a bill that will protect the profits of Enbridge and raise gas bills that people will have to pay. It will take money out of people’s pockets. That’s the reality.

At the committee meeting a few weeks ago, we brought forward a number of amendments to protect people from higher bills, and I want to thank Unifor for suggesting two very useful amendments that would help reduce people’s Enbridge bills, one of which was to set up a system for monitoring and preventing leakages of natural gas from the system.

Let’s face it: Having gas leaks is bad in terms of safety, it’s bad in terms of people’s health, but it’s also bad in terms of the bills that people pay, because all of the customers are charged for the total cost of the gas coming through the system. Enbridge wants people to burn as much as they can: The more they burn, the more money is made. If the gas leaks into the atmosphere, well, hey, that’s just another form of consumption.

So did the government support that amendment which would be good for the environment, for health and for people’s bills? No, they did not.

Unifor also asked for action on the contracting out of utility functions. I raise this because a little more than two decades ago, there was a landmark hearing at the Ontario Energy Board about how Enbridge was hiving off parts of its operations to become what one would call a “virtual utility.” The ability to actually regulate the utility and control the costs they were taking out of people’s pockets was dramatically reduced when they contract out. In fact, it was alleged at the time that Enbridge was contracting out work—both direct maintenance and administration—to companies that they, in turn, controlled but which were outside the regulatory framework; in other words, there was no price control on them, which is why a regulator is there.

That was a good amendment, one put forward by Unifor which would protect customers from being gouged. No one will be surprised to know the government voted that down.

Now, we brought forward another amendment, and I want to thank Environmental Defence and Stand.earth for their suggestions for protecting customers from higher bills and that Enbridge pay for their own expansions. Pretty straightforward. Enbridge’s consultants know that there is a time limit to the gas distribution system in Ontario and across North America, and if the system starts phasing out more quickly—and it’s headed in that direction—the remaining customers get stuck with higher bills.

The amendment was to ensure that Enbridge, its investors, paid those extra costs, not the customers. No one in this room will be surprised to learn the government voted it down.

This bill is about making customers pay more, it’s about Enbridge getting richer, and when we actually get into the details of the bill in committee with amendments that would protect customers, they were refused by the government. It is focused on making sure Enbridge makes as much money as it possibly can.

I’m going to go back a bit to the decision by the OEB, the Ontario Energy Board, the regulator responsible for protecting customers from utilities.

Just before Christmas, the Ontario Energy Board announced the decision that would make Enbridge Gas responsible for the cost of expanding its gas system and protect almost four million customers from hundreds of millions of dollars in higher heating bills. Actually, I’m understating—we’re talking billions.

This is a very important point: Enbridge has investors. It has cash flow. If it wanted to put money into those new connections and collect from those new customers over 40 years, they could do that; no problem. They don’t have to take the money out of your pocket. They don’t have to take the money out of the pockets of the constituents that you represent. They could take it out of their own cash, but instead, they want it to come from existing gas customers.

I should say—again, I refer back to that 2002 decision by the Ontario Energy Board: They noted a pipeline Enbridge had been built that was uneconomic, one that actually drained money out of existing customers, and they said, “No, you can’t take that money from customers. The shareholders have to pay for that.” This is not unprecedented.

If Enbridge wants to put money in, they can put their shareholder money in and see if it comes back. But no, they treat customers like an ATM. They get permission to go to the machine, hit the button and take the money out of your pockets. That’s what’s going on.

The Ontario Energy Board, whose job is to protect customers from gouging, whose job is to protect customers from being taken advantage of, said, “No, we’re not going to support the increase that you’re asking for, billions of dollars for expansion of the system. It’s going to cost $300 to $600 per customer over the next four years.” They said, “Enbridge, it’s your expense. You pay. It’s yours”—entirely legit and something that’s been done before. The very next day in December, the minister announced that this government would be taking steps to reverse the decision of the Ontario Energy Board, the regulator they put in place.

Now I have to say, for those who have been around for a while, I used to refer to the Ontario Energy Board under the Liberals as glove puppets, as Muppets, and I think I was accurate, because I watched the performance. Those on the other side who were upset at many of the decisions made by the Liberals should be well aware that the Liberals skirted around the OEB. The OEB was there for a lot of show and display, but when it came to the fundamental questions, the Liberals said, “Well, very nice to have you, glad you enjoy your pay, but we’re going to make this decision. You’re not going to be part of it.”

So when this regulator actually stood up and said, “Hey, we’re going to follow our mandate and protect the customers of Enbridge,” I was astounded. They actually did their job. They had read their mandate. They listened to the evidence that was presented to them over a year—thousands of pages of evidence—and they said, “Damn, we’ve got to protect people.”

Of course, the party that used to attack the OEB for not standing up for customers realized that and said to themselves, “Boy, if this decision is allowed to go forward, then we’ve got Enbridge—a big company, very profitable—going to be very cranky with us.” That’s why we have this bill before us today. Enbridge and the government came together very quickly to protect Enbridge—within hours—and give the minister talking points, and obediently, the minister used those talking points and does to this day.

But, Speaker, wait; there’s more. Not only did the government decide right then to protect Enbridge, but they wrote the law to ensure that the regulator would no longer actually regulate. The bill restructures things so any well-connected lobbyist or team of lobbyists can get around the regulator. What kind of heaven have they created for utilities who want to pillage the public? The regulator, the Ontario Energy Board, is now there in many ways as they were for the Liberals: for display and not for protection of consumers. It’s an expensive decoration. It disguises where real decisions are made about your hydro and gas bills.

This is straight out of this government’s greenbelt playbook: decisions made in backrooms to protect powerful private utilities; not to protect you, not protect the Enbridge customers who are out there, not to protect the constituents who you represent, but to protect Enbridge.

The Premier is going to raise your gas bill. When you get the bill in the mail later this year with a notice saying, “We’ve got an increase,” I think you should remember who made sure that that happened. Make sure you remember who put their thumb on the scale to ensure that the price is higher. This Premier has acted and is acting to protect the very wealthy Enbridge and stick you and your family with the bill.

Not only is this decision that was protecting gas consumers going up in smoke, but future decisions will be in trouble. There were a few people who had comments. The Toronto Atmospheric Fund made a presentation. What was interesting to me was that typically they’re much more focused on environmental and climate issues, but in this presentation to us at committee their focus was on the reality of ending effective regulation. They wrote:

“We have reservations regarding the extent of the new ministerial authority proposed in section 96.2. As noted above, the OEB has a mandate to protect ... consumers’ interests”—I noted that before; that’s their job. That’s what they did—“while facilitating rational expansion of gas infrastructure....

“The OEB does this using a well-regarded transparent and evidence-based process in which all stakeholders are invited to participate, introduce evidence and challenge evidence introduced by other parties. This quasi-judicial standard of decision-making provides a safeguard, ensuring balance and alignment with goals of keeping energy costs down and expanding the energy system.

“Proposed section 96.2”—which is in the bill that’s before us—“permanently supersedes this transparent, evidence-based process with unrestricted ministerial authority to decide which gas infrastructure projects are in the public interest and who should bear the cost of the projects. Unlike the OEB, there is no obligation for the minister to consult stakeholders and transparently weigh evidence in an open process before issuing directives. This change also encourages project proponents to focus efforts on ministerial advocacy instead of putting forward rationale arguments and credible evidence in OEB applications and proceedings.”

What they’re saying is that the regulator is fully and truly just The Muppet Show; that everyone who can afford a lobbyist goes around that Muppet, goes to the minister, makes their pitch and, if they’ve been to a wedding or a stag, probably is successful.

Similarly, the Society of United Professionals, which represents the actual OEB staff, the Ontario Energy Board staff, spoke about the end of regulatory independence and they talked about the impact on investors coming to Ontario of the Muppet-ization of this regulator:

“At the heart of the society’s opposition to the proposed Bill 165 is the removal of regulatory independence from the OEB. Publicly traded companies that rely on regulated rates, and credit-rating agencies that determine credit quality in the province’s utility sector, need to trust that the regulator maintains its independence and does not become a political arm of the government.”

In a recent analysis, Standard and Poor’s Global, the bond-rating agency, laid out the four pillars of Ontario’s natural gas and electricity regulatory environment. They are regulatory stability, tariff-setting procedures, financial stability and regulatory independence. They further state that they “believe the Ontarian regulatory framework is the most credit-supportive kind, benefiting all key stakeholders.” However, they warn their assessment of the province’s regulatory framework could change if there was “a loss of regulatory independence or instances of political interference in the framework.”

Well, I’ll tell you right now, if you’re a credit-rating agency and someone is applying to invest in energy infrastructure in Ontario, and you know that you no longer actually have an independent regulator—that you actually just have a lobby machine that determines energy decisions based on who is most effective at getting to a minister—then you have an impact on the credit rating of investments made in this province. That is an argument that I would have thought would work on the government, because the argument was made in front of government members in committee, but it was ignored.

Also interesting were the words of the Industrial Gas Users Association—so you’re talking big employers in Ontario, major industries who use a lot of gas. They said there were two unintended consequences of the bill. I think they were overly generous, because I think they were entirely intended, but they said “unintended,” I think because they’re polite. They said that selective approvals—the ability to approve projects by going around the regulator—would push up costs for industry in Ontario; that uneconomic, nonviable projects would be subsidized by the industries that we depend on right now to employ tens of thousands of people.

So the big industries that this government talks about all the time didn’t like this. You should understand that they were not fans of ending regulation in Ontario. They said that the independent regulator has been useful in keeping costs down, but what we’re seeing now is going to drive costs up.

They also said they couldn’t understand why procedural fairness was something that was ruled out by the bill. I didn’t get into that, but there actually are rules in Ontario that governments and bodies should follow to ensure that decisions are made on a fair basis. Those were wiped out in this bill when it comes to energy regulation. They suggested that it was not a good thing to have that happen.

So, the Premier is planning to raise your gas bills this year, and in future remove any protection that Ontarians may have from lobbyists reshaping energy policy in backrooms. Man, I feel like I’m back in Dalton McGuinty’s Ontario. It is amazing. For anyone who was here for the gas plant scandal—

Interjection.

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Well, that would be the non-Orwellian title for it, but unfortunately, some cousin of George Orwell works for the minister and was delegated the task of writing this bill and decided to go the opposite way. I agree with you that this bill is the “more expensive energy act” and “Christmas for Enbridge shareholders act, 2024,” and should be recognized as such.

This bill is not meant to protect customers. This bill is not meant to keep energy costs down. This is meant to keep people’s disposable income down. It’s meant to keep investor profits up. But it’s not going to be helping people, not a bit.

But I can’t say I think that the minister believes in climate change, because if he did, he’d be acting in a very different way. He wouldn’t be expanding the gas-fired generation fleet in Ontario, because frankly, he’s undermining our climate goals, but he’s also undermining the clean interests of this province in having an electricity system that doesn’t belch out a lot more greenhouse gases.

I suspect, my colleague from Beaches–East York, that we’d have a lot of fun. The minister was pretty clear; he said he loved his heat pump, that he didn’t have any troubles when it got really cold. The resistance heater came on board. He didn’t have propane backup. He didn’t have gas backup. I think that other people in Ontario should have the same opportunity as the minister has.

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Thank you to the member from Mississauga–Lakeshore for his presentation. Less than 24 hours: This is how long it took the minister to announce he would overturn the decision of experts at the OEB to the benefit of Enbridge. Apparently, swift action is reserved for corporations, not, say, underfunded hospitals, affordable housing and cost-of-living issues. With experts, particularly, tripping over themselves to criticize this bill, calling it Orwellian and suggesting it should be named “keep Enbridge profits high act,” how can the government justify ramming this bill through without so much as a nod to comprehensive stakeholder consultations?

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During the hearings, the issue was raised on behalf of Unifor workers that when there are methane leakages, Enbridge often uses private contractors in order to bypass the regulatory process.

So I’m wondering why the government really would have voted against an amendment put forward by one of my colleagues providing for the monitoring and prevention of methane leakages and for the publication of reports on such leakages. I’m wondering why on earth the government would vote against letting the public know and making sure that Enbridge always reports on any leakages that are taking place.

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