Executive summary

Ontario is entering a period of unprecedented electricity demand growth. Electrification, population increase, housing development and expanding economic activity are increasing demands on the electricity system in every region of the province. The ability to provide reliable, affordable and timely access to electricity will play a critical role in supporting economic competitiveness, enabling new housing, attracting investment and achieving long-term energy and climate objectives. 

In Energy for Generations, Ontario’s first integrated energy plan, the government committed to strengthening the local distribution sector, leading to the appointment of the Panel for Utility Leadership and Service Excellence (PULSE) to provide expert advice on preparing Ontario’s electricity system for future growth.

The PULSE report finds that while Ontario's electricity distribution sector has delivered reliable service under conditions of relatively stable demand, the operating environment is changing fundamentally — and with the Electricity Distributors Association projecting a potential $120 billion build out, the sector must evolve to meet the challenges ahead.

The report concludes that electricity distributors are increasingly becoming the critical link between provincial energy policy and real-world outcomes. Distribution utilities are responsible for connecting customers, enabling electrification, supporting new development and delivering the infrastructure needed for growth.

However, many of the governance, regulatory and funding arrangements that have guided the sector over the past 2 decades were designed for an era focused on cost containment and incremental investment rather than large-scale system expansion. As demand grows, these arrangements risk limiting the sector's ability to mobilize capital, attract expertise, build infrastructure and connect new load at the pace required.

To ensure Ontario is prepared for this next phase of growth, PULSE was asked to assess whether utilities, municipal owners, regulators and governments have the tools necessary to support sustained investment while maintaining reliability, affordability and customer protection. Based on extensive stakeholder engagement across the electricity sector, municipalities, investors and government, the report identifies a need to strengthen utility readiness, modernize governance practices, improve access to capital, align regulatory incentives with growth objectives and expand workforce capacity.

The report presents a coordinated package of recommendations intended to position Ontario's electricity distribution sector for long-term success. These recommendations focus on improving planning and accountability, ensuring utilities have access to the capital and expertise needed to support growth, modernizing regulatory frameworks, encouraging investment and strengthening labour force development.

The Panel states that together, their proposals are intended to create a distribution sector that is equipped to deliver the infrastructure required to support electrification, economic development, housing construction and community growth across Ontario.

The report's central message is clear: Ontario's future growth depends not only on generation and transmission investments, but also on a distribution system capable of expanding alongside the province's ambitions. Early, coordinated action will be required to ensure Ontario's electricity distributors have the scale, resources and regulatory environment necessary to support a strong economy and a reliable energy future.

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