Legislation giving Ontarians important tools to manage electricity use and save money on their energy costs has received Royal Assent, Energy Minister Donna Cansfield announced.

"This legislation is an important step in creating a conservation culture in Ontario," said Cansfield. "Through tools like smart metering, consumers will have better information and more control over the cost of the electricity they consume. Taxpayers will save too, as institutions like schools and hospitals become more energy efficient thanks to the Energy Conservation Responsibility Act, passing the savings on to all Ontarians."

The Energy Conservation Responsibility Act establishes the legislative framework for the installation of smart metering in Ontario homes and small businesses. The government has committed to installing 800,000 smart meters by 2007, and ensuring that smart meters are installed in all homes and small businesses by 2010.

"During our recent public consultations on Ontario's energy future, citizens said time and time again that conservation was an effective way to ensure a safe, clean, secure and reliable supply of electricity," said Cansfield. "This legislation will help make increased conservation a reality."

As a result of this legislation, ministries, agencies and broader public sector organizations can be required to prepare and publish energy conservation strategies on a regular basis, reporting on energy consumption, proposed conservation measures, and progress on achieving results.

"This legislation represents important progress on conservation matters," says Peter Love, Ontario's Chief Energy Conservation Officer. "This is an important step in the right direction and we look forward to working with all Ontarians as we continue to build a culture of conservation."

The legislation also contains an amendment, introduced as a result of legislative hearings, that will enable individual metering of condominium units, through local distribution companies or third party companies, all of whom would be licensed by the Ontario Energy Board. Individual meters would allow condominium owners to control their own energy costs.

"Rather than continuing to bury rising energy costs in ever escalating condo fees, this legislation allows an important segment of our province's home owners a real say in energy conservation, and their own energy costs," Cansfield said.

The legislation builds on other government initiatives intended to increase conservation in the province. These include:

- Directing the Ontario Power Authority (OPA) to undertake programs

that will further boost energy conservation in Ontario including

developing an appliance exchange program, conservation outreach and

education and a low-income and social housing program. These measures

could reduce overall electricity consumption by as much as

200 megawatts - enough power for 125,000 homes

- Directing the OPA to obtain 300 megawatts of conservation in Toronto.

Combined with the 250 megawatts of conservation programs by Toronto

Hydro, this more than doubles the conservation programs for the city

- Directing the OPA to obtain up to 500 MW of demand response and

demand side management projects across the province, in addition to

300 MW of conservation and demand management projects targeting the

residential, commercial and public (municipalities, universities,

schools and hospitals) sectors

- Directing the OPA to obtain up to 1000 MW of combined heat and power

projects

- Partnering with Ontario's utilities to launch powerWISE, an

initiative to help consumers achieve energy conservation and savings

- Enabling Ontario's local distribution companies to invest more than

$160 million for energy conservation measures across Ontario

- Being well on the way to reaching the government's target of

achieving a 10 per cent reduction, by 2007, in its own electricity

use

- Creating a net metering program that allows farmers, small

businesses, and consumers that generate renewable electricity to

receive credit for the excess power they produce

Undertaking a public consultation on proposed changes to Ontario's Building Code to increase the energy efficiency of buildings. The consultation is led by the Ministry of Municipal Affairs and Housing.

"A conservation culture is vital to Ontario's future," Cansfield said. "We see conservation as a real opportunity to help Ontarians prosper, by reducing costs to individuals and to business, by creating new jobs and new industries, and by reducing our use of a precious resource."

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www.energy.gov.on.ca

Backgrounder

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SMART METERING AND ELECTRICITY CONSERVATION IN ONTARIO

The Energy Conservation Responsibility Act implements two major conservation initiatives: the introduction of smart metering technology in Ontario and conservation leadership.

SMART METERING

The Energy Conservation Responsibility Act enables the McGuinty government to install 800,000 smart meters in Ontario homes and businesses by 2007 with installation in all homes and businesses by 2010. These meters will revolutionize the way Ontario consumers track and manage their energy use. Smart metering provides consumers with greater control over their energy costs that can lead to system-wide savings through reduced demand.

With smart metering, customers can choose to control their energy costs through moving usage to off-peak periods (running the dishwasher at night) or lowering energy use during all periods (setting the air conditioning a few degrees higher). Customers may be able do this manually by adding control devices themselves (i.e. programmable thermostats) or by contracting others who may control load remotely.

The legislation also sets the framework for an entity that will oversee Ontario's smart metering communications systems and technologies. The responsibilities of this organization could include facilitating the procurement of smart meter systems and the collection and management of data. Local distribution companies will own, install, operate and maintain the new meters, and they will retain their important role in working for their customers.

The legislation gives the government flexibility to determine the best options for the governance, ownership and regulatory structures of the smart metering initiative as it goes forward. These options will be the subject of consultations over the next two months.

CONSERVATION LEADERSHIP

The second component of The Energy Conservation Responsibility Act is conservation leadership. This legislation will help Ontario's public sector lead the way in energy conservation and help it manage energy costs.

The legislation promotes public sector leadership in conservation, helps remove barriers to conservation and strengthens the conservation culture in Ontario. Some of the highlights of the bill include:

- Promoting Conservation Planning

Ministries, agencies and broader public sector organizations can be

required to prepare and publish conservation plans on a regular

basis. The plans may include reports on energy consumption, proposed

conservation measures, and progress on energy conservation.

- Demonstrating Conservation Leadership

The government is committed to removing barriers and promoting

opportunities for energy conservation and energy efficiency in its

operations. For example, the bill would require government ministries

and agencies to factor in conservation and energy efficiency in their

procurement and capital investment decisions.

- Encouraging Conservation Actions