By Matthew McClearn, published by The Globe and Mail
In Brief by Energy Probe
Ontario households will face steadily rising power bills over the next five years to fund an overhaul of the province’s nuclear fleet.
Under a newly negotiated settlement, Ontario Power Generation (OPG) agreed to cut $1.8 billion from its original rate request, but ratepayers will still bear the brunt of a multi-billion-dollar energy transition.
For the average household currently paying $142 a month, electricity bills will climb by a cumulative $13 by 2031. While this is slightly lower than the $17 increase OPG initially demanded, the deal locks in a period of sustained financial pressure for consumers.
The money out of ratepayers’ pockets is slated to help fund upkeep on the Darlington station (for the construction of small modular reactors estimated at $20.9 billion total), and a $26.8-billion overhaul of four Pickering reactors.
Tom Ladanyi, a consultant acting for the non-governmental organization Energy Probe, a participant in the OPG rate negotiations alongside other ratepayer and industry groups, nails the problem: while the government pushes electrification, these rising costs make it harder—and may force even bigger subsidies just to keep electricity competitive with natural gas.
The more-than-300-page settlement defers collection of $350 million in nuclear revenue from 2027 into 2028 to ease next year’s bill impact. Parties have asked the Ontario Energy Board to accept or reject the package in full rather than pick it apart, while one issue—OPG’s proposal to recover $170 million tied to the early return to service of refurbished Darlington units—remains unresolved and is slated for a separate hearing.
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