Following the announcement of a proposed bill by the Government of Ontario that would change how municipally owned electricity utilities are governed; Whitby Mayor Elizabeth Roy, has raised some concerns about what these changes could mean for municipal accountability, local decision-making, and the interests of taxpayers.
In the announcement the Govt of Ontario stated that it aims to boost the economy and safeguard Ontario’s competitive advantage. The proposed series of legislative and regulatory reforms are designed to advance the distribution sector, including:
- New authorities to drive joint and local procurement initiatives, including Buy Ontario and Buy Canada procurements, to improve efficiency, scale and costing, and designed to manufacture and buy more in Ontario.
- Enabling greater use of shared services to help utilities reduce costs and maximize resources.
- Following the precedent set across many municipalities, including London, Oakville and Oshawa, Ontario will strengthen the governance of municipally owned LDCs’ and their holding companies’ boards of directors to support transparency, elevate skills and good governance practices.
- Supporting long-term planning to help utilities prepare for and finance future infrastructure needs and growing demand, including the requirement for 10-year plans that include condition assessment, financing plans and workforce strategies.
- Enhancing consumer protection for ratepayers living in condominiums, apartments and multi-unit residential buildings served by unit sub-meter providers (USMPs), including a ban on winter disconnections and enhancing transparency for ratepayers.
Whitby has a significant stake in Elexicon Corporation, holding 32 per cent ownership, the largest share among its five municipal shareholders, which include Pickering, Ajax, Clarington, and Belleville.
In Mayor Roy’s statement she pointed out that “Under the proposed legislation, municipal elected officials and staff would no longer be permitted to serve as voting members of utility boards. This would significantly weaken the ability of municipal shareholders to participate in decisions affecting these valuable public assets. This is especially concerning at a time when municipalities are being asked to make significant investments in our electricity infrastructure.”
Just recently, municipal shareholders of Elexicon Energy converted approximately $62 million in promissory notes into equity, demonstrating their long-term commitment to the utility and the communities it serves.
Mayor Roy added that she supports “the province’s goal of ensuring electricity utilities have qualified, independent boards capable of making sound business decisions. But achieving that goal should not come at the expense of municipal representation.”
Mayor Roy went on to say that “Municipalities are under tremendous pressure to deliver new housing and support growth – and that growth depends on having the needed infrastructure and electricity capacity in place. At a time when municipalities are already raising concerns about the funding and tools available to support growth, we should not also be weakening their ability to oversee the critical infrastructure assets they own and invest in.”
She ended her statement urging the Ontario government to work with municipal shareholders to find a better balance. “One that delivers strong corporate governance while respecting municipal ownership and protecting the interests of taxpayers.”
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