Energy security for Ontario

Energy Security for Ontario 3 ENERgY SECURITY FOR ONTARIO Robert Joshi Ontario is faced with a changing energy environment: the phase out of coal, the review of the feed-in-tariff program, new sources of natural gas in great proximity and volatile oil prices. [...] In fact, the province’s energy regulator is in the process of considering how new shale gas supplies could reverse the traditional flows of North America’s natural gas markets, affect the security of supply and price, and implicate billions of dollars worth of pipelines in the process. [...] If this were to occur, it implicates the usefulness of billions of dollars worth of assets in the form of the TransCanada Mainline and new pipelines for the nearby shale gas. [...] In addition to the National Energy Board evaluating must be able to the tolls for TransCanada’s Mainline, the Ontario Energy Board (OEB) is considering the implications of uncertain North Ameri- move enough can natural gas flows with Ontario’s interests in mind as it contin- electricity to meet ues to incorporate security into its natural gas decision-making.6 the changing There are also lessons f [...] In a 2005 report, the OEB determined that access to energy resources enhances instantaneously - security, but that long-term contracting for energy resources is all day and all night, not necessarily worth the cost risk: every day and every The Board is mindful of the importance of security of supply.