Ontario’s Irresponsible Actions Plan

The following is an open letter to Ontario Premier Kathleen Wynne from Timothy M. Egan, president and CEO of the Canadian Gas Association. Dear Premier Wynne,

The leaked Climate Change Action Plan, according to The Globe and Mail, includes an agenda to move homes, businesses and other buildings off natural gas. This agenda is incredibly irresponsible. Let me explain why.

First, it is irresponsible because it arbitrarily restricts the freedom of more than 3.5 million Ontario homes, businesses and industrial facilities currently using natural gas to meet their energy needs in the manner they want. Residential and commercial space and water heating, industrial heating and other services are being met by natural gas. Almost 80 per cent of Ontario homes are heated with it, and overall it represents over 35 per cent of Ontario’s end- use energy needs — much more than electricity. On a cold day in winter, the energy equivalent of more than twice Ontario’s entire electricity system output goes through the natural gas system. Northern communities, rural communities, farms, businesses, industrial facilities and others currently not using natural gas want to use natural gas. But the climate change action plan will tell them they can’t — because your government says so.

Second, it is irresponsible because of what it will cost. Homeowners and businesses choose natural gas for many reasons, but particularly because it is affordable. A transition for a homeowner from gas to electric heat could raise energy- space heating costs by up to $ 3,000 per year. That’s just the energy bill. Add to that the cost of purchasing the prescribed alternative heating technology, the ducting retrofit required, tearing out natural gas systems, and building out the electric grid to meet the new demand. And what if a barbecue is gas-fired, or a water heater, or a dryer? Are you going to make homeowners choose more expensive options for all of those as well?

Energy affordability isn’t just important to families at home. It’s critical for business and industry. Energy is a major cost for any business; drive that cost up and the business will become less competitive, less able to retain or hire workers, more likely to shut down, and more likely to move to other jurisdictions where natural gas use is encouraged. Or what about schools and hospitals and other public institutions that will see their energy bills rise? Shutting down natural gas use will reduce available funds for essential public services.

Third, it is irresponsible because it will undermine the resilience of the energy system. How? When the electricity system fails, the gas system can meet a lot of energy demand — think about using your gas fireplace or stove even when the power is out. Our system is better because of this resilience: It means we are better able to withstand serious incidents. A system that is unduly dependent on any one delivery system is a less reliable system.

And fourth, it is irresponsible because it amounts to a declaration that the gas industry is incapable of finding innovative ways to reduce CO2 emissions. How about you ask utilities for those, rather than shutting down service delivery? If you want intermittent electric renewables like wind and solar, you need a ready partner power source for reliability: Natural gas is the most effective one. Or if you want renewables, why just pursue electric renewables? Blend renewable natural gas into the grid — energy from municipal solid waste, or wastewater treatment, or agricultural waste, or biomass. It is often much more cost-effective.

Do you want to help rural communities reduce their energy costs? Connect them to the gas grid. Do you want northern communities off higher- cost, high- emitting fuels? Get them compressed ( CNG) or liquefied natural gas ( LNG). Do you want to cost-effectively reduce transportation sector emissions? Use CNG or LNG there, too. Don’t tell society how to achieve your objectives — give people the freedom to be creative themselves.

Ontario’s gas utilities believe natural gas has helped deliver a remarkable standard of living, contributing to the building of a stronger province and country for over 100 years. We want to keep building on the natural gas opportunity — as part of a broader energy system that includes electricity, liquid fuels, energy efficiency, and emerging technologies. Shutting down natural gas will restrict choice and flexibility.

We don’t know what the final Climate Change Action Plan will look like, but the leaked description was not a good early signal. We are going to work hard to make sure our customers are aware of it.