[greenon-l] Status Report on a Conservation Action Plan

[Conservation Council of Ontario]

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Green On.
The Online Newsletter of the Conservation Council of Ontario
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Status Report:  A Conservation Action Plan
April 22, 2004
Chris Winter, Editor

In This Issue

Ontario Today Phone In Show
Premier's Announcement on Conservation
A Status Report -- looking back on the CCO's Four Point Action Plan for 
Energy Conservation



Ontario Today Phone In Show  -- Thursday April 22nd
I don't normally advertise media spots, but I will be the guest on today's 
phone-in segment for CBC Radio's Ontario Today.  Tune in at 1pm, or call in 
with your suggestions for electricity conservation.


Premier's Announcement on Conservation
see http://www.premier.gov.on.ca/english/news/Energy041904.asp
On Monday April 19, Premier Dalton McGuinty made a special announcement on 
conservation.  He confirmed the province's target of a 5% reduction in 
electricity consumption by 2007 and highlighted elements of the 
government's plan:
    * Creating an Ontario Power Authority that will include a Conservation 
Secretariat led by a Chief Conservation Officer
    * Launching a public education and outreach campaign, including town 
hall meetings, to encourage conservation
    * Setting aggressive targets to put smart meters into every home by 
2010, with an interim target of 800,000 meters in place by 2007 -- together 
with more flexible pricing, this would allow Ontarians to save money if 
they run appliances in off-peak hours
    * Developing regulations to provide provincewide access to net 
metering, which enables homeowners and businesses generating renewable 
electricity to receive credit for the excess energy they produce
    * Allowing local distribution companies to begin investing 
approximately $225 million for local, community-based conservation programs
    * Creating incentives for local distribution companies and Hydro One to 
reduce expensive, wasteful "system loss" that can occur when transmitting 
electricity to consumers.


A Status Report -- looking back on the
CCO's Four Point Action Plan for Energy Conservation
see http://www.greenontario.org/solutions/energyplan.html
You may recall that, following the August 2003 blackout, the Conservation 
Council proposed a four point energy conservation action plan:
1.  Price energy to promote conservation
2.  Create an Ontario Green Energy and Conservation Fund
3.  Support community-based conservation outreach and education campaigns.
4.  Strengthen standards for green energy and conservation.

Here's a quick overview of where things stand with the recent announcements

1.  Price energy to promote conservation
The price of electricity rose on April 1st from 4.3 cents/kWh to 4.7 
cents/kWh for the first 750 kWh/month and 5.5 cents/kWh for consumption 
over 750 kWh/month.  The new price is still below the full average cost of 
production, but it does include a 0.8 cent.kWh disincentive against 
overconsumption of electricity.

Future prospects:  A new pricing structure will be introduced by the 
Ontario Energy Board by the spring of 2005 to take into account further 
changes in the electricity system.  Energy Minister Dwight Duncan has 
suggested that prices will need to rise in order to pay for new electricity 
generation projects.  The introduction of smart meters will lead to 
differential pricing for peak and low consumption times.


2.  Create an Ontario Green Energy and Conservation Fund
The Province has promised to establish a provincial Conservation 
Secretariat with a mandate to develop provincial conservation. In addition, 
the Province will allow local distribution companies (LDCs) to engage in 
conservation programs and recover costs and profit through additional 
charges on the electricity bill.

No announcements have been made to date about any form of subsidy for 
conservation or renewable power.  Our view was that the surcharge on 
electricity for overconsumption should be applied directly to subsidies and 
support programs for conservation and renewable energy.  The current 
surcharge for overconsumption (see above) is being used to subsidize the 
overall cost of electricity and not to support conservation.

In addition, the proposal to put 800,000 smart meters in homes by 2007 will 
cost between $100 and $400 per home (or $80 million to $320 million).  This 
cost will be passed on to the homeowner, with no immediate benefit in 
reduced consumption.  A similar $100 investment per home would give each 
homeowner 10 compact fluorescent bulbs and an immediate reduction of up to 
70 kWh per month (or 10% of the average residential consumption rate).

Future prospects:  Public response to conservation pleas will be low until 
there is an economic incentive. Look for incentives in the May 18 budget, 
however the provincial support programs may be some time in coming, with 
the first step being to set up the new Ontario Power Authority and 
Conservation Secretariat.  The best bet will be to look to your local 
utility. Compact fluorescents are the no-brainer first step in conservation 
-- and it will probably be the LDCs who first introduce capitalize on their 
savings.


3.  Support community-based conservation outreach and education campaigns.
The Province will launch a public education and outreach program and host a 
series of Town Hall meetings on conservation to promote 
conservation.  There is an understanding that the voluntary sector has a 
strong role to play in promoting the "culture of conservation",  but 
exactly what that role is has not been elaborated.

Future prospects: Without a clear plan for community engagement, the 
education and outreach strategy will resort to the standard advertising 
campaign and mailer to every household approach.  On the other hand, if 
Ontario's conservation organizations and community leaders can come up with 
cost effective proposals for community-oriented outreach and engagement, 
there is a strong potential to develop a truly effective conservation 
movement in Ontario.


4.  Strengthen standards for green energy and conservation.
http://www.energy.gov.on.ca/index.cfm?fuseaction=english.news&body=yes&news_ 
id=56
The Ministry has recognized that improved performance standards are an 
essential part of a conservation plan.  They have already announced new 
standards under the Energy Efficiency Act for thermostats used with 
individual-room electric space-heaters, industrial and commercial gas-fired 
package furnaces with inputs above 400,000 BTU per hour, and stronger 
standards for seven other products already covered under the Act.



***************************
Promoting conservation leadership, cooperation, and action for over 50 years
The Conservation Council of Ontario
43 Sorauren Avenue, Toronto, Ontario M6R 2C8
(416) 533-1635
www.greenontario.org
Chris Winter, Executive Director
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