The Government of Ontario has adopted the Conservation First principle for energy planning. This principle means that Ontario intends to procure all energy conservation and efficiency resources that can keep our lights on at a cost that is less than or equal to the cost of new supply.
To be consistent with this principle, the Independent Electricity System Operator (IESO) should be willing to pay at least as much to save a kWh as Ontario’s consumers will pay for the re-building of the Darlington Nuclear Station.
Today, the IESO is paying an average of 2.2 cents for efficiency measures. Meanwhile, OPG is asking to raise the rate it is paid for nuclear power to 16.5 cents. Clearly, maximizing efficiency is a better answer.