Importing Power While Cutting Rebates: A Bitter Pill for Ontario Ratepayers

For those of us running businesses on Bay Street, the math on Ontario's latest energy play doesn't add up. While we're told the province is managing its resources, the reality hitting the ground—as first reported by CityNews Toronto—is a contradiction that feels like a slap in the face to every local ratepayer.

According to reporting from CityNews Toronto, the Independent Electricity System Operator (IESO) has signed a contract with Alpha Generation to import 600 megawatts of electricity from the United States to cover potential shortages during the winter months. The IESO describes this as part of "normal system planning" to support peak electricity use and seasonal demand, claiming the Alpha Generation deal was the "only viable alternative" even as Ontario continues to export power to other provinces.

**OPINION:** There is a profound irony in importing power from a jurisdiction that has presented significant trade tensions through tariffs, especially when our own infrastructure and capacity are clearly lagging. It is a precarious position to be in—relying on a neighbor for basic stability while our own energy security remains questionable.

Jack Gibbons, chair of the Ontario Clean Air Alliance, told CityNews Toronto that this move leaves the province vulnerable, noting that if President Donald Trump were to cut off those exports, "potentially the lights could go out in Ontario." Gibbons further criticized the move as the "wrong way to go," arguing that the province should have invested in battery storage, solar, and wind instead of opting for what he describes as "high-cost" and "expensive power" that will drive up bills.

And drive them up it will. CityNews Toronto reports that the electricity rebate, which currently covers 23.5 per cent of consumer bills, will be reduced to 15.7 per cent when the change takes effect in November. This reduction means the average household could see their bill increase by $12.

NDP energy critic and MPP Jamie West expressed shock at the move, telling CityNews Toronto that Premier Doug Ford is essentially telling Ontarians to "get used to higher rates." West compared the government's rebate strategy to a credit card bill, suggesting that once the limit was reached, there was no secondary plan in place to tackle the underlying costs.

In response, Noah Mawji, a spokesperson for Energy Minister Stephen Lecce, told CityNews Toronto that the government continues to offer targeted relief for seniors and low-income households. This is a necessary band-aid, but it doesn't address the core issue: we are paying more for power that we can't even generate ourselves.

Last year, the rebate program cost taxpayers over $2 billion. Yet, as we enter the winter, we find ourselves importing power from the U.S. while the IESO notes that in 2025, Ontario exported nearly seven times more electricity than it imported. If we have the capacity to export on that scale, the decision to import expensive power while cutting consumer rebates feels less like "system planning" and more like a failure of local investment.