Fair Compensation for Use of Municipal Land
Underground infrastructure is essential to keep municipalities running in Ontario. For instance, gas pipelines bring gas to homes and businesses. For decades, municipalities operated their own gas utilities, but sold them off over the years. Today, Enbridge Gas supplies 99.7% of the province's fossil gas in Ontario municipalities.* This transition saw gas utilities go from a public to a private utility, however Ontario law prevents municipalities from charging for the use of public land from Enbridge.
We feel that this is not fair. Enbridge should be responsible for paying for its gas infrastructure like it does in other provinces, so municipalities can use those funds to better manage pipelines and free up money for other critical priorities. It is just being a good corporate citizen. Read a recent Backgrounder on this issue from The Narwhal.
* Ontario Energy Board. Yearbook of Natural Gas Distributors. 2021-2
** Results reported Nov 1, 2024. Financial Post.
*** Section 9 of Regulation 584/06 under the Municipal Act, 2001
Fair Compensation for Use of Municipal Land for Gas Infrastructure
To: Gregory L. Ebel, President and CEO, Enbridge Gas
CC: Doug Ford, Honourable Premier of Ontario, Paul Calandra, Honourable Ontario Minister of Municipal Affairs and Housing
Stephen Lecce, Honourable Ontario Minister of Energy and Electricification
Re: Fair Compensation for Use of Municipal Land for Gas Infrastructure
We recognize that
- Ontario municipalities are currently facing many challenges including housing supply, affordability, homelessness, mental health and climate change
- Unlike most provinces in Canada, gas companies are exempt from paying Ontario municipalities for use of public land to run their infrastructure
- The best businesses in the world, large and small, have embraced Environmental, Social, and Governance (ESG) best practices, understanding that being a responsible business is good for the people, planet and for business. We should expect the same from our government and our gas utility companies.
We recommend:
- The Province of Ontario to amend section 9 of Regulation 584/06 under the Municipal Act, 2001, to permit municipalities to charge fair fees to for-profit gas utilities for their use of public property, as is done in most other provinces
- Until such time as the Municipal Act is amended, we urge Enbridge Gas to voluntarily compensate municipalities for the use of public land at the average rate that it currently pays in other provinces as a demonstration of Corporate Social Responsibility.
If you are a company in Ontario that supports the above statement, please add your company below.
