Hydro Ottawa’s rate plan falls short on community power innovation: Where are the DER solutions?

Ottawa needs more local renewable energy that helps communities be more resilient to power disruptions.

As a renewable energy co-operative rooted in Ottawa’s communities, OREC has a deep interest in how our local distribution utility—Hydro Ottawa—plans for the future. With the release of Hydro Ottawa’s 2026–2030 electricity rate application, we were eager to see how the utility would support distributed energy resources (DERs) and transition toward a more open, efficient, and participatory electricity grid.

What we found was concerning.

More Spending, But on the Same Old Grid?

Hydro Ottawa’s plan outlines $1.2 billion in new capital investments over the next five years. That’s a 140% increase over the last rate period. The stated goals—grid resilience, modernization, capacity for electrification—are valid. But the actual strategies rely heavily on traditional poles-and-wires infrastructure, with limited and vague commitments to leveraging DERs like solar, storage, and demand-side flexibility.

For years, the Ministry of Energy, the Ontario Energy Board (OEB), and the Independent Electricity System Operator (IESO) have signaled a shift toward a Distribution System Operator (DSO) model. This model reimagines local utilities as enablers of DERs, not just builders of wires. It emphasizes coordination, open access, and market-based solutions.

In short: more innovation, less cement.

On May 20, 2025, the OEB even released a Discussion Paper on the DSO Transition, outlining the steps utilities must begin taking now.

Yet Hydro Ottawa’s application contains little more than statements of intent. There are no:

• Pilots that use DERs to defer costly grid upgrades

• Targeted programs to relieve capacity constraints through customer-side solutions

• Regulatory proposals to enable local DER participation in grid planning

This is a missed opportunity—and a risk to ratepayers.

What’s at Stake for Ottawa

If we want a clean, affordable, and resilient electricity system, we need to treat DERs as core infrastructure, not as extras. When community solar, storage, demand response, and smart building controls are properly enabled, they can reduce utility costs, defer infrastructure, and improve reliability—all while empowering local participation.

OREC has been building community power in Ottawa since 2012. We know the value DERs can deliver—when the system allows them to.

💬 Our Ask: Tell Hydro Ottawa and the OEB That Community Power Belongs at the Centre

Hydro Ottawa’s application is currently under review by the Ontario Energy Board (OEB). This is the public’s opportunity to insist on more than vague promises.

We are calling on Hydro Ottawa to:

1. Disclose specific DER and non-wires solutions that will be implemented over the 2026–2030 period.

2. Submit proposals or pilots that demonstrate a commitment to the DSO model.

3. Work with local DER providers—including co-operatives—to build the future grid, now.

   
   

✊ How You Can Help

📢 Take Action Before the OEB Makes a Decision:

• Send a letter to the Ontario Energy Board (info@oeb.ca) and Hydro Ottawa (regulatoryaffairs@hydroottawa.com). Use our template letter (link) to get started.

• Share this blog post on social media using the hashtag #CommunityPowerDSO.

• Join OREC’s advocacy list to stay up-to-date on this issue and others affecting community energy.

💡 The time for “intentions” is over. The community deserves action—and innovation.

Let’s build a grid that works with us, not just around us.

OREC is monitoring this proceeding and preparing formal comments for submission to the OEB. If you'd like to support our advocacy, become a member or contact us at info@orec.ca.