Draft Environmental Plan -

Acceleration of Investment in Sustainable Energy

The Works Committee recommends the adoption of the recommendations embodied in the following communication (December 22, 1999) from Councillor Jack Layton, Chair, Environmental Task Force:

The Environmental Task Force recommends that City Council adopt the following recommendation:

Recommendation:

It is recommended that the City of Toronto and the Toronto Hydro Electrical System Corporation seek approval from the Ontario Energy Board for the right to implement measures to support financing of sustainable energy, including:

(1) the use of a surcharge (Systems Benefits Charge) applied to all Toronto Hydro customers, to generate funds that could be used to fund sustainable energy projects;

(2) a Toronto Hydro rate structure based primarily on consumption rather than fixed service charges;

(3) a Toronto Hydro net metering offering for customer generation of green power (including customer generation that is collectively owned); and

(4) a rate mechanism for investment in sustainable energy similar to the load reduction adjustment mechanism applied to gas distribution utilities.

Background:

The Environmental Task Force at its meeting held on December 20, 1999, considered the first draft of the Environmental Plan.

Section 6.3 of the draft Environmental Plan discusses Sustainable Energy Use. A subsection entitled "Accelerate Investment in Sustainable Energy" is contained therein and calls on the City to ask the Ontario Energy Board for the right to engage in certain financial strategies to promote sustainable energy.

The Ontario Energy Board is presently conducting hearings with regard to the supply of electrical energy. The Environmental Task Force is currently working on the draft Environmental Plan, which under the current schedule will not be before City Council until its meeting of April 11, 12 and 13, 2000, at the earliest. By the time City Council were to deal with the noted recommendation, the hearings before the Ontario Energy Board will have been completed.

Consequently, the Environmental Task Force decided at its December 20, 1999 meeting to adopt the recommendation and forward it to the Works Committee for consideration, so that the City has an opportunity to make its position known to the Ontario Energy Board in a timely manner.