Regulatory Forum 2023: Towards Net Zero

Electricity Canada

Founded in 1891, Electricity Canada (formerly the Canadian Electricity Association) is the national forum and voice of the evolving and innovative electricity business in Canada. The Association supports, through its advocacy efforts, the regional, national, and international success of its members. Electricity Canada is the national voice for sustainable electricity for its members and the customers they serve as the country works towards a Net Zero by 2050 future.

www.electricity.ca |

Welcome

On behalf of Electricity Canada, I am pleased to welcome you to the 2023 Regulatory Forum.

There is so much to do, so much to build and so much to think about. In the next 12 years, we are going to be witnessing enormous change in the industry as we work toward decarbonizing the grid as well as building capacity to make a grid that is affordable, reliable and emissions-free.

The electricity sector, utility regulators, and provincial and federal governments will all have to change what is “business-as-usual” in order to get to where we need to be by 2035 and 2050. Everyone will need to adopt a new mindset as we move towards a net zero future.

For several years now, we have understood what needs to be done to ensure a brighter future: we need to build. The 2023 federal budget gives us the opportunity to do this. The coming months we will see new investments expand the electricity system to meet the needs of reaching our net zero goals, while addressing affordability for electricity customers and preserving the reliability of our grid. There is also a commitment to create a concrete plan to improve efficiency of impact assessments and permitting process for major infrastructure projects by the end of 2023.

Although we are optimistic, there are still fundamental challenges we face which will be the main topic of discussion around this year’s forum.

How does the utility regulation framework need to evolve?

How can electricity providers build everything in the time given?

We have put together a diverse group of subject matter experts to ignite these conversations on how we can collaborate to find new solutions to ensure electricity stays clean, affordable and reliable for all Canadians.

This year’s forum will see the debut of two important reports. Back to Bonbright: Economic Regulation Fundamentals Can Enable Net Zero goes back to first principles when it comes to ultiity regulation and tries to re-imagine it for the 21st century. Build Things Faster looks at what everyone – electricity providers, regulators, government and stakeholders – need to do to enable the necessary infrastructure to get us to a net zero grid by 2035 and an net zero economy by 2050.

We have 12 years to make massive changes to our grid. It is our job to build the path to get there. I look forward to engaging in these critical discussions with you all.

Francis Bradley President and CEO | Electricity Canada

Back to Bonbright: Economic regulation fundamentals can enable net zero

Join us for the launch of our report, Back to Bonbright: Economic regulation fundamentals can enable net zero, which examines and answers the question: are regulatory principles published in the 1960s still relevant, applicable, and useful, 60 years later?

“Principles of Public Utility Rates” by James C. Bonbright is a seminal work on the economics of public utilities regulation. In this book, Bonbright outlines the principles that should govern the setting of rates for public utilities, such as electricity, gas, and water. He argues that rates should be set in a way that balances the interests of consumers and utility providers, and that rates should reflect the true costs of providing the service; that rates should be based on the cost of service, including both operating expenses and the cost of capital. Bonbright also suggests that rates should be set to encourage efficiency and innovation on the part of the utility provider, while still ensuring that consumers have access to affordable and reliable service.

Bonbright’s work continues to be highly influential in the field of public utility regulation. It provides a framework for thinking about the economics of public utilities and the role of government in regulating them.

Electricity Canada, through its Economic and Regulatory Innovation Committee, has commissioned Utilis Consulting to test the applicability of these principles, and determine which, if any, need to be changed to fit this modern era of electricity.

Having catalogued the Bonbright Principles and Regulatory Constructs, the authors of this Report completed a cross-referencing exercise to establish where (if applicable) these principles were embodied in the legislation establishing and empowering Canada’s economic regulators. Interviews were conducted to test perceived challenges, as well as the merit of potential governance or regulatory solutions; these candid and confidential interviewees represented a broad cross-section of parties involved in utility regulation and jurisdictions across Canada, and from these, a series of recommendations were developed.

Each recommendation in the report is supported by a discussion of the core challenges faced by the electricity sector and regulators, the potential solutions to these challenges, and some of the trade-offs and pitfalls associated. Having determined a series of regulatory and governance recommendations which facilitate net zero, this report then assesses what specific principles, whether they be they Bonbright’s or commonly accepted Regulatory Constructs, might be impacted through implementation of the recommendations.

Read the report

Back to Bonbright: Economic regulation fundamentals can enable net zero

Build Things Faster, 2023

Canada’s federal government has committed to building a net zero electricity system by 2035 to achieve a net zero economy by 2050. Along the way, Canadians’ vehicles, buildings, and industries will rapidly transition from being powered by traditional fossil fuels to being largely electric-powered. Electricity Canada and its members are proud to support this goal.

Of course, it is a challenging task. We cannot subtract our way to net zero. We must build faster than we have before.

Electricity Canada engaged Dunsky Energy + Climate Advisors to identify the barriers to building infrastructure quickly in Canada and to examine what is working well in other jurisdictions. Dunsky interviewed experts from across Canada, representing utilities, regulators, governments, and civil society. Dunsky also scanned for best practices in seven jurisdictions with distinctive regulatory approaches, and provided case studies from Texas, Norway, Brazil, Australia, the European Union, India, and New York.

Interviewees consistently identified five categories of barriers to building large electricity infrastructure projects in Canada:

1. Planning;

2. Regulatory and Approvals Process;

3. Limited Regulatory Capacity;

4. A shor tage of Skilled Labor;

5. Capital

Addressing these barriers is critical. It is also achievable.

Our three top recommendations directly address permitting and approvals processes in the electricity sector, which is the focus of this report. They are:

1. Implement the “One Project, One Approval” framework described in Budget 2023.

2. Coordinate federal project permitting and approvals through a single central federal office.

3. Build regulators’ capacity to deliver on net zero goals in their decisions promptly and effectively.

Acknowledging that approvals and permitting are a small but critical part of transitioning to net zero, we also offer supporting recommendations linking this report to the broader policy context These recommendations cover Indigenous partnerships, strengthening supply chains, encouraging labour and investment, and developing standards.

Finally, successfully transitioning Canada’s energy system needs a strategy. The electricity sector needs an actionable vision for a net-zero Canadian electricity system supported by public policy. A Canadian Electricity Strategy will clearly define where we are going by 2035 and 2050 and how we plan to get there.

Read the report: Build Things Faster, 2023

Electricity Canada Regulatory Forum: Toward net zero Sheraton Centre Toronto Hotel

Wed. May 10, 2023 – Toronto, ON

12:30 PM Lunch and Welcome Message

Sponsored by

12:35

PM Fireside Chat

Craig Sabine’s work focuses on issues in electricity, fuels and environmental markets. In addition to Craig’s energy markets experience, he is also active in providing carbon asset risk analysis and GHG quantification.

Speakers:

» Francis Bradley - President & CEO, Electricity Canada

» Craig Sabine - Executive Director of Energy Transition, EY Canada

1:20 PM Session 1: Back to Bonbright

Introducing the first of Electricity Canada’s new reports, Back to Bonbright, our panelists discuss the challenges of achieving net zero and tripling grid capacity by 2050 using the existing regulatory framework, and offer solutions for how this may be achieved.

Moderator: Francis Bradley - President & CEO, Electricity Canada

Speakers:

» David Morton - Chair and CEO, British Columbia Utilities Commission

» Paula Conboy - Senior Counsel, Sussex Strategy Group

» Brandon Ott - Founder & Partner, Utilis Consulting Inc.

2:25 PM Session 2: Build Things Faster

Canada needs to double the size of its electricity sector by 2050 to meet our net zero goals. In our latest report, Electricity Canada and Dunsky Energy + Climate Advisors ask how Canada can learn from other jurisdictions to increase the pace of infrastructure investment. Join the conversation and learn what it will take for Canada to Build Things Faster.

Moderator: Reagan Bond - Partner, Dunsky Energy + Climate Advisors

Speakers:

» Jesse McCormick - Senior Vice President, Research, Innovation and Legal Affairs, First Nations Major Projects Coalition

» Heather Ferguson - Senior Vice President, Business Development and Corporate Affairs, Ontario Power Generation

» Terence Hubbard - President, Impact Assessment Agency of Canada

3:25 PM Break

3:40 PM Session 3: Ensuring Affordability

Sponsored by

If we are to increase our capacity and efficiency of the grid, who pays for that? How do we ensure that in the search for perfection, we do not bankrupt our system, or place an unfair burden on our most economically vulnerable groups? Join us for our final panel today to discuss financial mitigation strategies in the search for net zero.

Moderator: Greg Lyle - President, Innovative Research Group

Speakers:

» Mark Rubenstein - Lawyer, Shepherd Rubenstein

» Doug Slater - Vice President, FortisBC

» A.J. Goulding - President and CEO, London Economics International LLC

4:40 PM Keynote Speaker

Speaker:

» Hon. Todd Smith - Member of Provincial Parliament

4:50 PM Closing Remarks

Speaker:

» Francis Bradley - President & CEO, Electricity Canada

5:10 PM Electricity Canada Regulatory Forum Reception

Location: Red’s Wine Tavern (77 Adelaide Street W. Toronto)

Flux Capacitor Podcast

A podcast about the future of electricity. The Flux Capacitor podcast features discussions with business and thought leaders of the electricity industry on the future of the business of electricity. The discussions touch on how we create, move, trade, and use energy, with each guest adding their own expertise and perspective to the conversation.

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Speakers

David M. Morton

Chair and CEO, British Columbia Utilities Commission

David was appointed Chair and CEO of the BCUC in December 2015. He is responsible for delivering on the Vision of the BCUC – to be a trusted and respected regulator that contributes to the well‐being and long‐term interests of British Columbians. In addition to being the Chair and CEO, David is also a BCUC Commissioner.

Brandon Ott

Founder & Partner, Utilis Consulting Inc.

Brandon has over ten years of targeted experience in utility regulation, business development, government relations, energy efficiency, renewable energy and deregulated energy markets. His intellect and keen sense for strategy have helped businesses succeed in the utility, energy marketing and renewable energy industries.

Jesse McCormick

Senior Vice President, Research, Innovation and Legal Affairs, First Nations Major Projects Coalition

Jesse is the Senior VP, Research, Innovation and Legal Affairs for the First Nations Major Projects Coalition, a non-political and business focused coalition of over 130 First Nations organizations working to strengthen First Nations participation in major project development.

Heather Ferguson

Senior Vice President, Business Development and Corporate Affairs, Ontario Power Generation Reconciliation Action Plan, and advancing hydroelectric generation development in partnership with local Indigenous communities. She has over 25 years’ experience in the resource development, energy and electricity sectors.

Paula Conboy

Senior Counsel, Sussex Strategy Group

Paula is an experienced regulatory economist and corporate director. In addition to running her own consultancy business and acting as senior counsel to Sussex Strategy Group, Paula sits on the boards of PJM Interconnection, the Energy Market Authority, and Zen Energy, Australia’s first zero emission electricity retailer.

Raegan Bond

Partner, Dunsky Energy + Climate Advisors

Leading Dunsky’s Design Strategies practice, Raegan has overseen some of Dunsky’s most significant projects for utilities and all levels of government focused on decarbonization, climate action planning, clean mobility, and energy efficiency. She has over 20 years of energy sector experience.

Francis Bradley

President and CEO, Electricity Canada

Francis Bradley is the President and Chief Executive Officer of Electricity Canada. Founded in 1891, Electricity Canada (formerly the Canadian Electricity Association). He is the co-chair of the National Cross-Sector Fourm, overseeing Canada’s Action Plan for Critical Infrastructure and the host of the Flux Capacitor podcast.

Greg Lyle

President and Founder, Innovative Research Group

Greg is the founder and President of Innovative Research Group. As a former Principal Secretary to a provincial Premier, Greg has built a career at the intersection of public policy, communications and public opinion. He has designed and managed over forty customer consultation programs to support rate applications.

Mark Rubenstein

Counsel, Shepherd Rubenstein

Mark is a litigation lawyer focused on regulated sectors, with a significant energy regulatory practice.  He represents consumer and stakeholder interests before courts, agencies, and tribunals, and provides complex legal opinions and policy advice on regulatory issues.

A.J. Goulding

In his role as president of London Economics International LLC, A.J. Goulding manages a growing international consulting firm focused on finance, economic, and strategic consulting to the energy and infrastructure industries. His responsibilities include project management, marketing, budget and financial control, and recruiting.

Terence Hubbard

President, Impact Assessment Agency of Canada

Terence Hubbard was appointed President of the Impact Assessment Agency (IAAC) on November 28, 2021. In his role, he is responsible for leading all reviews of major projects under the Impact Assessment Act, in cooperation with other Government of Canada regulatory agencies, as well as provinces and territories and Indigenous groups.

Doug Slater

Vice President, External and Indigenous Relations, FortisBC

Doug Slater has more than 13 years of experience with FortisBC, holding various leadership roles including Labour and Employee Relations, Disability Management, FortisBC Alternative Energy Services and more. He currently leads FortisBC in building respectful relationships with Indigenous Peoples, governments and regulators.

Hon. Todd Smith

(Bay of Quinte), Minister of Energy

For over 25 years, Todd Smith has been a trusted voice in the Quinte region. Todd was first elected in 2011 in the riding of Prince Edward Hastings. In 2022, he was re-elected in the Bay of Quinte riding as part of the Doug Ford government and was reappointed to serve as Minister of Energy.

Craig Sabine

Executive Director of Energy Transition, EY Canada

Over 20 years Craig has supported many of the most critical strategic, planning and investment programs of the power and utilities sector. Craig is currently working across the assurance, infrastructure, consulting and transactions service lines to lead the integration of Energy Transition with all of EY’s clients.

President and CEO, London Economics International LLC

Build it

It’s time to build the clean electricity grid of tomorrow.

Electricity can minimize the impacts of climate change. Canada’s electricity grid is 84% non-emitting. We need to get closer to 100%, and still ensure that the grid is reliable and affordable. This is a big job, but we can do it. We need to bring together federal and provincial governments, electricity providers, consumers, other stakeholders and Canada’s Indigenous Peoples to work together to make it happen. A clean energy future is waiting. We just need to start building it.

Read Now