Ontario Proposes Legislation to Lower Costs for New Home Connections

The Ontario government has announced plans to introduce legislation aimed at reducing the costs associated with connecting new homes and businesses to the province's electricity grid. This initiative is part of a broader effort to address barriers to homeownership and investment in the region.

According to the Independent Electricity System Operator, Ontario's electricity demand is expected to rise by 75% by 2050, driven by new housing and industrial needs. The current process for connecting to the grid is described as slow and costly, impacting both homebuyers and businesses.

The proposed legislation seeks to amend the Ontario Energy Board Act, 1998. If passed, it would grant regulatory authority to protect existing ratepayers while lowering the initial capital costs for new electrical lines, which currently increase expenses for new developments.

Key components of the plan include:

• Extending the revenue horizon for residential developments from 25 to 40 years, allowing infrastructure costs to be spread over a longer period.
• Clarifying conditions for local distribution companies to extend connection horizons for new developments.
• Establishing a new capacity allocation model for multi-customer, multi-year projects.
• Creating a Housing Electricity Growth Forum to discuss ways to accelerate connections and reduce costs.

The Ontario Energy Board has been asked to implement recommendations from its Housing Connections Report to further reduce barriers to housing and business development.