March 22, 2005

So, just how smart are smart meters?

The provincial government’s plan to have Ontarians install smart meters has become one of the most charged issues at Queen’s Park.

Smart meters are designed to replace the electricity meters that are currently installed at private residences throughout Ontario.  Rather than adding up the total usage of electricity between billing periods, these new meters are designed to determine the time of day that usage occurred.  This will allow local utilities to charge a higher rate for electricity used during times of peak demand, with the hope that consumers will shift their consumption to cheaper late night hours.

In theory, these so-called smart meters could reduce peak demand, allowing the provincial government to continue ignoring our urgent need for new electricity generation.  However, a number of problems arise when this theory is put into practice.

If we step back and examine the big picture, we can see a number of flaws in this government’s approach to energy.  For example, who is eventually going to pay the estimated $1.5 billion price tag?  Despite its attempt to remain in deficit until its final year in power, the government does not appear ready to pick up the tab for these meters.

We do know that the new meters will be phased in, meaning that some residents will be paying a flat rate for all electricity consumed, while others will encounter wild fluctuations throughout the day.  In this situation, consumers will be paying drastically different prices for the same electricity.

Back in February, Framk Sommer of the Haldimand Federation of Agriculture, addressed this issue before the Standing committee on Justice Policy on its visit to Simcoe.  He pointed out farmers are concerned smart meters will signal the creation of a ‘large and costly bureaucracy’- that will negatively impact Ontario’s farmers vis-à-vis their competitors in other jurisdictions.

This leaves unanswered questions, such as- will the potential savings associated with smart meters outweigh the significant costs?  How significant will the savings be, considering that private residences consume only one third of electricity consumed in Ontario?  Are people willing to cough up yet another fee for one of this government’s pet projects- one that will likely end up costing them more money on a monthly basis?  What alternatives would provide a better solution for a smaller price tag?

In light of this uncertainty, it’s long overdue for this government to heed my warnings about its anti-coal agenda.  Over the past few years I have been offering Mr. McGuinty a simple solution to Ontario’s looming energy crisis- examine the feasibility of clean air technology for our coal-fired electricity plants.

On February 20, I drafted four Finance Committee motions to keep our coal-fired electricity plants open.  They could be retrofitted with cutting edge new technology that would virtually eliminate harmful emissions.  Liberal MPPs refused to listen to my proposals, paying attention only long enough to vote against me.

If we fast forward to the day we spend $1.5 billion on these unproven smart meters, we’ll have to ask ourselves- would that money be better spent improving our air and maintaining supply? Or are we willing to send the Premier another $1.5 billion for an energy policy that would not increase our supply and would increase our monthly energy bills?