Council's June 22 Workshop on Ontario's Integrated Energy Plan

Council's June 22 workshop focused on Ontario's new Integrated Energy Plan and what it could mean for Oakville and Oakville Enterprises Corporation. The presentation covered projected electricity demand growth, Oakville Hydro's available system capacity, tax rules affecting utility investment, and the province's current position on Local Distribution Company consolidation. Council received the presentation from Mr. Lister and team.

Topics Discussed

ONTARIO INTEGRATED ENERGY PLAN

Staff and OEC representatives briefed council on Ontario's "Energy for Generations" plan, released June 12, 2025. David Brennan described it as "Ontario's fourth long-term energy plan in the last 20 years" and said the plan "is intended to coordinate the electricity, natural gas and hydrogen sectors to support economic growth while emphasizing affordability, security, reliability and clean energy."

ELECTRICITY DEMAND GROWTH AND LOCAL INFRASTRUCTURE

The presentation said the Independent Electricity System Operator is forecasting major long-term growth in demand. Rob Burton told council, "The ISO is forecasting that electricity consumption demand will increase 65% over the next 24 years. That's about 2.1% per year." Councillor Peter Longo said local trends have been more moderate so far: "we're getting a consumption growth that's only half of our customer and home growth. And that says that efficiency is an element everything's becoming more efficient. LEDs versus incandescent and so on."

OAKVILLE HYDRO CAPACITY AND LOCAL OUTLOOK

Council heard Oakville Hydro currently has significant unused capacity on its system. Burton said, "Right now, we estimate that we have about 100 MW of unused capacity on the system. That's 25% over our current peak load and that represents about half of what we're going to need to 2050. So, we have a fair amount of capacity that we can deploy." The workshop also reviewed how that capacity could support future growth before additional infrastructure is needed.

TAXATION, PILS, AND UTILITY INVESTMENT

A substantial part of the discussion focused on Payments in Lieu of Taxes, transfer tax and departure tax rules affecting utility investment and restructuring. Burton explained the province's current tax position regarding utility consolidation, noting that "the depreciation recovery or recapture is still applicable." The presentation also discussed how financing obligations could affect municipal shareholders, with one speaker noting that municipalities would need to "sign off on the obligation to fund. And that would be a new thing for the municipalities to um to wrap their arms around."

LDC GOVERNANCE, CONSOLIDATION, AND BOARD STRUCTURE

The presentation reviewed the long-term consolidation of Ontario's Local Distribution Companies. One speaker noted that "Municipal amalgamations have reduced the municipalities to 444 currently. Hydro One purchased 87 of the LDCs. There were 95 left by 2005, and now we have about 57 left" due to other purchases and mergers. Burton also framed the regulator's role broadly, saying, "the regulator's job is to protect consumers and promote economic efficiency and cost effectiveness." During questions, Mr. Lister asked how emerging technologies would be approved locally: "at some point it would have to come through Oakville Hydro if residents in Oakville wanted to do that. Is that Would that be correct?"

Motions

• Receive the presentation by Mr. Lister and team — Carried

Attendees

• Councillor Peter Longo
• Councillor Ray Chisholm
• Rob Burton

Note: These were the participants specifically identified in the provided material.