A TAF interview with Toronto Hydro’s Julia McNally, Director of Climate Action. In this role, she leads a team focused on helping Toronto Hydro’s customers to decarbonize.
Toronto’s incoming building emissions performance standards (BEPS) will require large building owners to improve their energy performance, including shifting away from fossil fuels over time. As more buildings install electric heat pumps and EV chargers, the question we hear a lot is — can the utilities handle the increased demand for electricity?
At the nexus of the electrification opportunity is Toronto Hydro, the utility responsible for connecting buildings to the electricity grid and keeping the lights on in the city. To better understand how Toronto Hydro is gearing up for BEPS implementation, I asked Julia McNally, Director of Climate Action, to walk us through their steps to grid readiness.
Q: As building emissions performance standards come into play next Fall, we’re going to see a lot more heat pumps in buildings. Is the grid ready?
A: Yes, Toronto Hydro’s grid is ready for electrification now. We have a five-year investment plan, just approved by our regulator, that keeps us ready through the rest of this decade. It’s based on a load forecast reflecting current and likely policies like BEPS and anticipated growth. Our job is to connect customers to the grid and to provide electricity. And if demand exceeds expectations, we’ll grow. We’re an infrastructure business — this is what we do.
Q: Beyond the five-year investment plan, how is Toronto Hydro preparing for the long-term as emissions targets increase over time?
A: We’re preparing for BEPS by doing a few different things. We’re involved in the BEPS advisory committee and we’re preparing for the energy transition by investing in grid enhancements. That includes maintaining the current grid, expanding it and modernizing it to operate more efficiently.
But we don’t yet know what the final BEPS bylaw will look like. Once it’s defined — with clear milestones and timelines — we can plan in detail. It’s challenging for the electricity sector to invest in growth without certainty. We risk building out too far ahead of demand, which could lead to higher costs for existing customers (which is not popular). It’s our job to be flexible and adaptable, but we need a certain level of policy certainty to build infrastructure.
Q: Can you expand on your efforts to “modernize the grid”? What steps are you taking?
A: Modernization means using smarter technologies to make the grid more resilient and efficient. We’re looking at devices like reclosers that isolate faults and prevent widespread outages, which would help improve reliability.
Every study we see suggests that the grid is going to have to grow, so we know we’ll need to expand and reinforce it to meet electrification goals. Wires are vital — whether we’re drawing power from centralized generation or feeding in from local sources. We have a whole set of tools, and we will be leveraging them all.
And let’s be efficient here! We’re also investing in local demand response so we can manage load and avoid costly infrastructure upgrades where it makes sense.
Q: Drawing from leading jurisdictions around the world, policymakers at the City of Toronto are considering different options in the design of a BEPS bylaw. What’s the most important consideration from your perspective?
A: We need two things: clarity about the policy and flexibility in implementation. This is the first time the City is trying to implement BEPS, so let’s learn what’s worked and what hasn’t from places like Vancouver.
We’re ready to meet customers where they are, but we need defined milestones and a predictable timeline to align our investments with demand.
Q: As the sector prepares for these changes, is there anything that you want building owners to know? How can they be proactive?
A: Building owners should know that we’re here to help. Toronto Hydro is committed to supporting customers on their electrification journey. Our Climate Action Team can help assess your options and guide you through the connection process.
If there’s one message I want to leave you with, it’s: “When it dies, electrify.” And don’t wait until it dies to start planning. Contact our team at climateaction@torontohydro.com or visit our climate action web page.
[Multi-family building owners in the GTHA can also reach out to TAF’s Retrofit Accelerator for support].
Some efforts to electrify are already underway, but the pace and scale of fuel-switching retrofits will ramp up significantly with BEPS. Toronto Hydro is a key player in enabling this shift, and we thank Julia McNally for her team’s efforts to prepare and fill us in.
Successful BEPS bylaws in the GTHA will require policy certainty from cities, and cooperation between utilities, businesses, building owners and residents. With the right tools and policies in place, Toronto Hydro is ready to meet the moment.
Head over to our BEPS resource hub to learn more.
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