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Reliable Energy and Consumer Protection Act, 2002, S.O. 2002, c. 1 - Bill 58

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EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 58 and does not form part of the law.  Bill 58 has been enacted as Chapter 1 of the Statutes of Ontario, 2002.

 

The Bill amends several statutes in relation to the energy sector.  Here are some of the principal amendments:

schedule a
amendments to the Electricity Act, 1998

Part IV of the Electricity Act, 1998, governing the Generation Corporation and the Services Corporation, is replaced with a new Part IV (governing Hydro One Inc.) and a new Part IV.1 (governing Ontario Power Generation Inc.).  The current provisions governing Ontario Power Generation Inc. are re-enacted in the new Part IV.1.

References throughout Ontario statutes to the Services Corporation and the Generation Corporation designated under the Electricity Act, 1998 are replaced with references to Hydro One Inc. and Ontario Power Generation Inc.

Hydro One Inc. and its subsidiaries:

Under section 48.2 of the Act, restrictions may be imposed on the issue, transfer and ownership of voting securities of Hydro One Inc. and such subsidiaries as may be specified by regulation.

Section 49 of the Act authorizes the Crown to acquire, hold, dispose of and otherwise deal with securities or debt obligations of, or any other interest in, Hydro One Inc. and its subsidiaries.

Section 50 of the Act authorizes the Crown to establish corporations for the purpose of acquiring, holding, disposing of and otherwise dealing with such securities, debt obligations and other interests.

Section 50.1 of the Act authorizes the Crown to establish corporations and other entities or to make arrangements for the purpose of acquiring, holding, disposing of and otherwise dealing with securities, assets, liabilities, rights, obligations, revenues and income of Hydro One Inc. and its subsidiaries.

If the Crown disposes of the securities or debt obligations of Hydro One Inc. or any of these corporations or entities, or disposes of any other interest in them, the net proceeds must be paid to the Financial Corporation.  Net payments in respect of capital must also be paid to the Financial Corporation.  These obligations are set out in section 50.3 of the Act.  They terminate when Part V of the Act is repealed.

Ownership and use of corridor land:

A new Part IX.1 of the Act governs the ownership and use of corridor land.  Corridor land is land in Ontario owned by Hydro One Inc. or a subsidiary on the day the new Part comes into force that is used on that date or was acquired before that date for the purposes of a transmission or distribution system, and abutting land owned by Hydro One Inc. or a subsidiary on that date. 

Ownership of all corridor land is transferred to the Crown.  The current owners are given the right to use the land to operate a transmission or distribution system on the corridor land.  If the Ontario Energy Board authorizes the expansion of a transmission or distribution system on corridor land, the Board may restrict or discontinue other uses of corridor land that interfere with the expansion.

Market Surveillance Panel:

The powers of the Market Surveillance Panel are expanded.  Certain records of the Panel and the Independent Electricity Market Operator relating to activity in the IMO-administered markets or market participants will be protected from disclosure under the Freedom of Information and Protection of Privacy Act.

schedule b
amendments to the Ontario Energy Board Act, 1998

Consumer protection:

The Bill amends the Act by adding a new Part that deals with consumer protection.  The Part prohibits gas marketers and retailers of electricity from engaging in unfair practices. The director may order that a person who is or has engaged in an unfair practice cease engaging in the practice.  A person against whom the director proposes to make an order in respect of unfair practices may enter into a written assurance of voluntary compliance. 

The Part also requires that retailers of electricity and gas marketers provide consumers with written contracts. Such contracts cease to have effect, however, unless the consumer reaffirms the contract in writing within 30 days after receiving the written copy of the contract.  If a consumer contract does not contain required information, a consumer may cancel it within one year after entering into it.

False advertising in respect of gas marketing or retailing electricity to consumers is prohibited.  The director may make an order that false or misleading material cease to be used or that a statement of retraction be published or both where an electricity retailer or gas marketer has engaged in false advertising.

In addition to any other powers that the director may have, if it appears that a retailer of electricity or a gas marketer is not complying with its obligations, the director can apply to the Superior Court of Justice for a compliance order. 

Tracking system:

Amendments authorize the making of regulations providing for a tracking system to associate electricity with the processes and fuel types used by generation facilities and with the types and quantities of contaminants emitted by generation facilities, and requiring information from the tracking system to be made available to the public.  Contravention of these regulations could be the subject of administrative penalties imposed by the Ontario Energy Board’s director of licensing.

schedule c
amendments to other acts

Lakes and Rivers Improvement Act:

The Bill amends the Lakes and Rivers Improvement Act by providing a new scheme for the preparation and amendment of a management plan for the operation and maintenance of a dam or other structure or work in a lake or river.  The Minister may order an owner of a dam or other structure or work to prepare or amend a management plan.  The Minister may then approve the management plan, approve it with modifications or reject it.  The Minister may also amend the management plan of his or her own accord.  The owner of a dam or other structure or work is required to comply with the management plan.  If the owner fails to comply with an order of the Minister to prepare or amend a management plan or fails to comply with a management plan, the Minister may take action on the owner’s behalf, and the cost of the action is a debt due by the owner to the Crown.

The Bill also amends the offence provisions of the Act.  It makes failure to comply with a management plan an offence.  It also makes it an offence for an owner of a dam or other structure or work to fail to provide information about the operation of the dam, the plans and specifications for the dam, or other documents required under the Act, when requested to do so by the Minister, an engineer, an inspector, or an officer or agent of the Minister. 

The Bill changes the penalties for offences under the Act.  The penalties were a fine of not more than $10,000 plus a fine of not more than $1,000 for each day during which the offence continues.  The penalties are changed to a fine of not more than $1 million plus an additional fine of not more than $20,000 for each day during which the offence continues, or imprisonment for not more than six months, or both fine and imprisonment. 

In the case of certain offences, the court that convicts a person is authorized to increase the fine by an amount equal to the monetary benefit that was acquired by, or that accrued to, the person as a result of the commission of the offence.  In the case of the offences of failure to comply with a management plan or failure to operate a dam in accordance with the regulations, the court that convicts a person is authorized to order the person to take action to repair or rehabilitate the damage that results from the commission of the offence.  If the person fails to comply with the order, the Minister may take action on the person’s behalf, and the cost of the action is a debt due by the person to the Crown.

Other statutes:

Amendments related to the enactment of Schedule A are made to the Assessment Act, the Corporations Tax Act, the Planning Act and the Public Utilities Act.

 

Chapter 1

An Act to amend certain statutes in relation to the energy sector

Assented to June 27, 2002

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Electricity Act, 1998 amendments

1. Schedule A to this Act is hereby enacted.

Ontario Energy Board Act, 1998
amendments

2. Schedule B to this Act is hereby enacted.

Amendments to other Acts

3. Schedule C to this Act is hereby enacted.

Commencement

4. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2) The Schedules to this Act come into force as provided in the commencement section at the end of each Schedule.

Short title

5. The short title of this Act is the Reliable Energy and Consumer Protection Act, 2002.

Schedule A
amendments to the Electricity Act, 1998

1. Section 1 of the Electricity Act, 1998 is amended by striking out “and” at the end of clause (f) and by adding the following clauses:

(f.1) to facilitate the alteration of ownership structures of, and the disposition of, publicly-owned corporations that transmit, distribute or retail electricity;

(f.2) to protect corridor land so that it remains available for uses that benefit the public, while recognizing the primacy of transmission uses; and

2. (1) Subsection 2 (1) of the Act is amended by adding the following definition:

“corridor land” means the real property transferred to Her Majesty in right of Ontario by section 114.2; (“biens-fonds réservés aux couloirs”)

(2) The definition of “Generation Corporation” in subsection 2 (1) of the Act is repealed.

(3) Subsection 2 (1) of the Act is amended by adding the following definition:

“Hydro One Inc.” means the corporation incorporated as Ontario Hydro Services Company Inc. under the Business Corporations Act on December 1, 1998; (“Hydro One Inc.”)

(4) The definition of “Minister” in subsection 2 (1) of the Act is repealed and the following substituted:

“Minister” means the Minister of Environment and Energy or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; (“ministre”)

(5) Subsection 2 (1) of the Act is amended by adding the following definitions:

“Ontario Power Generation Inc.” means the corporation incorporated as Ontario Power Generation Inc. under the Business Corporations Act on December 1, 1998; (“Ontario Power Generation Inc.”)

“security” has the meaning assigned by the Securities Act; (“valeur mobilière”)

(6) The definition of “Services Corporation” in subsection 2 (1) of the Act is repealed.

(7) Section 2 of the Act is amended by adding the following subsections:

References to Generation Corporation

(5) A reference to the Generation Corporation in the regulations made under this or any other Act, an order made under Part X or a statement made under section 124 shall be deemed to be a reference to Ontario Power Generation Inc.

References to Services Corporation

(6) A reference to the Services Corporation in the regulations made under this or any other Act, an order made under Part X or a statement made under section 124 shall be deemed to be a reference to Hydro One Inc.

3. Subsection 13 (3) of the Act is repealed and the following substituted:

Testimony

(3) A member of the Market Surveillance Panel and an employee of the IMO acting on behalf of the Panel shall not be required in any civil proceeding to give testimony with respect to information obtained in the course of his or her duties.

Law enforcement information

(3.1) A record that contains information provided to or obtained by the Market Surveillance Panel and that is designated by the Panel as relating to activity in the IMO-administered markets or to the conduct of a market participant shall be deemed, for the purpose of section 14 of the Freedom of Information and Protection of Privacy Act, to be a record the disclosure of which could reasonably be expected to interfere with a law enforcement matter.

4. The Act is amended by adding the following section:

Confidential information relating to market participant

14.1 A record that contains information provided to or obtained by the IMO relating to a market participant and that is designated by the IMO as confidential or highly confidential shall be deemed, for the purpose of section 17 of the Freedom of Information and Protection of Privacy Act, to be a record that reveals a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence implicitly or explicitly, the disclosure of which could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.

5. (1) Subsection 26 (3) of the Act is amended by striking out “before a regulation is made under section 48” and substituting “before December 11, 1998”.

(2) Subsection 26 (4) of the Act is amended by striking out “before a regulation is made under section 48” and substituting “before December 11, 1998”.

6. Section 37 of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 1, is repealed and the following substituted:

Investigation by Market Surveillance Panel

37. (1) The Market Surveillance Panel may investigate any activity related to the IMO-administered markets or the conduct of a market participant.

Right to examine

(2) For the purposes of an investigation under this section, the Panel may examine any documents or other things, whether they are in the possession or control of the person whose activities are being investigated or any other person.

Power to compel testimony

(3) For the purposes of an investigation under this section, the Panel has the same power to summon and enforce the attendance of any person and to compel him or her to testify on oath or otherwise, and to summon and compel any person to produce documents and other things, as is vested in the Superior Court of Justice for the trial of civil actions.

Contempt

(4) The Superior Court of Justice has the same power to punish for contempt a person who refuses to attend, testify or produce documents or other things when required to do so by the Panel under this section as it would if the person had disobeyed an order of the Court.

Rights of witness

(5) A person giving evidence under subsection (3) may be represented by counsel and may claim any privilege to which the person is entitled.

Inspection

(6) A person authorized in writing by the Panel may, on production of the authorization, enter any business premises, other than premises used as a dwelling, during business hours for the purposes of conducting an investigation under this section, where the person reasonably believes that relevant documents, records or other things may be found in the business premises.

Copies

(7) On giving a receipt, a person mentioned in subsection (6) may remove documents, records or other things for the purpose of making copies or extracts, and shall promptly return them to the person who produced them.

Documents in electronic form

(8) If a document, record or other thing is kept in electronic form, the person mentioned in subsection (6) may require that a copy of it be provided on paper or in a machine-readable medium or both.

Authorization to search

(9) For the purposes of an investigation under this section, a person authorized in writing by the Panel may apply to a judge of the Ontario Court of Justice in the absence of the public and without notice for a warrant authorizing the person or persons named in the warrant to enter and search any building, receptacle or place specified and to seize anything described in the authorization that is found in the building, receptacle or place and to bring it before the judge granting the authorization or another judge to be dealt with according to law.

Grounds

(10) No authorization shall be granted under subsection (9) unless the judge to whom the application is made is satisfied on information under oath that there are reasonable grounds to believe that there is in the building, receptacle or place to be searched anything that may reasonably relate to an investigation under this section.

Power to enter, search and seize

(11) A person named in a warrant under subsection (9) may, on production of the warrant, enter any building, receptacle or place specified in the warrant between 6 a.m. and 9 p.m. and search for and seize anything specified in the warrant.

Expiration

(12) Every warrant under subsection (9) shall name the day that it expires, which shall not be later than 15 days after the warrant is granted.

Dwellings

(13) For the purposes of subsections (9), (10) and (11),

“building, receptacle or place” does not include premises used as a dwelling.

Application

(14) Sections 159 and 160 of the Provincial Offences Act apply to searches and seizures under this section with such modifications as the circumstances require.

Report and recommendations

(15) On completion of an investigation, the Panel shall prepare a report that may include recommendations for amendment of the market rules or other recommendations.

Same

(16) The Panel shall submit the report to the IMO, the Board and any other person that the Panel considers appropriate.

Same

(17) The report shall be deemed, for the purpose of section 14 of the Freedom of Information and Protection of Privacy Act, to be a report prepared in the course of law enforcement, inspections or investigations by an agency which has the function of enforcing and regulating compliance with a law.

Review of materials by Panel

37.1 (1) Every market participant shall deliver to the Market Surveillance Panel, at any time required by the Panel, any books, records or documents that are required to be kept by the market participant under the market rules or Ontario law.

Same

(2) The Panel may review and keep copies of any books, records or documents provided under subsection (1) for the purposes of market surveillance.

Inspection

(3) A person authorized in writing by the Panel may enter the business premises of any market participant, other than premises used as a dwelling, during business hours, and may examine and make copies of any books, records or documents mentioned in subsection (1) for the purposes of market surveillance.

No obstruction

37.2 (1) No person shall obstruct, hinder or interfere with a person who is acting pursuant to an authorization granted under subsection 37 (6) or (9) or 37.1 (3).

Penalty

(2) Every person who contravenes subsection (1) is guilty of an offence and on conviction is liable to a fine not exceeding $50,000.

Confidentiality

37.3 (1) All information and material that is not otherwise public and that is furnished to or received or obtained by the Panel or anyone acting on behalf of the Panel pursuant to section 37 or 37.1 is confidential, and no person shall communicate the information or allow access to or inspection of the material except in the ordinary course of his or her duties, unless,

(a) the Panel has made an order under subsection (3);

(b) the information or material was considered by the Panel in preparing a report under subsection 37 (15) and communication of the information or access to or inspection of the material is required by a summons or direction of the Board; or

(c) the information is communicated to or access to or inspection of the material is allowed to a police force or other investigatory agency or to a regulatory agency.

Not evidence in proceedings

(2) No document, record, copy or other thing obtained pursuant to section 37 or 37.1 is admissible in evidence in any proceeding, except a review by the Board under section 38, unless the Panel has made an order under subsection (3).

Disclosure by Panel

(3) The Panel shall make an order permitting the disclosure of information or material obtained pursuant to section 37 or 37.1 if, after giving the person from whom the information or material was obtained and any other person who, in the opinion of the Panel, is an interested party an opportunity to be heard, the Panel is of the opinion that disclosure is in the public interest.

7. The Act is amended by adding the following section:

Easement: generators, transmitters and distributors

42.1 An easement in favour of a generator, transmitter or distributor for the purpose of generation, transmission or distribution does not have to be appurtenant or annexed to or for the benefit of any specific parcel of land to be valid.

8. The Act is amended by adding the following section:

Easement: municipal public utilities

43.1 Section 91 of the Municipal Act, 2001 applies, with necessary modifications, with respect to a corporation incorporated under section 142 and its subsidiaries as if the corporation or subsidiary, as the case may be, were a municipality and with respect to an easement in favour of a generator, transmitter or distributor for the purpose of generation, transmission or distribution as if it were an easement of a public utility under that section.

9. Clauses 46 (2) (a), (b) and (c) of the Act are repealed and the following substituted:

(a) Hydro One Inc.;

(b) Ontario Power Generation Inc.;

(c) a subsidiary of Hydro One Inc. that is authorized to transmit or distribute electricity;

(c.1) a subsidiary of Ontario Power Generation Inc. that is authorized to generate electricity;

10. Part IV of the Act is repealed and the following substituted:

PART iV
HYDRO ONE INC.

Objects of Hydro One Inc.

48. (1) The objects of Hydro One Inc. include, in addition to any other objects, owning and operating transmission systems and distribution systems through one or more subsidiaries.

Status

(2) Hydro One Inc. and its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.

Statutory duties and restrictions

48.1 (1) Hydro One Inc. shall, through one or more subsidiaries, operate generation facilities and distribution systems in, and shall distribute electricity within, such communities as may be prescribed by regulation that are not connected to the IMO‑controlled grid and shall do so in accordance with such conditions and restrictions as may be prescribed by regulation.

Restriction

(2) Hydro One Inc. shall not own or operate transmission systems or distribution systems in Ontario except through one or more subsidiaries.

Same

(3) A subsidiary of Hydro One Inc. shall not transmit or distribute electricity in Ontario if it transmits or distributes electricity outside Ontario.

Mandatory provisions in articles

48.2 (1) The articles of incorporation of Hydro One Inc. and of such of its subsidiaries as may be prescribed by regulation must contain the following:

1. Such provisions as may be prescribed by regulation governing the creation and issuance of one or more classes of special shares to be issued to the Minister, to hold on behalf of Her Majesty in right of Ontario, and governing the rights, privileges, restrictions and conditions attaching to each such class of shares.

2. Such provisions as may be prescribed by regulation with respect to constraints on the issue, transfer and ownership, including joint ownership, of voting securities of the corporation.

3. Such provisions as may be prescribed by regulation with respect to the enforcement of the constraints.

Restrictions

(2) The articles of incorporation and by-laws of Hydro One Inc. and of its subsidiaries that are prescribed for the purposes of subsection (1) must not contain any provisions that are inconsistent with those required by subsection (1).

Enforcement

(3) Without limiting the generality of paragraph 3 of subsection (1), the provisions referred to in that paragraph may provide for the filing of declarations, the suspension of voting rights, the forfeiture of dividends, the refusal to issue or register voting securities and the sale of voting securities held contrary to the constraints and payment of the net proceeds of the sale to the person or entity entitled to those proceeds.

Non-application of Business Corporations Act, s. 42

(4) Subsection (1) applies despite subsection 42 (1) of the Business Corporations Act.

Same

(5) Subsection 42 (2) of the Business Corporations Act does not operate to prohibit any offer to the public of shares that are subject to the rights, privileges, restrictions, conditions and constraints required by subsection (1).

Rights of the Minister

49. (1) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of and otherwise deal with securities or debt obligations of, or any other interest in, Hydro One Inc. or any of its subsidiaries.

Agreements

(2) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1).

Corporations authorized re Hydro One Inc.

50. (1) The Lieutenant Governor in Council may cause corporations to be incorporated under the Business Corporations Act or the Corporations Act for the purpose of acquiring, holding, disposing of and otherwise dealing with securities or debt obligations of, or any other interest in, Hydro One Inc. or any of its subsidiaries.

Same

(2) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of and otherwise deal with securities or debt obligations of, or any other interest in, a corporation incorporated pursuant to subsection (1).

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1) or (2).

Crown agent

(4) A corporation incorporated pursuant to subsection (1) is an agent of Her Majesty for all purposes.

Dividends paid to Crown agent

(5) If an agent of Her Majesty in right of Ontario is paid dividends in respect of the shares of Hydro One Inc., the agent shall pay the dividends to the Financial Corporation, less any amount that it considers is required to pay obligations it has assumed, or Her Majesty in right of Ontario has assumed, under clause 122 (1) (a).

Corporations and other entities and arrangements to hold securities, etc.

50.1 (1) The Lieutenant Governor in Council may cause corporations or other entities to be established or arrangements to be made for the purpose of acquiring, holding, disposing of or otherwise dealing with, directly or indirectly,

(a) securities, assets, liabilities, rights, obligations, revenues and income of Hydro One Inc. or any of its subsidiaries; and

(b) interests in or entitlements to those securities, assets, liabilities, rights, obligations, revenues and income.

Status

(2) A corporation or other entity established under subsection (1) is not an agent of Her Majesty for any purpose, despite the Crown Agency Act.

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1).

Direction by Minister

(4) If Her Majesty in right of Ontario or an agent of Her Majesty is the only holder of voting securities of Hydro One Inc., the Minister may direct it,

(a) to transfer any of its securities, assets, liabilities, rights, obligations, revenues and income to any person or entity;

(b) to transfer an interest in or entitlement to any of its securities, assets, liabilities, rights, obligations, revenues and income to any person or entity;

(c) to transfer to any person or entity any securities, assets, liabilities, rights, obligations, revenues and income of any subsidiary of which Hydro One Inc. is the only holder, directly or indirectly, of voting securities; or

(d) to transfer to any person or entity an interest in or entitlement to any securities, assets, liabilities, rights, obligations, revenues and income of any subsidiary of which Hydro One Inc. is the only holder, directly or indirectly, of voting securities.

Same

(5) The Minister may impose conditions and restrictions when giving a direction under subsection (4).

Types of entities

(6) Without limiting the generality of subsection (1), a trust or a partnership may be established under that subsection.

Right of the Minister re corporations and other entities and arrangements

50.2 (1) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of or otherwise deal with securities or debt obligations of, or any other interest in, a corporation or other entity established under subsection 50.1 (1).

Same

(2) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of or otherwise deal with any interest in an arrangement made under subsection 50.1 (1).

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1) or (2).

Proceeds of disposition

50.3 (1) All proceeds payable to Her Majesty in right of Ontario in respect of the disposition of any securities or debt obligations of, or any other interest in, Hydro One Inc., a corporation established under section 50, a corporation or other entity established under section 50.1 or an arrangement made under section 50.1 shall be paid to the Financial Corporation,

(a) less any amount that the Minister of Finance considers advisable in connection with the acquisition of such securities, debt obligations or interest, including the amount of the purchase price, any obligations assumed and any other costs incurred by Her Majesty in right of Ontario; and

(b) less the amount of any costs incurred by Her Majesty in right of Ontario in disposing of the securities, debt obligations or other interest.

Payments in respect of capital

(2) All amounts payable to Her Majesty in right of Ontario in respect of capital for any shares of Hydro One Inc. shall be paid to the Financial Corporation less the amount, if any, described in clause (1) (a).

Non-application of Financial Administration Act

(3) Clause 1.1 (1) (b) and subsection 2 (1) of the Financial Administration Act do not apply with respect to proceeds to be paid to the Financial Corporation under subsection (1).

Repeal

(4) This section is repealed on the day on which Part V is repealed under section 84.1.

Reporting requirements

50.4 (1) Hydro One Inc. shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of the board of directors.

Same

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Same

(3) Hydro One Inc. may give its annual report to other persons before the Minister complies with subsection (2).

Additional reports and information

(4) Hydro One Inc. shall give such other reports and information to the Minister of Finance or to the Minister as each of them may require from time to time.

Repeal

(5) This section is repealed on a day to be named by proclamation of the Lieutenant Governor.

Non-application, Financial Administration Act, s. 28

51. Section 28 of the Financial Administration Act does not apply with respect to any transaction authorized by this Part.

Residual power of the Crown

52. Nothing in this Part restricts the powers of Her Majesty in right of Ontario or any member of the Executive Council at common law or under any Act, whether as a shareholder or otherwise.

Regulations

53. (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing communities for the purposes of subsection 48.1 (1);

(b) prescribing conditions and restrictions with respect to the statutory duties of Hydro One Inc. under subsection 48.1 (1);

(c) prescribing, for the purposes of subsection 48.2 (1), mandatory provisions to be included in articles of incorporation;

(d) prescribing subsidiaries for the purposes of subsection 48.2 (1).

Types of constraints

(2) Without limiting the generality of clause (1) (c), a regulation under that clause may include provisions governing,

(a) the mandatory disclosure of information in documents issued or published by the applicable corporation;

(b) the duties and powers of the directors to refuse to issue or register transfers of shares in accordance with the articles of the corporation;

(c) the limitations on voting rights of any shares held contrary to the articles of the corporation;

(d) the powers of the directors to require disclosure of beneficial ownership of shares of the corporation and the rights of the corporation and its directors, employees or agents to rely on the disclosure and the effects of the reliance;

(e) the manner of determining how much of the equity of a corporation a person or class of persons owns.

Non-application re constraints, etc.

(3) A regulation under clause (1) (c) may provide that a provision imposing a constraint or a provision for the enforcement of a constraint does not apply with respect to such persons and in such circumstances as are described in the regulation.

Limited application re constraints, etc.

(4) A regulation under clause (1) (c) may provide that a provision imposing a constraint or a provision for the enforcement of a constraint applies only with respect to such persons and in such circumstances as are described in the regulation.

General or specific

(5) A regulation may be general or specific.

Restriction on powers

(6) On the day on which this subsection comes into force, the Lieutenant Governor in Council ceases to have the authority to make regulations under clause (1) (c).

Effect of restriction

(7) Despite subsection (6),

(a) a regulation made under clause (1) (c) before the day subsection (6) comes into force continues in effect after that day according to its terms; and

(b) on and after the day on which subsection (6) comes into force, the Lieutenant Governor in Council retains the authority to revoke a regulation made under clause (1) (c) before that day or to revoke one or more provisions of such a regulation.

Commencement

(8) Subsections (6) and (7) come into force on a day to be named by proclamation of the Lieutenant Governor.

11. The Act is amended by adding the following Part:

PART iV.1
ONTARIO POWER GENERATION INC.

Objects of Ontario Power Generation Inc.

53.1 (1) The objects of Ontario Power Generation Inc. include, in addition to any other objects, owning and operating generation facilities.

Status

(2) Ontario Power Generation Inc. and its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.

Rights of the Minister

53.2 The Minister, on behalf of Her Majesty in right of Ontario, may acquire and hold shares of Ontario Power Generation Inc.

Corporations to hold shares

53.3 (1) The Lieutenant Governor in Council may cause corporations to be incorporated under the Business Corporations Act for the purpose of acquiring and holding shares in Ontario Power Generation Inc.

Same

(2) Shares in a corporation incorporated pursuant to subsection (1) may be acquired and held in the name of Her Majesty in right of Ontario by a member of the Executive Council designated by the Lieutenant Governor in Council.

Crown agent

(3) A corporation incorporated pursuant to subsection (1) is an agent of Her Majesty for all purposes.

Dividends paid to Crown agent

(4) If an agent of Her Majesty in right of Ontario is paid dividends in respect of shares of Ontario Power Generation Inc., the agent shall pay the dividends to the Financial Corporation, less any amount that it considers is required to pay obligations it has assumed under clause 122 (1) (a).

Reporting requirements

53.4 (1) Ontario Power Generation Inc. shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of the board of directors.

Same

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Same

(3) Ontario Power Generation Inc. may give its annual report to other persons before the Minister complies with subsection (2).

Additional reports and information

(4) Ontario Power Generation Inc. shall give such other reports and information to the Minister of Finance or to the Minister as each of them may require from time to time.

Residual power of the Crown

53.5 Nothing in this Part restricts the powers of Her Majesty in right of Ontario or any member of the Executive Council at common law or under any Act, whether as a shareholder or otherwise.

12. (1) Clause 55 (1) (c) of the Act is repealed and the following substituted:

(c) administering assets, liabilities, rights and obligations of the Financial Corporation and disposing or otherwise dealing with them as it considers appropriate or as the Minister of Finance directs under section 74;

(2) Subsection 55 (3) of the Act is amended by striking out “subject to the limitations set out in this Act”.

13. Subsection 63 (2) of the Act is amended by striking out “the Generation Corporation and the Services Corporation” and substituting “Hydro One Inc. and Ontario Power Generation Inc.”.

14. Section 64 of the Act is repealed.

15. (1) Subsection 89 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc.”.

(2) Section 89 of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 31, is amended by adding the following subsection:

Corridor land

(1.1) The amount payable under subsection (1) by a person or entity from whom corridor land is transferred by section 114.2 shall be determined, for the taxation year in which the transfer occurs and for subsequent taxation years, as if the transfer did not occur.

16. (1) Subsection 90 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc.”.

(2) Section 90 of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 32, is amended by adding the following subsection:

Corridor land

(1.1) The amount payable under subsection (1) by a person or entity from whom corridor land is transferred by section 114.2 shall be determined, for the taxation year in which the transfer occurs and for subsequent taxation years, as if the transfer did not occur.

17. (1) Subsection 91 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc.”.

(2) Subsection 91 (2) of the Act is amended by striking out “the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc.”.

18. The Act is amended by adding the following section:

Allocation of Federal tax

91.1 (1) This section applies to any of the following corporations, if the corporation  ceases at any time to be exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act:

1. Hydro One Inc.

2. A subsidiary of Hydro One Inc.

3. A municipal electricity utility.

4. A successor of any of them.

Payment

(2) Her Majesty in right of Ontario shall pay to the Financial Corporation from the Consolidated Revenue Fund the amount, if any, that meets both of the following criteria:

1. The corporation is liable to pay the amount under the Income Tax Act (Canada) after ceasing to be exempt under subsection 149 (1) of that Act.

2. Her Majesty in right of Ontario receives the amount from, or is credited with the amount by, Her Majesty in right of Canada in respect of the liability described in paragraph 1.

Same, by corporation

(3) The specified corporation shall pay to the Financial Corporation the amount, if any, that meets all of the following criteria:

1. The corporation is liable to pay the amount under the Income Tax Act (Canada) after ceasing to be exempt under subsection 149 (1) of that Act.

2. The corporation receives the amount from, or is credited with the amount by, Her Majesty in right of Canada in respect of the liability described in paragraph 1.

3. Her Majesty in right of Canada intends that the corporation shall pay the amount to the Financial Corporation for the repayment of the debt of the Financial Corporation.

19. (1) Subsection 92 (1) of the Act is amended by striking out “The Generation Corporation, the Services Corporation, every subsidiary of the Generation Corporation or the Services Corporation” at the beginning and substituting “Hydro One Inc. and each of its subsidiaries, Ontario Power Generation Inc. and each of its subsidiaries”.

(2) Subsection 92 (3) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 34, is amended by striking out “the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc.”.

20. (1) Subsection 95.1 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 37, is amended by adding “or under section 83.1 of the Corporations Tax Act” after “under Part V.1 or VI”.

(2) Clause 95.1 (2) (b) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 37, is amended by adding “or under section 83.1 of the Corporations Tax Act” after “under Part V.1 or VI”.

21. (1) Subsection 102 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation” in the portion before paragraph 1 and substituting “Hydro One Inc., Ontario Power Generation Inc.”.

(2) Paragraph 3 of subsection 102 (2) of the Act is amended by striking out “the Generation Corporation” and substituting “Ontario Power Generation Inc.”.

(3) Subsection 102 (3) of the Act is amended by striking out “the Generation Corporation” and substituting “Ontario Power Generation Inc.”.

22. Subsection 110 (6) of the Act is amended by striking out “the Generation Corporation” in the portion before paragraph 1 and in paragraphs 1 and 4 and substituting in each case “Ontario Power Generation Inc.”.

23. The Act is amended by adding the following Part:

part ix.1
ownership and use of corridor land

Interpretation

Definitions

114.1 In this Part,

“Chair of Management Board” means the Chair of the Management Board of Cabinet or such other member of the Executive Council as may be assigned under the Executive Council Act the powers and duties of the Chair of the Management Board of Cabinet under this Part; (“président du Conseil de gestion”)

“effective date” means the date on which section 23 of Schedule A to the Reliable Energy and Consumer Protection Act, 2002 comes into force; (“date d’effet”)

“statutory right to use corridor land” or “statutory right to use the land” means, in relation to corridor land, the right created by section 114.5 to use the land for a purpose described in that section. (“droit légal d’utiliser des biens-fonds réservés aux couloirs”, “droit légal d’utiliser les biens-fonds”)

Ownership and Use

Transfer of corridor land to the Crown

114.2 (1) The fee simple interest in the following real property is hereby transferred to Her Majesty in right of Ontario:

1. All real property in Ontario that Hydro One Inc. or a subsidiary of Hydro One Inc. owned, directly or indirectly, in fee simple on the effective date that was used for the purposes of a transmission system on the effective date or was acquired before that date for the purposes of a transmission system.

2. All real property in Ontario that Hydro One Inc. or a subsidiary of Hydro One Inc. owned, directly or indirectly, in fee simple on the effective date that abuts real property described in paragraph 1.

Exceptions

(2) Buildings, structures and equipment on corridor land are not transferred to Her Majesty in right of Ontario by subsection (1).

Compensation

(3) No compensation of any kind is payable in respect of a transfer made by this section; however, the statutory right to use the land is given in exchange for the transfer.

Non-application of Expropriations Act

(4) The Expropriations Act does not apply with respect to a transfer made by this section or with respect to a subsequent transfer by Her Majesty in right of Ontario of the real property described in this section, despite section 2 of that Act.

Evidence of transfer

(5) In a document registered on title in a land titles office or registry office, a statement that real property described in the document was transferred to Her Majesty in right of Ontario by this section, and any other statement in the document relating to the transfer, shall be deemed to be conclusive evidence of the facts stated.

Effect of transfer to the Crown

114.3 (1) The transfer made by section 114.2 is binding on all persons and entities and,

(a) shall be deemed not to constitute a breach, termination, repudiation or frustration of any contract, including a contract of insurance;

(b) shall be deemed not to constitute an event of default or force majeure or a basis for any party to a contract to refuse to provide services under the contract;

(c) shall be deemed not to give rise to a breach, termination, repudiation or frustration of any licence, permit or other right;

(d) shall be deemed not to give rise to any right to terminate or repudiate a contract, licence, permit or other right; and

(e) shall be deemed not to give rise to any estoppel.

Same

(2) The transfer made by section 114.2 does not create any new cause of action in favour of,

(a) a holder of a debt instrument that was issued by Hydro One Inc. before the transfer; or

(b) a party to a contract with Hydro One Inc. or any of its subsidiaries that was entered into before the transfer.

Effect of transfer on leases, etc., affecting corridor land

114.4 (1) The transfer made by section 114.2 does not affect any right or interest of a person in the corridor land that is subordinate to the fee simple interest.

Same

(2) Despite the transfer made by section 114.2, Hydro One Inc. and its subsidiaries continue to have the benefit of, and be subject to all obligations under, any lease or agreement entered into or licence obtained before the effective date that affects corridor land or any easement or right created before the effective date with respect to corridor land.

Statutory right to use corridor land

114.5 (1) The person or entity from whom corridor land is transferred by section 114.2 has a right to use the land to operate a transmission system or distribution system.

Duty to maintain

(2) The person or entity who has the right created by subsection (1) has a duty to maintain the corridor land at his, her or its own expense, including repairing or replacing buildings, equipment and structures on the land that are used by the person or entity, or used with his, her or its permission, if a prudent person would repair or replace them.

Same

(3) The Chair of Management Board may direct the person or entity who has the right created by subsection (1) to engage in such additional activities to maintain the corridor land at his, her or its own expense as the Chair of Management Board considers appropriate.

Exception

(4) The person or entity who has the right created by subsection (1) is not required to maintain corridor land that is being used for a purpose other than the operation of a transmission system or distribution system, unless it is being used for that purpose with the permission of the person or entity.

Taxes, etc.

(5) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to the right created by subsection (1).

Status of right

(6) The right created by subsection (1) is an easement.

Binding

(7) The right created by subsection (1) is binding on all persons and entities.

Evidence of right

(8) In a document registered on title in a land titles office or registry office, a statement that a person or entity has a right created by subsection (1) to use real property described in the document for the purposes described in subsection (1), and any other statement in the document relating to the right, shall be deemed to be conclusive evidence of the facts stated.

Payment to holder of right

(9) If Her Majesty in right of Ontario uses corridor land or if a person or entity to whom Her Majesty in right of Ontario transfers corridor land uses it, the Chair of Management Board shall make payments from the Consolidated Revenue Fund to the person or entity who has the right created by subsection (1) with respect to such incremental costs incurred by the person or entity in the operation of a transmission system or distribution system as may be prescribed by regulation.

Primacy of use for transmission
or distribution system

114.6 (1) A person or entity who owns corridor land shall not use it in such a way that the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the land is reduced.

Expansion of use for transmission system
or distribution system

(2) If, under Part VI of the Ontario Energy Board Act, 1998, the Board authorizes a person or entity who has the statutory right to use corridor land to expand a transmission system or distribution system on the land, the Board may make an order described in this section if the Board considers it to be in the public interest to do so.

Order re other uses

(3) The Board may order the owner of the corridor land to restrict or discontinue any use of the land that interferes with the expansion of the transmission system or distribution system as authorized under Part VI of the Ontario Energy Board Act, 1998.

Restriction

(4) The Board shall not make an order under subsection (3) to restrict or discontinue a  use of the land if the Board determines that the expansion of the transmission system or distribution system can be reasonably accommodated without the restriction or without discontinuing the use, as the case may be.

Order re incremental costs

(5) The Board may order the owner of the corridor land to reimburse the person or entity seeking the expansion of the transmission system or distribution system for such incremental costs as the Board considers appropriate that are incurred by the person or entity in order to accommodate the other uses of the land.

Effect of agreement

(6) If an owner of corridor land and the person or entity who has the statutory right to use the land enter into an agreement governing the expansion of a transmission system or distribution system on the land or the use of the land, the Board shall not make an order under this section that is inconsistent with the agreement.

Status of agreement

(7) An agreement described in subsection (6) may be registered on title in the applicable land titles office or registry office and, when it is registered, it is binding on all persons and entities.

Status of orders

(8) The Ontario Energy Board Act, 1998 applies with respect to an order made under this section as if the order had been made under that Act.

Duty re use of corridor land

114.7 A person or entity who has the statutory right to use corridor land shall, to the extent practicable, ensure that the design and construction of any transmission system on the land maximizes the area available for other uses.

Directions re location of buildings, etc.

114.8 (1) The Chair of Management Board may give directions to a person or entity who has the statutory right to use corridor land in respect of the location on the land of any proposed building, structure or equipment or of any proposed expansion of a building, structure or equipment, and the person or entity shall comply with the directions.

Restriction

(2) The Chair of Management Board shall not give a direction under this section that would have the effect of reducing the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the corridor land.

Duty to obtain authorizations, etc.

(3) A direction by the Chair of Management Board under this section does not relieve the person or entity from the obligation to obtain such authorizations and consents as may be required by law, and the person or entity shall make reasonable efforts to obtain them.

Compensation

(4) If the Chair of Management Board directs that the construction or expansion must be located in a different place than the person or entity proposed, the Chair of Management Board shall pay the reasonable incremental costs associated with the direction.

Procedural matters

(5) The person or entity who proposes to construct or expand a building, structure or equipment on corridor land shall comply with such requirements as may be prescribed concerning notice to the Chair of Management Board and information to be given to him or her.

Effect of non-compliance

(6) A person or entity who fails to comply with this section shall remove the building, structure or equipment when given notice to do so by the Chair of Management Board and shall do so at his, her or its own expense.

Relocation of buildings, etc.

114.9 (1) The Chair of Management Board may direct a person or entity who has the statutory right to use corridor land and who owns a building, structure or equipment located on the land to move it, and may impose conditions or restrictions with respect to the direction.

Restriction

(2) The Chair of Management Board shall not give a direction under this section that would have the effect of reducing the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the corridor land.

Duty to obtain authorizations, etc.

(3) A direction by the Chair of Management Board under this section does not relieve the person or entity from the obligation to obtain such authorizations and consents as may be required by law to relocate the building, structure or equipment, and the person or entity shall make reasonable efforts to obtain them.

Compliance

(4) After obtaining all authorizations and consents otherwise required by law, the person or entity shall comply with the direction, and the Chair of Management Board shall pay the person’s or entity’s reasonable costs of complying with the direction.

Effect of non-compliance

(5) A person or entity who fails to comply with this section shall remove the building, structure or equipment when given notice to do so by the Chair of Management Board and shall do so at his, her or its own expense.

Cessation of use for transmission system, etc.

114.10 (1) This section applies if a person or entity who has the statutory right to use corridor land decides that the land is not needed for the purposes of a transmission system or distribution system.

Duty to notify

(2) The person or entity who has the statutory right to use the land shall give written notice to the Chair of Management Board that it is not needed for the purposes of a transmission system or distribution system.

Same

(3) The notice must contain such information as may be prescribed by regulation and must be given in a manner authorized by regulation.

Transfer of statutory right

(4) The Chair of Management Board may require the person or entity to transfer to Her Majesty in right of Ontario the statutory right to use the land described in the written notice.

Payment for transfer

(5) No amount is payable for the transfer of the statutory right required under subsection (4).

Taxes, etc.

(6) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to a transfer required under subsection (4). 

Disposition of statutory right

114.11 (1) A person or entity who has the statutory right to use corridor land may dispose of it and shall give prior written notice to the Chair of Management Board when disposing of the right.

Same

(2) The notice must contain such information as may be prescribed by regulation.

Restriction on expropriation by holder of statutory right

114.12 (1) A person or entity who has the statutory right to use corridor land is not permitted to expropriate the land under section 99 of the Ontario Energy Board Act, 1998.

Expropriation of statutory right

(2) Nothing in this Part restricts the expropriation under any Act of the statutory right to use corridor land.

Transfer of ownership by Crown to person with statutory right

114.13 (1) The Chair of Management Board, on behalf of Her Majesty in right of Ontario, may transfer the fee simple interest in all or any part of the corridor land to a  person or entity who has the statutory right to use the land and the Chair of Management Board may do so with or without the consent of the person or entity.

Restriction re encumbrances

(2) The Chair of Management Board shall not make a transfer under subsection (1) if the corridor land is subject to encumbrances created with the consent of Her Majesty in right of Ontario that are greater than those to which it was subject on the effective date, unless the person or entity who has the statutory right to use the land consents to the transfer.

Restriction re condition of land

(3) The Chair of Management Board shall not make a transfer under subsection (1) if the condition of the corridor land has been significantly changed since the effective date with the consent of Her Majesty in right of Ontario, unless the person or entity who has the statutory right to use the land consents to the transfer.

Payment for transfer

(4) The amount payable by the person or entity for the transfer is the fair market value of the corridor land on the effective date.

Termination of right

(5) Immediately before the transfer, the statutory right of the person or entity under this Part to use the land is terminated.

Payment for termination of right

(6) The amount payable to the person or entity upon the termination of the statutory right is the fair market value of the corridor land on the effective date.

Taxes, etc.

(7) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to the transfer described in subsection (1) or the termination of the right.

General

Duty to provide records, information and
reports

114.14 (1) A person or entity who has an interest in, or has entered into an agreement to use, corridor land or a building, structure or equipment located on corridor land shall give the Chair of Management Board, upon request, such records, information and reports as he or she may specify with respect to the land and the use of the land, building, structure or equipment and shall do so within the time specified by the Chair of Management Board.

Use of records, information and reports

(2) The Chair of Management Board may use records, information and reports obtained under this section for the purpose of administering and enforcing this Part.

Residual power of the Crown

114.15 (1) This Part does not restrict the authority of Her Majesty in right of Ontario to acquire, hold, dispose of or otherwise deal with corridor land.

Exception

(2) Subsection (1) does not authorize Her Majesty in right of Ontario to deal with corridor land contrary to section 114.6.

Indemnity re corridor land

114.16 (1) Hydro One Inc. shall indemnify Her Majesty in right of Ontario for any losses, damages or costs incurred by Her Majesty in right of Ontario,

(a) that arise from an order, direction or award made under a statute of Ontario or Canada in respect of corridor land or that relate to a proceeding in respect of corridor land; and

(b) that are a direct or indirect result of an act or omission by any person before the effective date.

Same

(2) Hydro One Inc. shall indemnify a person or entity to whom Her Majesty in right of Ontario transfers corridor land for any losses, damages or costs incurred by the person or entity,

(a) that arise from an order, direction or award made under a statute of Ontario or Canada in respect of the land or that relate to a proceeding in respect of the land; and

(b) that are a direct or indirect result of an act or omission by any person before the effective date.

Same, by holder of statutory right

(3) A person or entity who has the statutory right to use corridor land shall indemnify the owner of the land for any losses, damages or costs incurred by the owner,

(a) that arise from an order, direction or award made under a statute of Ontario or Canada in respect of the land or that relate to a proceeding in respect of the land; and

(b) that are a direct or indirect result of an act or omission by,

(i) the person or entity,

(ii) an employee or agent of the person or entity,

(iii) a person or entity who previously held the statutory right to use the land, or

(iv) another person or entity who was invited or permitted to use the land by the person or entity who holds, or held, the statutory right to use it.

Delegation of powers and duties

114.17 (1) The Chair of Management Board may delegate his or her powers and duties under any of the following provisions to any person or entity, subject to such conditions as the Chair of Management Board may impose:

1. Subsection 114.5 (3).

2. Subsection 114.8 (1) or (6) or both.

3. Subsection 114.9 (1) or (5) or both.

4. Subsection 114.13 (1).

5. Section 114.14.

Assignment of powers and duties

(2) The Chair of Management Board may assign his or her powers and duties under any of the provisions listed in subsection (1) to any person or entity, subject to such conditions as the Chair of Management Board may impose.

Effect

(3) Despite the Executive Council Act, an agreement that is signed by a person or entity authorized to do so by a delegation or an assignment made under this section has the same effect as if the agreement had been signed by the Chair of Management Board.

Regulations

114.18 (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing one or more statutes, provisions of statutes or regulations for the purposes of subsection 114.5 (5), 114.10 (6) or 114.13 (7);

(b) prescribing incremental costs for the purposes of subsection 114.5 (9);

(c) prescribing the information to be included in a notice given under subsection 114.10 (3) and prescribing the manner in which the notice must be given;

(d) prescribing the information to be included in a notice given under section 114.11.

General or particular

(2) A regulation may be general or particular.

24. (1) Subsection 116 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation” and substituting “Hydro One Inc., Ontario Power Generation Inc.”.

(2) Clauses 116 (5) (a) and (b) of the Act are repealed and the following substituted:

(a) Hydro One Inc. or a subsidiary of it;

(b) Ontario Power Generation Inc. or a subsidiary of it;

(3) Clause 116 (5) (a) of the Act, as re-enacted by subsection (2), is repealed.

25. (1) Subsection 122 (1) of the Act is amended by striking out “the Generation Corporation or the Services Corporation” in the portion before clause (a) and in clauses (a) and (b) and substituting in each case “Hydro One Inc. or Ontario Power Generation Inc.”.

(2) Subsection 122 (2) of the Act is amended by striking out “the Generation Corporation or the Services Corporation” and substituting “Hydro One Inc. or Ontario Power Generation Inc.”.

(3) Section 122 of the Act is amended by adding the following subsection:

Non-application

(6) Clause (1) (b) and subsection (2) cease to apply with respect to Hydro One Inc. on the date specified in the regulations.

26. Paragraphs 1 and 2 of subsection 124 (2) of the Act are repealed and the following substituted:

1. Hydro One Inc. or a subsidiary of it.

2. Ontario Power Generation Inc. or a subsidiary of it.

27. (1) Section 134 of the Act is amended by striking out “and this Part applies, with necessary modifications, to the amendment” at the end.

(2) Section 134 of the Act is amended by adding the following subsection:

Same

(2) This Part applies, with necessary modifications, to an amendment as if it were a new transfer order.

28. (1) Subsection 138 (1) of the Act is amended by striking out “the Generation Corporation, the Services Corporation” and substituting “Hydro One Inc., Ontario Power Generation Inc.”.

(2) Subsection 138 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 43, is amended by striking out “the Generation Corporation, the Services Corporation” in the portion before paragraph 1 and substituting “Hydro One Inc., Ontario Power Generation Inc.”.

29. Subsection 140 (1) of the Act is amended by adding the following clause:

(a.1) prescribing a date for the purposes of subsection 122 (6);

30. Subsection 142 (5) of the Act is repealed and the following substituted:

Same

(5) A municipal corporation may acquire, hold, dispose of and otherwise deal with shares of a corporation incorporated pursuant to this section that carries on business in the municipality.

Commencement

31. (1) Subject to subsections (2), (3) and (4), this Schedule comes into force on the day the Reliable Energy and Consumer Protection Act, 2002 receives Royal Assent.

Same

(2) Section 8 comes into force on January 1, 2003.

Same

(3) Section 23 and subsections 24 (3) and 27 (2) come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(4) Section 30 shall be deemed to have come into force on November 7, 1998.

schedule b
amendments to the ontario energy board Act, 1998

1. The definition of “Minister” in section 3 of the Ontario Energy Board Act, 1998 is repealed and the following substituted:

“Minister” means the Minister of Environment and Energy or such other member of the Executive Council as may be assigned the administration of this Act under the Executive Council Act; (“ministre”)

2. (1) Subsection 17 (2) of the Act, as re-enacted by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2, is repealed and the following substituted:

Same

(2) All orders made and licences issued by the director shall be signed by the director and sealed with the seal of the Board and when purporting to be so signed and sealed, shall be judicially noticed without further proof.

(2) The French version of subsection 17 (3) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2, is amended by striking out “que rend la Commission ni aux permis que délivre celle-ci ou le directeur” and substituting “de la Commission ou du directeur ni aux permis qu’ils délivrent”.

3. Clause 21 (4) (b) of the Act is amended by striking out “will be materially affected” and substituting “will be adversely affected in a material way”.

4. Section 23 of the Act is amended by adding the following subsection:

Same

(2) The director in making an order may impose such conditions as he or she considers proper.

5. Subsection 31 (1) of the Act is repealed.

6. Section 57 of the Act is amended by striking out “or” at the end of clause (g), by adding “or” at the end of clause (h) and by adding the following clause:

(i) engage in an activity prescribed by the regulations that relates to electricity.

7. Subsection 70 (9) of the Act is amended by striking out “Subject to subsection 50 (4) of the Electricity Act, 1998” at the beginning.

8. Section 78 of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2, is amended by adding the following subsections:

Same, Hydro One Inc. and subsidiaries

(5.1) Despite subsection (5), in approving or fixing just and reasonable rates for Hydro One Inc. or a subsidiary of Hydro One Inc., the Board shall apply a method or technique prescribed by regulation for the calculation and treatment of transfers made by Hydro One Inc. or its subsidiary, as the case may be, that are authorized by section 50.1 of the Electricity Act, 1998.

Same, statutory right to use corridor land

(5.2) Despite subsection (5), in approving or fixing just and reasonable rates for a transmitter who has a statutory right to use corridor land (as defined in section 114.1 of the Electricity Act, 1998), the Board shall apply a method or technique prescribed by regulation for the treatment of the statutory right.

9. (1) Subsection 86 (1) of the Act is repealed and the following substituted:

Restriction, disposal of system

(1) No transmitter or distributor shall sell, lease or otherwise dispose of any of the following assets without first obtaining from the Board an order granting leave:

1. A transmission or distribution system as an entirety or substantially as an entirety.

2. Any part of a transmission or distribution system that is necessary in serving the public.

Same

(1.1) Subsection (1) does not apply with respect to a disposition of securities of a transmitter or distributor or of a corporation that owns securities in a transmitter or distributor.

(2) Section 86 of the Act is amended by adding the following subsections:

Same

(2.1) Subsection (2) does not apply to,

(a) the Crown in right of Ontario;

(b) an underwriter (within the meaning of the Securities Act) who holds the voting securities solely for the purpose of distributing them to the public;

(c) any person or entity who is acting in relation to the voting securities solely in the capacity of an intermediary in the payment of funds or the delivery of securities or both in connection with trades in securities and who provides centralized facilities for the clearing of trades in securities; or

(d) any person or entity who holds the voting securities by way of security only.

. . . . .

Transactions under Electricity Act, 1998

(5.1) This section does not apply with respect to a transaction described in section 50.1 or 50.2 of the Electricity Act, 1998.

10. (1) Subsection 88 (1) of the Act is amended by adding the following clause:

(a.1) providing for the establishment, administration and operation of a tracking system to associate electricity with the processes and fuel types used by generation facilities and with the types and quantities of contaminants emitted by generation facilities, including,

(i) designating the administrator of the tracking system and prescribing the administrator’s powers and duties,

(ii) designating a person or body to audit the tracking system and the information used by the tracking system and prescribing the auditor’s powers and duties, including powers to enter business premises and inspect documents and records,

(iii) requiring persons prescribed by the regulations to submit information prescribed by the regulations or by the administrator or auditor of the tracking system to the administrator or auditor in a form and at times specified by the regulations or by the administrator or auditor,

(iv) protecting the administrator of the tracking system from liability arising from incorrect information provided by other persons,

(v) requiring the administrator or auditor of the tracking system or the Minister to make determinations for the purposes of the tracking system,

(vi) requiring information from the tracking system to be made available to the public,

(vii) requiring persons prescribed by the regulations to provide other persons prescribed by the regulations with information from the tracking system in a form and at times specified by the regulations or by the administrator or auditor of the tracking system,

(viii) authorizing and governing the issuance of certificates related to determinations made for the purposes of the tracking system, and

(ix) authorizing the administrator of the tracking system, subject to the approval of the Board, to establish and charge fees in connection with the tracking system, and governing the establishment and charging of those fees;

(2) Clause 88 (1) (b) of the Act is amended by striking out “Minister of the Environment” and substituting “Minister”.

(3) Clause 88 (1) (b) of the Act, as amended by subsection (2), is repealed.

(4) Clause 88 (1) (c) of the Act is amended by striking out “Minister of the Environment” and substituting “Minister”.

(5) Clause 88 (1) (c) of the Act, as amended by subsection (4), is repealed.

(6) Clauses 88 (1) (f) and (g) of the Act are repealed.

(7) Subsection 88 (1) of the Act is amended by adding the following clauses:

(h) prescribing, for the purposes of subsection 78 (5.1), methods and techniques for the calculation and treatment of transfers made by Hydro One Inc. or its subsidiary, as the case may be, that are authorized by section 50.1 of the Electricity Act, 1998;

(i) prescribing, for the purposes of subsection 78 (5.2), methods and techniques for the treatment of the statutory right to use corridor land.

11. The Act is amended by adding the following Part:

part v.1
energy consumers’ bill of rights

Definitions

88.1 In this Part,

“consumer” means,

(a) in respect of the retailing of electricity, a consumer as defined in section 56 who annually uses less than the amount of electricity prescribed by regulation, and

(b) in respect of gas marketing, a low-volume consumer as defined in section 47; (“consommateur”)

“contract” means an agreement between a consumer and a retailer of electricity for the provision of electricity or an agreement between a consumer and a gas marketer for the provision of gas; (“contrat”)

“gas marketer” and “gas marketing” have the same meaning as in section 47; (“agent de commercialisation de gaz”, “commercialisation de gaz”)

“retail”, with respect to electricity, has the same meaning as in section 56 and “retailing” has a corresponding meaning. (“vendre au détail”, “vente au détail”)

Application

88.2 (1) This Part applies to gas marketing and retailing of electricity to consumers.

Agreement or waiver to the contrary

(2) This Part applies despite any agreement or waiver to the contrary.

Rights of consumer preserved

88.3 (1) The rights of a consumer under this Part are in addition to any other rights of the consumer under any other Act or by operation of law and nothing in this Act shall be construed to limit any such rights of the consumer.

Conflict

(2) In the event of a conflict between a provision in this Part and a provision in any other Act, the provision that provides the greater protection to the consumer prevails.

Unfair practices

88.4 (1) No gas marketer or retailer of electricity shall engage in an unfair practice.

Unfair practices: gas marketers

(2) A gas marketer shall be deemed to be engaging in an unfair practice if,

(a) it engages in any practice prescribed by regulation as an unfair practice or it fails to do anything where such failure constitutes an unfair practice as prescribed by regulation;

(b) it fails to comply with such provisions as may be prescribed by regulation of a rule made under clause 44 (1) (c) that deals with unfair practices; or

(c) a salesperson acting on behalf of the gas marketer does or fails to do anything that would be an unfair practice if done or if failed to be done by the gas marketer.

Unfair practices: retailers of electricity

(3) A retailer of electricity shall be deemed to be engaging in an unfair practice if,

(a) it engages in any practice prescribed by regulation as an unfair practice or it fails to do anything where such failure constitutes an unfair practice as prescribed by regulation;

(b) it fails to comply with such provisions as may be prescribed by regulation of any code governing the conduct of a retailer of electricity made by the Board; or

(c) a salesperson acting on behalf of the retailer of electricity does or fails to do anything that would be an unfair practice if done or if failed to be done by the retailer of electricity.

Definition

(4) In this section,

“salesperson” means,

(a) in respect of gas marketing, a person who is employed by or otherwise conducts gas marketing on behalf of a gas marketer or makes representations to consumers on behalf of a gas marketer for the purpose of effecting sales of gas or entering into agency agreements with consumers, and

(b) in respect of the retailing of electricity, a person who is employed by or otherwise conducts retailing of electricity on behalf of a retailer of electricity or makes representations to consumers on behalf of a retailer of electricity for the purpose of effecting sales of electricity or entering into agency agreements with consumers.

Unfair practice: compliance order

88.5 (1) Where the director believes on reasonable grounds that any gas marketer or retailer of electricity is engaging or has engaged in an unfair practice, the director may order such person to comply with subsection 88.4 (1) in respect of the unfair practice specified in the order.

Notice

(2) If the director intends to make an order against a person under subsection (1), the director shall serve notice of the proposed order, together with written reasons, on the person.

Request for hearing

(3) The notice shall state that the person is entitled to a hearing by the Board if the person mails or delivers, within 15 days after service of the notice under subsection (2), notice in writing requiring a hearing to the director and to the Board.

Where no request for hearing

(4) If a person does not require a hearing in accordance with subsection (3), the director may make the order.

Where hearing requested

(5) If a person does require a hearing in accordance with subsection (3), the Board shall hold the hearing and may by order direct the director to make the proposed order or to refrain from making the proposed order or may make an order of its own in substitution for that of the director.

Parties to the hearing

(6) The director and the person who has required the hearing and such other persons as the Board may specify are parties to the hearing before the Board under this section.

Unfair practice: order for immediate compliance

88.6 (1) Despite section 88.5, the director may make an order requiring a gas marketer or retailer of electricity to comply with subsection 88.4 (1) that takes effect immediately where, in the director’s opinion, to do so is necessary for the protection of the public and, subject to subsection (2), such an order takes effect immediately.

Notice of order

(2) If the director makes an order against a person under subsection (1), the director shall serve on the person named in the order,

(a) a notice containing the information required under subsection (3); and

(b) a copy of the order, together with written reasons for making the order.

Right to require a hearing

(3) The notice shall state that the person named in the order is entitled to a hearing by the Board if the person mails or delivers, within 15 days after service of the notice under subsection (2), notice in writing requiring a hearing to the director and to the Board.

Powers of Board

(4) Where the person named in the order requires a hearing in accordance with subsection (3), the Board shall hold the hearing and may by order confirm or set aside the order or exercise such other powers as may be exercised in a hearing under section 88.5.

Application to stay order

(5) On the application of the person named in the order who requires a hearing in accordance with subsection (3), the Board may order a stay of the operation of the order made under subsection (1).

Parties to the hearing

(6) The director and the person who has required the hearing and such other persons as the Board may specify are parties to the hearing before the Board under this section.

Board order takes effect despite appeal

88.7 Even if, under section 33, a party to a hearing before the Board appeals an order of the Board made under section 88.5 or 88.6, the order takes effect immediately but the Board may grant a stay until the disposition of the appeal.

Voluntary compliance

88.8 (1) Any person against whom the director proposes to make an order to comply under section 88.5 or against whom the director has made an order under section 88.6 or 88.13 may enter into a written assurance of voluntary compliance undertaking,

(a) to not engage in the specified unfair practice after the date in the assurance in respect of a proposed order under section 88.5 or an order under section 88.6; or

(b) to not make the false, misleading or deceptive statements after the date of assurance in respect of an order under section 88.13.

Undertakings

(2) An assurance of voluntary compliance may include such undertakings as are acceptable to the director.

Assurances of voluntary compliance publicly available

(3) The director shall maintain a public record of assurances of voluntary compliance entered into under this Part.

Written copy of contract

88.9 (1) If a retailer of electricity or gas marketer enters into a contract with a consumer, the retailer of electricity or gas marketer shall deliver a written copy of the contract to the consumer within the time prescribed by regulation.

Contract ceases to have effect

(2) If a gas marketer or retailer of electricity fails to deliver a written copy of the contract in accordance with subsection (1), the contract ceases to have effect.

Need to reaffirm contract

(3) If a contract has been delivered to a consumer in accordance with subsection (1), the contract ceases to have effect unless it is reaffirmed by the consumer in accordance with this section before the 31st day following the day on which the written copy of the contract is delivered to the consumer.

Consumer to take steps to reaffirm

(4) A consumer may only reaffirm a contract following the 14th day after a written copy of the contract is delivered to the consumer in accordance with subsection (1) and may only do so by taking such steps as are prescribed by regulation.

Effect of reaffirmation

(5) A consumer who has reaffirmed a contract in accordance with subsection (4) may not give notice under subsection (6) to not reaffirm the contract.

Contract not reaffirmed

(6) The consumer may give notice to not reaffirm the contract in accordance with the regulations at any time before the 31st day following the day on which the written copy of the contract is delivered to the consumer. 

Application of subss. (1) to (6)

(7) Subsections (1), (2), (3), (4), (5) and (6) apply with respect to contracts entered into on or after the day on which this section comes into force.

Renewal or extension of contract

(8) A contract with a consumer may be renewed or extended only in accordance with the regulations.

Application of subs. (8)

(9) Subsection (8) applies to the renewal or extension of any contract that would, if not renewed or extended, expire after subsection (8) comes into force.

Contract ceases to have effect

(10) A contract ceases to have effect on a day prescribed by regulation or determined in accordance with the regulations,

(a) if the contract is not delivered to the consumer in accordance with subsection (1);

(b) if the contract is delivered and the consumer does not reaffirm the contract in accordance with subsection (4); or

(c) if the contract is delivered and the consumer gives notice not to reaffirm the contract in accordance with subsection (6).

No cause of action

(11) No cause of action against the consumer arises as a result of a contract ceasing to have effect under this section.

Return of prepayment

(12) Within 15 days after a contract ceases to have effect pursuant to this section, the retailer of electricity or gas marketer shall refund to the consumer any amount paid under the contract before the day the contract ceased to have effect in respect of electricity or gas that was to be sold on or after that day.

Consequence of contract ceasing to have effect

(13) If a contract respecting gas ceases to have effect under this section, the consumer has no further obligations as of the day prescribed by regulation or determined in accordance with the regulations under that contract or any agreement entered into by the gas marketer as agent or broker for the consumer for the provision of gas.

Same

(14) If a contract respecting electricity ceases to have effect under this section, the consumer has no further obligations as of the day prescribed by regulation or determined in accordance with the regulations under that contract or any agreement entered into by the retailer of electricity as agent or broker for the consumer for the provision of electricity.

No cause of action

(15) No cause of action against the consumer arises as a result of the operation of subsection (13) or (14).

Information required in contract

88.10 (1) A contract with a consumer must,

(a) in the case of retailing of electricity and in the case of gas marketing, contain such information as may be required by regulation, presented in the manner, if any, prescribed by regulation;

(b) in the case of the retailing of electricity, contain such information as may be required by any code governing the conduct of a retailer of electricity made by the Board, presented in the manner, if any, required by the code; and 

(c) in the case of gas marketing, contain such information as may be required by rules made by the Board pursuant to clause 44 (1) (c), presented in the manner, if any, required by the rules.

Cancellation of contract

(2) A consumer may cancel a contract referred to in subsection (1) within one year after the date of entering into the contract if the contract does not meet the requirements referred to in subsection (1).

Application

(3) Subsections (1) and (2) apply with respect to contracts entered into on or after the day on which this section comes into force.

No required form for cancellation

88.11 (1) Cancellation of a contract by a consumer pursuant to this Part may be expressed in writing in any way, as long as it indicates the intention of the consumer to cancel the contract. 

Means of delivery

(2) The notice of cancellation may be given to a gas marketer or retailer of electricity by any means that provides evidence of the date on which the consumer delivered or sent the notice including personal service, registered mail, courier or fax.

When given

(3) Where the notice is given other than by personal service, the notice of cancellation shall be deemed to have been given when sent.

Effect of cancellation

(4) If a contract respecting gas is cancelled pursuant to this Part, the cancellation takes effect on a day prescribed by regulation or determined in accordance with the regulations, and the consumer has no further obligations as of that day under that contract or under any agreement entered into by the gas marketer as agent or broker for the consumer for the provision of gas.

Retailer to ensure reading of consumer’s meter

(5) If a consumer gives notice of cancellation under subsection (2) with respect to a contract for the provision of electricity, the retailer of electricity shall promptly notify the distributor that the contract has been cancelled and the distributor shall read the consumer’s electricity meter within the period prescribed by regulation.

Retailer responsible for additional costs

(6) The retailer of electricity is responsible for the payment to the distributor of any additional costs that are incurred by the distributor to ensure compliance with subsection (5).

Same

(7) If a contract respecting electricity is cancelled pursuant to this Part, the cancellation takes effect on a day prescribed by regulation or determined in accordance with the regulations, and the consumer has no further obligations as of that day under that contract or under any agreement entered into by the retailer of electricity as agent or broker for the consumer for the provision of electricity.

Same

(8) No cause of action against the consumer arises as a result of the cancellation of a contract under this Part or as a result of the operation of subsection (4) or (7).

Return of prepayment

(9) Within 15 days after a cancellation takes effect under this section, the retailer of electricity or gas marketer shall refund to the consumer any amount paid under the contract before the day the cancellation took effect in respect of electricity or gas that was to be sold on or after that day.

False advertising

88.12 No gas marketer or retailer of electricity shall make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to gas marketing or the retailing of electricity to consumers.

Order of director re: false advertising

88.13 (1) Where the director believes on reasonable grounds that a gas marketer or retailer of electricity is making a false, misleading or deceptive statement contrary to section 88.12, the director may,

(a) order the gas marketer or retailer of electricity to cease using the applicable advertisement, circular, pamphlet or material;

(b) order the gas marketer or retailer of electricity to retract the statement or publish a correction of equal prominence to the original publication; or

(c) order both a cessation described in clause (a) and a retraction or correction described in clause (b).

Order effective immediately

(2) An order of the director under subsection (1) is effective immediately upon service of the notice under subsection (3).

Notice of order

(3) If the director makes an order against a person under subsection (1), the director shall serve on the person named in the order,

(a) a notice containing the information required under subsection (4); and

(b) a copy of the order, together with written reasons for making the order.

Right to require a hearing

(4) The notice shall state that the person named in the order is entitled to a hearing by the Board if the person mails or delivers, within 15 days after service of the notice under subsection (3), notice in writing requiring a hearing to the director and to the Board.

Powers of Board

(5) Where the person named in the order requires a hearing in accordance with subsection (4), the Board shall hold the hearing and may by order confirm or set aside the order or substitute its own order for that of the director.

Application to stay order

(6) On the application of the person named in the order who requires a hearing in accordance with subsection (4), the Board may order a stay of the operation of the order made under subsection (1).

Parties to the hearing

(7) The director and the person who has required the hearing and such other persons as the Board may specify are parties to the hearing before the Board under this section.

Pre-approval

(8) If the person named in the order does not require a hearing under this section or if the order is confirmed or the Board substituted its own order for that of the director, the person named in the order shall submit all statements in any advertisement, circular, pamphlet or material to be published by any means to the director for approval before publication for such period as may be prescribed by regulation.

Restraining orders

88.14 (1) This section applies if it appears to the director that,

(a) a retailer of electricity is not complying with the conditions of its licence;

(b) a gas marketer is not complying with the rules made under Part III; or

(c) a retailer of electricity or gas marketer is not complying with Part V.1 or with an order made under that Part.

Same

(2) In addition to the imposition of any penalty in respect of non-compliance and to any other powers the director may have, the director may apply to the Superior Court of Justice for an order directing the retailer of electricity or gas marketer, as the case may be, to comply, and the court may make such order or such other order as the court thinks fit.

Appeal

(3) An appeal lies to the Divisional Court from an order made under subsection (2).

12. (1) Clause 106 (a) of the Act is amended by striking out “transmitting, distributing or storing gas” at the end and substituting “transmitting, distributing, storing or selling gas”.

(2) Clause 106 (d) of the Act is amended by striking out “transmitting, distributing or storing gas” at the end and substituting “transmitting, distributing, storing or selling gas”.

13. Clause 108 (1) (a) of the Act is amended by striking out “transmitting, distributing or storing gas” and substituting “transmitting, distributing, storing or selling gas”.

14. Subsection 125.1 (1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2 and amended by 2001, chapter 9, Schedule F, section 2, is amended by striking out “77 (1)” in the portion before clause (a) and substituting “77 (1), 88.5 (2), 88.6 (2), 88.13 (3)”.

15. (1) Subsection 125.2 (1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 2, is amended by striking out “contravened section 48 or 57” and substituting “contravened section 48 or 57, the regulations relating to the tracking system referred to in clause 88 (1) (a.1)”.

(2) Subsection 125.2 (1) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 2 and amended by subsection (1), is repealed and the following substituted:

Administrative penalties

(1) The director may, subject to the regulations under subsection (13), issue a notice in writing requiring a person to pay an administrative penalty in the amount set out in the notice for each day or part of a day on which the contravention occurred or continues, where the director is of the opinion that the person has contravened,

(a) section 48 or 57;

(b) the regulations relating to the tracking system referred to in clause 88 (1) (a.1);

(c) a licence issued under Part IV or V;

(d) rules of the Board made under Part III;

(e) an order of the Board or the director made under Part V.1; or

(f) an assurance of voluntary compliance entered into under Part V.1.

16. Subsection 126 (1) of the Act is amended by adding the following clauses:

(c.1) fails to comply with an order of the director made under Part V.1;

(c.2) fails to comply with an assurance of voluntary compliance entered into under Part V.1;

17. Section 126.1 of the Act, as enacted by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2, is amended by adding the following subsection:

Certificate of assurance of voluntary compliance

(2) A copy of an assurance of voluntary compliance, purporting to be certified by the director is, without proof of the office or signature of the director, admissible in evidence in any prosecution or other proceeding as proof, in the absence of evidence to the contrary, of the facts stated.

18. Subsection 127 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2 and 2001, chapter 9, Schedule F, section 2, is amended by adding the following clauses:

(j.1) prescribing the amount of electricity referred to in the definition of “consumer” in section 88.1;

(j.2) prescribing acts and omissions that constitute unfair practices for purposes of Part V.1;

(j.3) prescribing provisions of a rule, for the purposes of clause 88.4 (2) (b), and prescribing provisions of a code, for the purposes of clause 88.4 (3) (b);

(j.4) governing information that must be included in a consumer contract for purposes of Part V.1 and the manner in which the information is presented and providing that such a regulation may prevail over any code governing the conduct of a retailer of electricity made by the Board or any rules that apply to gas marketing made by the Board under clause 44 (1) (c); 

(j.5) prescribing the period of time for pre-approval of statements for publication under subsection 88.13 (8);

(j.6) governing the reaffirming or not reaffirming of contracts under Part V.1;

(j.7) for the purposes of Part V.1, prescribing the day or the method of determining the day,

(i) on which a contract ceases to have effect,

(ii) on which a consumer has no further obligations if a contract ceases to have effect,

(iii) on which the cancellation of a contract takes effect;

(j.8) governing the time within which a copy of a contract is to be delivered under section 88.9;

(j.9) governing the period in which a distributor is to read a consumer’s electricity meter under subsection 88.11 (5);

(j.10)  governing the renewal or extension of contracts under Part V.1;

Commencement

19. (1) Subject to subsection (2), this Schedule comes into force on the day the Reliable Energy and Consumer Protection Act, 2002 receives Royal Assent.

Same

(2) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

1. Section 2.

2. Subsections 10 (3), (5) and (6).

3. Sections 11 and 14.

4. Subsection 15 (2).

5. Sections 16, 17 and 18.

Schedule C
Amendments to other Acts

Amendments to the Assessment Act

1. (1) Section 18 of the Assessment Act, as amended by the Statutes of Ontario, 1994, chapter 25, section 79 and 1997, chapter 29, section 8, is amended by adding the following subsection:

Same

(1.1) Despite paragraph 1 of subsection 3 (1), the person or entity who has the statutory right created by subsection  114.5 (1) of the Electricity Act, 1998 to use land owned by the Crown shall be assessed in respect of the land as though the person or entity were the owner.

(2) The definition of “designated electricity utility” in subsection 19.0.1 (5) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 1, is repealed and the following substituted:

“designated electricity utility” means,

(a) Hydro One Inc., as defined in the Electricity Act, 1998, or a subsidiary of it within the meaning of that Act, or

(b) Ontario Power Generation Inc., as defined in the Electricity Act, 1998, or a subsidiary of it within the meaning of that Act; (“service public d’électricité désigné”)

Amendment to the Corporations Tax Act

2. The Corporations Tax Act is amended by adding the following section:

Division D.1 — Redirection of Payments

Redirection of payments, certain electricity
corporations

83.1 (1) This section applies with respect to a corporation for a taxation year if all of the following criteria are met:

1. The corporation engages in the transmission, distribution or retail of electricity at any time during the taxation year or the assets of the corporation consist primarily of shares or debt obligations, or both, of one or more related corporations that are engaged in the transmission, distribution or retail of electricity at any time during the taxation year.

2. Subsection 90 (1) or 93 (2) of the Electricity Act, 1998 does not apply to the corporation for the taxation year.

3. Subsection 90 (1) or 93 (2) of the Electricity Act, 1998 applied for a prior taxation year to the corporation or to a predecessor corporation of the corporation.

4. The corporation meets such additional conditions as may be prescribed by regulation.

Same, assets transferred

(2) If,

(a) a corporation (the “purchasing corporation”) that is not subject to the application of subsection 90 (1) or 93 (2) of the Electricity Act, 1998 acquires assets of another corporation (the “selling corporation”) other than shares or debt obligations held by the selling corporation;

(b) the selling corporation is subject to the application of this section or subsection 90 (1) or 93 (2) of the Electricity Act, 1998 at the time the assets are acquired by the purchasing corporation; and

(c) immediately after the assets are acquired, the property of the purchasing corporation consists primarily of the assets acquired from the selling corporation,

this section applies to the purchasing corporation for each taxation year that commences after the date on which the assets are acquired.

Exception

(3) This section does not apply to a corporation for a taxation year if the corporation is a prescribed corporation or meets the conditions prescribed by regulation.

Payments by a corporation

(4) Despite sections 2, 75, 78, 79, 81, 87 and 111, any amount required to be paid by a corporation under this Act in respect of the taxation year shall be paid to the Financial Corporation and not to the Minister.

Payments to a corporation

(5) Despite sections 82 and 87, if a corporation is entitled to a refund or payment under this Act in respect of the taxation year, the Financial Corporation shall pay the refund or make the payment instead of the Minister.

Payments incorrectly made

(6) If a corporation pays an amount to the Minister that should have been paid to the Financial Corporation under subsection (4),

(a) the Minister shall be deemed to have received the payment from the corporation on behalf of the Financial Corporation;

(b) the Minister shall immediately pay the amount he or she receives to the Financial Corporation; and

(c) the Minister may impose a charge of $200 on the corporation for each failure to comply with subsection (4), and the charge is payable to the Financial Corporation.

Collection and enforcement

(7) All amounts payable by a corporation to the Financial Corporation under subsection (4) shall, for the purposes of Part VI, be considered to be amounts payable to Her Majesty and any amounts collected by the Minister from the corporation under Part VI in respect of an amount payable under subsection (4) shall be paid to the Financial Corporation.

Predecessor corporation

(8) For the purposes of this section, a corporation is a predecessor corporation of another corporation (the “successor corporation”),

(a) if the corporation amalgamated with one or more other corporations to form the successor corporation or if the corporation was wound up and its assets transferred to the successor corporation; and

(b) if the assets of the successor corporation immediately after the amalgamation or wind-up consisted primarily of the assets of the predecessor corporation immediately before the amalgamation or wind-up,

and a predecessor corporation of a successor corporation includes a predecessor corporation of a corporation that is itself a predecessor corporation of the successor corporation.

Definition

(9) In this section,

“Financial Corporation” has the meaning assigned by section 2 of the Electricity Act, 1998.

Repeal

(10) This section is repealed on the day on which Part V of the Electricity Act, 1998 is repealed under section 84.1 of that Act.

Amendments to the Lakes and Rivers Improvement Act

3. (1) The definition of “owner” in section 1 of the Lakes and Rivers Improvement Act, as enacted by the Statutes of Ontario, 1998, chapter 18, Schedule I, section 22, is repealed and the following substituted:

“owner”, in relation to a dam, structure or work, means the owner of the dam, structure or work and includes the person constructing, maintaining or operating the dam, structure or work; (“propriétaire”)

(2) Subsection 20.1 (1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 18, Schedule I, section 33, is repealed and the following substituted:

Interference prohibited

(1) No person shall obstruct, interfere with or otherwise hinder an inspector or engineer in carrying out his or her duties.

(3) Subsection 23 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 26, Schedule L, section 5, is repealed.

(4) The Act is amended by adding the following section:

Management plan

23.1 (1) If a dam or other structure or work was constructed on a lake or river before the day this section came into force or is constructed on a lake or river on or after the day this section comes into force, and if the Minister considers it necessary or expedient for the purposes of this Act, the Minister may order the owner of the dam or other structure or work to prepare or amend, or participate in the preparation or amendment of, a management plan for the operation and maintenance of the dam or other structure or work in accordance with the regulations and with guidelines approved by the Minister.

Submission of plan to Minister

(2) An owner to whom an order to prepare or amend a management plan is directed under subsection (1) shall submit the plan or amended plan to the Minister within the time specified in the order.

Participation in plan

(3) An owner to whom an order to participate in the preparation or amendment of a management plan is directed under subsection (1) shall do so within the time specified in the order.

Non-compliance with order

(4) If an owner fails to comply with an order made under subsection (1) within the time specified in the order, the Minister may cause to be taken such steps as are necessary to achieve the result intended by the order, and the cost of taking those steps is a debt due by the owner to the Crown and is recoverable with costs in any court of competent jurisdiction.

Minister’s powers

(5) If a plan or an amended plan is submitted to the Minister under subsection (2), the Minister may approve it, reject it or approve it with such modifications as may be made by the Minister.

Amendment of plan

(6) The Minister may at any time amend a plan or an amended plan, that the Minister has previously approved or amended.

Duty to comply with plan

(7) An owner of a dam or other structure or work shall operate and maintain the dam or other structure or work in accordance with,

(a) the plan or amended plan that has been approved by the Minister under subsection (5); and

(b) the amendments, if any, that have been made by the Minister under subsection (6).

Non-compliance with plan

(8) If an owner contravenes subsection (7), the Minister may cause to be taken such steps as are necessary to achieve the result intended by the plan or amended plan that has been approved by the Minister under subsection (5) and the amendments, if any, that have been made by the Minister under subsection (6), and the cost of taking those steps is a debt due by the owner to the Crown and is recoverable with costs in any court of competent jurisdiction.

Where section not to apply

(9) This section does not apply to any lake or river over which the International Joint Commission established under the Boundary Waters Treaty of 1909 or any public authority exercising jurisdiction under the Parliament of Canada or The Lake of the Woods Control Board established under The Lake of the Woods Control Board Act, 1922, chapter 21, has jurisdiction with respect to the level of the water.

(5) Subsections 28 (1) and (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 18, Schedule I, section 35 and amended by 2000, chapter 26, Schedule L, section 5, are repealed and the following substituted:

Offence

(1) A person is guilty of an offence if the person,

(a) constructs a dam in any lake or river, in circumstances set out in the regulations, without the location or plans and specifications of the dam having been approved in writing by the Minister;

(b) alters, improves or repairs any part of a dam, in the circumstances prescribed by the regulations, without the plans and specifications for whatever is to be done having been approved by the Minister;

(c) obstructs, interferes with or otherwise hinders an engineer, an inspector or an officer or agent of the Minister in the exercise of a power or performance of a duty under this Act or the regulations; or

(d) contravenes any provision of this Act or a regulation for the contravention of which no other penalty is provided.

Same

(2) A person is guilty of an offence if the person,

(a) fails to comply with an order under section 17, 17.1, 18, 22, 23, 23.1, 36 or 38;

(b) fails to comply with a management plan that has been approved or amended by the Minister under section 23.1;

(c) fails to maintain or operate a dam in accordance with the regulations; or

(d) when required to provide any of the following by the Minister, by an engineer or inspector or by an officer or agent of the Minister, fails to provide any plans and specifications, books, accounts, documents, data or other information relating to a dam or other structure or work in a lake or river, its design, construction, condition, maintenance or operation or any information relating to plans and specifications or other documents required under this Act.

Penalty for offence under subs. (1)

(2.1) Every person who is guilty of an offence under subsection (1) is liable, on conviction,

(a) to a fine of not more than $1 million;

(b) to imprisonment for a term of not more than six months; or

(c) to both a fine described in clause (a) and imprisonment described in clause (b).

Penalty for offence under subs. (2)

(2.2) Every person who is guilty of an offence under subsection (2) is liable, on conviction,

(a) to a fine of not more than $1 million for the day during which the offence first occurs and to an additional fine of not more than $20,000 for each day during which the offence continues;

(b) to imprisonment for a term of not more than six months; or

(c) to both a fine described in clause (a) and imprisonment described in clause (b).

Increasing fine by amount of monetary benefit

(2.3) Despite the maximum fine provided in subsection (2.1) or (2.2), the court that convicts a person of an offence under clause (1) (a) or (b) or (2) (a), (b) or (c) may, in addition to any other penalty imposed or order made under this section, increase the fine imposed on the person for the commission of the offence by an amount equal to the monetary benefit that was acquired by, or that accrued to, the person as a result of the commission of the offence.

Order to repair damage

(2.4) On its own initiative or on the request of the prosecutor, the court that convicts a person of an offence under clause (2) (b) or (c) may, in addition to any other penalty imposed under this section, order the person to take such action as the court directs to repair or rehabilitate the damage that results from or is in any way connected to the commission of the offence, within the time specified in the order.

Non-compliance with order

(2.5) If a person fails to comply with an order made under subsection (2.4), the Minister may cause to be taken such steps as are necessary to achieve the result intended by the order, and the cost of taking those steps is a debt due by the person to the Crown and is recoverable with costs in any court of competent jurisdiction.

Amendment to the Planning Act

4. Subsection 62 (1) of the Planning Act, as re-enacted by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 27, is amended by striking out “the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act” and substituting “Hydro One Inc. (as defined in subsection 2 (1) of the Electricity Act, 1998) or Ontario Power Generation Inc. (as defined in subsection 2 (1) of that Act)”.

Amendments to the Public Utilities Act

5. Subsection 20 (1) of the Public Utilities Act, as amended by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 32, is amended,

(a) by striking out “sold to it by the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary or delivered to it by the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary” and substituting “sold to it by Ontario Power Generation Inc. (as defined in subsection 2 (1) of the Electricity Act, 1998) or its subsidiary or delivered to it by Hydro One Inc. (as defined in subsection 2 (1) of the Electricity Act, 1998) or its subsidiary”; and

(b) by striking out “interrupted or decreased by the corporation designated as the Ontario Electricity Generation Corporation, the corporation designated as the Ontario Electric Services Corporation or a subsidiary of one of those corporations” and substituting “interrupted or decreased by Ontario Power Generation Inc., Hydro One Inc. or a subsidiary of either of them”.

Commencement

6. (1) Subject to subsection (2), this Schedule comes into force on the day the Reliable Energy and Consumer Protection Act, 2002 receives Royal Assent.

Same

(2) Subsection 1 (1) comes into force on a day to be named by proclamation of the Lieutenant Governor.