October 24, 2024
The Empire Club of Canada Presents
We’ve Got the Power: Ontario’s Generational Opportunity
Chairperson: Jenna Donelson, President, Board of Directors, Empire Club of Canada
Moderator
Ben Mulroney, Radio Host, Producer, Tech Startup Advisor
Distinguished Guest Speaker
The Honourable Stephen Lecce, Minister of Energy and Electrification, Government of Ontario
Head Table Guests
Patrick Dalzell, Vice President, Corporate Affairs & Market Development, Bruce Power
Andrew Spencer, Executive Vice President, Capital Portfolio Delivery, Hydro One
Welcome Address by Jenna Donelson, President, Board of Directors, Empire Club of Canada
Good afternoon, everyone. Welcome to the Empire Club of Canada. My name is Jenna Donelson. It’s my pleasure to be chair of this historic organization, and your host for today’s event.
To formally begin, I want to acknowledge that we are gathering on the Traditional and Treaty Lands of the Mississaugas of the Credit, and the homelands of the Anishinaabe, the Haudenosaunee, and the Wendat Peoples. I encourage you all to learn more about the Traditional Territory on which you work and live.
I’d also like to recognize our sponsors. The Empire Club is a non-profit organization, and our sponsors generously support the club, and make online viewing complimentary. So, please join me in thanking our Lead Sponsors for this event, Bruce Power, Hydro One, and AtkinsRéalis. And thank you to our VIP Reception Sponsors, Enbridge, LiUNA, Westinghouse, Waste Connections of Canada, the Ontario Road Builders Association, Algoma Steel, Invenergy, and the Power Workers Union. Thank you. Thank you, as well, to our Supporting Sponsor, Fortis, and thank you, as well, to our Lead Season Sponsors, Bruce Power and Hydro One, and our VIP Reception Season Sponsor, Waste Connections of Canada. And finally, thank you to our Print Media Partner, the Toronto Star. Thank you.
If you have a question for our speakers, please scan the QR code that you’ll find on your program, or if you’re online, use the Q&A function under the chat. For those of you online, if you require technical assistance, use the chat button to get some help.
The Empire Club was established in 1903. And just seven years later, in 1910, the first transmission lines began providing electricity to southwestern Ontario. Believe it or not, Toronto was not the first city to get power. That was Berlin, Ontario, which we all know now as Kitchener. So, why do I mention this? Because on this stage, a year before the lights first came on in Ontario, in April of 1909, the Honourable R.A. Pyne, then Minister of Education for Ontario, spoke about the coming of electricity to our province. And since then, speakers here at the Empire Club have spoken about electricity some 233 times.
I think it’s safe to say that few topics have captivated and dominated this podium, quite like the energy sector. This is as true today as ever. The IESO is forecasting a 75% growth in demand between now and 2050, and that significant investments in the sector could result in a potential six-fold increase in the existing workforce. Just last week, the Premier reinforced that Ontario’s energy needs are growing at an exponential rate. And the Ontario government has just released Ontario’s Affordable Energy Future, the case for more power, and we are thrilled to have with us the Honourable Stephen Lecce. Welcome back, Minister.
Minister Lecce will be sharing with us the case for the acceleration of Ontario’s growth to not only meet our own energy needs, but those of our neighbours and closest allies, and to make Ontario an energy superpower. And I don’t doubt that this acceleration will further shift Ontario’s energy sector from playing a supporting role that enables economic development to a central fixture of economic development across the province. So, today’s honoured guest, like his predecessor R.A. Pyne did 115 years ago, will make his important contribution to this conversation, which is ever-evolving in our province, and share why this is our generational opportunity. And that, folks, is why I love my job so much.
To get started, I’d like to bring your attention to the screens as we have a video from one of our Lead Sponsors, at AtkinsRéalis. Please join me in watching it.
[VIDEO:]
Energy powers our lives. And as we go further, faster, we need CANDU nuclear energy to fuel our future. Enabling more than 75,000 jobs across Canada, and currently powering 60% of Ontario and 15% of Canada. CANDU doesn’t just energize our homes, but our communities and our economy. Investing in CANDU builds a future of clean nuclear power for generations to come. Imagine what we can do.
[END OF VIDEO]
Jenna Donelson
Thank you at AtkinsRéalis. Now it is my pleasure to introduce Pat Dalzell, Vice President of Corporate Affairs and Market Development at Bruce Power, to deliver introductory remarks. Welcome, Pat.
Opening Remarks by Patrick Dalzell, Vice President, Corporate Affairs & Market Development, Bruce Power
Thanks a lot, Jenna. I’m really pleased to be here with you today. Another Empire Club event—seems like there’s been quite a few lately, but there is a lot going on, and that’s a good thing. And I was actually chatting with the minister’s team, the minister’s staff, and actually, while I’m on that, I’d just like to recognize the minister’s staff. What a great team you have, Minister. Matt, Matt, Dasha, Devon, Palmer, Natalia, you’re all here today, you’re fantastic, and so accessible, so easy to work with—and clearly, they’ve been drinking from a fire hose recently, and working day and night to deliver everything that’s been delivered recently, and they really did deserve that round of applause.
You know, I was speaking with, with the minister’s team, and they told me that it’s been a busy couple of weeks, and if I could keep this lighthearted, that would be much appreciated. So, I went with that. I’m not the funniest guy, by nature. I tend not to be too interesting, to tell you the truth. And I was struggling to figure out, well, what can I come up with that’s, you know, lighthearted, you know, a little funny, and then, you know, everything in the news is tech companies and IA turning to nuclear to power them. And then I’m like, wait a second, nuclear can turn to IA. So, I did. I used IA to, I asked to produce something lighthearted to introduce the minister. And this is what it came up with—and I am not making any of this up. Apparently, I had it set to poem:
“Ladies and gentlemen, gather near for a tale of progress, let us cheer;
Minister Stephen Lecce stands tall with visions grand, he leads us all;
In the realm of energy, he shines bright, guiding Ontario to a future light;
Aiming to be an energy superpower, with clean, reliable grid, hour-by-hour;
Nuclear and hydro, our steadfast base, natural gas for peaks we embrace;
75% demand to rise, yet Ontario’s grid will meet the skies—[[I don’t even know what that means];
Exporting power, creating jobs anew, with Stephen Lecce, our dreams come true;
Affordable energy to every home, in this electrified era, we shall roam;
So, welcome, Minister, to the stage. Your vision leads us to a brighter age;
With electrification as our guide, in Ontario’s future, we take pride.”
Minister, thank you.
The Honourable Stephen Lecce, Minister of Energy and Electrification, Government of Ontario
I don’t even know where to begin. Thank you, Pat. Stick to your day job, please, on behalf of all of us. It was like either we used “The Power,” by SNAP, or “The Power of Love,” by Huey Lewis and the News, and we went with The Power by SNAP. Made a lot more sense, because today we’re laying out our vision, and laying out our game plan, to get serious about our energy ambitions as a province. Yes, a clean energy superpower in the world, in the country.
But before I begin, I do want to give a few shout-outs to some amazing people who are with us, parliamentary colleagues. The Associate Minister, Sam Oosterhoff, who’s been doing critical work, when it comes to supporting energy intensive industries in the province. I want to give a special shout out to Jill Dunlop, Ontario’s new and amazing Minister of Education. Minister for Life. I want to thank my amazing friend and colleague, Lisa Thompson, who’s been a huge advocate of nuclear power with Bruce, in her own community. So, thank you, Lisa, for everything you’re doing for rural Ontario. And I want to thank the strong and principled parliamentary assistants in John Jakubowski, Rudy Cuzzetto, Anthony Leardi, Steve Pinsonneault, they’re all here, they’re with us, and they’re working hard across Ontario to advance our clean energy agenda. I also want to thank the Deputy Minister, Susanna Laaksonen-Craig, who’s with us, and the ADM’s, Steen Hume, Karen Moore, Tamara Gilbert, and of course, Ben Mulroney. I want to thank our First Nations partners who are with us, as well as Jenna Donelson. Thank you for your incredible leadership here, as Chair of the Board of the Empire Club. And Jenna, thank you for welcoming me today. Good to be back.
We are here to lay out our plan and our vision for an affordable energy future. And it’s an important topic right now, because now more than ever, Ontario’s energy policy will determine the success of our province and our economic prosperity for generations to come. After years of flat and even declining electricity demand, things are changing before our eyes. Ontario’s a province of builders again. As a government, we’re making the record investments in the new roads, and schools, and hospitals, and so much more. At the same time, we’re seeing our biggest cities and our smallest towns grow. But with that growth comes challenges, but also opportunities, too, especially when it comes to growing energy demand.
But before we look forward, I just want to take us back. Just a few years ago, before those policies—just a few years ago, the policies of the previous government had put us in the wrong direction. Instead of making decisions based on affordability, and really, instead of ensuring the lowest price to triumph, the government of the day opted for rigid adherence to ideology that resulted in electricity bills that increase by a thousand dollars every single year. And with us paying up to 10 times the rate, the going rate for power, above market. Now clearly, I think we may be of different political convictions in this room, but we could agree that’s not the plan that should be emulated by any responsible government in this country, or in this province. And we will not go back. We are looking forward. And that formed the basis of our commitment today to the people of Ontario, that we would fix the hydro mess.
And step one was getting electricity bills under control. And we knew right away that it wasn’t going to be fair for rate payers, whether they be businesses or families, to shoulder the burden of these astronomical energy costs. So, that’s why we immediately took action to stabilize hydro rates, and provide real relief for the people of our province. And that plan is now working, as families felt the difference on their bills, and investments started to flow again into this province.
The second part of our vision, or our plan, was ensuring energy security for the immediate term, for the coming decade before us. And that’s why that our government launched the largest battery procurement in the country’s history, which will result in the third-largest battery storage fleet on the continent. It’s why we took the first mover’s advantage, with the small module reactors we are developing here in Ontario, the first in the G7. And the fact is that Ontario, unlike most jurisdictions around us, clearly has enough power for our growth for the next coming decade, and for the medium-term, too. And while that may be great news, when it comes to our economy, and attracting new investment and jobs in every region of our province, it also puts unprecedented demand on our clean power grid.
And you saw just last week, as Jenna noted, that the Ontario Independent Electricity Systems Operator told us point blank that the need for power is increasing at an unprecedented rate. And to support our growing economy, to sustain our quality of life as Ontarians, we need at least 75% more power by 2050. And that’s the equivalent of adding four-and-a-half cities the size of Toronto to the grid by year 2050, the next 25 years. And in the last year alone, the amount of power we need for our EV businesses has doubled; it’s now the equivalent of 2.2 million homes of power, by 2050. The power needed for data centres is up six times higher than what we forecasted, just last year. Industrial demand is set to increase by over half, in just the next five years. My point is, there’s mass demand for new resources, be it pump storage and batteries and hydrogen, as well as existing fuels like gasoline and natural gas, that currently play a critical role in powering our vehicles, heating our homes, and attracting new investments in manufacturing, in automotive, and life sciences, and yes, in agriculture too. And we need to act today to deliver that affordable, reliable power for tomorrow. As we build for the next generation, really for our kids and our grandkids in mind.
But ultimately, governments will have a choice, and we have really two roads before us. It is a binary choice before a government. Either we unapologetically pursue a pro-growth agenda that centres our public policy on affordability as the key driver of our energy expansion plan, using an all-of-the-above approach, or we can go back to a costly energy experiment that drove up the bills, and led to some of the highest energy rates on the continent. And we sought a mandate from the people of this province in 2018, on this very issue. And they demanded that we put affordability first. And that’s why our government, under the Premier’s leadership, will always choose jobs, and growth, in the long-term prosperity of our province and country. And that’s why for Sam, Rudy, John, and I, we unveiled our vision, Ontario’s affordable energy future. And it provides a full accounting of the challenges facing our province, as we partner with workers, and with energy companies and builders, with our regulator, and union partners, and communities, to seize the moment before us, to seize this opportunity, this once-a-generation opportunity to build for tomorrow.
And our vision telegraphs our priorities clearly. First and foremost, it is centred on the needs of families, as we remain relentlessly focused on pursuing a low-cost energy future. We are delivering on that by leaning in on the expansion of non-emitting nuclear energy. And we’re delivering by keeping the dream of home ownership alive for our young people, by significantly cutting the costs for new homes to connect to the grid, by delivering more affordable homes for the people of Ontario. We are—thank you, thanks—we are delivering with this new Affordable Energy Act, that was legislation we tabled just yesterday, that will enable the largest expansion of energy efficiency programs in Ontario history, so that we serve all customers, not just the current 30% that benefit from those programs. It’s also rooted in ambitious work that is well underway in Ontario. The largest competitive energy procurement of its kind that we launched over the summer. A massive expansion of our transmission network to support growing manufacturer, housing, and agricultural sectors.
But to get this right, we need to move away from the previous approach of siloed energy planning. The reason why we introduced the Affordable Energy Act is to refocus our system on the long-term integrated planning needs of our economy. Because it is no longer enough for the IESO to plan for electricity, the OEB and Enbridge look at natural gas, and other private companies to plan for other fuels in isolation. We have multiple ships passing in the night, and we need a strong overarching focus on the common goal we’ve set out today, affordability for our families and our businesses. And that integration will lead to long-term success. It will give us the competitive advantage we need to ensure we attract investment, and create jobs in this province.
And it’s why next year, I will introduce what will be Ontario’s first integrated long-term energy plan, designed to end short-sighted disjointed energy planning that has often been governed by these electoral cycles. Instead, we’re gonna apply a generational lens—and it shouldn’t be surprising, as a generational person in public service, that we’re looking through this lens—but we’re thinking about tomorrow; literally, planning for generations to come. Because there’s so much more we can do. What previous generations have done for us. You know, I think about our great grandparents that built, you know, Sir Adam Beck—Sam is from Niagara, I mean, this is very impersonal to us—we think about the first hydroelectric dams that were built at the turn of the century, we think about our grandparents that built the first nuclear stations in the 1960’s, under Premier Robarts. And now, it will be our generation and our government that will build for our children, and for our future.
And if affordability is the anchor of that plan, it means that we must pursue low-cost baseload resources like nuclear and hydroelectric, which will provide the safe, affordable, reliable 24/7 power our grid needs. It means we will continue to leverage competitive procurements to drive down costs. It means we’re gonna identify and act on new innovative technologies like distributed energy resources in partnership with utilities, with the IESO, with the OAB. You know, I think about rooftop solar, which can meet increasing demand locally, and allow everyday people, every business and farm, everyone, to get into the game of being energy generators for their own purposes, including reducing their bills, and demand on the grid. These are the types of win-win, common sense concepts we wanna advance with the sector, with you all today.
But we are not gonna wait for that new plan to be released in the new year, because we’re gonna continue to implement the programs that are gonna put money back in people’s pockets. The Affordable Energy Act lays the groundwork for what will be a significant expansion of energy efficiency programs that are going to help save money and save energy. Because today’s programs, as I noted, are rather limited. They are constrained to, often to the biggest restrictions around energy efficiency is that they only target electrically-heated homes, even though 70% of the population runs on natural gas. And so, we believe every one of us, every home, every region, has a role to play in energy savings. And so, this legislation will allow us to reach every single family in Ontario. I’m looking forward, too, to revealing this ambitious plan, and working with the amazing team, to really help save those dollars. And we’re gonna launch that plan this calendar year to take effect January 1 of the next year, ’cause we really wanna roll with our energy saving plan. ‘Cause yes, we’re gonna be net generators of energy, but we also wanna conserve energy, too. It’s an all of the above approach, as we think about the future.
And in addition to planning for a significant energy generation and the energy conservation, we’re also embracing made-in-Ontario, made-in-Canada technology to drive our growth. And our plan will always choose clean technology, not taxation, to reduce emissions. And that starts with nuclear energy advantages, with the track record that is delivering multi-billion-dollar mega-projects on time and on budget, a rarity in this space. And a practice we intend on continuing, as our government works with OPG to deploy the first Small Modular Reactor in the G7, is happening right here in Ontario, at Darlington. And we’re proud of that. We will work with Bruce Power to prepare for what will be the province’s first large scale nuclear build in a generation. And we are so tremendously excited. Roughly 5,000 megawatts of non-emitting power that will be added to the grid, through that expansion. That is gonna make a difference. We’ll secure our energy future.
Now, when we find that right balance with an ambitious plan, first and foremost to meet our growing energy demands here in Ontario. But there’s also the opportunity for our prosperity that extends well beyond our borders. Because the truth is, there is massive demand for clean energy around the world. And our premier often speaks about this. And other jurisdictions are scrambling to meet growing energy demand, and to compete with our Ontario’s clean energy advantage. So, while our government will prioritize our own domestic demand—of course, first and foremost for Ontario, for our country—we also see a chance to cement, to further cement and position our province as a clean energy exporter, of clean technology, too, to our neighbours and to our allies, all in the service of bringing jobs and revenue back to this province, and reducing continental emissions, too. But we’re gonna do it a little differently. We’re not gonna generate power to sell it at a discount. In fact, our plan will end the nonsensical sale of power at a loss. We have a radically different approach to how we monetize these assets. This is becoming one of the most valuable resources in commodities on earth. And I think we have to think about it through the lens of how we can monetize, and drive value for our clean energy advantage.
First and foremost, as I said, our responsibility is to the people of Ontario, yes. But we’re always gonna ensure we have the energy we need for our growth. Because we don’t have any time to waste. Because this work will not happen inside a vacuum. It’s, we’re competing with jurisdictions around the world, with the same skilled labour, and capital, and economic opportunities. And I relish this opportunity to tackle those challenges with our amazing skilled workers, that are leading the way in this province. Alongside the hardworking Associate Minister of Energy-Intensive Industries, Sam Oosterhoff, both parliamentary assistants, Jakubowski and Cuzzetto, together we are bringing a great sense of ambition and energy to the file. We are committed to getting the job done, and we are thinking about tomorrow, as we plan for the prosperity for our province today, and for our kids and grandkids tomorrow. Thank you so very much for being a part of this.
Jenna Donelson
Thank you, Minister, for that great speech. It’s great to have you back at the podium, in this new portfolio. And thank you for that. I’m feeling a lot of pressure to make this next introduction rhyme, but I’m delighted to give it anyways. I think we’re all looking forward to the fireside chat portion of today’s event. We can dive a little bit deeper into the busy week you’ve had, Minister, the exciting news. To guide the conversation, it’s my privilege to introduce a moderator that I think is a familiar face to everyone in this room. He is regarded as one of Canada’s premier television and radio hosts. He’s often found at the nexus of politics and business, bringing a strategic lens to important conversations like this one. Please join me in welcoming to the stage, Ben Mulroney.
Ben Mulroney, Radio Host, Producer, Tech Startup Advisor
Hello everybody, Minister.
The Hon. Stephen Lecce
Thank you.
Ben Mulroney
Thank you. Chicken was delicious.
The Hon. Stephen Lecce
My second favourite Mulroney today, actually, but please tell Caroline that.
Ben Mulroney
Yes, I’m not gonna lie. I have actually heard that line three times this week.
The Hon. Stephen Lecce
Okay, fair enough.
Ben Mulroney
Minister, thank you very much, a great perspective that you shared on, at the podium. But I’m, as somebody who’s been interviewing people for almost a quarter-century, I read body language, and you seem distinctly happier now than I’ve seen you in a while. And I have to wonder whether it has something to do with the fact that your title also includes Former Education Minister.
The Hon. Stephen Lecce
It really does.
Ben Mulroney
Yeah.
The Hon. Stephen Lecce
Those were five long years. I often ask what I did wrong to the premier—but Jill’s here, so I don’t wanna say that in front of her—but it’s an honour, it was an honour to serve, and I’m very much energized for this assignment.
Ben Mulroney
Well, let’s dig in, shall we? You said Ontario has an ambitious goal of…
The Hon. Stephen Lecce
Yeah.
Ben Mulroney
…when it comes to electricity, 75% more by 2050. And based on what we heard you say, it seems like nuclear power is gonna play a central role in getting us there. Support, globally, for nuclear power has been growing. I think people’s conception of what it used to mean versus what it does mean, I think we’re getting people there. But there are still a lot of skeptics; there’s some hills to overcome. Do you think there’s any possibility that Ontario could meet its energy goals and needs, without nuclear power?
The Hon. Stephen Lecce
No. I think we need to be intellectually honest about the future. We need reliable 24/7 baseload power. We, roughly 60% of our energy mix is nuclear energy, plus 25% of hydroelectric. We need that. I mean, let’s be under no illusions. It may be a good hashtag to pursue another path, but we need baseload power, just like we need insurance policies of natural gas. I mean, we need to be sensible and grounded in the realism of the economic needs of our farmers, and our industry. Look, I mean, 80 million tons of greenhouse gas emissions is removed from our, from the air, because of nuclear power. That is the equivalent of 15 million vehicles being taken off the road every single year. You know, 70,000 jobs depend on this. Our supply chain is integrated, and it allows for us to build and refurbish a rod. So, nuclear power has been a critical part of our history for generations, and I really do believe it is the future.
Now, it doesn’t discount the importance of other resources we’re gonna layer in. But the fundamental need of a province is baseload power, that is always available when you need it, when our industries expect energy to be affordable and reliable. And that’s why we’ve really focused on that, with our refurbishments. Pickering was just extended just a few weeks ago; the National Safety Commission extended, we’re excited about that, two more years of power. That’s gonna add literally over $15 billion of GDP gain, just Pickering alone. Darlington, you know, you talked about pricing, and a concern, perhaps, in the public. But look, I can’t speak for jurisdictions abroad; we’re responsible in Ontario. But in this province, we are leading the largest continental energy expansion in nuclear on time and on budget, and that is our value proposition to the world. I’m telling you, folks in France, and, and everywhere else, are sort of saying, how did you do that? And we give credit to where it’s due, to the good leadership of Bruce, and OPG, and the workforce that has been exceptional. But we do it on time, we do it on budget, and we’re also initiating a Small Module Reactor, Ben, which is important to say. It’s the first mover’s advantage.
Ben Mulroney
I wanna talk about that, because last weekend on my radio show, I saw a news story pop up that Google was investing in its own SMR, an SMR company, I believe out of, I wanna say New Mexico.
The Hon. Stephen Lecce
Right.
Ben Mulroney
And that was followed, that was right after I read the story about Microsoft wanting to reopen Three Mile Island. And I thought to myself, uh-oh, here’s a situation. We have a first mover’s advantage, we’ve got generations of experience of building, and a relationship with nuclear power in Ontario that is second-to-none, and here are American behemoths with deep, deep pockets, finding American competitors to fund that could possibly lap us, and take away that advantage. So, what do you say to those who worry that we could lose that first mover advantage, and we could be left in the dust?
The Hon. Stephen Lecce
Yeah, it makes the case for why we needed to be the first mover’s advantage on the small module reactor, why we did the partnership with GE Hitachi, who’s our technology partner, ’cause it was gonna allow us to export these around the world, and in the United States, Tennessee Valley Authority, a very large public utility, is partnered with us in Ontario to expand SMRs into the US, likewise in Poland, in the Czech Republic, in Estonia, and Alberta, and Saskatchewan, and New Brunswick. They all have partnership agreements, because Ontario has demonstrated that hegemonic leadership, the first out the gate—an element of risk, but there’s massive opportunity associated, too. So much so, that the world is literally watching Ontario, and turning to us as a source of inspiration for on-time and on-budget. And I will say, I visited our first SMR being built beside Darlington. I was there with Jeff, and a few others, and we did our first announcement following our trip to Romania, where we were refurbishing a CANDU reactor there, and bringing back a ton of revenue back home, a $307-million deal. That was an incredible experience. But the point is is that the world—from Romania, to the US, to everywhere in between—is turning to Ontario for our leadership, and I want to keep up that advantage, as we pursue prosperity, revenue, and jobs, for the people of Ontario.
Ben Mulroney
A word that—yeah—in your vision for Ontario’s energy future, you referenced affordability. Affordability is thrown around a lot. It’s top of mind for so many people, but it means different things to different people. You know, affordability means one thing to Marit Stiles, it means another thing to Bonnie Crombie, it means something different to you.
The Hon. Stephen Lecce
Sure.
Ben Mulroney
So, what does affordability mean to you, in the context of Ontario’s energy future?
The Hon. Stephen Lecce
I think first and foremost, it means stabilized energy rates, after they skyrocketed by, you know, roughly 300%. Remember, I often find it difficult to try to build awareness of a problem that doesn’t really exist in people’s minds. I mean, eight, seven, eight years ago, we’d all be talking about energy. It was the water cooler issue, it was the number one challenge and liability for households, and for industry. We’ve stabilized the rates, so the first principle is to lean into what we have done. The premier led the way on this, by bringing forth a program to stabilize the rates. We have one of the lowest industrial class rates to attract investment. We’ve really lowered rates, and then kept them sub-inflation over the past many years, which is a great achievement, when it comes to recognizing the cost of living is going up. It’s a challenge in this country and the world. So, affordability for me is about the retail impact on the person, the family, the senior, the fixed income pensioner, that’s struggling, and I’m proud of that.
The second element of affordability is about how we can reimagine incentive programs to make living in, or working in the province more attainable. And I think about energy conservation programs, as I mentioned in the Affordable Energy Act, that’s gonna allow us now to advance a whole-of-government approach to energy efficiency, yes, to reduce grid demand, but also, frankly, to put more money back into your pockets, into small, medium-sized enterprise pockets, into our farmers’ pockets, who are creating great difficulty in this economy. And so, affordability manifests through energy efficiency. It also demonstrably manifests through competitive procurements—and I cannot underscore this enough—because just seven years ago, we were not purchasing based on competition, or market-based decisions; we were making decisions based on, you know, I would argue, ideology. It may have made us feel good as a government, but we were paying 10 times above market. And so, the other generals sort of made it clear: pursue competition, allow the market to dictate, and drive the lowest costs for the rate payer. And that is our responsibility. And as a consequence of that, we’ve now, we’re averaging 30% reduction in our procurements for long-term energy. So, for me, affordability manifests in good, smart government, that is thinking about the long-term, competition, it manifests through energy efficiency for all, and through stabilized rates for our businesses and our families, and that’s exactly what we’ve achieved. We just wanna do more of it, as we look to tomorrow.
Ben Mulroney
Does, does that calculus, that affordability calculus, change in a world where the carbon price still exists?
The Hon. Stephen Lecce
Yeah, you know, this is a big challenge for the province. I mean, we litigated all the way to the Supreme Court of Canada, in opposition to the Carbon Tax, and this is a big issue. Because I think what we’ve demonstrated to those in the political class that wanna pretend like it’s a binary choice of economic growth or environmental protection, I think our government has demonstrated that you actually can reduce emissions, grow your economy, without imposing a tax on industry or people. And that’s a fundamental philosophical difference. I mean, you mentioned the opposition leaders, so therefore now I have licence to go at them, but you know—and I say this respectfully, to my parliamentary colleagues—but you know, look, I mean, when an election comes, we’re gonna have a choice. We talked about the roads before governments. I mean, either we can impose higher taxes on people, on families, for the indignity of driving to work, or like buying groceries for their children. I mean, these are, these are necessities. These are not luxuries, for which we should be taxing people. And then the Carbon Taxes, you know, will go up again for the fourth time, by another 30-odd cents a litre. I mean, this is putting great pressure on everyday people, so we’ve taken a different approach. We’ve used technology, not taxation, as a way to drive down emissions. And let me just say, we don’t virtue signal on the environment—this isn’t, you know, we don’t tattoo to the forehead—but we’re proud of the fact that Ontario, unlike the federal government, is actually gonna meet our Paris Accord targets. Like, think about that for one moment. A Progressive Conservative government is going to reduce emissions and hit our targets, our 2005 Paris Accord targets, 30% below, unlike any jurisdiction in the country, without imposing a tax, by embracing nuclear or non-emitting energy sources, and that is the future of our province.
Ben Mulroney
I’m not one to goose the crowd, but yeah. So, I’d like to go back to an expression that you used at the podium. You mentioned an all-of-the-above approach to the energy future of our province. But how is it different than what we have exactly today, and you also mentioned that the priority is affordability, but it has to be balanced against reliability and sustainability.
The Hon. Stephen Lecce
Right.
Ben Mulroney
So, can you square those circles for me?
The Hon. Stephen Lecce
You know, all-of-the-above is, really, an embrace of free market principles, where the lowest-cost option should prevail. We need to be making decisions based on what is, provides the enduring power our industry needs. You know, I think about so many of our large industries, our fuel industries, our chemical and so many others, who are before us who are making a big difference in the world. I mean, they will need reliable power. You know, I can go to a global investor—we could not have gone to Stellantis, or to, you know, Volkswagen, when they invested $7 billion, one of the largest investments in Canadian history, and said, “We’ll provide you power most of the time.” Like, I mean, this is fundamentally the choices, though, when we speak or we romanticize some resources, to the exclusion of the others. It’s like, well, we actually need all of them. We actually, we do need, we do support, we’ve taken a technology-agnostic approach, but we do support all of them being part of the mix. We will need renewables to play an important role.
We just announced a new regime in place that gives some protections for farmland, gives a say to communities, but renewable costs have come down; they should be able to compete. We’ve launched, we’ve taken leadership on storage. The largest battery storage investment in this country’s history is taking hold in Ontario; 3,000 megawatts of power will be stored here. It’s the third-largest on the continent. That’s how we make renewables viable in the province. In the absence, we’re producing power not for peak periods, and it just, we’re wasting, and spilling it. We’re gonna need natural gas as an insurance policy. We use it right now for peak purposes. We, you know, it’s about 10% of the mix, but it’s critical right now. And I mean, you know, one of my colleagues from the Liberal Party introduced a bill not too long ago that would have the effect of stripping natural gas from the province, from people’s homes. This is two-thirds of Ontarians depend on it. It is, literally, the enabler of heat in the winter.
So, I mean, again, we need to be intellectually honest about how do we build out a prosperity agenda that uses all resources, of course, nuclear power being the base load. We’ve expanded hydroelectric, working with OPG in Eastern Ontario. I announced a billion dollars to extend the life of those assets, with John Jakubowski, for another 30 years, another generation of clean power. We’re expanding nuclear, you know about Pickering, you know about Darlington, you know about Bruce C, which is an incredibly exciting project, roughly 5,000 megawatts of clean, non-emitting power. We’re gonna do all of that, and four SMRs, which is 1,200 megawatts of power, like a million people, homes, we could run—but it’s still not enough. And so, anyone who’s gonna, in the legislature or in the public discourse, say, you know, we’re gonna pick winners and losers, and preclude options, when we need all of them plus some, is not being honest about how we pursue a pro-jobs, pro-economic growth agenda, and we’re not gonna shy away from having that debate. I think people ought to know the effect of limiting our choices means higher prices, and an undermining of reliability, and that means we’re gonna go back to the former government’s policy. And I have yet to meet a solitary human on this province who’s said to me, “Let’s go back to the energy policy of the former government.” I mean, that just is not happening. But that’s the effect of that policy. So, I want us to think through the logic of these positions and recognize, it may be a cool hashtag…
Ben Mulroney
Yeah.
The Hon. Stephen Lecce
…but it means we don’t have power tomorrow. And we’re not gonna pursue that path.
Ben Mulroney
I want you to take off your minister hat for a second; I want to talk to Steven Lecce, the guy who decided he wanted to put himself, throw his hat in the ring and become a politician. You have described yourself as a, quote, “Constructive disruptor,” which is a lovely euphemism.
The Hon. Stephen Lecce
Maybe a pain in the ass to some…
Ben Mulroney
Yeah.
The Hon. Stephen Lecce
…depending on who you ask, but thank you.
Ben Mulroney
Premier Ford calls you an Energizer Bunny.
The Hon. Stephen Lecce
Yes.
Ben Mulroney
But the name that you picked was, was constructive disruptor.
The Hon. Stephen Lecce
Yeah.
Ben Mulroney
Why, what does that mean to you? ‘Cause you’re right, shit disturber could apply, as well.
The Hon. Stephen Lecce
Yeah, I mean, yes, it depends who you ask. You know, a former prime minister said, “Govern for the next 30 years, not for the next 30 days.”
Ben Mulroney
Sorry, what was that guy’s name?
The Hon. Stephen Lecce
His name was Brian Mulroney, the 18th prime minister of Canada. And, but think about that. I love, that quote resonates with me so much. Govern for Canada for the next 30 years, not the next 30 days. I mean, the impetus for why I ran at the crazy old, tender old age of 31 in politics was because A, I didn’t think we needed more representation of the next generation. All these decisions were imperiling, you know, when I was young in my early 30’s, now that I approached my 40’s, but—I know you all want to hit me, and I’m getting booed by some, by, as I speak—but the truth is, that I wanted to be counterintuitive in the leadership that we pursued in Ontario. And from education to energy, I think it’s about going, it’s about doing what is right, not politically expedient. I think most people reward public servants who have political courage, moral courage, to confront the big societal challenges before us, the economic challenges. And we’re prepared to take on the special interests who often govern in politics, and repatriating power back to the people, a common-sense conviction that, you know, we need everyday values to triumph in how we make decisions. And the premier, to be, you know, to his credit, is very much rooted in that everyday man perspective. And he really challenges cabinet to be a change agent.
So, I didn’t come into the energy ministry to sort of say everything’s hunky dory, love everything the way it is. I came in to say we need to light a fire, or I think we need to light a match under the behinds of the energy sector. Everyone’s here, the IESO, OEB, utilities, you’re all in the room. And the message I’m sharing with you is: we need to work with speed and ambition, and we need to scale up, with a greater bias of action. The status quo is not gonna work. And we’ve done amazing work under our government predecessor ministers have been leading the way. But really, the premier gave me a mandate: light a fire under the system, really come into with a vision of reimagining energy resources, leverage private capital, work with private sector unions, and build out our energy infrastructure for a generation. Which is a fundamental difference to how so many governments operate.
Ben Mulroney
Yeah. I wanna end on a question of energy exports, because you brought it up, and it’s one of those dumbfounding things that…
The Hon. Stephen Lecce
Right.
Ben Mulroney
…with the bounty that we have, that we, as a net energy exporter, sell energy at a loss. It’s never made any sense to me—but then again, I was an entertainment reporter, what do I know? But we’ve had a mixed bag when it comes to yes, yes, energy self-sufficiency in the province of Ontario, energy self-sufficiency in Canada. But exporting clean power seems to be a laudable goal.
The Hon. Stephen Lecce
Yeah.
Ben Mulroney
The one that we should be striving for every day. How are you gonna make that happen?
The Hon. Stephen Lecce
So, we are a net exporter of clean power, already. Roughly 10% of our, of electricity is going into the U.S. You know, in 2017, the Ontario Society of Professional Engineers did a study on the amount of money we wasted on sending power into the U.S. It was a billion dollars in 2017, under the former government, that we were literally burning tax dollars and rate payer dollars that, ultimately, went into the U.S. We were selling energy, sometimes, at best, we break even, but often at a loss, a billion dollars at loss. So, that just seems to be incompetence. And if you ask the average person, they say like, “What the hell’s wrong with you?” The world needs power, and yet we’re selling it at a discount. We’re not a charity for the U.S. We’re actually competing with those very Great Lakes states, to try to attract investment. So, why are we enabling them, on one hand, and yet competing on the other? So, and we are democratic allies, and I’m gonna speak a bit about the geopolitical element to that question.
But the premier has this grand vision, and we share it, in that we believe Ontario is at the precipice of being able to be a net clean energy exporter and superpower, not just of clean power through our interties, our energy infrastructure into the U.S., or into Québec, or into Western Canada, but a net export of technology, too. And the reason why I emphasize this is because when I say reimagine, or a sense of ambition, or the scaling of how we wanna be, a meaningful powerhouse in the world, it’s the idea that we’re up against another U.S. election. And irrespective of who wins, we’re gonna see protectionism rise. We’re gonna need soft power in the U.S. market, to go into those governors’ offices, and centres offices, to remind them that we’re now selling them 20, 30, 40% of their clean power to displace U.S. coal. So, this is our way of reducing continental emissions. It’s our way of leveraging soft power, in what will be a critical renegotiation, potentially, of the Canada-U.S. trade agreement. It’s gonna be a path to pursue revenue for the province.
Because look, unlike other parties and other governments, we have not raised the tax a solitary time, and the premier will never do that. So, then how do we pay for those schools, the 100 schools that Jill’s building? The 50 schools that Sylvia’s—50 hospitals that Sylvia and the premier are building? Well, we need to bring revenue, we need to grow the economy. We can do that without a Carbon Tax, we can do that by creating the conditions to attract investment, grow our foreign direct investment, but we could also do that by exporting our tech to the world. And I’m proud that, in Poland, and as I mentioned Latvia, or Estonia rather, as well as the Czech Republic, and many provinces in our country, they are turning to Ontario as the leadership on SMR development. And that gives me a sense of hope.
So, we can sell our tech, we can sell our clean power, we can leverage it for good, and we’re gonna end the practice of short-term energy contracts, where we’re selling below market, and look at long-term purchase agreements, where we lock them in, we de-risk it for the provincial rate payer, but we maximize the economic benefit for the, for the taxpayer. Real revenue, real job opportunities, and real access into the U.S. market. And for that, it gives me a great sense of hope that, you know, our priority’s for Ontarians, but we really can demonstrate and shine light in the world as a beacon of democracy and economic prosperity in this continent, and frankly, in every region in the world.
Ben Mulroney
Ladies and gentlemen, Minister Steven Lecce. Thank you so much.
The Hon. Stephen Lecce
Thank you.
Ben Mulroney
Appreciate it, well done. Thank you.
The Hon. Stephen Lecce
Thank you. That was great.
Jenna Donelson
Thank you, Ben, for leading that great discussion. You took us in a number of directions, it was wonderful. And thank you again, Minister, for laying, for taking the time to be here, to lay out your vision, your enthusiasm for Ontario’s future. It is now my pleasure to introduce Andrew Spencer, Executive Vice President, Capital Portfolio Delivery at Hydro One, to deliver the appreciation remarks. Welcome.
Note of Appreciation by Andrew Spencer, Executive Vice President, Capital Portfolio Delivery, Hydro One
Thank you, Jenna. Let’s have one more round of applause for the Honourable Steven Lecce. Energy consumption is on the rise in Ontario, and rising fast. As we heard, according to the most recent IESO forecast, it will increase 75% by 2050. Meeting tomorrow’s demand means taking bold steps today. Minister Lecce’s ambitious plan to electrify our economy will make Ontario a global energy leader. More importantly, it will secure a clean and affordable future. Our generational opportunity demands nothing less. To rise to the challenge Minister Lecce set out for us today, Ontario’s energy sector will need to come together and deliver for all customers, all communities, and all Ontarians. Hydro One will be there every step of the way, a strong and vital partner to the government, in its efforts to provide clean and reliable energy to a fast-growing Ontario.
Our work has already begun. Right now, Hydro One’s hardworking teams are planning or building nine new transmission lines. We applaud the government’s modernization of the Environmental Assessment Act, and processes for helping us forge ahead. In line with our proven track record, these lines will be built and operated as quickly and economically as possible. They will also be built in true partnership with First Nations through our 50/50 equity sharing model. These lines will power our growing EV supply chain, help critical industries decarbonize, and support agribusinesses putting food on Ontarians’ tables.
Ontario’s energy transition is a generational opportunity, which we are well-positioned to leverage. That’s because we have a strong leader, and dedicated partners in the Ontario government, Minister Lecce, Associate Minister Oosterhoff, and Premier Ford. Just last month, Minister Lecce, Associate Minister Oosterhoff, our President and CEO David Lebeter and I, worked together in Niagara Falls at our BEC 2 transmission station, announcing completion of Hydro One’s $135-million investment in upgrades, to match what OPG is doing on their side. A few weeks later, the minister and associate minister were back in Niagara again, meeting with another group of Hydro One’s highly-skilled crew members. This time, they were meeting with some of the 150 crew members that, on their way south, to help our neighbours recover from the devastation caused by hurricanes, Helene and Milton. And the crack of dawn, they shared a few words of encouragement, and saw our crews on their way.
Thank you to the Empire Club for hosting today’s events. Thank you to all of you for being here and to the Honourable Stephen Lecce for sharing his bold and forward-thinking vision for our future. Thank you.
Concluding Remarks by Jenna Donelson
Thank you, Andrew, for those great appreciation remarks, and for your ongoing support of the Empire Club. As we bring today’s event to a close, I want to take a moment to thank you all for joining us, and a special thank you again to our sponsors for their continued support of the Empire Club, as we pursue conversations that matter. I’d also like to recognize some students and young leaders we have in the room; I think we’ve got some from TMU, and U of T. We are glad you’re here. Thank you for being a part of our community.
And in closing, don’t forget to subscribe to the Empire Club newsletter, by scanning the QR code on your tables; that way, we can keep connected with you, and inform you about our upcoming events. On November 5th, Michele Harradence, President of Enbridge Gas, will be here. Michele, we are very much looking forward to what you have to say. And on November 7th, Minister, your colleague, the Honourable Sylvia Jones, Ontario’s Deputy Premier and Minister of Health, will be delivering a speech at our first-ever “Future of Fertility” event. So, we are looking forward to that as well. And on November 28th, the Honourable David Piccini, Minister of Labour, Immigration, Training and Skills Development, will be at this podium to address the expansion of Ontario’s skilled trades workforce. So, lots going on. Check out our website, and get your tickets now.
As a club of record, all Empire Club events are available to watch and listen to on our website, and a recording of this event will be available shortly. Thank you all for joining us today. I wish you a lovely afternoon. Thank you, this meeting is now adjourned.
