Item - 2023.EX4.2

City Council considered Items IE3.3 and IE3.4 and EX4.2 together.

The Executive Committee recommends that:

1. City Council receive the report (April 18, 2023) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Infrastructure and Development Services for information.

At its July 19, 2022 meeting, Toronto City Council requested City staff and Toronto Hydro-Electric System Limited ("THESL") to develop a Memorandum of Understanding (MOU) related to coordination of THESL's Climate Advisory Services with the City's TransformTO programs. This MOU sets out how the two parties will coordinate communications and marketing to customers, align key performance indicators, and develop an implementation plan with timelines and progress reporting.  This effort will ensure value-for-money in relation to any future impacts on the Toronto Hydro dividend to the City and achieve climate action at scale.  The MOU is enclosed with this report as Attachment A.

The MOU will ensure that the City's TransformTO programs and policies and THESL's Climate Advisory Services will operate in a complementary manner, avoid duplication, and provide maximum value for taxpayers and ratepayers. The key sections of the MOU regarding TransformTO and Climate Advisory Services include:

1. Coordinating Action

The parties acknowledge the importance of a robust coordination and issues management framework. Though both parties will work independently, they will maintain alignment and cooperate to avoid duplication. The existing City-Hydro meeting framework will be developed further to support collaboration. The parties will also coordinate through the City’s TransformTO Net Zero Strategy Accountability and Management Framework.

2. Communication

The parties commit to coordinating marketing plans regarding major project announcements, events and press releases and highlight each others’ contributions.

3. Setting Targets and Measuring Success

Recognizing that climate action targets will evolve over time, both parties commit to aligning targets and measures to provide value for money by avoiding duplication and identifying synergies. Both parties will maintain Key Performance Indicators that measure their own performance in achieving targets.

4. Value for Money

With prior experience in conservation programs and its relationships with its customer base, THESL is well positioned to accelerate climate action through Climate Advisory Services. The business cost of Climate Advisory Services represents a small percentage of the overall cost to achieve net zero emissions in Toronto. The City and THESL will align their programs to avoid duplication and identify savings, providing value to taxpayers and ratepayers.

5. Implementation Planning

City Staff will report annually to City Council on its progress on TransformTO. Toronto Hydro will provide climate action updates to City Staff through regular meetings, and City Council through its corporate reporting and public Annual General Meeting. Both parties will continue to engage and coordinate both within and outside of formal reporting structures to advance climate action.

City staff are supportive of the MOU as it will enable much required coordination and collaboration between the City and Toronto Hydro to advance climate action.