City of Kitchener looks for more clarification on Cap and Trade Program

The City of Kitchener wants to let its natural gas users know part of the increase they will see on their utilities bill this Januarycomes from the Ontario government's mandatory Cap and Trade Program, the other part is the city's annual gas increase.

Homeowners can expect to pay an average of $75.00 for the government program, depending on the size of their home. But that increase won't be itemized on the bill. The fee will be mixed in with the yet to be determined annual increase which will be determined in October.

This discussion is happening at the city level because Kitchener runs the natural gasutility and it's their job to implementthe Cap and Trade Program. Other privatenatural gas utilities are having similar discussions.

'Clarity has not been completely there'

Kitchener Utilities, like other natural gas suppliers across the province, issearching for answers to implementing the plan.

Danny Persaud, Gas Supply Operations and Regulations Manager with Kitchener Utilities, says the lack of information from the province has made the program difficult to implement.

"Clarity has not been completely there on the program," Persaud said. "But I know for a fact they are moving ahead with the Ontario Energy Board to move something forward quickly."

Cynthia Fletcher,Interim Executive Director of Infrastructure Services, tagged onto what Persaud said noting information on the brand new program is arriving on a weekly basis.

• Ontario's climate change action plan: what it needs to succeed

Under a capandtrade system, the government sets a cap on the total amount of carbon emissions allowed and issues permits to companies allowing them to burn a set amount. If they exceed that amount they must buy extra permits, either from the government or from companies that have reduced their emissions.

The government promised that capandtrade revenue, no matter how much it is, will be spent on initiatives to cut greenhouse gases, including investments in public transit, clean technology and retrofitting homes and businesses to be more energy efficient.

Frustrating process

Ward 6 Kitchener Councillor Paul Singh understands the government wants to be more mindful of the environment and measures to reduce greenhouse gases, but it's the process that is frustrating him.

"I see this as an additional tax grab, I think if it had been rolled out through an extensive public consultation informing exactly how it's going to be impacted through our utility customers it would have been better," Singh said.

"I think the province could have looked at our utility customers differently as opposed to individual homeowners now having to pay a cost for cap and trade similar to industry."

• Environmentalists, automakers applaud Ontario's $8.3B climate change plan

Kitchener and Kingston are the only two cities in Ontario to own their natural gas utility.