This report is an assessment of the financial risks Ontario electricity ratepayers and the Province of Ontario face as a result of the Province’s plan to secure a long-term supply of electricity generation by refurbishing nuclear reactors at the Bruce and Darlington Nuclear Generating Stations and extending the life of the Pickering Nuclear Generating Station.
This report analyzes the impact of Ontario’s Fair Hydro Plan on electricity ratepayers and Provincial finances over the next 29 years. Overall, the FAO estimates that Ontario’s Fair Hydro Plan will cost the Province $45 billion and provide $24 billion in savings to electricity ratepayers - for a total net cost to Ontarians of $21 billion.
Home energy spending, how much Ontarians pay to heat and cool their homes and power their appliances, is a frequent topic of debate in Ontario’s Legislative Assembly. Average household spending on home energy varies significantly by region. Households in Toronto and Hamilton-Niagara spend the least, while households in Northern Ontario on average spend the most. Household home energy spending in Ontario rises with income, but is a greater burden for lower income households. In 2014 households in the bottom 20% of the income distribution spent on average 5.9% of income on home energy, while those in the top 20% spent only 1.7% of their much larger incomes. A variety of provincial programs exists to assist households with paying for home energy.
Home energy costs, the costs Ontarians pay to heat and cool their homes and power their appliances, are a pocket-book issue for Ontarians and a frequent topic of debate in Ontario’s Legislative Assembly. Ontario home energy costs are higher than in Quebec, Manitoba, and British Columbia, but lower than in Atlantic Canada and Alberta. The share of after-tax income spent by Ontarians on home energy costs is similar to shares in Quebec and Manitoba, significantly less than in Atlantic Canada, but higher than in Alberta and British Columbia. From 2010 to 2014, Ontarians experienced average increases in home energy costs relative to residents of other provinces.
The report looks at a number of key questions surrounding the partial sale of Hydro One, such as how much the Province can expect in proceeds, and the sale’s impact on the province’s budget and net debt.