Ontario Municipalities Rally to Show Support for Ontario Energy Board’s Decision to End Gas Pipeline Subsidies

Niagara’s Regional Municipality Recently Voted Against Joining This Show of Support

“On December 21, 2023, the OEB (Ontario Energy Baord) decided not to continue a $250 million a year government payment that Enbridge had requested in its rate application for 2024-2028. In its ruling, the OEB argued that it did not make sense to continue to build gas pipelines to new homes in light of the energy transition taking place globally.”                                                 – Adrian Currie, Ontario Climate Program Manager for the Canada-wide citizens organization Environmental Defence

A News Release from Environmental Defence

Posted April 12^th, 2024 on Niagara At Large

But First, here is a Brief Foreword  from Niagara At Large reporter/publisher Doug Draper –

As if to openly mock their 2021 declaration of a “climate emergency”, a majority of  Niagara Regional Councillors recently a voted not to join other municipalities in Ontario in urging the Ford government not to overrule a December 2023 decision by the Ontario Energy Board to stop using our tax dollars to subsidize the construction of any more gas pipelines to newly built homes.

In a vote of 14 to 12, a motion tabled by Pelham Regional Councillor Diana Huson at a March 21^st council meeting, asking the Ford government not to overrule a December 21 Ontario Energy Board (OEB) decision was turned down.  

The OEB stated that the major purpose of its decision to stop the subsidies was discourage the use of climate-damaging fossil fuels to heat homes in favour of newer technologies like heat pumps that are already proving to be less costly than gas and far less of a problem for the Earth’s atmosphere and climate.

The only local council in Niagara that has so far voted in favour of the province not overruling the OEB’s decision is the Town of Pelham, whose Mayor, Marvin Junkin, also voted in favour of Huson’s motion in his capacity as a Regional Councillor.

Niagara At Large will post lists of the Regional Councillors who voted for and against Huson’s March 21^st motion below the Environmental Defence news release which begins here –

A News Release from Environmental Defence- 

In a show of support for the Ontario Energy Board’s (OEB) decision to end a costly subsidy to Enbridge Gas, many municipalities are passing motions in support of the OEB. The OEB’s decision has been the centre of attention for environmental and advocacy groups since it was passed late last year. 

The OEB is Ontario’s independent regulator of the electricity and natural gas sectors. It is charged with monitoring how energy companies operate to make sure that the best interests of the public are served. One of the ways it does this is to set the rates that utilities, such as Enbridge, can charge.

On December 21, 2023, the OEB decided not to continue a $250 million a year government payment that Enbridge had requested in its rate application for 2024-2028. In its ruling, the OEB argued that it did not make sense to continue to build gas pipelines to new homes in light of the energy transition taking place globally. Heat pumps, which run on electricity, are now cheaper than gas furnaces.

The OEB was concerned that building gas lines to new homes would result in them not being used, which existing gas customers and new homeowners would be on the hook to pay for. This decision was seen as a win for new homeowners, a win for existing gas customers and a win for the environment.

In a knee-jerk reaction, (Ford government) Energy Minister Todd Smith committed to passing legislation to overrule this decision. In response to his statement, Environmental Defence wrote a letter to Minister Smith urging him not to pass legislation to overrule this decision.

Not only would this move be costly for new homeowners because the $250 million government payment would be back on the table and Ontarians would have to shoulder the new pipeline costs, it would be bad for the climate and bad for the economy. It would also be unprecedented in that it would interfere with the work of an independent body.

In a show of solidarity, Ontario municipalities began supporting the OEB ruling. To date, nine municipalities have made decisions to support the OEB with another three scheduled to do so before mid April. These decisions demonstrate that Ontarians are concerned about affordability and climate change. 

The first municipality to throw their support behind the OEB was the Township of Severn, voting February 1 to end the subsidy. 

Next was the City of Hamilton on February 14, Valentine’s Day, who decided to show some love for the OEB. After the vote on a motion moved by Councillor Craig Cassar, Hamilton Councillor J.P. Danko said, “As a gas customer, I am shocked to understand that I am subsidizing new pipelines.” This clearly resonated with the rest of the council who voted unanimously to end the subsidy and support the OEB. 

It is worth noting that two of the largest cities in Ontario, Toronto and Hamilton, voted to support the OEB and end the subsidy. This represents over 3 million people. Clearly there is momentum to support the OEB and end this costly subsidy. In an era of extreme weather events and with wildfire season about to start, it would be in our best interests to not burn more gas and literally add fuel to the already out of control fire of climate change. 

An Afterword from Niagara At Large –

First, here is Pelham Regional CouncillorDiana Huson’s March 21^st, 2024 motion –

WHEREAS, residents are struggling with energy bill increases and need relief;

WHEREAS, natural gas is no longer the cheapest way to heat homes because electric heat pumps are now much more efficient, can provide all heating needs even in the cold climates, and result in far lower energy bills over the long term compared to gas heating;

WHEREAS, natural gas is methane gas, which is a fossil fuel that causes approximately one-third of Ontario’s GHG emissions, and must be phased out because it is inconsistent with all climate targets, while heat pumps result in the lowest GHG emissions and are consistent with a zero-carbon future;

WHEREAS, the Ontario Energy Board (“OEB”) decided to end a subsidy for methane gas pipelines to be built in new construction developments, effective 2025, finding that this would lower energy bills for existing gas customers and improve affordability for new homebuyers;

WHEREAS, the OEB decision will help lower energy bills and encourage heating systems that are consistent with climate targets and plans;

WHEREAS, the construction of new methane gas pipelines, which have 60-year lifetimes, should not be subsidized because they are inconsistent with the Region’s climate targets and will result in higher carbon emissions, higher energy bills, higher future decarbonization retrofit costs to get off fossil fuel heating, and a continued financial drain as dollars leave the province to pay for fossil fuels extracted in other jurisdictions;

WHEREAS, Niagara Region declared a climate emergency in 2021;

WHEREAS, the Niagara Region has taken a number of steps to acknowledge and prioritize projects, programs, policies and initiatives to show leadership in addressing climate change by incorporating climate changes objectives into our Official Plan, joining the Partners for Climate Protection Program, developing the Niagara Climate Change Action Network, holding an annual Climate Change Summit and in developing the Niagara Climate Change Municipal Community of Practice. 737

 NOW THEREFORE, BE IT RESOLVED:

1. That the Region of Niagara SUPPORTS the decision of the Ontario Energy Board to end the gas pipeline subsidy; and

2. That Region Chair BE DIRECTED to send correspondence to the Hon. Todd Smith, Minister of Energy, expressing Regional Council’s support for the OEB and requesting that their decision stand; and

3. That the Regional Clerk BE DIRECTED to circulate this motion to the President of Association of Municipalities of Ontario, Colin Best; Premier of Ontario, Doug Ford; Minister of Energy, Todd Smith; Minister of Finance, Peter Bethlenfalvy and all Ontario Municipalities requesting support for the proposed changes

This motion was defeated in vote of 12 in favour of it and 14 against.

Here are the names of Regional Councilors  who voted for and against –

Those who voted YES to Huson’s motion include– St. Catharines Regional Councillor Haley Bateman, West Lincoln Regional Councillor and Mayor Cheryl Ganann, Pelham Regional Councillor Diana Huson, Fort Erie
Regional Councillor Tom Insinna, St. Catharines Regional Councillor Laura Ip, Grimsby Regional Councillor and Mayor Jeff Jordan, Pelham Regional Councillor and Mayor Marvin Junkin, Niagara-on-the-Lake Regonal Councillor Andrea Kaiser, St. Catharines Regional Councillor Tim Rigby, Port Colborne Regional Councillor and Mayor Peter Secord and West Lincoln Regional Councillor Albert Witteveen.

Those who voted NO to the motion include  – Welland Regional Councillor and Mayor Frank Campion, Welland Regonal Councillor Pat Chiocchio, Port Colborne Regonal Councillor Fred Davies, Lincoln Regional Councillor and Mayor Sandra Easton, Lincoln Regional Councillor Robert Foster, Wainfleet Regional Councillor and Mayor Brian Grant, St. Catharines Regonal Councillor Brian Heit, Fort Erie Regional Councillor and Mayor Wayne Redekop, Grimsby Regional Councillor Michelle Seaborn, St. Catharines Regional Councillor and Mayor Mat Siscoe, St. Catharines Regional Councillor Sal Sorrento, Thorold Regional Councillor and Mayor Terry Ugulini, Thorold Regional Councillor Tim Whalen, Welland Regonal Councillor Leanna Villella and Niagara-on-the-Lake Regional Councillor and Mayor Gary Zalepa.

(Other than Niagara Regional Chair Jim Bradley, who only has to vote to break a tie, any councillors not listed here  were absent from this meeting.)

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