Canadian Press
The Chronicle Journal
November 4, 2005

Ontario’s 4.5 million electricity meters will be replaced by so-called "smart" meters by 2010 at a cost of $1 billion to hydro consumers, a key part of the power-starved province’s strategy to convince people to conserve electricity.

Advocates of energy conservation said they like the plan, but admonished the government for waiting more than two years to take its initial tentative steps towards conservation.

The installation of the new meters, which will allow utilities to charge consumers based on the time of day they use their power, is set out in new legislation introduced Thursday by Energy Minister Donna Cansfield.

"Combined with a pricing structure that reflects the true cost of power production at certain times of the day and year, smart metering would allow consumers to make smart, informed decisions about their electric use," Cansfield told a news conference.

"This will allow Ontario consumers to save money and reduce the strain on the power system at peak periods."

Cansfield made the announcement during a visit to a Toronto grade school that has already cut its own electricity costs by 10 per cent through conservation.

The legislation also requires school boards, hospitals, colleges and universities, municipalities, and government ministries to prepare energy conservation plans and report on the progress they’re making in cutting their consumption.

Pilot projects show that with smart meters, residents can cut their power bill by about 30 per cent, Cansfield said.

The time-of-use prices are as low as 2.9 cents per kilowatt-hour for off-peak times, such as nighttime, or as high as 9.3 cents at peak daytime hours.

Ontario consumers currently pay five cents per kilowatt-hour for the first 600 or 1,000 kilowatts used, depending on the season, and 5.8 cents for every additional kilowatt-hour beyond that.

If passed, the legislation would make Ontario the first jurisdiction in North America to require smart meters, although parts of California and Florida already have the devices in place, as do Italy and the United Kingdom.

The $1-billion price tag to buy, install and run the smart meters will be recouped through a $1 to $4 monthly charge on people’s electricity bills.

But the province may have underestimated the cost of the meters and overestimated the savings, warned energy critic Tom Adams, executive director of Energy Probe.

The meter will more likely cost $5 to $6 a month, he said, and savings of 30 per cent probably won’t be the norm for the average small household.

"That customer is not going to see 30 per cent savings," said Adams, except possibly with big homes with pools or an array of electronic gadgets.