Politicians worry Enwave’s steam line decommissioning will leave downtown residents without heat next fall

A private utility is decommissioning a steampipe which heats four city properties. CTV’s Daryl Newcombe has more on the implications.

Taxpayers will spend up to $8.35 million dollars to retrofit four municipal buildings with internal heating systems after Enwave, the owner of London District Energy, announced it will be shutting down most of its medium-pressure steam line beneath part of Downtown London by October 31, 2026.

Many private buildings, including some that contain residential units and condos, face the same tight timeline to design and install in-building heating systems before cold weather arrives next fall.

“Some properties, especially the residential ones, may be stuck in a position where they may not have their heat,” warned Downtown Coun. David Ferreira.

Ferreira expressed his frustration during Monday’s meeting of the Infrastructure and Corporate Services Committee.

A staff report explains the complexity and cost of switching from the district steam system to new in-building systems for heating, humidity control, and water heating:

• City Hall $2 million
• Centennial Hall $1.7 million
• Central Library $2.25 million
• Museum London $2.4 million

If the solutions for City Hall and Centennial Hall can be combined, there is potential cost avoidance of approximately $800,000, lowering the total to $7.55 million.

“I’m very unhappy with Enwave’s decision to decommission (the steam line), and I’m very unhappy with the time frame,” Ferreira added.

If Council approves the budget for the work next week, it leaves just over 13 months to design, procure and install the in-building systems that meet the unique needs of all four municipal buildings.

“Humidity and temperature control is especially sensitive for Museum London, City Hall and the Central Library for artifact and archival management, and important for occupant comfort at Centennial Hall,” the staff report reads.

Private building owners will face the same short timeline, and might find themselves indirectly competing with the city for local skilled trades and suppliers.

Enwave has indicated that some sections of its steam system are becoming increasingly unreliable and could present safety concerns in the future.

In a letter to the mayor Enwave writes, “Impacted customers, including the City, have access to a dedicated community liaison and project management support to help ensure that the heating transition is clear, transparent and responsive to customer needs.”

Mayor Josh Morgan said that’s not good enough.

“If they want to have a good reputation in our community, and want to continue to have a great partnership with the city, (Enwave) needs to do a little bit more than just a community liaison,” he told the committee.

Morgan believes Enwave should compensate the city.

“It’s my personal belief that they should make a financial contribution to the city’s situation,” he said.

Ferreira went one step further, “I think we should be covered in full, and I think that all of the other properties in my ward that are affected should be covered in full as well.”

The unplanned capital projects were not included in the 2024-2027 Multi-Year Budget, so city staff recommend funding the work from the corporate contingency budget.

Council will consider the matter on September 23.

Among the challenges identified by city staff in their report:

• October 2026 deadline creates additional time urgency for Enwave customers.
• All the affected facilities are large, specialized facilities with limited or no opportunities for planned service interruptions.
• Humidity and temperature control is especially sensitive for Museum London, City Hall and the Central Library for artifact and archival management, and important for occupant comfort at Centennial Hall.
• Potential complexity of required electrical or natural gas upgrades for the new systems could threaten timeline
• Availability of mechanical and electrical skilled trades may be limited due to competing demands from other Enwave customers with similar projects.
• Given the schedule risks it may be necessary to install temporary boilers until an alternative solution can be installed.

Greenhouse gas reductions are an evaluation criterion for building upgrades but the most efficient and expeditious solution will be the primary driver