THUNDER BAY -- Energy Minister Glenn Thibeault concedes the Liberal Party has made mistakes managing his portfolio, but he believes relieving consumer costs puts Ontario's best foot forward.
Thibeault passed through Thunder Bay on Friday to reiterate changes to energy bills the province announced last month.
The Sudbury MPP said all three party stripes "kicked it (the energy file) to the curb" since the 1990s and while he stands behind the Liberals' decision to increase the grid's capacity and eliminate coal, he's willing to meet his party's critics halfway on concerns over the Green Energy Act.
"Every one of us agree that's what we need to do. We're off of coal, we have a robust supply of power and green energy needs to do that," he said.
"It was the 'how' we did that. For us the how we did that, we sole-sourced some of those contracts. We were very specific in our asks for procurement and by doing so, we said, 'we want 400 megawatts in solar,400 megawatts in wind, 100 in biomass.' By making those so specific, there was no competitive tension and when you have no competitive tension, prices actually don't drop."
On the other hand, he argued, the Green Energy Act was responsible for producing 42,000 jobs in Ontario. It has incentivized renewable energy and made the province "a global leader." No Ontario city has registered a smog day in three years.
The cost has been a public backlash over high hydro bills, particularly among northern and rural residents.
Thibeault's solution is to extend those costs over a longer period while rebating consumers.
The provincial sales tax has already been removed from energy bills in Thunder Bay. Legislation is being crafted that will refund 25 per cent of energy costs to residential and commercial consumers as well as farms. A delivery credit will remove those costs for homes in First Nations communities.
A plan to enhance the Rural or Remote Rate Protection program would see Hydro One bills reduced between 40 and 50 per cent. Atikokan Hydro customers consuming 2,500 kilowatts per month, for example, would see their delivery rates decline $33 on top of the proposed 25 per cent. Hydro One customers in Kakabeka Falls or Shabaqua using the same amount would see distribution cost cut $53 and $130 per month, respectively.
"All these measures are designed to bring down the delivery line costs and the overall cost of electricity for ratepayers in Northwestern Ontario," Thibeaut said.
Thibeault also committed to a $200-million Affordability fund, which will promote energy retrofits such as replacing windows and insulation among middle class homeowners.
Thunder Bay Hydro president Robert Mace is on the committee establishing the Affordability fund.
Mace said the local public utility has already implemented the eight per cent Provincial Sales Tax rebate.and small businesses will qualify for a 17 per cent reduction while larger businesses will qualify for the Industrial Conservation Initiative. Thunder Bay Hydro will also administrate the on-reserve credit for Fort William First Nation households.
"Our customers are going to see almost all of the benefits the minister talked about," Mace said.
"The only ones Thunder Bay hydro customers don't see are the changes to the rural rate and remote protection because that's mostly Hydro One and in our region, Atikokan Hydro and Sioux Lookout Hydro customers."
