Alectra President & CEO Brian Bentz & Energy Minister Stephen Lecce / 11
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FROM THE EDA CHAIR
The LDC of Tomorrow
Welcome to the Fall issue of The Distributor! I hope that you have had a fun and safe summer, and were able to take advantage of Ontario’s summer weather – especially since some parts of our province had one of the soggiest summers on record!
As we enter autumn it’s the time of year when many of us look up from our day-to-day business and start planning for next year and the future. From setting and approving budgets, developing schedules and creating strategic plans, we are laser-focused on what actions and resources we need to succeed in the year ahead.
Your EDA Board of Directors is no different. Reflecting on our June strategic planning session, your board now starts the work of approving an Action Plan and budget that sets priorities and focuses our association’s resources on enabling continued success and value creation for LDCs.
A centre-piece of this path to success is to continue sharing and building public support for EDA’s newest vision paper, “Solving Gridlock”. The paper outlines how Ontario’s local hydro utilities must play a crucial role in making the province grid-ready to achieve low-carbon economy objectives.
Our industry is always in a state of growth and change but what we’re seeing today is truly unique. The pace of change, growth and technological advancement is accelerating and our electricity grid must accommodate this change.
According to the researchers behind Solving Gridlock (Power Advisory, Elenchus Research and the Centre for Urban Energy at TMU), Ontario’s electricity consumption is projected to rise from 144 TWh in 2023 to 245 TWh by 2050, and annual spending on capital by LDCs may need to double by the mid-2040s, and increase by 130% by 2050. We’re talking unprecedented growth levels.
The time is now to make more local investments in communities across the province to enhance the electricity grid and meet customer demand. LDCs always get things done and we need to ensure we have the tools to make this happen. We need solutions to solve gridlock, and here are some recommendations:
• A shared customer-centric vision for electrification, the role of utilities, and clarity around the function of the OEB, with a regulatory framework that enables the need for foundational grid modernization investments;
• Alternative funding approaches and policies to support the required grid modernization and other strategic investments customers need;
• Investing in the diverse talent development required to sustain a productive electricity sector workforce that can continue to provide outstanding customer service for Ontarians.
This is a vision that enables LDCs to do what we’ve done best for more than a century – empower communities across the province to meet their economic, environmental, and societal goals.
Stay tuned for further updates as EDA strengthens its advocacy to enable the LDC of tomorrow to build sustainable electricity system that benefits customers and makes Ontario grid-ready for the future.
Sincerely,
Janice McMichael-Dennis President and CEO, Bluewater Power, and Chair of the Electricity Distributors Association
The Electricity Distributors Association (EDA) publishes The Distributor for its members and stakeholders. All rights to editorial content are reserved by the EDA. No article can be reproduced in whole or in part without the permission of the EDA.
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SECTOR SCAN
LEADERSHIP CHANGES IN THE SECTOR
SUSANNA LAAKSONEN-CRAIG, DEPUTY MINISTER OF ENERGY AND ELECTRIFICATION
Susanna Laaksonen-Craig became Deputy Minister of Energy and Electrification in August 2024. Susanna previously served as Deputy Minister of Mines since October 2023. Susanna is a seasoned executive leader with over 25 years’ experience in government, research, and development across Canada and abroad, as well as deep professional experience in energy, natural resources, change management and executive leadership.
MARK E. WHITE, CHAIR OF THE OEB BOARD OF DIRECTORS
Mr. White is an accomplished leader in regulation, policy and governance, with a strong background in law, risk management, markets and organizational transformation. As the inaugural Chief Executive Officer of Ontario’s Financial Services Regulatory Authority (FSRA), Mr. White worked closely with government to transform legacy regulators into highly consultative, board-governed, effective and principles-based regulators and statutory decision-makers, that are dedicated to protecting consumers and ensuring strong, sustainable, competitive and innovative financial services sectors.
RISSA REVIN, PRESIDENT, MEARIE MANAGEMENT INC. (MMI)
The MMI Board is pleased to announce the appointment of Rissa Revin to the position of MMI President. Rissa comes to The MEARIE Group with well-rounded experience within the property/casualty insurance sector. As both a lawyer and executive she has led a broad range of business, legal and corporate functions. Further, Rissa has deep experience in areas such as regulatory operations, compliance, risk management, corporate services and governance.
STACIA BOSS, ACTING PRESIDENT AND CEO OF ELEXICON ENERGY
The Elexicon Energy Board of Directors is pleased to announce the appointment of Stacia Boss as the Acting President and CEO of Elexicon Energy. Stacia steps into this role following the resignation of Indrani Butany. Elexicon Energy is proud to continue delivering safe and reliable power to the communities we serve.
ARJAN ARENJ, CHAIR OF THE
BOARD OF DIRECTORS OF THE ELECTRICAL SAFETY AUTHORITY (ESA)
Effective August 1, 2024, Arjan Arenja will serve as the new Chair of the Board of Directors of the Electrical Safety Authority (ESA). “As outgoing Chair and on behalf of our Board of Directors, we are pleased to announce that Arjan Arenja has been elected from among the board members to Chair the ESA Board of Directors. Arjan’s experience in engineering, construction and board governance made him an excellent candidate for this role,” said outgoing ESA Chair Christopher Hopper. Arjan holds a degree in Civil Engineering from the University of Waterloo and an Executive MBA from the Ivey School of Business, University of Western Ontario.
ROB HENSCHEL, NATIONAL SALES MANAGER, METERING DIVISION, REXEL UTILITY
General Manager Ontario East, Nadia Scaramuzzo, announces the appointment of Rob Henschel to the position of National Sales Manager, Metering Division, effective July 29, 2024. Rob will oversee all of Rexel Utility’s metering and protection transformer business throughout North America. Rob has been engaged as a leader within the Power & Utility business as it relates to metering for many years and brings a knowledge and proven ability to build strong relationships with employees, suppliers, and customers. He brings over 30 years of electricity metering experience and has been directly involved in field operations, project management, customer growth and retention, business development, asset management, and electricity measurement compliance. He has actively participated and chaired industry committees and liaised with both provincial and federal regulators such as the Independent Electricity System Operator (IESO), the Ontario Energy Board (OEB), and Measurement Canada.
“In this role, Rob will report to me and have full accountability over measurement and protection transformer sales in North America – replacing long-standing employee, Ron Little, who will be retiring on November 1st, 2024,” said Nadia. “Please join me in congratulating Rob on his appointment with the Rexel Utility team.”
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SECTOR SCAN
PUC SERVICES INC. HOSTS SUCCESSFUL FIRST ANNUAL CHARITY GOLF TOURNAMENT, RAISING $15,924.25 FOR THE CANADIAN MENTAL HEALTH ASSOCIATION OF ALGOMA
On a perfect day for golf, 144 local golfers came together on Friday, July 26th, to make PUC Services Inc.’s inaugural charity golf tournament a resounding success. With the support of PUC employees, local sponsors, and community members, the event raised an impressive $15,924.25 for the Canadian Mental Health Association (CMHA) of Algoma.
ELEXICON ENERGY INC. HOLDS 4TH ANNUAL CHARITY GOLF EVENT
Elexicon held it 4th Annual Charity Golf Tournament on August 15th. Over 380 golfers attended at Deer Creek in Ajax – along with our great number of sponsors - supporting seven local charities throughout its entire service territory. This annual event has raised close to $500,000 for local charities. Funds are being raised for vital community agencies in Elexicon’s service areas and will benefit child and youth initiatives, community safety and a new paediatric hospice soon to be built in Whitby. Thank you to all our volunteers, sponsors and players.
BURLINGTON ENTERPRISES CORPORATION RELEASES SUSTAINABILITY PLAN
Burlington Enterprises Corporation (BEC) is proud to announce the launch of its comprehensive Sustainability Plan. BEC aims to provide a resilient, efficient, and environmentally friendly energy system that supports the City of Burlington’s climate goals and enhances the quality of life for all residents. This report outlines the organization’s strategic approach to modernizing BEC’s electricity distribution system in order to meet the future demands of the Burlington community.
Burlington Enterprises Corporation (BEC) is an energy services company, wholly owned by the City of Burlington. The holding company oversees two subsidiary companies: a regulated ‘wires’ company, Burlington Hydro Inc., and an unregulated company, Burlington Electricity Services Inc.
HYDRO ONE SUPPORTS DOWNTOWN WINDSOR BIA FOOD RECLAMATION PROGRAM
Hydro One Inc. (Hydro One) and the Downtown Windsor Business Improvement Association (BIA) announced the extension of their Good Greens Food Reclamation Program through 2024 with funding from Hydro One’s Energizing Life Community Fund. Before receiving the grant, it was unclear if the program would be able to continue past June 2024. To date, the organization has reclaimed more than 6,400 pounds of fresh produce and served more than 10,000 wholesome meals to vulnerable groups in their local community by enabling caring connections between local farmers, small food businesses and non-profit organizations.
OSHAWA POWER GROUP OF COMPANIES LAUNCHES NEW 5-YEAR STRATEGY
The Group, comprised of Oshawa Power, EnerFORGE and Durham Broadband, is pleased to announce the launch of its new Strategic Direction emphasizing partnership – with customers, community, and service delivery partners and their impact to the sustainability of the grid; as well as a renewed focus on vision, mission and values.
“As we look to the future, we understand that our industry is experiencing a period of unprecedented change and to keep pace with the rapid evolution, we must consistently revisit our organizational strategy to ensure we are delivering services that meet the evolving needs of our customer base and shareholder,” said Daniel Arbour, President & CEO. “We are confident that our new strategy will help strengthen our organization and position the Oshawa Power Group of Companies as a trusted leader in the energy transition.”
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INVESTMENTS TO ENABLE THE ENERGY TRANSITION Highlights from EDA’s Solving Gridlock Vision Paper
As noted in the opening message from the EDA’s Vice-Chair, our Solving Gridlock vision paper demonstrates that many investments are required to expand the distribution system and enable LDCs to meet objectives related to the energy transition, customer choice, resilience to climate change, and delivering affordable, reliable, and safe electric service.
The analysis in Solving Gridlock focuses largely on investments made in the distribution system. These utility-facing investments are required to enable customerdriven investments (i.e., behind-the-meter), such as allowing for two-way flows and enabling the connection and operations of DERs.
DISTRIBUTION GRID EXPANSION INVESTMENT REQUIREMENTS
Increasing electricity demands will require LDCs to update their investment plans to increase the capacity of distribution system infrastructure. After years of steady or declining demand, Ontario is now entering a period of growth driven by population and housing expansion, with 1.5 million new housing starts required by the government by 2031, an increase in energy-intensive industries, and electrification. Additional grid capacity is also required to enable wide-scale electrification of the economy under a net-zero scenario. For example, the IESO’s Pathways to Decarbonization (P2D) report shows the impact of rapid electrification of transportation and space heating required for a net-zero economy by 2050.
The report noted that a decarbonized electricity sector by 2050 would require “a system more than double the size it is today
Figure 1 presents an estimate of gross capital investment by Ontario’s LDCs using the demand forecasts based on the IESO’s P2D Report (“Net-Zero Scenario”) and the IESO’s 2024 APO (“Reference Scenario”). While both scenarios assume electrification, the IESO’s P2D report projects significant uptake in air and ground source heat pumps and EVs, driving demand growth, particularly in the winter season. There is a consistent historical relationship between LDC peak demand and capital investment, as published by the OEB, which can be used to estimate future distribution costs.
Scan for more information on Solving Gridlock, including the full document, footnotes and appendices
at an estimated cost of around $400 billion.” That said, the P2D report focuses only on bulk system impacts, and explicitly states that it “does not consider the impact on local distribution systems.” As a result, it does not consider investment costs required for distribution grid expansion to connect and accommodate new load. To prepare for increasing peak demand, LDCs must invest more in new infrastructure and ongoing renewal of existing infrastructure. In both the Net-Zero Scenario and Reference Scenario, investment needs to increase from current levels to manage demand growth. The results show that the annual gross capital additions by all Ontario LDCs could double under the Net-Zero Scenario from current levels by the mid-2040s and increase by approximately 130% from current levels by 2050. Even under the Reference Scenario, with more moderate electrification assumptions, annual gross capital additions by all Ontario LDCs could increase by nearly 45% by 2050. Cumulatively, Ontario’s LDCs are projected to spend approximately $103 billion on gross capital additions from 2024 to 2050 (Reference Scenario) and could spend up to $120 billion on gross capital additions from 2024 to 2050 under a Net-Zero Scenario.
Figure 1: Gross Annual Capital Additions by Ontario LDCs, Historical and Forecast
HYDRO ONE’S IVY INITIATIVE STEERS EV CUSTOMERS THROUGH ENERGY TRANSITION
By Sarah Pirani, Hydro One
Ontario is undergoing a significant energy transition, driven by the increasing adoption of renewable energy sources and electric vehicles (EVs). This transition not only supports global initiatives to cut carbon emissions but also demonstrates the province’s dedication to a sustainable and forward-thinking energy future.
Currently, transportation is responsible for about a third of Ontario’s greenhouse gas emissions. Mobilizing Ontario’s clean electricity system to power transportation is key to the province’s net zero future.
According to the Ontario Government, as of December 2023, there are more than 150,000 EVs registered in Ontario, including both battery-electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). By 2030, there are expected to be more than one million EVs on the road in Ontario.
Hydro One plays a pivotal role in supporting the province’s shift to sustainable energy solutions. One of the key initiatives is the development and expansion of the Ivy Charging Network, a company advancing the electrification of the transportation sector.
With nearly 70 per cent of EV charging happening at home, Ivy is helping customers switch to an electric vehicle by providing simple, user-friendly, and reliable charging solutions. Customers can purchase a standalone home charger or installation package with Ivy’s network of licensed electrical contractors.
“Hydro One is finding innovative ways to optimize the electricity network so it remains reliable and resilient for our customers well into the future,” said Frank D’Andrea, Vice President and
EV drivers can learn more here
• The Ivy Home Level 2 Smart charger is built in Ontario to withstand harsh Canadian weather including temperatures as low as -30oC.
• The charger is compatible with all EV models delivering charging speeds of up to 9.6 kW so you can charge up to 48km/hour.
• Ivy Home makes home charging accessible with a turnkey solution and flexible payment plans.
• Ivy Home customers can manage both their public and home charging sessions through one easy-touse mobile app.
Executive Lead, Enterprise Strategy, Hydro One. “By helping our customers with new solutions for charging their electric vehicles and supporting the expansion of public charger availability, we are collectively working towards a more sustainable Ontario”
Ivy also provides a public charging network that connects Ontario from north to south and east to west, helping EV drivers travel with confidence and ease to most places. Its level 3 fast chargers offer convenient access and amenities to enhance customers’ experience.
“We’re making electric vehicles more affordable and charging more accessible where Canadians live, work and play,” said the Honourable Jonathan Wilkinson, Minister of Natural Resources. “Investing in more EV chargers will put more Canadians in the driver’s seat on the road to a net-zero future and help achieve our climate goals.”
POWERING THE FUTURE: ALECTRA WELCOMES MINISTER STEPHEN LECCE TO BRAMPTON OPERATIONS CENTRE
Alectra recently hosted a distinguished visitor: Hon. Stephen Lecce, the newly appointed Ontario Minister of Energy and Electrification, at its state-of-theart operations centre in Brampton. Accompanied by Associate Minister of Women’s Social and Economic Opportunity, Charmaine A. Williams, and Mississauga–Erin Mills MPP Sheref Sabawy, Mr. Lecce’s visit underscored the government’s commitment to sustainable energy initiatives and electrifying the economy.
Brian Bentz (Alectra President & CEO), Minister Lecce, Associate Minister Williams, and MPP Sabawy next to the rooftop solar panels at Alectra’s Brampton building.
A SHOWCASE OF SUSTAINABILITY AND INNOVATION
“We are pleased to host Minister Lecce at our new operations centre in Brampton and showcase our commitment to sustainability and innovation,” said Brian Bentz, President and Chief Executive Officer, Alectra Inc. “This facility represents a significant investment in reducing our carbon footprint and enhancing service levels for our community.”
The Brampton facility, which officially opened last October at 200 Kennedy Road South, serves as the consolidated operations centre for more than 300 Alectra employees. Spanning 215,000 square feet, the building is LEED (Leadership in Energy and Environmental Design) certified to Gold Standard. It is Alectra’s fifth LEED-certified facility,
ALECTRA
ALECTRA’S 2023 ESG REPORT HIGHLIGHTS GROWTH AND INVESTMENTS IN SUSTAINABILITY
Alectra has unveiled its 2023 ESG Report, showcasing impressive strides in sustainability, community support, and infrastructure investment. Here are some key highlights:
• Five Years of GRE&T Centre: Celebrated the fifth anniversary of the Green Energy & Technology (GRE&T) Centre, Alectra continues to innovate in sustainable energy solutions.
• Greenhouse Gas Emission Reduction: Achieved a 16.9% reduction in greenhouse gas emissions compared to the 2016 baseline, underscoring Alectra’s commitment to climate action.
• Community Contributions: Contributed approximately $1.56 million to local charities and nonprofit organizations, reinforcing its dedication to community support.
• Infrastructure Investments: Invested approximately $250 million in infrastructure distribution and expansion, enhancing grid modernization and service reliability.
• New Operations Centre: Consolidated two facilities into a new Gold LEED-certified operations centre, reflecting sustainable building practices and operational efficiency.
For the sixth year, Alectra has been named among Canada’s Best 50 Corporate Citizens, ranking eighth overall and first in its peer group of Canadian electricity transmission and distribution utilities.
providing operations service to customers in Mississauga and Brampton.
2023 Environmental, Social and Governance Report
During the tour, Minister Lecce explored the impressive 500KW rooftop solar power installation, with generating capacity of more than 800 MWh/year of renewable energy. He also got a close look at Alectra’s all-electric bucket truck, an innovative addition introduced last year as part of the company’s 2050 net-zero goal. This electric vehicle, used by line crews for daily overhead line maintenance, rotates between the Brampton, Markham, and Hamilton service centres.
Discover the possibilities
“Our government is focused on ensuring electricity is reliable and affordable for families across Ontario,” said Minister Lecce. “The tour of Ontario’s first EV truck reaffirms our commitment to electrifying the economy so that we can reduce emissions, while supporting economic growth and job creation for our workers and families.”
A PARTNERSHIP FOR PROGRESS
Alectra leadership anticipates continued collaboration with Minister Lecce and his team on industry initiatives, aiming to foster productive working relationships that bolster the distribution sector. In welcoming Minister Lecce, Alectra not only highlighted its achievements in sustainability and innovation, but also reinforced the shared vision of a greener, more resilient energy future for Ontario and the role of local hydro in the electrification of the grid.
View more details on Alectra’s sustainability efforts here
Pictured from Alectra are Darryl Bissett, Lead Hand Lineperson; Mike Matthews, Executive Vice President, Asset Strategy & Operations; Chris Wray, Director, Government & Corporate Relations; and Joseph Almeida, Director, Supply Chain Operations.
Brian Bentz and MPP for Mississauga–Erin Mills Sheref Sabawy talking with the group.
Minister Lecce, Associate Minister Charmaine A. Williams, MPP Sheref Sabawy and Brian Bentz next to Alectra’s EV truck.
TRANSFORMING COMMUNITY SAFETY THROUGH FIRST RESPONDER EDUCATION
By Sarah Regnier, Entegrus Powerlines
In response to potential hazards and a deficiency in the market affecting First Responders, Entegrus employees developed a local safety program, designed to augment emergency training - Electrical Safety & Awareness for First Responders. Triggered by real incidents witnessed by our line staff, such as a live high-voltage power line remaining on the ground after a car accident, a mistaken streetlight wire, and a traffic vest caught on a low-hanging powerline, this program highlights our commitment to transforming our value of ‘safety first in
everything we do’ to our first responders in our communities.
This program was ultimately developed to educate and protect emergency responders. The objective was to raise awareness, change perspectives, and keep the dangers of electricity at the forefront, overall raising awareness of public electrical safety.
Considering the number of competing hazards present at the scene of an emergency, electrical dangers such as poles, transformers, and powerlines, aren’t always top of mind. Additionally, this demographic would also respond to industry related emergencies and incidents like substation break-ins, putting this demographic at an increased risk for electrical contact.
At least 50% of this demographic comprised of men and women between the ages of 18 and 34. The 2022 Public Safety Awareness of Electrical Safety Scorecard results showed that this demographic was
least likely to choose the best answer when asked about the safety of quickly exiting a vehicle in contact with overhead powerlines, showing a greater vulnerability to electrical risks.
Presentations illustrated the specific impact various scenarios could have on First Responders, and included real-life examples, along with impactful photos and videos.. The training’s purpose was not to replace or override Standard Operational Guidelines, but to complement and enhance existing training. To address the 18-34 demographic mentioned in the section above, participants were equipped with concise reminders of powerline safety and instructions for evacuating a vehicle in contact with live powerlines.
In 2023, we conducted presentations for 128 local First Responders, encompassing the entire membership of the Elgin St. Thomas EMS paramedics, who also extend their services beyond Entegrus’ territory, and the Ridgetown Volunteer Fire Department. Additional groups in our service area,
including other full-time and volunteer fire departments in area communities, received training. This program improves community emergency preparedness by providing life-saving training opportunities for the first responder and by minimizing response times during emergencies. It provides prompt identification and addressing of potential hazards, decreases the likelihood of incidents and mitigates potential risks
associated with electrical hazards. Feedback received from participants was overwhelmingly positive, with attendees expressing that “the content was highly informative and directly applicable to daily operations”.
The practicality of this initiative lies in its adaptability and minimal cost, with any costs being predominantly tied to labor. Additionally, this program could easily be replicated and integrated into Health and Safety programming. By leveraging employee passion and dedication advancing public electrical safety, we were able to deliver an impactful program.
ERTH CORPORATION LAUNCHES ENGAGE360 UTILITY CUSTOMER ENGAGEMENT SOLUTION
By Jocelyn Facciotti
In August 2024, ERTH Corporation announced the launch of its new utility customer engagement solution, Engage360. This advanced platform is designed to elevate the digital experience for energy consumers while delivering operational efficiencies for utilities.
Engage360 empowers customers with intuitive tools and insights, ensuring they can effortlessly manage their utility accounts from any device. For utilities, this translates to streamlined operations, enhanced customer engagement, and improved service delivery capabilities.
“As a utility-driven solution, Engage360 builds upon decades of industry expertise and a profound understanding of the energy market,” said Chris White, President and CEO of ERTH Corporation. “Our platform is designed to meet the evolving needs of both consumers and utilities, ensuring a seamless experience across all devices.”
In today’s digital landscape, seamless customer engagement isn’t just advantageous—it’s essential. For utilities, this means streamlined operations, enhanced customer engagement, and the ability to augment service delivery. ERTH Corporation designed Engage 360 to elevate the digital experience for energy consumers while delivering operational efficiencies to utilities.
MOBILE, CUSTOMER-CENTRIC DESIGN
80% of inbound traffic to utility websites comes from mobile devices. Engage360 features a mobile-friendly, customer-centric design that enables energy consumers to effortlessly manage their utility services from any device. Conveniently download the mobile app from the app store to securely log in. Whether at home or on the move, our intuitive interface puts the power in your customer’s hands.
ERTH Corporation invites utilities to schedule a demo and discover how Engage360 can transform their approach to customer engagement, satisfaction, and operational efficiency. To learn more, visit erthcorp.com/engage360.
SYNERGY NORTH RELEASES EDUCATIONAL VIDEO ABOUT PROPER DIGGING PROCEDURE
Synergy North is proud to announce the success of its
“Digging Safely is More Than Just a Call or Click” video. The video tells the story of Jerry, a kind-hearted neighbour who tries to warn those around him of the importance of following procedure when digging into their property.
While most residents start the digging process correctly, as the process continues their commitment to safety wanes. It’s easy to reach out to Ontario One Call, but these projects are always a multi-step process. Synergy North’s video follows Jerry as he educates his neighbours about the risks of not following proper procedure. From property damage to a $10,000 fine, Jerry educates those around him with a passion that is non-judgmental and kind.
“Transforming this safety message into a video makes it relatable for the audience, easy to understand and enhances retention,” says Amy Kembel, Manager of Human Resources and Safety at Synergy North. “As a short, informative and entertaining video,
it swiftly catches viewers’ interest. Neighbour Jerry doesn’t just capture attention; he commands it, ensuring a lasting impression on our audience.”
The video was received positively by Synergy North’s customers. Informative videos often struggle to engage audiences. They can come across as stuffy and out of touch, not engaging with the topic the same way the audience does. By focusing on the character of Jerry, Synergy North has cleverly avoided lecturing the audience, managing to come across as caring and sincere.
The video received thousands of views, and helped Synergy North’s customers save time and money.
Watch the video visit Synergy North’s website
Meet Jerry, your friendly neighbour obsessed with safety!
OUT WITH THE OLD AIR CONDITIONER, IN WITH THE HEAT PUMP
By Erik Janssen
With climate change impacts becoming increasingly severe, the imperative to reduce carbon emissions is stronger than ever. In Ontario, buildings account for a significant portion of emissions, mainly due to fossil fuel heating systems. Electrically-driven air-source heat pumps (ASHPs) are a low-carbon heating alternative with the potential to also reduce lifetime utility operating costs. Using data from a recent study, this article explores the benefits of these systems, focusing on the replacement of aging air-conditioning (A/C) units with cold-climate ASHPs.
UNDERSTANDING AIR-SOURCE HEAT PUMPS
ASHPs transfer heat between indoors and outdoors. They resemble A/C units, using similar components and connecting to homes in the same way. However, ASHPs can reverse their operation to also deliver heat, and do so with an efficiency that is a few times greater than conventional heating equipment. When an ASHP is paired with a fossil fuel furnace, it’s called a hybrid system. In this setup, the ASHP handles all the cooling for the home and much of the heating, while the furnace often acts as a backup heat source during more extreme cold.
TECHNOLOGICAL ADVANCEMENTS
Over the past couple decades, different innovations have enhanced the performance and functionality of ASHPs. Efficiencies have improved. Cold-climate ASHPs (CCASHPs) have emerged, and these units use inverters and refrigerant circuit innovations to maintain heating capacity and comfort in more extreme cold temperatures.
In the past few years, numerous CCASHP options have come to market that can directly replace an A/C unit and operate with an existing furnace as a hybrid system. Many of
look almost indistinguishable from A/C units.
these systems also offer a more competitive upfront cost than has historically been the case with CCASHP systems. Overall, these advancements not only make ASHPs more effective in colder climates but also more accessible to homeowners, with easier integration and lower upfront costs.
The innovations have continued with smart web-enabled controls that can respond to time-of-use electricity pricing. [1] The promise of future systems is that they may also switch between furnace and heat pump based on grid emissions data and demand response signals to optimize operating costs, grid integration, and carbon emissions.
ASHPs
STUDY OVERVIEW AND KEY FINDINGS
A recent study assessed the impact of CCASHP installations in six homes across The Region of Peel, Ontario, during Winter 2023/2024. [2] The CCASHPs all replaced aging A/C units and integrated with existing natural gas furnaces to form hybrid systems. The study involved interviews/surveys, utility data analysis, and smart thermostat data analysis to evaluate the systems’ effectiveness.
Key findings are below:
1. Gas Consumption Reductions: The study revealed that whole-home gas consumption decreased by 62% to 91% for the periods analyzed.
2. Cold-temperature Operation: In most homes, the CCASHPs could operate as the sole heat source for the home in outdoor temperatures near -10 °C, or colder in some cases.
Smart thermostat data was collected and analyzed. In this visualization, the vertical spread of the plot represents the range of outdoor temperatures occurring on each day. The color indicates the amount of furnace operation at the different outdoor temperatures, with dark blue indicating that there was no furnace operation. In this home, the furnace operation was largely limited to when outdoor temperatures dropped below -10°C where the colour of the plot changes to light blue and green.
3. Utility Savings: Net utility costs at current rates were close to break-even with furnace-only operation in most homes.
4. Homeowner Satisfaction: Participants expressed satisfaction with their CCASHP systems, noting good comfort, quiet operation, and reasonable utility costs
5. Operational Lessons: The study identified several operational insights to prevent unnecessary furnace use, mostly related to thermostat settings.
UPFRONT COSTS AND REBATE LANDSCAPE
The 2- to 3-ton CCASHPs in this study had upfront costs between $6,550 and $7,718 (installed, pre-tax, pre-rebate). Homeowners received $6,500 in rebates through the Home Efficiency Rebate Plus (HER+) program. One ASHP was included that did not qualify as a CCASHP because of its lower efficiency. It didn’t receive a rebate and had an upfront cost of $4,300.
The HER+ program ended early in 2024. Its replacement, the Home Efficiency Rebate (HER) program, now offers smaller incentives — for example, $1,000 for a 2-ton CCASHP. The Greener Homes Loan is still
available, providing no-interest financing for eligible applicants. Various other programs are available targeting different applications and regions.
It’s worth noting that, even with lower rebates, some ASHP and CCASHP models may have little to no incremental cost compared to A/C units when factoring in available programs.
FUTURE-PROOFING UTILITY COSTS
Home HVAC systems are expected to last on the scale of 15 years. A problem for homeowners needing new equipment today is that future utility rates are uncertain. Market forces and potential changes in government policy could shift electricity and gas rates in different directions. For example, gas rates recently reached historic highs before cooling off, while the Federal Carbon Charge is planned to further increase gas costs up to 2030. However, policy depends on the governing political party and market forces change.
The study illustrated how uncertainty is a strong argument for CCASHPs instead of A/C units. Hybrid system operating costs were assessed across various gas and electricity rate scenarios. Results showed that some homes could save hundreds of dollars annually, depending on future rates. Even if gas becomes more affordable than electricity on average, homeowners retain flexibility—heat pumps can be used strategically or less frequently to optimize costs. This versatility makes CCASHPs a smarter, future-proof choice.
MAKING THE OVERALL CASE FOR CCASHPS
The case is strong to choose a CCASHP instead of an A/C unit. Unlike A/C units, CCASHPs can both heat and cool, offering more functionality. Incremental upfront costs over A/C units can be low. Utility costs are future-proofed against rate increases. CCASHPs also offer other value-adds like quieter operation, better temperature regulation, and in some cases, improved dehumidification – owing to their variable capacity operation. The homeowners in the study reported good comfort in their homes and the data showed that the CCASHPs could meet the large majority of the home heating loads.
NEXT STEPS
This is a high-impact decarbonization solution with the potential to be quickly scaled and mobilized. From a program perspective, prioritizing homeowner awareness, contractor training, and offering greater incentives are essential to accelerate widespread adoption.
[1] Sustainable Technologies Evaluation Program. “London Residential Smart Hybrid Heating Pilot: System Performance Analysis.” December 2023. https://sustainabletechnologies. ca/reports/london-residential-report/
[2] Sustainable Technologies Evaluation Program. “Replacement of Air-Conditioners with Cold-Climate Air-Source Heat Pumps: Pilot Project Findings in The Region of Peel.” July 2024. https://sustainabletechnologies.ca/reports/
hybrid-heat-pump-pilot-in-peel-region/
Erik Janssen is a Research Scientist with the Sustainable Technologies Evaluation Program of the Toronto and Region Conservation Authority. For more than 10 years, he has been a scientific lead on pilot projects evaluating emerging low-carbon technologies for homes and buildings.
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ADVOCACY IN ACTION
VISION PAPER UPDATES
Our most significant recent milestone was the public release of Solving Grid-Lock – our member-driven vision paper for a customercentric energy transition.
Solving Gridlock includes recommendations for new funding tools for LDCs to enable necessary grid modernization investments. It speaks to the investment needed in local grids, to support booming demand and enable LDCs to innovate into digital utilities of the future.
In addition to presenting this vision paper to provincial government and agency officials, we are also thrilled with the grassroots support from EDA members in championing our sector’s vision for a customer-centric approach to the energy transition.
The vision paper has had strong communications engagement, with over 304,000 social media impressions and over 3,500 visits to the campaign site since its April launch (a 30% increase over the summer). EDA members worked hard to contribute to the ideas that supported the Solving Gridlock vision paper, and it is gratifying to see that effort pay off in advocacy and public relations success.
OEB COST OF CAPITAL HEARING
In July 2024 EDA filed its expert evidence with the Ontario Energy Board (OEB) on the Cost of Capital and Other Matters. This is the first such Cost of Capital hearing at the OEB since 2009.
The extensive and compelling evidence gathered by Nexus Economics LLC led us to determine that the return on equity (ROE) rates established by the OEB do not match the returns available by applying invested capital to other businesses with similar risk profiles. In fact, the low ROE rates proposed by the OEB may result in a situation where Ontario utilities are unable to attract capital on reasonable terms.
In response to the OEB’s reconsideration of the method it uses to determine costs and set rates, the EDA reached the following conclusions:
• We recommend an 11.08% return on equity (Ontario return on equity rates for many years have been and are significantly below peer jurisdictions)
• We do not recommend adjusting the current debt/equity ratio for now
A link to the EDA’s submission is here: www.eda-on.ca/Advocacy/ Submissions. The OEB plans to hold oral hearings in the fall.
LDC Staff from GrandBridge Energy, Oshawa Power and Westario Power are just some of many members showing off their support for Solving Gridlock
CONSERVATION AND DEMAND MANAGEMENT (CDM)
We have been working closely with the IESO-LDC CDM Working Groups to ensure LDCs have the option to participate in CDM through a new, enduring model. Starting in 2025, LDCs who wish may support provincewide programs through customer engagement. Eventually, LDCs who wish may design and deliver local/regional CDM programs, funded by Global Adjustment (GA) and rates. We anticipate more details from the government in early fall on budgets and targets.
OEB VASH PROJECT
The OEB has launched the Vulnerability Assessment and System Hardening (VASH) project in relation to the OEB’s Distribution Sector Resiliency, Responsiveness and Cost Efficiency initiative. The VASH project was initiated at the direction by the Minister of Energy (now Energy and Electrification) to develop and implement policies to improve distribution sector resiliency in response to the challenges posed by climate change.
The OEB kicked off its consultation on its VASH Report at the end of July 2024. VASH is intended to provide direction to LDCs on justifying climate-related DSP investments and will include amendments to LDCs’ cost of service filing requirements. The target date is for these amended filing requirements to be in effect for 2027 rates. The OEB intends to regularly engage with industry between now and the delivery of VASH at the end of June 2025. The EDA will be participating in this consultation to ensure that LDCs’ interests are represented as the OEB develops the VASH report.
DSO MODEL
OEB staff presented an update to the EDA’s Regulatory and Operations & Engineering Councils on its exploratory research on DSOs. This study will be composed of three work packages (examining DSO activity, roles, and functions; assessment of value, costs and benefits; regulatory considerations) and will inform the OEB’s forthcoming work on “Future Utility Business Models.” EDA’s Councils impressed upon the OEB that LDCs need to have the tools and mechanisms soonest, so that they can make required investments to enable DSOs and
non-wires solutions in distribution system planning.
EDA continues to actively engage with the IESO’s Tx-Dx Coordination Working group to ensure that the Total Distribution System Operator (TDSO) model remains on the table.
FRAMEWORK FOR THE REVIEW OF INTERVENOR PROCESSES AND COST AWARDS
EDA has been actively involved in the Ontario Energy Board’s (OEB) Framework for Review of Intervenor Processes and Cost Awards project. The project was initiated in 2022, and after receiving the Minister’s Letter of Direction in November 2023, the OEB expanded the project’s scope to include the consideration of a dedicated consumer advocate and capping
intervenor costs. The Minister’s letter also instructed the OEB to improve regulatory efficiency and deliver a plan for implementing reforms by September 2024.
With our goal to mitigate intervenor costs for LDCs, EDA responded to an OEB invitation to stakeholders in July 2024 to meet regarding a designated consumer advocate and intervenor cost cap. EDA provided direct feedback to OEB moderators at these meetings. We expect that the next steps will be communicated after the Minister has reviewed the OEB’s report.
EDA GOVERNMENT RELATIONS
With many recent changes to representatives in the provincial government and its agencies, EDA has been actively engaging at the highest levels to continue our advocacy momentum.
In August, EDA’s CEO Teresa Sarkesian met with Ontario’s new Minister of Energy and Electrification, Stephen Lecce, to discuss the
vital role of local distribution companies in delivering electricity to power Ontario’s growth.
We also had several discussions with the new Associate Minster of Energy – Intensive Industries, Sam Oosterhoff, regarding the role of LDCs in facilitating “last mile” connections for new advanced manufacturing customers.
Other recent EDA meetings in August included the Parliamentary Assistant to the Minster of Energy and Electrification, Rudy Cozzetto and the new Chair of the Ontario Energy Board (OEB), Mark White. Mr. White previously served as CEO of Ontario’s Financial Services Regulatory Authority, and he discussed his commitment to a consultative-based approach to regulatory oversight.
EDA staff also met with the federal Ministry of Energy and Natural Resources of Canada (NRCAN) regarding Smart Grid Program Portfolio Analysis, and the Ontario Ministry of Economic Development, Job Creation and Trade to discuss how LDCs are supporting the
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ELECTRIFICATION
FOUR EXCEPTIONAL STUDENTS AWARDED $1,000 BURSARIES FOR POST-SECONDARY EDUCATION
By Chris Kiritsis
Essex Power Corporation is proud to announce the recipients of the 2024 Powering Future Leaders Bursaries. This year’s bursaries, valued at $1,000 each, have been awarded to four outstanding Grade 12 graduates who are pursuing postsecondary education in fields that support and build upon our industry, including Science, Technology, Engineering, and Mathematics (STEM).
The Powering Future Leaders Bursary is a testament to Essex Power Corporation’s commitment to investing in the next generation of leaders and innovators. This initiative not only supports the educational aspirations of local youth, but also fosters future contributors to the energy sector.
“These talented students represent the future of our industry and beyond,” said John Avdoulos, President & CEO of Essex Power Corporation. “Their dedication to their studies and their commitment to their communities make them exemplary candidates for our bursary program. We are honored to support their educational journeys and look forward to seeing the impact they will have in their chosen fields.”
The Powering Future Leaders Bursary reflects Essex Power Corporation’s dedication to nurturing talent and encouraging academic excellence. Each recipient has demonstrated exceptional academic achievement, community involvement, and a clear commitment to their chosen fields of study.
EDA congratulates the recipients of Essex Power’s 2024 Powering Future Leaders Bursaries:
• Malik Al-Jawhari, University of Windsor, Civil Engineering
• Mila Kubik, University of Windsor, Honours Mathematics and Statistics
• Krish Bhagirath, McMaster University, Engineering I (Software Engineering)
• Rasesh Patel, University of Waterloo, Engineering I – Mechatronics Engineering
EDA COMMERCIAL CORNER
Peter Vicker (Smart Water Energy), Chair of the EDA Commercial
Member Steering Committee
WELCOME OUR NEWEST EDA MEMBERS:
Commercial Plus
Amidyne Solutions Inc.
NBM Engineering Inc.
Posterity Group Consulting Inc.
Commercial CIET Canada
BY PETER VICKERY
It is with great pleasure as Chair of the EDA’s Commercial Steering Committee, that I send out warm greetings to all EDA members, our commercial steering committee members, and to all energy utilities across Canada.
Our industry is in a major transformation adopting highly advanced products and services to meet the evolution of our industry. It is exciting times for each and every one of the aforementioned entities who are collaborating and focusing on a brighter future through the Power of Local Hydro and their collaborative commercial partners.
We are excited to showcase our commercial members’ innovative products and services at the newly expanded CUEE show on October 8th and 9th and at the EDIST conference January 14th to 16th. In January 2026 EDIST will move to a larger venue in downtown Toronto to meet the growing demand and interest in this phenomenal electricity industry showcase. Both conferences will showcase the dynamically diverse offerings around energy transition, enhanced customer experience, cyber security, AMI 2.0, gas insolated switchgear, power tools, to software to EV and emobility to name but a small segmentation of what the conference participants will be delighted to see and discuss with the leading commercial subject matter experts on hand.
I would also highly recommend that both LDCs and commercial members alike visit the EDA’s website and familiarize themselves with the ever growing number in our commercial membership that are poised and ready to partner bringing leading edge products and services to meet even the most complex requirements of evolving
opportunity to introduce the members of our newly formed commercial steering committee:
• Peter David Vickery (Chair), Smart Energy Water (SEW)
• Nimish Bhatnagar, AESI Acumen Engineered Solutions International Inc.
• David Brusutti, Esri Canada
• Stephen Dow, TOC Logistics
• Brian Garrison, Capgemini
• Nevin Gilchrist, Composite Power Group Inc.
• Dan Josling, Aladaco Consulting Inc.
• Arielle Kadoch, Stantec Consulting Ltd.
• Andrew Lam, Rodan Energy Solutions
• Stephanie Meyer, Rainer Cyber and Risk Management Inc.
• Deanna Morin, Domino Highvoltage Supply Inc.
• Hussain Rizvi, Itron Canada Inc
• Paul Snosek, KA Factor Group Inc.
• Daryn Thompson, Thompson Project Management Inc.
• John Avdoulos (EDA Board Representative), Essex Power Corporation
The Commercial Member Steering Committee acts as a liaison between Commercial Members, EDA staff and the EDA board. The committee reflects a broad cross-section of the EDA’s commercial membership base and its geographic scope. Commercial Members are encouraged to contact representatives from the Steering Committee to share their thoughts on commercial member services. For more information on
Power Projects need People Power.
RECENT AND UPCOMING EVENTS
The Electricity Distributors Association (EDA) has a slate of exciting, events planned for 2024 and 2025, be sure to mark your calendars.
FALL EDA DISTRICT MEETINGS
District meetings offer an excellent opportunity for attendees to network with LDCs and Commercial Members. The following information is currently available on each of the individual events:
• Joint Northeast & Northwest District AGM - September 4-6, Sudbury, ON
• Western District AGM - September 10, Caradoc Sands Golf Club, Strathroy, ON
• Joint Upper Canada & Georgian Bay District AGM - September 18-20, Minett, ON
• Niagara Grand District AGM - September 23-24, Niagara Falls, ON
For further information on EDA District Meetings please see: www. eda-on.ca/EVENTS
CUEE
There is still time to register to attend CUEE (Canadian Utility Energy Expo) taking place October 8-9 at the Enercare Centre in Toronto. CUEE is free to attend and offers an unparalleled opportunity to connect with top providers of cutting-edge distribution and transmission products and services. Get hands-on with the newest technologies and solutions. With over 100 indoor and outdoor exhibits spanning 45+ product and service categories, there’s something for everyone.
DEI CONFERENCE
Join us on Tuesday, November 5, 2024, for the EDA’s DEI Conference, at the Toronto Region Board of Trade. The agenda this year highlights 10 speakers over 5 sessions who will continue the conversation about diversity, equity, and inclusion. By fostering an environment where everyone feels included and valued, organizations can unlock the full potential of their workforce and contribute to a more equitable and just society.
EDIST25 (ELECTRICITY, DISTRIBUTION, INFORMATION SYSTEMS AND TECHNOLOGY CONFERENCE & EXHIBITION)
EDIST 2025 will take place January 14-16, at the Hilton Toronto/ Markham Suites. EDIST brings together industry professionals, researchers, technology experts, and other stakeholders to discuss the critical challenges and unique opportunities associated with our changing energy landscape. Once again, EDIST will bring you 100+ exhibitors, over 25 sessions in 3 content streams and 4 plenaries. Shape the Energy Future at EDIST 2025.
ENERCOM AND AWARDS GALA
Mark your calendars and plan to attend EDA’s ENERCOM and AWARDS Gala, March 16-17, 2025, at the Fairmont Royal York, in Toronto. ENERCOM, is a premier event in Ontario’s energy sector, and is renowned for its legacy of innovation and leadership. This annual conference showcases an array of top-notch speakers and thought leaders from various sectors, offering unparalleled insights into the bleeding-edge issues of our energy landscape. With a focus on critical themes and emerging trends, ENERCOM serves as a pivotal platform for anyone involved in the energy sector in Ontario, whether presently or in the future.
Not just a conference, ENERCOM is a vibrant networking hub, perfectly leading into the EDA’s Awards Gala, the sector’s premier event. These events provide attendees with unique opportunities for networking, collaboration, and insights into key industry issues. While the conference is returning with a new format after a short hiatus, its long-standing tradition of over two decades highlights its enduring significance and impact in shaping the future of energy in Ontario.
EDA CALENDAR OF EVENTS - EDA-ON.CA/EVENTS
• CUEE24 - October 8-9 @ Enercare Centre, Exhibition Place, Toronto, ON
• DEI 2024 - November 5 @ Toronto Region Board of Trade, Toronto, ON
• EDIST 2025 - January 14-16 @ Hilton Toronto/Markham Suites Conference Centre, Markham, ON
• ENERCOM 2025 - March 16-17 @ Fairmont Royal York, Toronto, ON
• Awards Gala 2025 - March 17 @ Fairmont Royal York, Toronto, ON
• EDIST 2026 - January 19-22 @ Westin Harbour Castle, Toronto, ON
• ENERCOM 2026- March 22-23 @ Fairmont Royal York, Toronto, ON
• Awards Gala 2025 - March 23 @ Fairmont Royal York, Toronto, ON
• EDIST 2027 - January 18-21 @ Westin Harbour Castle, Toronto,
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