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How Ontario and Ontario cities are coping with the cost of energy/Comment l'Ontario et les villes de l'Ontario composent avec le cout de l'energie.

Article Excerpt
Abstracts

This paper examines two questions: how Ontario and Ontario cities can reduce their energy consumption, and how renewable energy sources can be used to replace fossil fuels. The paper also looks at the policies of the Province of Ontario and the Government of Canada to encourage the use of renewable energy sources. First, the paper discusses how electricity is produced in Ontario and the policies used to reduce greenhouse gases from electricity production. Second, it considers how the demand for energy can be reduced. Third, the programs that are used by the City of Toronto to reduce energy consumption are reviewed. There are also non-governmental programs to reduce energy consumption and to help preserve the environment. Then, the question of how renewable energy resources can be used to reduce energy consumption and the production of greenhouse gases is addressed. The final section provides a summary and offers some conclusions.

Resumes

>. Cet article explore deux questions : comment Ontario et les villes de l'Ontario peuvent reduire leur consommation d'energie, et comment les sources d'energie renouvetable peuvent etre utilisees afin de remplacer l'energie provenant de sources fossiles. Il y aussi un regard sur les politiques de la province de l'Ontario et du Gouvernement du Canada elaborees dans le but d'encourager l'utilisation de sources d'energie renouvelables. D'abord, on discute de la question comment l'electricite est produit en Ontario et les politiques mises en place pour reduire les emissions de gaz a effet de serre provenant de la production de l'electricite. Puis, on considere comment la demande pour l'energie peut etre reduite. Les programmes de la Ville de Toronto pour reduire la consommation de l'energie sont alors passes en revue, ainsi que des programmes non gouvernementaux pour reduire la consommation de l'energie et proteger l'environnement. La question de l'utilisation des sources d'energie renouvelables pour reduire la consommation d'energie et la production de gaz a effets de serre est abordee. Enfin, quelques conclusions sont presentees.

Introduction

This paper examines two questions; how Ontario and Ontario cities can reduce their energy consumption, and how renewable energy sources can be used to replace fossil fuels. The paper also looks at the policies of the Province of Ontario and the Government of Canada to encourage the use of renewable energy sources. Reducing energy reduces costs for the province and for Ontario cities. It also has another benefit--the reduction in the volume of greenhouse gases because energy production is overwhelmingly produced with coal, oil, natural gas and nuclear power. All of these fuels produce greenhouse gases, air pollution, or toxic waste. Policies that encourage the use of public transportation or the use of multi-person lanes on commuter roads also reduce greenhouse gases because they reduce the consumption of gasoline.

First, the paper discusses how electricity is produced in Ontario and the policies used to reduce greenhouse gases from electricity production. Second, it considers how the demand for energy can be reduced. Third, the programs that are used by the City of Toronto to reduce energy consumption are reviewed. There are also non-governmental programs to reduce energy consumption and to help preserve the environment. Then, the question of how renewable energy resources can be used to reduce energy consumption and the production of greenhouse gases is addressed. The final section provides a summary and offers some conclusions.

The Problems of Energy Supply and Cost

A Brief History of Electricity Production in Ontario

The Ontario legislature passed the Power Commission Act to create the Hydro Electric Power Commission in 1906. The principal function of the Commission was to build transmission lines to supply municipalities with power produced by the existing generating companies in Niagara Falls. The municipalities set up their own power distribution companies to distribute power to their residents. Toronto Hydro was set up in 1911.

The Ontario Government established the MacDonald Commission in 1995 as an advisory committee on electricity competition and to provide recommendations on the restructuring of Ontario's electricity industry. In 1996, the MacDonald Commission made a number of important recommendations. In 1997, the Ontario government issued a white paper called Directions for Change, Charting a Course for Competitive Electricity in Ontario.

The white paper was based on the recommendations of the MacDonald Commission (Province of Ontario 1996). In October, 1998, the Energy Competition Act was passed authorizing a restructuring of the industry in Ontario (Province of Ontario 1997: 3). The government wanted to sell Ontario Hydro and turn it into a private company. In April, 1998, Ontario Hydro was divided into five new companies. All of these companies are now owned by the provincial government. The reorganization was supposed to produce cost savings, but the opposite occurred. Before Ontario Hydro was reorganized in 1998, its costs were $1.3 billion. After 1998, its costs more than doubled. In 2005, its costs were $3.4 billion (Howlett 2006; Howlett and Curry 2006). Revenue increased by only 15 % over the same period. The problem of higher costs arose because there now are 5 companies instead of one. The Ontario Hydro Services Company became the industry leader in working with the independent operators and the Ontario Energy Board. The company's role was to help create a wholesale and retail electricity market for Ontario.

Table I shows how electricity is generated in Ontario and the...