Ontario Launches Expert Panel to Strengthen Local Electricity Distribution

On Tuesday, October 28, 2025 Minister Stephen Lecce announced the launch of the Panel for Utility Leadership and Service Excellence (PULSE), a strategic advisory group that will ensure the province’s electricity distribution system can power the most competitive economy in the G7. This panel of industry experts and municipal representatives will support Energy for Generations, the government’s long-term plan to deliver reliable energy that is affordable for families, supports job creating investment and power Ontario’s future.

Ontario’s aging and capacity-constrained distribution system requires a significant infusion of capital, with the Electricity Distributors Association (EDA) estimating $103–$120 billion over the next two decades to maintain existing assets. This level of investment for stronger and smarter power lines, digital grid management tools and new substations, dwarfs the current spending trajectory of most Local Distribution Companies (LDCs).

“If the backbone of Ontario’s electricity grid — Ontario’s utilities that bring power to homes, businesses and factories — cannot keep up, Ontario risks falling behind. Our path to self reliance rests on our ability to challenge the status quo and demand better for every ratepayer in Ontario,” said Stephen Lecce, Minister of Energy and Mines. “The world has changed, which is why we need to future-proof Ontario’s grid as we invest in the next generation of electricity infrastructure. Through this review, we will transform all utilities into more reliable, resilient and future-ready systems that are focused on keeping energy rates affordable for families.”

The province’s economy is facing unprecedented realignment and external risks, and yet the local distribution sector has not undertaken a review since 2012. Since then, the world has changed as Ontario transitioned from an era of surplus power to unparalleled power demand and electrification, rising geopolitical threats and advanced technology. Many of Ontario’s nearly 60 utilities are at risk for future credit downgrades, which can lead to higher borrowing costs absorbed by ratepayers.

The government is also seeking recommendations to end the vast disparity of service standards and connection timelines, including response times following extreme weather events. This expert panel will advise Ontario’s government on pathways to mandate and strengthen customer service improvements, in addition to efforts to reduce costs on ratepayers by enhancing shared services and procurement across utilities.The PULSE will provide recommendations on investment frameworks, operational best practices, and regulatory reform planning needed to deliver a reliable, resilient and future-ready electricity distribution system across Ontario. Their work will include:

• Recommending operational and customer service improvements across the system
• Identifying strategies to address rising financing gaps to fund electricity infrastructure
• Addressing barriers to attracting investments into municipally owned LDCs
• Reviewing ownership, governance and investment models that balance municipal interests, financial stability and system efficiency

In 2018, the Ontario Energy Board issued a report calling for reform, stating that “utilities will need to modernize their systems, adopt innovative technologies, and explore new business and partnership models to meet evolving customer expectations and ensure long term system reliability and value for money.” This recommendation echoed the 2012 Ontario Distribution Sector Review panel report, which said that maintaining the status quo would not serve the interests of customers and Ontario needs distributers that are efficient, innovative, and financially strong.

“Ontario’s communities are growing, and we need to ensure we have the energy infrastructure in place to power that growth,” said Rob Flack, Minister of Municipal Affairs and Housing. “Through PULSE’s recommendations, we will ensure that every community has access to power that is safe, affordable, and resilient—both today and for generations to come.

Minister Lecce has appointed Anthony Haines, Paula Conboy, Alexander Nuttall and David MacNaughton, who collectively bring a wealth of leadership and expertise in the energy sector. The work of the panel will be supported by Stephen Poloz in the role of expert advisor, who brings his experience from his time serving as the Governor of the Bank of Canada. By advising on investment frameworks, operational best practices and regulatory reform, PULSE will help ensure the sector can finance and deliver the electricity system expansion needed to power new homes and a strong economy—without compromising service quality or affordability. PULSE is expected to deliver its final recommendations to the Minister of Energy and Mines in early 2026, shaping the future direction of Ontario’s local electricity distribution system.

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