TORONTO – The Ontario government recently launched the Panel for Utility Leadership and Service Excellence (PULSE), an advisory group that will explore and analyze the province’s electricity distribution system.
Ontario’s aging and capacity-constrained system requires a significant infusion of capital, with the Electricity Distributors Association estimating $103 to $120 billion over the next two decades to maintain existing assets, a release reads.
This level of investment for stronger and smarter power lines, digital grid management tools and new substations, dwarfs the current spending trajectory of most Local Distribution Companies (LDCs).
“The province’s economy is facing unprecedented realignment and external risks, and yet the local distribution sector has not undertaken a review since 2012,” the release notes. “Since then, the world has changed as Ontario transitioned from an era of surplus power to unparalleled power demand and electrification, rising geopolitical threats and advanced technology. Many of Ontario’s nearly 60 utilities are at risk for future credit downgrades, which can lead to higher borrowing costs absorbed by ratepayers.”
The government is also looking for recommendations when it comes to the service standards and connection timelines, including response times following extreme weather events.
The PULSE work will include:
- Recommending operational and customer service improvements across the system.
- Identifying strategies to address rising financing gaps to fund electricity infrastructure.
- Addressing barriers to attracting investments into municipally owned LDCs.
- Reviewing ownership, governance and investment models that balance municipal interests, financial stability and system efficiency
Anthony Haines, Paula Conboy, Alexander Nuttall and David MacNaughton will comprise PULSE.
Stephen Poloz will take on the role of expert adviser. He brings experience from his time serving as the governor of the Bank of Canada.
