Science & Tech · Science & Environment · 3 hrs ago

Ontario plans new rules for electricity distributors as demand rises

Ontario plans new rules for electricity distributors as demand rises

Ontario’s government announced reforms for the province’s 58 local electricity distributors as demand for power is expected to grow.

The distributors, mostly owned by municipalities, deliver electricity to customers and must maintain and expand their networks.

The government plans to require each company to make a 10-year plan covering infrastructure, financing and staffing.

A new dividend stress test is intended to make sure distributors reinvest profits in their grids.

An advisory panel warned that some utilities have delayed needed investment, while network upgrades could cost $103-billion to $120-billion over the next couple of decades.

The government also plans to require independent, skills-based boards, with municipal politicians limited to one non-voting member; it said it would introduce legislation on Tuesday.

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What people are saying

Stephen LecceOntario Minister of Energy and Mines
Local utilities are facing aging infrastructure, rising capital requirements, work-force shortages and skyrocketing demands for connections.
via Globe and Mail
Because right now, across the board, that is not always the case.
via Globe and Mail
PULSEAdvisory group
increasingly misaligned with the scale, pace and complexity of growth in electricity demand now underway
via Globe and Mail
Access to external investment, particularly from Canadian institutional investors, is likely to be a critical determinant of whether electricity distribution utilities can deliver required infrastructure on time and at reasonable cost
via Globe and Mail