Powering Ontario's Growth

December 11, 2023

The Empire Club of Canada Presents

Powering Ontario’s Growth

Chairman: Sal Rabbani, President, Board of Directors, Empire Club of Canada

Moderator
James Scongack, Executive Vice President, Operational Services & Chief Development Officer, Bruce Power

Distinguished Guest Speakers
Jenna Donaldson, First Vice-Chair, Empire Club of Canada
The Honourable Todd Smith, Minister of Energy, Government of Ontario
Daniel Levitan, Vice-President Stakeholder Relations, Hydro One

Head Table Guests
Stephanie Smith, SVP & Chief Nuclear Engineer, Nuclear, Canada, AtkinsRéalis
Laurie Swami, President & Chief Executive Officer, NWMO
Jean-Louis Servranckx, President & Chief Executive Officer, Aecon Group Inc.
Michele Harradence, Executive Vice President and President, Gas Distribution and Storage, Enbridge Inc.
Rob Lister, President & Chief Executive Officer, OEC Corp
Michael Kobzar, National Director of Sales, Transmission Systems, Siemens Energy Canada
Giancarlo Drennan, Vice President, Ontario Group Lead, Sussex Strategy
Victoria Mancinelli, Director Public Relations, Marketing, Strategice Parternships, LiUNA
Chris Benedetti, Vice-President, Ontario Global Public Affairs
Mike Van Soelen, Partner, Oyster Group
Simmer Anand, External Relations Advisor, Hydro One

Introduction
It is a great honour for me to be here at the Empire Club of Canada today, which is arguably the most famous and historically relevant speaker’s podium to have ever existed in Canada. It has offered its podium to such international luminaries as Winston Churchill, Ronald Reagan, Audrey Hepburn, the Dalai Lama, Indira Gandhi, and closer to home, from Pierre Trudeau to Justin Trudeau; literally generations of our great nation's leaders, alongside with those of the world's top international diplomats, heads of state, and business and thought leaders.

It is a real honour and distinct privilege to be invited to speak to the Empire Club of Canada, which has been welcoming international diplomats, leaders in business, and in science, and in politics. When they stand at that podium, they speak not only to the entire country, but they can speak to the entire world.

Welcome Address by Sal Rabbani, President, Board of Directors, Empire Club of Canada
Hello everyone, welcome to the Empire Club of Canada, Canada's go-to forum for conversations that matter for 120 years now. My name is Sal Rabbani, and it's an honour to stand before our community, both in person and virtually, as chair of the board of directors. Thank you for joining us. It's always a pleasure to have you here, where we hope to spark meaningful connections and a productive dialogue, by giving you access to this nation's diverse wealth of knowledge and leadership.

We're gathering today on the traditional and treaty lands of the Mississaugas of the Credit and the homelands of the Anishinaabeg, the Haudenosaunee, and the Wendat Peoples. We encourage everyone to learn more about the Traditional Territory on which you work and live. This is an essential first step to understanding the Indigenous People's stewardship of this land, their profound cultural heritage, and immense contributions.

For our last event in 2023, we have the honour to welcome to the Empire Club stage The Honourable Todd Smith, Ontario's Minister of Energy. Welcome, Minister, thanks for being here with us. Minister Smith has one of the most forward-looking jobs in our provincial government. He leads our energy transition, enabled, and also accelerated by two drivers: economic growth and demographic growth. We are 15 million Ontarians, and we will grow to more than 17 million by 2030. Our province is also set to become an electric vehicle battery manufacturing jurisdiction, with important manufacturing EV facilities announced recently, such as Umicore, NextStar, and Volkswagen. These investments mean that electricity demands are expected to grow dramatically over the next few years.

These two foundational drivers, economic activity, and population growth, will push energy demands up to unprecedented levels. In an accelerating climate change context, and given Ontario's hot summer days and cold winter nights—well, it's been pretty decent over the last couple of days, here—the Minister and his team are not only looking at how they will increase the energy supply; they're also looking at the province's energy mix, to ensure our future energy is as clean as possible. The Minister just got back from COP 28, the UN climate change conference in Dubai, where one of the things he put forward was our province's nuclear expertise, and its potential to be exported beyond Canada's borders. Minister, we look forward to hearing about your strategy, the progress to date, and your view for a clean energy system in Ontario.

To ask questions, you know, please undertake to scan that QR code—you can engage in the conversation—found in your program booklet, and for those of you online, through that Q&A under the video player. For those joining us online, again, if you require technical assistance, please start a conversation with our team using the chat button on the right-hand side of your screen.

The Empire Club is a not-for-profit organization, and .we'd like to recognize our sponsors, who generously support the club, and make these events possible and complimentary for our online viewers to attend. Today, we have a longer than usual list of sponsors, which shows the incredible interest in clean energy and the future of our province. Thank you to our Lead Event Sponsors, AtkinsRéalis, and Hydro One; thank you to our VIP Reception Sponsors AECON, Nuclear Waste Management Organization, Enbridge, LiUNA, OEC, Siemens Energy, and Waste Connections Canada. And thank you to our Supporting Sponsors, Hydrostor, Potentia Renewables, The Power Workers Union, and TC Energy. A special thank you to our Season Sponsors, Amazon Web Services (AWS), Bruce Power, and Hydro One.

Today marks our last event of 2023. And as we all start preparing for the holiday season, for rest, and time with our families, I want to thank you all for being a part of the Empire Club's community, and network of dialogue and thought leadership. We've had an incredible year. In November, we celebrated 120 years of the Empire Club, as Canada's go-to forum for conversations that matter. We opened the market at the TSX to mark the occasion, and welcomed a stellar lineup of past presidents of the board, who shared some of the most memorable moments in our history. This was also a great opportunity for us to look at the future, and ask ourselves how we can continue to reinforce the Empire Club's role, and keep it relevant and meaningful for future generations. So far this season, we brought you speakers with deep expertise on some of the most important topics of the year: housing crisis, climate change, diversity, infrastructure, mental health, demographic disruption, and the future of our city, our province, our country. 2023 is almost over, but our season will continue in January with a new series of exciting events and conversations.

I'd like to start off with a video message from our Lead Sponsor, AtkinsRéalis.

[VIDEO:]

Energy powers our lives. It starts our mornings, invigorates our days, and lights up our evenings, allowing us to do what we want to do, and go where we want to go. And as we go further, faster, we need reliable, safe, and secure energy solutions. We need CANDU nuclear energy to fuel our future. Canada has a proud story to tell. A story of innovation and ingenuity, of sound solutions to global challenges. During the past century, Canada's researchers and scientists developed and perfected the internationally-renowned CANDU reactor, our homegrown solution, currently powering 60 percent of Ontario, and 15 percent of Canada. Its use of domestically-sourced, natural uranium, eliminates the cost of enrichment. Its unique heavy water design regulates a slow, safe reaction. And its exclusive capacity for active refueling maintains a steady output.

Enabling more than 75,000 jobs across Canada, and with 85 percent of parts, equipment, and services sourced domestically, CANDU doesn't just energize our homes, but our communities and our economy. Investing in CANDU builds a future of clean nuclear power for generations to come. While tomorrow's energy demands are made possible by refurbishment of existing plants and new builds, and patients around the world rely on CANDU to provide the medical isotopes that sterilize surgical equipment, and diagnose and treat deadly diseases.

Backed by years of investment and innovation, our exemplary global reputation rests on a solid foundation: abundant natural resources, robust regulatory practices, groundbreaking research and laboratories, a strong, knowledgeable supply chain, a skilled and dedicated workforce, and collaborative, committed partnerships. Through formal training, open dialogue, meaningful actions, and an inclusive culture, we can support indigenous reconciliation across every region of the country, as part of our commitment to creating a better future for our planet and its people. As the exclusive stewards of Canada-owned CANDU technology, atkinsRéalis is building on this legacy, with confidence in its future. As the dominant clean energy solution, CANDU is poised to scale up, bolstering our economy, protecting our environment, and reaching our net-zero goals. Opportunity is at our doorstep. We have the advantage with investment, expertise, and partnerships, imagine what we can do.

[END OF VIDEO]

Sal Rabbani
It's now my pleasure to invite our board colleague, First Vice Chair of the Empire Club of Canada, Jenna Donaldson, to introduce our guest speaker. Jenna, welcome.

Opening Remarks by Jenna Donaldson, First Vice-Chair, Empire Club of Canada
Thank you, Sal. It's great to be here with all of you in the room, those of you joining us online, and of course, Minister, with you as well. I believe this is the third time you've chosen the Empire Club's podium to share important information with the sector. And as you can see, our audience is very keen to hear from you. Minister, we're looking forward to hearing about the recent trade mission you led, which included partnerships to secure fuel supply for the first small modular reactor at the Darlington site. Many believe SMRs can be key to a transition toward clean energy, especially when we consider an expanded electricity grid providing energy for transportation as just one example. And it has captured the attention of researchers and practitioners alike, no doubt in part because of the role Ontario is playing in SMR development. I'll let the Minister provide us with more detail about this, and an update on the government's Powering Ontario's Growth Plan, but not without a proper introduction first.

Todd Smith was first elected in 2011, in the riding of Prince Edward Hastings. While in Opposition, he served as the PC critic for several portfolios, including Energy. In 2022, he was re-elected in the Bay of Quinte riding as part of the Doug Ford government, and was re-appointed to serve as Minister of Energy, a file he has held since 2021. Previously, he has served as Government House Leader, Minister of Government and Consumer Services, Minister of Economic Development, Job Creation and Trade, and Minister of Children, Community, and Social Services. Born and raised in Riverview, New Brunswick, Todd has lived in the Belleville area since the early 1990's. He lives there now with his wife, Tanya, and his daughters, Payton and Reagan. Please join me in welcoming The Honourable Todd Smith, Ontario's Minister of Energy.

The Honourable Todd Smith, Minister of Energy, Government of Ontario
All right, well, thanks very much, Jenna. It's great to be back here with all of you, and thanks for your opening comments, Sal. I'd like to thank you and the entire team here at the Empire Club for making today's event possible. I forgot about the previous time—you're right, it is the third time that I have appeared before the Empire Club. Before I get started, though, I just want to quickly recognize a few people that are here today. My good friend David Collie is here. David is the chair of our Energy Transition Panel, and I'm going to talk a little bit more about David. Laurie Swami from the Nuclear Waste Management Organization is here, as well. Laurie, I saw you earlier, you're here somewhere—and she was on the trip as well—over to, there you are, right in front of me. You were sitting beside me, my goodness. We have a few Chiefs here as well, from Saugeen Ojibway Nation, Chief Conrad Ritchie and Chief Gregory Nadjiwon who are here, as well. Thanks, guys, for being here. It's so great to see you. You know, I never want to prioritize one Chief over another, but I mean, my Chief, from the Bay of Quinte Mohawks, R. Don Maracle, is here as well. And Chief Maracle is just coming off his thousandth election victory. Chief Maracle was elected last week; he's been the Chief of the Mohawks of the Bay of Quinte for 30 years. That's quite remarkable, Chief. Thanks for your leadership. Jason Fitzsimmons, who's my Deputy Minister at the Ministry of Energy as well, is here—he's never been elected. And but we're very, very happy to have him. And Jeff Parnell from the Power Workers Union, as well. Great to see you back there, Jeff. And so many others.

Look, before I get started, I just want to address a couple of things. You know, Sal was talking about the fact that we were on a trade mission in the last couple of weeks, and talking about nuclear in particular. And Jenna was talking about me being in Dubai—I've got to say, it's one of the most remarkable cities I've ever been in in my life. To see this city that's just risen from the hot, hot desert. It was a bit like The Flintstones, to see that. And, remarkably enough, I come to find out the people of Dubai don't like The Flintstones, but the people in Abu Dhabi do. They're big fans. Okay, that's the only dad joke I'm going to do here today. But I had to get that one out before we got started.

Listen, a lot has changed since the last time that I was here. And as we approach the end of 2023, it's really great to have this opportunity to look back at the progress that we've made, but to also look ahead to 2024 and beyond, and all the work that lies ahead. Before we get into that, let's be very clear, again. A lot has changed, since I was here in November a year ago. Volkswagen hadn't yet announced that it was building the first overseas EV battery manufacturing facility just outside London in St. Thomas. And a year ago, the federal government had still not published their draft Clean Electricity Regulations, which they have done. And a year ago, we were still looking ahead to the release of the Independent Electricity System Operator's Pathways to Decarbonization Report.

And when that report was finally released, it made clear the amount of work that was ahead of us, as we continue to build out a reliable, affordable, and clean electricity grid for the province. That included potentially doubling the size of the grid by 2050, with up to 69 Gigawatts of new supply, and up to 5 Gigawatts of demand reduction from conservation. Those are huge numbers, huge numbers, when put up against today's system. And responding to that report has really kept us busy over the last year. And a key milestone in that work was certainly on a hot summer day, with David Butters and his hat, in Windsor in July, when I announced the release of Powering Ontario's Growth, our government's plan for Ontario's Clean Energy Future. It laid out the key steps that we were taking to provide reliable, low-cost, and clean power as we grow our economy, as we start to electrify transportation more and more, and industry as well, and build all of the new homes that we're going to have to build. And it builds on the key strengths of our system, including our diverse supply mix, which we have in Ontario. A supply mix made up of nuclear as the backbone, but hydro, and natural gas, and renewables, and soon, batteries will be a part of the grid, as well. And when we announced the plan back in July, two projects got the most attention, and both of those were related to the expansion of nuclear. And I don't think that should come as a surprise to anybody in this room. I've been talking a lot about nuclear of late.

As a source of affordable and clean power, nuclear energy is why Ontario is able to maintain one of the cleanest grids, not just in North America, but the entire world. And there's no denying that the expansion of our province's nuclear fleet is required to meet future demand, as well. In fact, the IESO says we could need up to 18 Gigs, 18 Gigawatts of new nuclear, and we're already making progress on that need. And I'm pleased to report that site preparation is continuing on schedule at Darlington for the first grid-scale SMR in Canada and the G7. And if you haven't seen it already, I did share a video while I was overseas from OPG a couple of weeks ago, that actually shows the incredible progress that the team is making on the ground at the site. And through Powering Ontario's Growth, we've begun the planning and licensing for the three additional SMRs at the Darlington site, to round out the fleet and increase our supply of clean power there. So, we're going to be building not just one SMR, but we're committed to building four at the site.

In addition to this progress, we're working with Bruce Power to begin pre-development work for the province's first large-scale nuclear station build in more than 30 years. And together, these projects have the potential to secure up to 6 of those Gigs—6000 Gigawatts of reliable, affordable, and clean electricity, to power more Ontario's homes and businesses, and get them the electricity that they need.

But it's not just Ontario moving forward on new nuclear. We talk about nuclear a lot. Today is my first event since completing a nuclear trade mission to France, and the United Kingdom, and the UAE, at COP 28. And in Dubai, we saw 24 countries, including Canada, sign an international resolution to triple global nuclear capacity by the year 2050. It's a remarkable sea change globally when it comes to nuclear. And with Ontario already well ahead of the curve, with decades of experience with our CANDU reactors—like you just saw on that film that was displayed from AtkinsRéalis—and years ahead on the small modular reactors that we plan to build, we've got an incredible opportunity to export our expertise and our experience and materials from our world-class nuclear supply chain. It's something that I was trumpeting when I was out on the road, and that will help create even more jobs here at home.

And the meetings and events that I took part in at the World Nuclear Exhibition and at COP 28 confirmed exactly that. I caught up with many of the jurisdictions that are looking to Ontario to inform the development and deployment of their own small modular reactor programs. Like Estonia, the small state of Estonia, Poland, the United Kingdom; they're all looking to deploy SMRs, and many others. I also joined AtkinsRéalis to unveil the new, large-scale 1,000-megawatt reactor design; it's known as the CANDU Monarch. And I joined OPG as they signed new agreements, with EDF from France, and Westinghouse, to explore opportunities to leverage Ontario's nuclear supply chain in the potential deployment of their technologies. And in Dubai, I also signed a partnership agreement, becoming the first subnational jurisdiction in the world to join the Net Zero Nuclear Initiative to help the world deploy reliable, affordable, and clean nuclear power, to provide energy security for countries around the world.

And while opportunities like these will be critical for growing our nuclear industry and creating new good-paying jobs in Ontario, we're balancing that with the other important projects that we may have coming up here at home. And that includes a decision on the potential refurbishment of the Pickering Nuclear Generating Station. OPG has delivered their feasibility report to my ministry, and we're reviewing it now before we make any next steps or any further decisions. And I hope to have more to share on that important file later on, early in the new year.

Powering Ontario's Growth also committed us to continuing our competitive approach to procuring other resources to meet our growing capacity and energy needs. A competitive process. An approach that's already delivered early successes for Ontarians. The IESO's first midterm request for proposal re-contracted five facilities, representing more than 700 megawatts of capacity, at about a 30 percent savings—that's compared to the previous government's contracts. And we've also achieved impressive results with the province's recent expedited long-term requests for proposals. It kicked off the largest clean energy storage procurement in Canada's history, an achievement for which I was very proud to receive the Friend of Energy Storage Award, actually, from Justin Rangooni and the team at Energy Storage Canada, earlier this year.

And through this procurement, the IESO has already secured contracts with 15 energy storage facilities, acquiring a total of 880 megawatts of capacity. And Indigenous participation in this procurement was significant. Nine of the 15 contracts have at least 50 percent Indigenous ownership. And I'm looking forward to seeing similar success stories with the first long-term RFP procurement, which is currently underway.

But our long-term needs are not going to be met with these procurements alone, as electricity demand is projected to continue to grow by about two percent each year. And to meet that rising demand, we need a strong queue of potential projects that could continue to compete to provide cost-effective power to support our province's growth. And that's why, last week, I asked the IESO to provide regular guidance to energy project proponents, and municipalities, and Indigenous communities, and other interested parties, including minimum procurement targets for new non-emitting resources, in the form of a Resource Adequacy Update, which was released earlier today, as a matter of fact.

So, their update confirmed what Powering Ontario's Growth laid out back in July. While previous procurements have focused on capacity to meet peak electricity demand—a need which, at this time, can only be filled by batteries or natural gas—future procurements are going to need to focus on energy to fill newly procured storage resources, and to meet demand at any time. And that's a role that could be filled by any type of non-emitting resource. And that includes hydro, it includes wind, solar, and biofuels. And over the next four to six years, the IESO is looking to run a regular cadence of procurements, targeting approximately 5,000 megawatts of new non-emitting energy resources. The first of these procurements is going to look for about 2,000 megawatts, and launch later next year.

Now, I know when we talk about this much renewable, new renewable, or non-emitting resources, that many minds are immediately going to turn to the absolute fiasco that was the Liberals' Green Energy Act. We're not talking about that. When wind and solar projects were forced on unwilling host communities, like mine in Prince Edward County, or when the previous government paid 80 cents-a-kilowatt-hour—we all remember those days for solar—or 20 cents for wind, when nuclear power was providing it for seven to eight cents on the grid, or hydro was providing it for four cents. In 2018, our government took action to wind down as many of those over-market-priced renewable energy contracts as we could. Energy contracts that we didn't need, considering that Ontario already had enough resources to meet the demand. In fact, by canceling those 751 contracts, we ended up saving the ratepayers of Ontario almost $800 million.

But now that demand is growing for the first time in almost 20 years, since 2005, we're doing it differently. By competitively procuring these resources based on system need, we can deliver these projects for much lower costs. In fact, the IESO's report today confirmed that we could get wind and solar for far less than the Liberal FIT contracts were signing them up for. Our government has also empowered mayors, we've empowered councils, when it comes to energy planning. And just like our current procurement, new non-emitting resources will need a supportive municipal council resolution. That means if the council says no to a project, no project is going to be built. It's really as simple as that.

But when it comes to the many communities that have already reached out to me to share their interest in hosting new energy projects—and many, many of them can, and have—they can start working with proponents today to ensure that projects can be built. That are going to bring new opportunities, they're going to bring new jobs to their communities, and they're going to contribute to the province's electricity grid at the same time. And as we expand transmission across the province, which we are doing, we're going to be able to have communities across the province participate in our energy system. And that includes communities across Northern Ontario, which are coming to me all the time, wanting to participate and play a part in these contracts.

Today's Resource Adequacy Update also reinforced the need for ongoing procurements, including the procurement of new natural gas generation. And while most of the time, Ontario can meet its electricity generation needs with nuclear and hydroelectric, biomass, bioenergy, and renewables, we need to face reality. Sometimes the sun doesn't shine, and sometimes the wind doesn't blow. Which is why natural gas is still needed. It's needed to keep the lights on when demand surges, and ensure we don't have to resort to emergency actions like rotating blackouts. That's why Ontario's existing natural gas plants are in place right now. And that's the job that they're providing right now, the insurance policy for our province's grid.

In fact, think of the Portlands Generating Station, not too far from here, in downtown Toronto. It was strategically placed where it is to keep the lights on in Toronto on the hottest and coldest days of the year. And we know what can happen if those plants are removed too quickly. I'm sure many of you might remember what happened last summer when a crane—well last summer, "last" summer, summer of 2022—when a crane came into contact with the high voltage transmission line. I don't know if you remember this or not, but somebody actually caught it on video—which was quite remarkable timing, I must say. And it disconnected the Portland's plant. And the disconnection caused chaos. It caused an extensive, hours-long power outage in downtown Toronto, that disrupted the lives of many families and businesses here.

And the fact is, there's currently no like-for-like replacement for natural gas. And that's why the IESO's concluded that natural gas generation is needed to maintain system reliability. And that's the message that we continue to share with the federal government, as well, when we talk to them about their recently released clean electricity regulations. While both of our governments share similar goals to support increased electrification with a clean electricity grid, the operational reality of our grid must come first. We can't have the lights go out, due to poorly thought-out federal regulations. And that was the conversation I had last week with Minister Guilbeault in Dubai. Ontario has identified its main concerns informed by the real-world experience of the grid operators at the IESO and proposed thoughtful recommendations. And again, these are the conversations that I had last week in Dubai with Minister Guilbeault, his Deputy Minister, and other officials. We simply need to ensure that we get this right so that there aren't blackouts, there aren't brownouts, and that we're not driving the price of electricity through the roof, and discouraging people from moving to cleaner forms of electrification.

And to ensure that the federal government understands the importance of this work, we've asked the IESO to conduct a further analysis, demonstrating the impact that the draft regulations would have on system reliability and operational costs. And I hope that the federal government will engage productively, including updating the regulation to respond to all of Ontario's concerns. As we work towards a resolution on the draft clean electricity regulations, Ontario is going to continue to move ahead on a number of initiatives that promote innovation and sustainability in the sector. Just last month, I announced the next round of projects to receive funding under the Hydrogen Innovation Fund. And this includes Altura Power, blending hydrogen with natural gas at its Halton Hills Generating Station, to produce low carbon energy using hydrogen from the Niagara Hydrogen Centre. It's looking to become operational in early 2025, and it would be the largest grid-connected low carbon hydrogen blending project in Canada's history. Game-changing projects like these are going to enable us to expand our clean energy sector, and further cement Ontario's position as a clean energy leader. And I'm excited to see the positive impact that this technology will have, alongside other initiatives that are aimed at meeting growing demand.

A key example is our $342 million expansion of Energy Efficiency Programs that was implemented this year, to further help Ontario ratepayers lower their electricity consumption, and save money on their bills. As we look forward to 2025, Ontarians are going to see a significant expansion of these Energy Efficiency Programs. And to inform the development of this new programming, we did conduct public and stakeholder consultation this past summer, which included targeted outreach to Indigenous communities, as well. And we will see additional opportunities for consultation in the New Year.

Alongside all of this work, Ontario is also considering long-duration storage options. Our government is currently reviewing the IESO's assessment of the potential ratepayer benefit of two pumped storage projects outlined in Powering Ontario's Growth. And as this evaluation takes place, the IESO is also looking ahead to competitive processes for all types of long-duration storage like pumped hydroelectric, compressed air, and batteries, that could add value to the province's grid.

The last item that I want to speak to is the amazing work of the Energy and Electrification Transition Panel. With so many balls in the air, electricity generation, natural gas, low carbon fuels like hydrogen, the success of our long-term planning depends on us taking an integrated approach. And that's where David Collie comes in, the chair of the panel—so, let me thank you again, David, for the work that you've been doing. A lot of hard work, a lot of extensive consultations across the sector over the last year. And I know that we'll soon be receiving the panel's final report, and I look forward to being able to share it publicly very soon, early in January. And the panel's final report is going to provide key advice on actions to best support the transformation of the energy sector, while also advising on opportunities to enable investment, keep energy costs down, which is a priority, and create a more competitive and predictable business environment for the province. And the recommendations from David Collie and team will have a significant impact on the sector, and Ontario's planning decisions.

When I mentioned earlier that it was a busy time for Ontario's energy sector, I wasn't exaggerating. From competitive procurements to investments in our nuclear fleet, new storage options, we've got a lot of work ahead of us. But we know that these steps are an essential part of Ontario's long-term energy planning, as we prepare to meet growing demand, support the shift to electrification, and continue to drive our economy forward. And I'm confident with all of the work that's taking place, we can fully harness the environmental and economic benefits of a clean energy sector, and create a better future for Ontario families and businesses.

I'm proud of everything we've achieved so far. But most importantly, I'm excited for what lies ahead: a stronger, cleaner, and more reliable electricity system. One that's going to power Ontario forward, and drive sustained economic growth right across the province. Thanks for your attention and thanks for your participation in the sector. And can I close by saying that it's great to have a lot of my staff here, from the Ministry of Energy this morning. And, you know, the Ministry of Energy office is a lot like the North Pole: those guys do all the work, and the big fat guy in the suit gets all the credits. Thank you folks, another dad joke for you. Thank you very much.

Sal Rabbani
Thanks Minister. I'd now like to welcome James Scongack, Executive Vice President, and Chief Development Officer at Bruce Power, to facilitate our fireside conversation with the minister. Over to you.

James Scongack, Executive Vice President, Operational Services & Chief Development Officer, Bruce Power
Great, well, thank you very much for having me. And what I always like to say is there's so many reasons to enjoy coming to the Empire Club. But my favourite reason for coming, it's the only time in my life, Minister, where I get introduced on the stage with U2playing—there's a certain buzz about it. You know, I really want to start the conversation with, you're just back from a, as you noted, a trip overseas to Europe and the Middle East. And, you know, you really talked about the transformation of Ontario's electricity system, and balancing that reliability, affordability, and also being a clean electricity system. Minister, as you engaged with other energy ministers from other jurisdictions, what were some of the most significant standouts for you? Are there areas Ontario is ahead with? Maybe some areas that Ontario needs to improve on? What do you sort of bring back from a, from a trip like that?

The Hon. Todd Smith
Yeah, I think sharing the fact that Ontario is a Tier-1 nuclear nation—and I say nation, we're Ontario—but Canada is a Tier-1 nuclear country.

James Scongack
Right.

The Hon. Todd Smith
It's great that I can be there sharing that message, as the Minister of Energy in Ontario, Canada, so that we do get the message right on the world stage that we are a leader when it comes to nuclear. A lot of different jurisdictions have different motivations as to why they're considering nuclear. You know, obviously, here in Ontario, we're considering nuclear because we're growing, and we're growing fast, and electrification is happening. But in other jurisdictions around the world that were relying on Russian natural gas, they're no longer wanting to play a role in partnering with Russia. They're looking for energy security, they're looking for energy autonomy, and they're looking to safe jurisdictions, and NATO allies that they can depend on to be there for them. And so, we're doing it with CANDU. We did it with CANDU 30 years ago. We're about to do it again with CANDU, and we, and we are doing it right now in Romania with CANDU—an announcement made a couple of months ago. But we're also doing it with the new technology, the small modular reactor. And Ontario leading the way with that BWRX-300—the fuel supply already guaranteed, the technology created here in Ontario, and it'll be on the grid in late 2028, early '29. So, I think there's a different motivations in every jurisdiction, but jurisdictions around the world are looking to Canada as an ally in this front.

James Scongack
Absolutely. And I just remind everybody, there is a QR code in your program. So, if you do have a question for the minister, if you can input it and I'll be checking on my phone here, in a minute, look forward to people....

The Hon. Todd Smith
How rude.

James Scongack
Yeah, I'll be texting while I'm chatting with the minister, that's never—that's not good etiquette. So, Minister, you know, the real takeaway from your remarks is, when you combine the significant growth for demand in Ontario—which is a good news story—because our economy is growing, really what I heard in your remarks was an all-the-above approach, and that includes natural gas. And often times in the energy sector, because a lot of us have our individual lanes of certain supply sources, you know, what I like to say is sometimes we like to idolize or demonize certain energy sources. Can you talk about the importance of that balanced energy mix—which, let's be honest, it will include natural gas?

The Hon. Todd Smith
Yeah, we're very fortunate in Ontario that not only do we have one of the cleanest grids in the entire world, but we have one of the most reliable, and we have one of the most diverse electricity grids in the world, with nuclear, depending on the day, and how many big CANDUs are down for refurbishment, 50 to 60 percent of our grid. Hydro makes up 20 to 25 percent, depending on the day, and then a mix of renewable resources that we have, depending on the day—which obviously the energy storage facilities, as I mentioned, are going to allow to be more efficient, and play a greater role in our grid. But also, natural gas. Particularly now, at a time when we are seeing rapidly expanding economy. You know, we've talked over and over again about the multi-billion-dollar investments. If you haven't heard me for a while, it's Volkswagen in St. Thomas, it's LG Stellantis in Windsor, it's UMAC-CORE and Loyalist Township, all big electricity users when they come online a bit later this decade building EV batteries. But also, the EV platforms that are going in at the big OEM, the automakers across the province. And then the green steel-making facilities that are coming too, to places like Dofasco in Hamilton, and Algoma in Sault Ste. Marie, which are going to be massive, massive users.

You know, just those three battery plants and those two green steel-making facilities are going to increase industrial demand in our province by almost 25 percent alone, just those five projects. So, we're going to need natural gas in the system to be that insurance policy to keep the lights on, as we continue to add things like the 4800 new megawatts at Bruce Power—which is already the world's largest operating nuclear facility—as we continue to work towards getting those SMRs online at Darlington, and as we consider the future of Pickering Nuclear Generating Station. And again, I hope to have some news on that early in 2024. So, we need natural gas, the IESO indicates we're going to need it for the time being. And I'll tell you, there are jurisdictions around the world that are so envious when they look at what we have here in Ontario. Not just to power our growth but to power our lives today.

James Scongack
Right. And Minister, one of the items that you covered in your remarks, and I know you recognized—congratulations, Chief, on your re-election, and the Joint Council here from the Saugeen Ojibway Nation is here today. One of the things I know you've been a big advocate for—and I'm completely aligned and support that—is, as we move forward with these opportunities for growth, the importance of partnerships and early engagement with Indigenous communities. And, you know, as we like to say, we always want the next 50 years to look a lot different than when our electricity system was built in the '60's and '70's. You know, we can't repeat that. We want a better tomorrow. And I know you've been a huge advocate for that. Can you talk about how Powering Ontario's Growth Plan, and the philosophy that you're really bringing to this long-term planning, how it's an enabler to that?

The Hon. Todd Smith
Yeah, sure. And one of the pieces that I didn't talk about a lot during my remarks was just the expansion of our electricity grid, and what that means for communities right across Ontario to be able to participate in energy, and electricity generation in our province. We're expanding lines through Southwestern Ontario—and Hydro One is doing that work now—and they've really set the bar on Indigenous engagement and partnership with First Nations, at a 50 percent equity in lines over $100 million. But also, I think one of the most important pieces is ensuring that the North can participate in our energy sector, as well. And the remarkable thing that I've seen as a result of laying the plan out—but even before that—is you know, we didn't have a lot of First Nations Chiefs who would come to the Ministry of Energy with their hand up saying, "I want to participate in Ontario's energy market." Now that the plan is out there, we have Chiefs from all across Ontario and their Councils that are coming in on a regular basis saying, "How can we participate?" And it's not just wind projects, or solar projects, or battery storage projects; it's every kind of project, and including building transmission. So, it's been a fascinating time, just to see how that has really changed. And there is a bright future ahead for communities right across our province, and that includes First Nations communities in our energy sector. They realize that; they want to participate. And you know, some of my most rewarding moments in this job have been with the Wataynikaneyap Power Project, which is connecting 16 different First Nations communities across Northwestern Ontario to the grid. And no longer are those communities limited by the capacity of a diesel generator; they can now tap into unlimited electricity from the grid, and that means huge brand-new schools in North Caribou Lake First Nation, and larger homes and modular homes in communities like King Fisher Lake First Nation, and just more economic development opportunities, and a brighter future for the residents in those communities.

James Scongack
So, Minister, one of the things that is really clear in Powering Ontario's Growth is the connection between Powering Ontario's Growth and a growing economy. And that's pretty obvious by the terminology used. But when you first were-elected to government in 2018, one of your first portfolios was as the Minister of Economic Development and Trade. Can you talk a little bit about how that early work that you did, early in the Ford administration, as Minister of Economic Development, really, how that's informed Powering Ontario's Growth, and maybe coming to the Minister of Energy role the way you did, how it changes your perspective, to some degree?

The Hon. Todd Smith
Yeah, sure. I mean, I was the Economic Development Minister in 2018, a brand-new government. You know, talking to those who were part of the manufacturing sector, and talking to those who were considering being a job creator in Ontario, and there was a lot of frustration at that time, and incoherence—particularly when it came to energy policy in the province. A lot of uncertainty. And companies were looking for certainty. So, I've got to give my predecessor, Minister Rickford, a lot of kudos on the work that he did in the early days at the Ministry of Energy. Things like the Renewable Cost Shift or the Comprehensive Electricity Plan, the Ontario Electricity Rebate, providing 15 to 17 percent rebates to people, and companies, and farms' electricity bills, and taking some of the variability out of an electricity bill, so there's more certainty for job creators.

You know, I, as I've said—and many of you have probably heard me say this—but I was the minister who took the call along with the Premier from GM in Oshawa, back in 2018, saying they were no longer, after 100 years, going to be building cars in Oshawa. But they were quick to point out, "Look, Minister, Premier, we know it's not anything you've done. We know you're going to sort it out and we'll be back." And we started the heavy lifting on a Driving Prosperity Plan, looking at what a future auto sector would look like in Ontario around automated vehicles, and electric vehicles, and retraining the workforce to ensure that they could build the car of the future. And Minister Fedeli has come through with Driving Prosperity 2, which adds to that. And as a result, we've seen multi-billion-dollar investments at all of our automakers, including building cars in Oshawa again.

So, it's all about getting a stable environment and a predictable environment for businesses to invest, and locate. And as a result, they're the ones that are creating the jobs. We saw 300,000 manufacturing jobs leave during the previous government; we've seen 770,000 new jobs created in Ontario, since we took government in 2018. And that's all about creating a stable environment for businesses to invest.

James Scongack
And obviously, we don't want energy to be a limitation to that growth continuing...

The Hon. Todd Smith
That's for sure.

QUESTION & ANSWER

James Scongack
...that path. So, I have one question I want to ask you that came from the audience—I do appreciate everybody for inputting some questions—and the top-voted question was regarding the role of LDCs. Obviously, LDCs play an absolutely critical role.

The Hon. Todd Smith
What is an LDC? I'm just kidding.

James Scongack
We have so many—we do have an acronym dictionary, by the way.

The Hon. Todd Smith
Local Distribution Companies. Come on, James. Ha, ha.

James Scongack
We probably have five other definitions for it, too. So, in terms of the role of local distribution companies, what can you just talk about the role that you see LDCs playing, whether it's in reliability, innovation, in terms of the government's agenda.

The Hon. Todd Smith
Yeah, they play a critical role, obviously. And there are about 57, I believe, different LDCs across the province now, these local distribution companies. And Hydro One is an LDC; but so is Electra, and, you know, so is Lexicon. And there are so many different small and large LDCs across the province that play a critical role. You know, part of the work that David Collie and his team are doing with the Energy and Electrification Panel is to help us with advice on how we can map out the involvement of LDCs in the future of the province's electricity grid, as well. So, it's imperative that we all work together. And I think, you know, one of the things that is really important in a time of incredible growth like we're seeing right now—and we've talked a lot about industrial growth, and the EV auto space, and how we're seeing growth there. But the really, really important role that LDCs are going to play, as well, is in the housing piece.

James Scongack
Right.

The Hon. Todd Smith
It's incredibly important that we work together with the LDCs, with the Ontario Energy Board, and ensure that we have seamless processes in place that are going to get that line to the last mile, that's going to hook up the 40,000 homes in this part of Durham Region, or the 40,000 homes north of Toronto in the Vaughan-Woodbridge area, or even in small-town Ontario. Every home that we build is crucial, and critical to helping us meet our housing targets, and LDCs are going to play a critical role in that.

James Scongack
No, absolutely. So, I think we're going to wrap it up there. What I would like to say in conclusion, before we wrap up the session today is, you saw it through the sponsors, you saw it through the Minister's remarks, this is a sector that has so many different dynamics. It has investors, it has operators, transmitters, distributors, communities. And Minister, one of the things—and you very appropriately recognized the Ministry of Energy members of your office, yourself, the IESO—but one of the things I can tell you is I think one of the things that you have brought to this portfolio is a recognition of engaging all of those individuals in the solution. And this is a bit of a dog's breakfast to put together—let's call a spade a spade. But that stakeholder engagement, the engagement with communities, Indigenous communities, I see it directly through the Strategic Advisory Committee at the IESO. But I think that's an important part of our success, is that communications, and the openness. So, I'd just like to, if everybody could just give a round of applause to the Minister's office, the Ministry, and the IESO for their work. [Applause]

The final thing I wouldn't mind recognizing is there's a number of individuals who are here today, Minister, Laborers' International Union of North America, the Power Workers Union, the Society of United Energy Professionals, let's give them a round of applause [Applause]. One of the things I've noted during your tenure as Minister, at every single announcement, the Minister, whether it's at Bruce Power, whether it's in Windsor, the Minister of Energy, Todd, always wants to set time aside to meet with the workers. And I think that's so important because we can get together in nice ballrooms like this and have lunches. But it's those folks that are keeping the lights on every day.

The Hon. Todd Smith
Yeah, listen, and they're so crucial to my message overseas about Canada being a Tier-1 nation, too, particularly on nuclear. There have been cost overruns in the past in many, many jurisdictions. But the bragging point for me right now are these multi-billion-dollar...

James Scongack
Yeah.

The Hon. Todd Smith
...refurbishment major component replacement projects that are coming in six months ahead of schedule. What infrastructure project anywhere is coming in six months ahead of schedule, and on budget? So, that's a kudos to good planning on the part of the leaders at places like Bruce Power, and at Ontario Power Generation. But it's a real testament to those workers...

James Scongack
Absolutely.

The Hon. Todd Smith
...like the PWU, and the Society, and the Building Trades, for the work that they're doing. And I'll tell you, it makes it real easy for me, when I go to Dubai, or go to Paris, and talk about Canada being a Tier-1 nuclear nation, that we're bringing in these projects on budget and on schedule.

James Scongack
And just to do a Bruce Power plug to wrap up: we're 100 days straight of Unit 6 operating since it came back to service as of today. So, there you go.

The Hon. Todd Smith
Congratulations.

James Scongack
We'll keep it going, Minister. Thank you very much for being here, and really appreciate today's discussion. Thank you.

The Hon. Todd Smith
Thanks, James.

James Scongack
Thanks, man.

Sal Rabbani
Thank you, James, for leading today's discussion session. I'd now like to invite Daniel Levitan, Vice-President Stakeholder Relations at Hydro One, for the appreciation remarks.

Note of Appreciation by Daniel Levitan, Vice-President Stakeholder Relations, Hydro One
Well, thanks, Sal, for the introduction, and a really big thank you to Minister Smith for your, your thoughtful remarks. It's been an exciting year for energy in Ontario, and it sounds like we've got a lot more to look forward to. So, on behalf of Hydro One, I want to thank my—pardon me, I want to thank the Minister for your support and partnership, as we all work together to bring economic growth to this great Province.

Ontario's out in front with Powering Ontario's Growth, a made-in-Ontario plan to address the changing needs of our customers. And Hydro One, for our part, is really proud to be partnering with you, building the electricity infrastructure that, you know, that we need to support the growing energy transition. And that's the thought I wanted to leave you with, Minister—and you touched on it in your remarks—is partnership. Partnership with indigenous communities, with municipalities, partnerships with community and citizen groups, and partnerships in the sector. They're the right thing to do, and they also help us get shovels in the ground, and build faster than ever before. And that's going to be required in the coming years.

Earlier this month, we announced that we'll complete our Chatham to Lakeshore Transmission Line by the end of 2024. That's a full year ahead of schedule, that's way under budget—thank you. But how did we get there? Partnerships. Our partnerships are, have positioned us to be the first utility in Canada to develop a 50-50 First Nations Equity model—thanks for the call out, Minister, we're very proud of it—it offers 50 percent equity to First Nations on all new major transmission projects valued at over $100 million, and there's going to be a lot of work to come. We remain committed to continuing and advancing our relationships and partnerships with Indigenous communities, and we will be finding more ways to leverage those opportunities to work together, as the energy grid expands.

Through the power of partnerships, Minister, your plan to get more critical infrastructure built is going to help build a stronger Ontario, and we're all going to wind up doing it together. So, really, really appreciate that. With that, I want to thank you again for your remarks and your leadership on the file, and I'll hand it back to Sal.

Concluding Remarks by Sal Rabbani
Thank you, Daniel, and thanks again to all our sponsors for their support and everyone joining us today in person or online. As a club of record, all Empire Club of Canada events are available to watch and listen to on demand on our website. The recording of this event will be available shortly, and everyone registered will receive an email with the link.

We hope to see you after the New Year, on the 25th of January, to celebrate this year's 2023 Nation Builder of the Year award, Mr. Wesley Hall. Wes, is a well-known Canadian businessman, entrepreneur, author, and Dragon Investor. We'll be recognizing and celebrating his accomplishments with a formal luncheon on the 25th. We hope you'll join us to honour a true Canadian trailblazer. Thank you for your participation and support. This meeting is now adjourned.