The effect of heat-island reduction (HIR) strategies on annual energy savings and peak-power avoidance of the building sector of the Greater Toronto Area is calculated, using an hourly building energy simulation model. Results show that ratepayers could realize potential annual energy savings of over $11M from the effects of HIR strategies. The residential sector accounts for over half (59%) of the total savings, offices 13% and retail stores 28%. Savings from cool roofs are about 20%, shade trees 30%, wind shielding of trees 37%, and ambient cooling by trees and reflective surfaces 12%. These results are preliminary and highly sensitive to the relative price of gas and electricity. Potential annual electrticity savings are estimated at about 150 GWh and potential peak power avoidance at 250 MW.