But environmental groups said the OEB's decision was a huge win for the environment and Ontarians, as it would have encouraged the uptake of greener home heating and cooling, such as with heat pumps, and the reversal would be just a gift to
The OEB decision relates to a rate application from
Despite this trend,
"The OEB is not satisfied that
Instead, the OEB said the connection cost, which
Consumers would benefit if developers chose to forego that up-front cost and opted against gas lines, the OEB wrote.
"The effect of this choice would be to lower the cost of housing, depending on the capital cost differential between gas and electric equipment, by avoiding paying a (cost) for gas servicing, and lower the operating energy cost of the house – a win for homebuyers and an outcome for developers that keeps them competitive on price in the housing market."
Energy Minister
"The majority of the meetings that I have with municipalities are municipalities that want to see natural gas expanded into their communities because it is the most affordable and efficient way to heat their homes," he said in an interview.
"Essentially, what this decision does, I believe, is eliminates that choice for customers who are looking at natural gas and really pushes them in one direction, and that is electrification. While we are moving to a more electrified province, again, we're doing it in that measured way."
Smith said he plans to introduce legislation that would reverse the OEB decision.
Advocacy group Environmental Defence called Smith's response "shocking."
"The OEB decision is a win-win for everyone but
"The government’s assertion that the OEB decision would halt the construction of homes is false. Developers can just forgo gas connections and install heat pumps instead, which would be 'a win for homebuyers' in the OEB’s words."
"The Ford government has given
"Ontarians should be asking why
The OEB heard submissions from a large number of groups and heard suggestions to lower that 40-year amortization period to either 30, 20, 15 or zero years. The zero years idea – meaning the total cost of gas servicing is paid up front – largely came from two environmental groups.
Smith said it's concerning that the OEB didn't hear from construction companies or ratepayers.
"This was really an irrational decision," he said. "I mean, going from 40 years amortization down to zero is anything but a measured decision."
One of the three OEB commissioners dissented in the split decision, saying the evidence doesn't support pushing the costs completely up front.
"Is the scenario of no-new-gas-connections, replaced by construction of all-electric developments, feasible?"
"For example, would electricity generators, transmitters, distributors and the (
"At a time when affordability is the number one concern for Ontarians, this decision means that new customers will have to pay for their connection to natural gas immediately rather than over several years, adding unnecessary costs to residents," spokesperson
This report by The Canadian Press was first published
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