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Electricity Restructuring Act, 2004, S.O. 2004, c. 23 - Bill 100

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EXPLANATORY NOTE

This Explanatory Note was written as a reader’s aid to Bill 100 and does not form part of the law.  Bill 100 has been enacted as Chapter 23 of the Statutes of Ontario, 2004.

The purpose of the Bill is to restructure Ontario’s electricity sector, promote the expansion of electricity supply and capacity, including supply and capacity from alternative and renewable energy sources, facilitate load management and electricity demand management, encourage electricity conservation and the efficient use of electricity and regulate prices in parts of the electricity sector.

SCHEDULE A
AMENDMENTS TO THE
ELECTRICITY ACT, 1998

Amendments to Part I of the Act require the Minister of Energy to establish an advisory committee to provide advice on matters related to electricity.

Amendments to Part II of the Act continue the Independent Electricity Market Operator (“IMO”) as the Independent Electricity System Operator (“IESO”).  The IESO duties relating to the forecasting of electricity demand and resources are limited to short-term forecasting.  The directors of the IESO are appointed by the Minister of Energy.  The IMO-grid and IMO-administered markets are renamed the IESO-grid and the IESO-administered markets. 

The enactment of Part II.1 of the Act establishes the Ontario Power Authority (“OPA”), an independent non-profit corporation that reports annually to the Legislature.  The OPA’s directors are appointed by the Minister.  The OPA is not a Crown agent and recovers its costs through fees approved by the Ontario Energy Board and through charges.

Under Part II.1 of the Act, the board of directors of the OPA is required to establish a Conservation Bureau, headed by the Chief Energy Conservation Officer, to provide leadership in the planning and co-ordination of electricity conservation measures.

New Part II.2 of the Act deals with the management of electricity supply, capacity and demand.  The OPA is required to conduct assessments of electricity resources and develop integrated power system plans and procurement processes, as approved by the Ontario Energy Board, designed to assist, through effective management of electricity supply, transmission, capacity and demand, the achievement by the Government of Ontario of its goals relating to the adequacy, safety and reliability of electricity supply, including electricity supply generated from alternative energy sources and renewable energy sources.

The OPA may enter into contracts for the procurement of electricity supply or capacity, including supply or capacity to be generated from alternative energy sources or renewable energy sources, and contracts relating to the management of electricity demand.  The OPA assumes responsibility for the request for proposals issued in 2004 relating to the procurement of electricity supply and demand reductions.

The enactment of section 25.33 of the Act authorizes the IESO, through its billing and settlement systems, to ensure that market participants will, over time, pay the true cost of electricity, taking into consideration the mix of regulated and market prices payable to generators and prices payable under amendments to the Ontario Energy Board Act, 1998.  Temporary differences between amounts paid to generators and amounts paid by consumers will be recorded and cleared through variance accounts established by the OPA.

The enactment of section 29.1 of the Act and parallel amendments to section 71 of the Ontario Energy Board Act, 1998 permit the OPA, transmitters and distributors to provide services related to the promotion of energy conservation, energy efficiency, load management and the use of cleaner energy sources, including alternative and renewable energy sources.

Amendments to Part III of the Act give the Ontario Energy Board the authority to review and approve amendments to market rules for the IESO-administered markets. 

New Part XI.1 of the Act provides rules for the transfer of the Market Surveillance Panel of the IESO to the Ontario Energy Board and the transfer of medium and long-term electricity planning functions to the OPA from the IESO.

SCHEDULE B
AMENDMENTS TO THE
ONTARIO ENERGY BOARD ACT, 1998

Currently, under the Electricity Act, 1998, market surveillance of the IMO-administered markets is carried out by the Market Surveillance Panel of the Independent Electricity Market Operator.  The enactment of section 4.3.1 of the Ontario Energy Board Act, 1998 continues the Market Surveillance Panel as a panel of the Ontario Energy Board to carry out market surveillance functions under the Electricity Act, 1998 with respect to the IESO-administered markets.

Under amendments to section 57 of the Act, the OPA is required to be licensed by the Ontario Energy Board.

Section 78 of the Act is amended to permit the Ontario Energy Board to approve or fix different electricity rates for different classes of consumers and different situations.

Currently, amounts payable to generators are determined through the operation of the IMO-administered markets.  Certain generators will continue to be paid on this basis.  New section 78.1 of the Act provides for the regulation of amounts payable to generators in respect of electricity generated by units at generation facilities prescribed by the regulations.  Initially, the amounts of the payments are determined under the regulations and later will be determined by the Ontario Energy Board.  New section 78.2 of the Act provides for the payment to the Financial Corporation of amounts with respect to electricity generated under contract at generation facilities prescribed by the regulations.  New sections 78.3 and 78.4 of the Act provide for the Ontario Power Authority to receive amounts payable for electricity supply and capacity availability, respectively, as determined under procurement contracts entered into under Part II.2 of the Electricity Act, 1998.

Subsection 79.4 (1) of the Act currently provides that low-volume and designated consumers pay prices set by the regulations from April 1, 2004 until April 30, 2005 or any earlier day that is prescribed by the regulations.  After that day, prices will be determined by the Ontario Energy Board.  The re-enactment of clauses 79.4 (1) (a) and (b) of the Act provides that prices will continue to be determined under the regulations until the day prescribed by the regulations.

After the repeal of section 79.4, new section 79.16 will permit consumers prescribed by the regulations to pay a price for electricity that is initially set by regulation and later will be fixed or approved by the Ontario Energy Board.

SCHEDULE C
CONSEQUENTIAL AMENDMENTS TO OTHER ACTS

The Assessment Act and the Corporations Tax Act are amended to change references to the “IMO-controlled grid” to the “IESO-controlled grid”.

 

chapter 23

An Act to amend the Electricity Act, 1998 and the Ontario Energy Board Act, 1998 and to make consequential amendments to other Acts

Assented to December 9, 2004

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

Contents of this Act

1. This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2. (1) Subject to subsections (2) and (3), 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 each Schedule.

Same

(3) If a Schedule to this Act provides that any provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

3. The short title of this Act is the Electricity Restructuring Act, 2004.

Schedule A
Amendments to the Electricity Act, 1998

1. Section 1 of the Electricity Act, 1998, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 1 and 2002, chapter 23, section 3, is repealed and the following substituted:

Purposes

1. The purposes of this Act are,

(a) to ensure the adequacy, safety, sustainability and reliability of electricity supply in Ontario through responsible planning and management of electricity resources, supply and demand;

(b) to encourage electricity conservation and the efficient use of electricity in a manner consistent with the policies of the Government of Ontario;

(c) to facilitate load management in a manner consistent with the policies of the Government of Ontario;

(d) to promote the use of cleaner energy sources and technologies, including alternative energy sources and renewable energy sources, in a manner consistent with the policies of the Government of Ontario;

(e) to provide generators, retailers and consumers with non-discriminatory access to transmission and distribution systems in Ontario;

(f) to protect the interests of consumers with respect to prices and the adequacy, reliability and quality of electricity service;

(g) to promote economic efficiency and sustainability in the generation, transmission, distribution and sale of electricity;

(h) to ensure that Ontario Hydro’s debt is repaid in a prudent manner and that the burden of debt repayment is fairly distributed;

(i) to facilitate the maintenance of a financially viable electricity industry; and

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

2. (1) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definition:

“alternative energy source” means a source of energy,

(a) that is prescribed by the regulations or that satisfies criteria prescribed by the regulations, and

(b) that can be used to generate electricity through a process that is cleaner than certain other generation technologies in use in Ontario before June 1, 2004; (“source d’énergie de remplacement”)

(2) The definition of “ancillary services” in subsection 2 (1) of the Act is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(3) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definitions:

“charges” means, with respect to the OPA, amounts charged by the OPA to recover amounts paid or payable by the OPA to another person with respect to electricity; (“frais”)

“fees” means, with respect to the OPA or the IESO, amounts charged by the OPA or the IESO, as the case may be, to recover its costs of operations; (“droits”) 

(4) The definitions of “IMO”, “IMO-administered markets” and “IMO-controlled grid” in subsection 2 (1) of the Act are repealed and the following substituted:

“IESO” means the Independent Electricity System Operator continued under Part II; (“SIERE”)

“IESO-administered markets” means the markets established by the market rules; (“marchés administrés par la SIERE”)

“IESO-controlled grid” means the transmission systems with respect to which, pursuant to agreements, the IESO has authority to direct operations; (“réseau dirigé par la SIERE”)

(5) The definition of “integrated power system” in subsection 2 (1) of the Act is amended by striking out “IMO-controlled grid” wherever it appears and substituting in each case “IESO-controlled grid”.

(6) The definition of “market participant” in subsection 2 (1) of the Act is amended,

(a) by striking out “IMO-administered markets” and substituting “IESO-administered markets”; and

(b) by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(7) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definition:

“Market Surveillance Panel” means the Market Surveillance Panel continued under Part II of the Ontario Energy Board Act, 1998; (“comité de surveillance du marché”)

(8) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definition:

“OPA” means the Ontario Power Authority established under Part II.1; (“OEO”)

(9) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definition:

“procurement contract” means a contract referred to in subsection 25.32 (1); (“contrat d’acquisition”)

(10) Subsection 2 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following definition:

“renewable energy source” means an energy source that is renewed by natural processes and includes wind, water, a biomass resource or product, solar energy, geothermal energy, tidal forces and such other energy sources as may be prescribed by the regulations, but only if the energy source satisfies such criteria as may be prescribed by the regulations for that energy source; (“source d’énergie renouvelable”) 

(11) Section 2 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following subsection:

Alternative energy source, exception

(1.1) Despite the definition of “alternative energy source” in subsection (1), an energy source is not an alternative energy source for the purposes of this Act in respect of a particular generation facility or unit if criteria prescribed by the regulations relating to the generation of electricity from the energy source are not satisfied.

(12) Section 2 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following subsection:

Renewable energy source, exception

(1.2) Despite the definition of “renewable energy source” in subsection (1), an energy source is not a renewable energy source for the purposes of this Act in respect of a particular generation facility or unit if criteria prescribed by the regulations relating to the generation of electricity from the energy source are not satisfied.

(13) Section 2 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 2 and 2002, chapter 23, section 3, is amended by adding the following subsection:

References to Independent Electricity Market Operator

(7) A reference in a statement mentioned in section 124 or in a regulation, order or rule made under this or any other Act,

(a) to the Independent Electricity Market Operator shall be deemed to be a reference to the Independent Electricity System Operator, unless the context requires otherwise, and to the IMO shall be deemed to be a reference to the IESO, unless the context requires otherwise;

(b) to the IMO-administered markets shall be deemed to be a reference to the IESO-administered markets;

(c) to the IMO-controlled grid shall be deemed to be reference to the IESO-controlled grid; and

(d) to the members of the Market Surveillance Panel of the Independent Electricity Market Operator in the Table to section 6 of Ontario Regulation 91/02 (General) made under the Remedies for Organized Crime and Other Unlawful Activities Act, 2001 shall be deemed to be a reference to the members of the Market Surveillance Panel of the Ontario Energy Board or, if the Market Surveillance Panel has been dissolved under the Ontario Energy Board Act, 1998, to the members of the Ontario Energy Board.

3. Part I of the Act is amended by adding the following section:

Minister’s advisory committee

3.1 (1) The Minister shall establish an advisory committee to provide advice to the Minister on such matters relating to electricity as the Minister may specify.

Appointment

(2) The Minister shall appoint the members of the advisory committee.

4. (1) The title of Part II and subsection 4 (1) of the Act are repealed and the following substituted:

Part II
Independent electricity System operator

Independent Electricity System Operator

(1) The Independent Electricity Market Operator is continued as a corporation without share capital under the name Independent Electricity System Operator in English and Société indépendante d’exploitation du réseau d’électricité in French. 

(2) Subsection 4 (2) of the Act is amended by striking out “IMO” and substituting “IESO”.

5. (1) Subsection 5 (1) of the Act is repealed and the following substituted:

Objects and character

(1) The objects of the IESO are,

(a) to exercise the powers and perform the duties assigned to the IESO under this Act, the market rules and its licence; 

(b) to enter into agreements with transmitters giving the IESO authority to direct the operation of their transmission systems;

(c) to direct the operation and maintain the reliability of the IESO-controlled grid to promote the purposes of this Act;

(d) to participate in the development by any standards authority of standards and criteria relating to the reliability of transmission systems;

(e) to work with the responsible authorities outside Ontario to co-ordinate the IESO’s activities with their activities;

(f) to collect and provide to the OPA and the public information relating to the current and short-term electricity needs of Ontario and the adequacy and reliability of the integrated power system to meet those needs; and

(g) to operate the IESO-administered markets to promote the purposes of this Act.

(2) Subsections 5 (2) and (3) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(3) Section 5 of the Act is amended by adding the following subsection:

Dissolution

(4) Upon the dissolution of the IESO and after the payment of all debts and liabilities, the remaining property of the IESO is vested in Her Majesty in right of Ontario.

6. Section 6 of the Act is amended by striking out “IMO” and substituting “IESO”.

7. Section 7 of the Act, as amended by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is repealed and the following substituted:

Board of directors

7. (1) The IESO’s board of directors shall manage and supervise the management of the IESO’s business and affairs.

Composition

(2) The board of directors shall be composed of,

(a) the chief executive officer of the IESO; and

(b) 10 additional individuals who are appointed as directors by the Minister.

Directors to be independent

(3) Each director shall hold office as an independent director and not as a representative of any class of persons.

Restriction on persons who may be directors

(4) No person who is a member of a class of persons prescribed by the regulations may hold office as a director of the IESO.

Term of office and reappointment

(5) A director appointed in accordance with clause (2) (b) shall hold office at pleasure for an initial term not exceeding two years and, subject to subsection (4), may be reappointed for successive terms not exceeding five years each.

Quorum

(6) A majority of the members of the board of directors constitute a quorum of the board.

Chair

(7) The board of directors shall appoint one of the directors as chair of the board.

Ceasing to hold office

(8) A director ceases to hold office in the circumstances specified in the Governance and Structure By-law.

Vacancy in board

(9) If there are one or more vacancies in the board of directors, the remaining directors may exercise all the powers of the board if they would constitute a quorum of the board if there were no vacancies.

Former directors cease to hold office

(10) A person who was a member of the board of directors immediately before this subsection comes into force ceases to be a member of the board of directors when this subsection comes into force, but nothing in this subsection prevents the person from being reappointed.

No claim for compensation

(11) A director who ceases to hold office as director by reason of subsection (10) has no right of recourse against the Crown or any person.

8. (1) Section 8 of the Act is amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(2) Section 8 of the Act is amended by adding the following subsection:

Exception

(2) Despite subsection (1), the first chief executive officer appointed on or after the day this subsection comes into force shall be appointed by the Minister, but nothing in this subsection prevents the board of directors of the IESO from appointing any subsequent chief executive officer.

9. Section 9 of the Act is amended by striking out “IMO” in the portion before clause (a) and in clause (a) and substituting in each case “IESO”.

10. Section 10 of the Act is amended by striking out “IMO” and substituting “IESO”.

11. (1) Subsection 11 (1) of the Act is amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(2) Subsection 11 (2) of the Act is amended by striking out “IMO’s” and substituting “IESO’s”.

12. Section 12 of the Act is repealed and the following substituted:

Delegation

12. Subject to the Governance and Structure By-law, the board of directors of the IESO may delegate any of the IESO’s powers or duties to a committee of the board, to a panel established by the board of directors or to any other person or body, subject to such conditions and restrictions as may be specified by the board of directors.

13. Section 13 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 3, is repealed and the following substituted:

Panels

13. (1) The board of directors of the IESO may establish one or more panels for the purposes of this Act.

Testimony

(2) A member of a panel established for the purpose of resolving or attempting to resolve a dispute between market participants, or a dispute between one or more market participants and the IESO, shall not be required in any civil proceeding to give testimony with respect to information obtained in the course of resolving or attempting to resolve the dispute.

14. The Act is amended by adding the following sections:

Staff and assistance

13.1 Subject to the by-laws of the IESO, a panel established by the board of directors may use the services of,

(a) the IESO’s employees, with the consent of the IESO; and

(b) persons other than the IESO’s employees who have technical or professional expertise that is considered necessary.

Stakeholder input

13.2 The IESO shall establish one or more processes by which consumers, distributors, generators, transmitters and other persons who have an interest in the electricity industry may provide advice and recommendations for consideration by the IESO.

15. (1) Subsection 14 (1) of the Act is repealed and the following substituted:

Liability

(1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the IESO, a member of the advisory committee or a member of a panel established by the board of directors of the IESO for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under any Act, the regulations under any Act, the IESO’s licence, the IESO’s by-laws or the market rules, or for any neglect or default in the exercise or performance in good faith of such a power or duty. 

(2) Subsection 14 (2) of the Act is amended by striking out “IMO” and substituting “IESO”.

16. Section 14.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 4, is amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

17. Section 15 of the Act is repealed and the following substituted:

Liability of directors under the Employment Standards Act, 2000

15. Part XX of the Employment Standards Act, 2000 does not apply to a director of the IESO.

18. (1) Subsection 16 (1) of the Act is amended by striking out “IMO” and substituting “IESO”.

(2) Clause 16 (2) (a) of the Act is repealed.

(3) Clause 16 (2) (b) of the Act is amended by striking out “IMO” and substituting “IESO”.

(4) Clause 16 (2) (c) of the Act is repealed and the following substituted:

(c) the circumstances in which a director ceases to hold office;

(c.1) the remuneration and benefits of the chair and the other members of the board;

(5) Clause 16 (2) (e) of the Act is amended by striking out “IMO’s powers and duties” and substituting “IESO’s powers and duties”.

(6) Section 16 of the Act is amended by adding the following subsection:

Transition

(11) For greater certainty, all by-laws made by the board of directors before subsection 4 (1) of Schedule A to the Electricity Restructuring Act, 2004 comes into force remain in effect until amended or revoked in accordance with this Act.

19. Subsections 17 (1) and (4) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

20. Section 18 of the Act is repealed and the following substituted:

Fees

18. The IESO may establish and charge fees for anything done in connection with the IESO-controlled grid or the IESO-administered markets.

21.  Section 19 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 3, is repealed and the following substituted:

Review of requirements and fees

19. (1) The IESO shall, at least 60 days before the beginning of each fiscal year, submit its proposed expenditure and revenue requirements for the fiscal year and the fees it proposes to charge during the fiscal year to the Board for review, but shall not do so until after the Minister approves or is deemed to approve the IESO’s proposed business plan for the fiscal year under section 19.1.

Board’s powers

(2) The Board may approve the proposed requirements and the proposed fees or may refer them back to the IESO for further consideration with the Board’s recommendations. 

Same

(3) In reviewing the IESO’s proposed requirements and proposed fees, the Board shall not take into consideration the remuneration and benefits of the chair and other members of the board of directors of the IESO.

Changes in fees

(4) The IESO shall not establish, eliminate or change any fees without the approval of the Board. 

Hearing

(5) The Board may hold a hearing before exercising its powers under this section, but it is not required to do so.

Transitional, 2005 fiscal year

(6) Despite subsection (1), the IESO shall submit its proposed expenditure and revenue requirements for its 2005 fiscal year and the fees it proposes to charge during that fiscal year to the Board for review not later than 30 days after the Minister approves or is deemed to approve the IESO’s proposed business plan for the 2005 fiscal year under section 19.1, but shall not do so until after the Minister approves or is deemed to approve the proposed business plan.

Same

(7) Until the Board approves the proposed expenditure and revenue requirements for the IESO’s 2005 fiscal year and the fees the IESO proposes to charge during that fiscal year, the expenditure and revenue requirements and fees that applied for the 2004 fiscal year shall apply for the 2005 fiscal year.

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

Business plan

19.1 (1) At least 90 days before the beginning of its 2006 and each subsequent fiscal year, the IESO shall submit its proposed business plan for the fiscal year to the Minister for approval.

Minister’s approval

(2) The Minister may approve the proposed business plan or refer it back to the IESO for further consideration.

Deemed approval

(3) If the Minister does not approve the proposed business plan and does not refer it back to the IESO for further consideration at least 70 days before the beginning of the fiscal year to which it relates, the Minister shall be deemed to approve the IESO’s proposed business plan for the fiscal year.

Transitional, 2005 fiscal year

(4) The following rules apply in respect of the IESO’s proposed business plan for its 2005 fiscal year:

1. The IESO shall, within the time period specified by the Minister, submit its proposed business plan for its 2005 fiscal year to the Minister for approval.

2. If the Minister does not approve the proposed business plan and does not refer it back to the IESO within 20 days after receipt, the Minister shall be deemed to approve the proposed business plan.

23. Section 20 of the Act, as amended by the Statutes of Ontario, 2004, chapter 8, section 46, Table, is amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

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

Provincial Auditor

20.1 The Provincial Auditor may audit the accounts and transactions of the IESO.

25. Subsections 21 (1), (2) and (4) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

26. Section 22 of the Act is repealed and the following substituted:

Other reports

22. (1) The IESO shall submit to the Minister such reports and information as the Minister may require from time to time.

Same

(2) The IESO shall submit to the Minister of Finance and the Minister such reports and information as the Minister of Finance may require from time to time.

27. Section 23 of the Act is repealed and the following substituted:

Information to Board, OPA, etc.

23. The IESO shall provide the Board, the OPA and the Market Surveillance Panel with such information as the Board, OPA or Panel may require from time to time.

28. Sections 24 and 25 of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

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

Part II.1
Ontario Power Authority

Ontario Power Authority

25.1 (1) A corporation without share capital to be known in English as the Ontario Power Authority and in French as Office de l’électricité de l’Ontario is hereby established. 

Composition

(2) The OPA is composed of those persons who, from time to time, comprise its board of directors.

Objects and character

25.2 (1) The objects of the OPA are,

(a) to forecast electricity demand and the adequacy and reliability of electricity resources for Ontario for the medium and long term;

(b) to conduct independent planning for electricity generation, demand management, conservation and transmission and develop integrated power system plans for Ontario;

(c) to engage in activities in support of the goal of ensuring adequate, reliable and secure electricity supply and resources in Ontario;

(d) to engage in activities to facilitate the diversification of sources of electricity supply by promoting the use of cleaner energy sources and technologies, including alternative energy sources and renewable energy sources;

(e) to establish system-wide goals for the amount of electricity to be produced from alternative energy sources and renewable energy sources;

(f) to engage in activities that facilitate load management;

(g) to engage in activities that promote electricity conservation and the efficient use of electricity;

(h) to assist the Ontario Energy Board by facilitating stability in rates for certain types of consumers;

(i) to collect and provide to the public and the Ontario Energy Board information relating to medium and long term electricity needs of Ontario and the adequacy and reliability of the integrated power system to meet those needs.

Not for profit

(2) The business and affairs of the OPA shall be carried on without the purpose of gain and any profits shall be used by the OPA for the purpose of carrying out its objects.

Dissolution

(3) Upon the dissolution of the OPA and after the payment of all debts and liabilities, the remaining property of the OPA is vested in Her Majesty in right of Ontario.

Capacity

(4) The OPA has the capacity, rights, powers and privileges of a natural person for the purpose of carrying out its objects, except as limited under subsection (6).

Powers

(5) Without limiting the generality of subsection (4), the OPA has the power,

(a) to enter into contracts relating to the adequacy and reliability of electricity supply;

(b) to enter into contracts relating to the procurement of electricity supply and capacity in or outside Ontario;

(c) to enter into contracts relating to the procurement of electricity supply and capacity using alternative energy sources or renewable energy sources to assist the Government of Ontario in achieving goals in the development and use of alternative or renewable energy technology and resources;

(d) to enter into contracts relating to the procurement of reductions in electricity demand and the management of electricity demand to assist the Government of Ontario in achieving goals in electricity conservation;

(e) to take such steps as it considers advisable to facilitate the provision of services relating to,

(i) electricity conservation and the efficient use of electricity,

(ii) electricity load management, or

(iii) the use of cleaner energy sources, including alternative energy sources and renewable energy sources;

(f) to take such steps as it considers advisable to ensure there is adequate transmission capacity as identified in the integrated power system plan;

(g) to enter into contracts with distributors to provide services referred to in clause (e);

(h) to act as a settlement agent for amounts determined under sections 78.1 and 78.2 of the Ontario Energy Board Act, 1998 and to contract with the IESO or another entity to perform or assist in performing the settlements;

(i) to create a security interest in any property currently owned or subsequently acquired by the OPA, including fees receivable, rights, powers and undertakings, in order to secure any debt, obligation or liability of the OPA.

Limitation

(6) The OPA’s power to borrow and to invest its funds and to manage its financial assets, liabilities and risks is subject to such rules and restrictions as may be prescribed.

Not a Crown agent

25.3 The OPA is not an agent of Her Majesty for any purpose, despite the Crown Agency Act

Board of directors

25.4 (1) The OPA’s board of directors shall manage and supervise the management of the OPA’s business and affairs.

Composition

(2) The board of directors shall be composed of,

(a) the chief executive officer of the OPA; and

(b) 10 additional individuals appointed by the Minister.

Directors to be independent

(3) Every director shall hold office as an independent director and not as a representative of any class of persons.

Directors

(4) No person who is a member of a class of persons prescribed by the regulations may hold office as a director of the OPA.

Term of office and reappointment

(5) A director appointed in accordance with clause (2) (b) shall hold office at pleasure for an initial term not exceeding two years and, subject to subsection (4), may be reappointed for successive terms not exceeding five years each.

Quorum

(6) A majority of the members of the board of directors constitute a quorum of the board.

Chair

(7) The board of directors shall appoint one of the directors as chair of the board.

Ceasing to hold office

(8) A director ceases to hold office in the circumstances specified in the Governance and Structure By-law.

Vacancy in board

(9) If there are one or more vacancies in the board of directors, the remaining directors may exercise all the powers of the board if they would constitute a quorum of the board of there were no vacancies.

Director duties

25.5 Every director of the OPA shall, in exercising and performing his or her powers and duties,

(a) act honestly and in good faith in the best interests of the OPA; and

(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 

Chief executive officer

25.6 (1) The board of directors of the OPA shall appoint a chief executive officer of the OPA.

Exception

(2) Despite subsection (1), the Minister shall appoint the first chief executive officer of the OPA, but nothing in this subsection prevents the board of directors of the OPA from appointing any subsequent chief executive officer.

Conflict of interest

25.7 The directors and officers of the OPA shall comply with the provisions of the Governance and Structure By-law relating to conflict of interest. 

Codes of conduct

25.8 (1) The board of directors of the OPA may establish codes of conduct applicable to the directors, officers, employees and agents of the OPA and to members of panels established by the OPA.

Conflict

(2) Any provision of a code of conduct that conflicts with this Act or the OPA’s by-laws is void.

Delegation

25.9 Subject to the Governance and Structure By-law, the board of directors of the OPA may delegate any of the OPA’s powers or duties to a committee of the board, to a panel established by the board or to any other person or body, subject to such conditions and restrictions as may be specified by the board of directors.

Panels

25.10 The board of directors of the OPA shall establish such panels as the board considers necessary for the purposes of this Act.

Conservation Bureau

25.11 (1) The board of directors of the OPA shall establish an office known in English as the Conservation Bureau and in French as Bureau des économies d’énergie to provide leadership in planning and co-ordination of measures for electricity conservation and load management in Ontario and to engage in such activities as may be prescribed in the regulations.

Chief Energy Conservation Officer

(2) The Chief Energy Conservation Officer shall, as an employee of the OPA, be responsible for managing and supervising the management of the business and affairs of the Conservation Bureau.

Appointment

(3) The Minister shall appoint the first Chief Energy Conservation Officer and the board of directors of the OPA shall appoint any subsequent Chief Energy Conservation Officer.

Annual report

(4) At least 60 days before the beginning of the following fiscal year, the Chief Energy Conservation Officer shall submit a report to the board of directors and the Minister that includes,

(a) the Conservation Bureau’s proposals for the following fiscal year regarding steps to be taken,

(i)   to promote electricity conservation and load management,

(ii) to procure reductions in electricity demand and promote management of electricity demand to assist the Government of Ontario in achieving goals in electricity conservation, and

(iii) to facilitate the provision of services relating to energy conservation and load management;

(b) a detailed description of the steps taken to implement the current year’s proposals and detailed information on the results achieved;

(c) a detailed review of the Government of Ontario’s progress in meeting its goals relating to the development and implementation of electricity conservation and load management measures; and

(d) information on any government policy or legislation identified by the Conservation Bureau that results in a barrier to the development or implementation of electricity conservation measures.

Same

(5) The Chief Energy Conservation Officer shall make the report public within seven days of submitting it to the board of directors and the Minister under subsection (4).

Stakeholder input

25.12 The OPA shall establish one or more processes by which consumers, distributors, generators, transmitters and other persons who have an interest in the electricity industry may provide advice and recommendations for consideration by the OPA.

Staff and assistance

25.13 (1) Subject to the by-laws of the OPA, a panel established by the board of directors may use the services of,

(a) the OPA’s employees, with the consent of the OPA; and

(b) persons other than the OPA’s employees who have technical or professional expertise that is considered necessary.

Provision of information to the IESO

(2) The OPA shall provide the IESO with such information as the IESO may require from time to time.

Confidential information relating to a market participant

(3) A record that contains information provided to or obtained by the OPA relating to a market participant and that is designated by the OPA 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. 

Liability

25.14 (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the OPA or a member of the Advisory Committee or a panel established by the board for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under this or any other Act, the regulations, the OPA’s licence, the OPA’s by-laws or the market rules, or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Same

(2) Subsection (1) does not relieve the OPA of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default referred to in subsection (1). 

Liability of directors under the Employment Standards Act, 2000

25.15 Part XX of the Employment Standards Act, 2000 does not apply to a director of the OPA.

By-laws

25.16 (1) The board of directors of the OPA may make by-laws regulating the business and affairs of the OPA. 

Governance and Structure By-law

(2) The board of directors shall make a by-law under subsection (1) dealing with matters of corporate governance and structure, including,

(a) the appointment of the chief executive officer of the OPA;

(b) the appointment of the Chief Energy Conservation Officer;

(c) the circumstances in which a director ceases to hold office;

(d) the remuneration and benefits of the chair and the other members of the board;

(e) conflict of interest;

(f) the delegation of the OPA’s powers and duties;

(g) the establishment, composition and functions of panels. 

Same

(3) The Governance and Structure By-law may be made only with the approval in writing of the Minister. 

Amendment or repeal of Governance and Structure By-law

(4) A by-law that amends or repeals the Governance and Structure By-law shall be filed with the Minister by the board of directors.

Disallowance

(5) The Minister may disallow a by-law to which subsection (4) applies by written notice to the board of directors given within 60 days after the by-law is filed with the Minister. 

Effective date

(6) A by-law to which subsection (4) does not apply comes into force on the day it is made or on such later date as may be specified in the by-law. 

Same

(7) Subject to subsections (5) and (8), a by-law to which subsection (4) applies comes into force on the earlier of the following dates:

1. The expiry of the 60-day period referred to in subsection (5).

2. The date on which the Minister notifies the board of directors in writing that he or she will not disallow the by-law. 

Same

(8) Subject to subsection (5), a by-law to which subsection (4) applies may specify that it comes into force on a date later than the date determined under subsection (7). 

Conflict between by-laws

(9) In the event of a conflict between the Governance and Structure By-law and another by-law, the Governance and Structure By-law prevails. 

Regulations Act

(10) The Regulations Act does not apply to by-laws made under this section.

Province may purchase securities, etc.

25.17 (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the OPA at such times and on such terms and conditions as the Minister of Finance may determine subject to the maximum principal amount and to any other terms and conditions that are specified by the Lieutenant Governor in Council. 

Payment from C.R.F.

(2) The Minister of Finance may pay out of the Consolidated Revenue Fund any amount required for the purposes of subsection (1). 

Delegation

(3) In an order under subsection (1), the Lieutenant Governor in Council may delegate to an officer or employee of the Crown or an agency of the Crown or to a solicitor engaged to act for the Minister of Finance, any or all of the powers of the Minister of Finance under this section.

Fees payable to Minister of Finance

(4) The OPA shall pay to the Minister of Finance such fees as are prescribed by the regulations in respect of securities purchased and sums loaned under this section.

Reimbursement of costs incurred by the Crown

25.18 (1) The OPA shall reimburse the Crown or, if so directed by the Minister of Finance, an agency of the Crown for costs relating to the OPA, a procurement contract, an initiative described in clause 25.32 (4) (a) or a matter within the objects of the OPA, if,

(a) the costs were incurred by the Crown or an agency of the Crown after January 20, 2004 and before the Board’s first approval of the OPA’s procurement process under subsection 25.31 (4); or

(b) the liability of the Crown or an agency of the Crown for the costs arose during the period described in clause (a).

Payment of reimbursement

(2) The OPA shall make the reimbursement by making one or more payments in such amount or amounts at such time or times as may be determined by the Minister of Finance.

Minister’s determinations final

(3) The determinations of the Minister under subsection (2) are final and conclusive and shall not be stayed, varied or set aside by any court.

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

Transition

25.19 (1) On such conditions as the Minister determines and at any time before the repeal of this section, the Minister may direct a person to enter into contracts, agreements, undertakings or arrangements on behalf of the OPA in respect of its establishment or initial operation and the OPA shall be bound by them in the same manner as if it had entered into the contracts, agreements, undertakings or arrangements after its establishment.

Same

(2) When, after the OPA is established, the Minister is satisfied that the OPA is capable of acting, the Minister shall cease to direct persons under subsection (1).

Repeal

(3) This section is repealed on the later of the day that section 29 of Schedule A to the Electricity Restructuring Act, 2004 is proclaimed in force and January 31, 2005.

31. (1) The Act is amended by adding the following section:

Fees and charges

25.20 (1) The OPA may establish and impose fees and charges to recover,

(a) the costs of doing anything the OPA is required or permitted to do under this or any other Act; and

(b) any other type of expenditure the recovery of which is permitted by the regulations, subject to any limitations and restrictions set out in the regulations.

Collection

(2) The IESO shall, in accordance with the regulations, collect and pay to the OPA all fees and charges payable to the OPA.

(2) Section 25.20 of the Act, as enacted by subsection (1), is amended by adding the following subsections:

May recover costs of procurement contracts

(3) For greater certainty, the OPA may, subject to the regulations, establish and impose charges to recover from consumers its costs and payments under procurement contracts.

Board deemed to approve recovery

(4) The OPA’s recovery of its costs and payments related to procurement contracts shall be deemed to be approved by the Board.

32. The Act is amended by adding the following sections:

Review of requirements and fees

25.21 (1) The OPA shall, at least 60 days before the beginning of each fiscal year, submit its proposed expenditure and revenue requirements for the fiscal year and the fees it proposes to charge during the fiscal year to the Board for review, but shall not do so until after the Minister approves or is deemed to approve the OPA’s proposed business plan for the fiscal year under section 25.22.

Board’s powers

(2) The Board may approve the proposed requirements and the proposed fees or may refer them back to the OPA for further consideration with the Board’s recommendations.

Same

(3) In reviewing the OPA’s proposed requirements and proposed fees, the Board shall not take into consideration the remuneration and benefits of the chair and other members of the board of directors of the OPA.

Changes in fees

(4) The OPA shall not establish, eliminate or change any fees without the approval of the Board. 

Hearing

(5) The Board may hold a hearing before exercising its powers under this section, but it is not required to do so. 

Transitional, 2005 fiscal year

(6) Despite subsection (1), the OPA shall submit its proposed expenditure and revenue requirements for its 2005 fiscal year and the fees it proposes to charge during that fiscal year to the Minister for review not later than 30 days after the Minister approves or is deemed to approve the OPA’s proposed business plan for the 2005 fiscal year under section 25.22.

Same

(7) Despite subsections (2) and (4), the fees for the OPA’s 2005 fiscal year or for part of that year may be established and imposed by regulation.

Business plan

25.22 (1) At least 90 days before the beginning of its 2006 and each subsequent fiscal year, the OPA shall submit its proposed business plan for the fiscal year to the Minister for approval.

Minister’s approval

(2) The Minister may approve the proposed business plan or refer it back to the OPA for further consideration.

Deemed approval

(3) If the Minister does not approve the proposed business plan and does not refer it back to the OPA for further consideration at least 70 days before the beginning of the fiscal year to which it relates, the Minister shall be deemed to have approved the OPA’s proposed business plan for the fiscal year.

Transitional, 2005 fiscal year

(4) The following rules apply in respect of the OPA’s proposed business plan for its 2005 fiscal year:

1. The OPA shall, within the time period specified by the Minister, submit its proposed business plan for its 2005 fiscal year to the Minister for approval.

2. If the Minister does not approve the proposed business plan and does not refer it back to the OPA within 20 days of receipt, the Minister shall be deemed to have approved the proposed business plan.

Auditor

25.23 The board of directors of the OPA shall appoint one or more auditors licensed under the Public Accountancy Act to audit annually the accounts and transactions of the OPA.

Provincial Auditor

25.24 The Provincial Auditor may audit the accounts and transactions of the OPA.

Annual report

25.25 (1) The OPA 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 its board of directors. 

Financial statements

(2) The audited financial statements of the OPA shall be included in the annual report. 

Tabling

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

Other persons

(4) The OPA may give its annual report to other persons before the Minister complies with subsection (3). 

Other reports

25.26 (1) The OPA shall submit to the Minister such reports and information as the Minister may require from time to time.

Same

(2) The OPA shall submit to the Minister of Finance and the Minister such reports and information as the Minister of Finance may require from time to time.

Information to Board

25.27 The OPA shall provide the Board with such information as the Board may require from time to time. 

Application of corporations statutes

25.28 Except as otherwise provided by the regulations, the Corporations Act and the Corporations Information Act do not apply to the OPA.

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

Part II.2
Management of Electricity supply, capacity and demand

Assessment of electricity resources

25.29 (1) The OPA shall make an assessment of the adequacy and reliability of electricity resources with respect to anticipated electricity supply, capacity, reliability and demand for each assessment period prescribed by the regulations.

Same

(2) As part of an assessment under subsection (1), the OPA shall consider generation and transmission capacities and technologies and conservation measures.

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

Integrated power system plan

25.30 (1) Once during each period prescribed by the regulations, or more frequently if required by the Minister or the Board, the OPA shall develop and submit to the Board an integrated power system plan,

(a) that is designed to assist, through effective management of electricity supply, transmission, capacity and demand, the achievement by the Government of Ontario of,

(i) its goals relating to the adequacy and reliability of electricity supply, including electricity supply from alternative energy sources and renewable energy sources, and

(ii) its goals relating to demand management; and

(b) that encompasses such other related matters as may be prescribed by the regulations.

Minister’s directives

(2) The Minister may issue, and the OPA shall follow in preparing its integrated power system plans, directives that have been approved by the Lieutenant Governor in Council that set out the goals to be achieved during the period to be covered by an integrated power system plan, including goals relating to,

(a) the production of electricity from particular combinations of energy sources and generation technologies;

(b) increases in generation capacity from alternative energy sources, renewable energy sources or other energy sources;

(c) the phasing-out of coal-fired generation facilities; and

(d) the development and implementation of conservation measures, programs and targets on a system-wide basis or in particular service areas.

Publication

(3) A directive issued under subsection (2) shall be published in The Ontario Gazette.

Review of integrated power system plan

(4) The Board shall review each integrated power system plan submitted by the OPA to ensure it complies with any directions issued by the Minister and is economically prudent and cost effective.

Board’s powers

(5) After review, the Board may approve a plan or refer it back with comments to the OPA for further consideration and resubmission to the Board.

Deadline for review

(6) The Board shall carry out the review of an integrated power system plan under subsection (4) within such time as the Minister directs.

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

Procurement process for electricity supply, etc.

25.31 (1) The OPA shall develop appropriate procurement processes for managing electricity supply, capacity and demand in accordance with its approved integrated power system plans.

Same

(2) The OPA’s procurement processes must provide for simpler procurement processes for electricity supply or capacity to be generated using alternative energy sources or renewable energy sources, or both, where the supply or capacity or the generation facility or unit satisfies the prescribed conditions.

Application for approval

(3) The OPA shall apply to the Board for approval of its proposed procurement processes, and any amendments it proposes. 

Board approval

(4) The Board shall review the OPA’s proposed procurement processes and any proposed amendments and may approve the procurement processes or refer all or part of them back with comments to the OPA for further consideration and resubmission to the Board.

Deadline for review

(5) The Board shall carry out the review of the proposed procurement processes and any proposed amendments within such time as the Minister directs.

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

Procurement contracts

25.32 (1) When the OPA considers it advisable, it shall enter into contracts in accordance with procurement processes approved under section 25.31 for the procurement of,

(a) electricity supply or capacity, including supply or capacity to be generated using alternative energy sources, renewable energy sources or both; or

(b) measures that will manage electricity demand or result in the improved management of electricity demand on an on-going or emergency basis.

Contract to comply with regulations

(2) The OPA shall not enter into a procurement contract that does not comply with the regulations.

Resolution of procurement contract disputes

(3) The parties to a procurement contract shall ensure that the contract provides a mechanism to resolve any disputes between them with respect to the contract.

Transition

(4) Despite subsection (2), the Minister may direct the OPA to assume, as of such date as the Minister considers appropriate, responsibility for exercising all powers and performing all duties of the Crown, including powers and duties to be exercised and performed through an agency of the Crown,

(a) under any request for proposals, draft request for proposals, another form of procurement solicitation issued by the Crown or through an agency of the Crown or any other initiative pursued by the Crown or through an agency of the Crown,

(i) that was issued or pursued after January 1, 2004 and before the Board’s first approval of the OPA’s procurement process under subsection 25.31 (4), and

(ii) that relates to the procurement of electricity supply or capacity or reductions in electricity demand or to measures for the management of electricity demand; and

(b) under any contract entered into by the Crown or an agency of the Crown  pursuant to a procurement solicitation or other initiative referred to in clause (a).

Release of the Crown, etc.

(5) As of the day specified in the Minister’s direction under subsection (4), the OPA shall assume responsibility in accordance with that subsection and the Crown and any Crown agency referred to in that subsection are released from any and all liabilities and obligations with respect to the matters for which the OPA has assumed responsibility. 

Deemed compliance

(6) The following contracts shall be deemed to be procurement contracts entered into in accordance with any integrated power system plan and procurement process approved by the Board:

1. A contract entered into by the OPA following a procurement solicitation or other initiative referred to in clause (4) (a).

2. A contract referred to in clause (4) (b).

Same

(7) The OPA shall enter into any contract following a procurement solicitation or other initiative referred to in clause (4) (a) if directed to do so by the Minister of Energy, and that contract shall be deemed to be a procurement contract that was entered into in accordance with any integrated power system plan and procurement process approved by the Board.

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

Electricity pricing to reflect costs

IESO to make adjustments

25.33 (1) The IESO shall, through its billing and settlement systems, make adjustments in accordance with the regulations that ensure that, over time, payments by market participants in Ontario reflect amounts paid to generators, the OPA and the Financial Corporation, whether the amounts are determined under the market rules or under sections 78.1 to 78.4 of the Ontario Energy Board Act, 1998.

Distributors and retailers to make adjustments

(2) Distributors and retailers shall, through their billing systems, make adjustments in accordance with the regulations that ensure that, over time, payments by consumers in Ontario reflect amounts paid to generators, the OPA and the Financial Corporation, whether the amounts are determined under the market rules or under sections 78.1 to 78.4 of the Ontario Energy Board Act, 1998.

Exception

(3) Any adjustment that would otherwise be made under subsection (1) or (2) and that relates to electricity that is consumed by any of the following types of consumers shall instead be made in accordance with the regulations to one or more variance accounts established and maintained by the OPA:

1. A consumer whose rates are determined by the Board under section 79.4 of the Ontario Energy Board Act, 1998.

2. A consumer whose rates are determined by the Board under section 79.16 of the Ontario Energy Board Act, 1998.

3. A consumer who is a member of a class of consumers prescribed by the regulations.

Adjustments, payments, set-offs and credits

(4) The OPA, the IESO, distributors and retailers shall,

(a) make such adjustments in their accounts as may be required or permitted by the regulations to record adjustments described in subsections (1), (2) and (3); and

(b) make and receive such payments, set-offs and credits as may be required or permitted by the regulations with respect to consumers described in subsection (3).

Variance accounts

(5) The OPA shall establish and maintain such variance accounts as may be necessary to record all amounts payable or receivable by it under this section.

Compliance

(6) The Board shall ensure that adjustments, payments, set-offs and credits required or permitted under this section are made in accordance with the regulations.

Adjustment not assignable

(7) An adjustment made under subsection (1) or (2) is not assignable by a consumer in a contract with a retailer, whether the contract is entered into before or after this section comes into force.

No cause of action

(8) No cause of action against a consumer, a retailer or the Crown arises as the result of a contract or a term of a contract ceasing to have effect because of the operation of subsection (7).

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

Payments with respect to certain retail contracts

25.34 (1) The OPA shall make and receive such payments as may be required by the regulations with respect to contracts prescribed by the regulations that were in effect on November 11, 2002 between retailers and consumers.

Payments

(2) The OPA, the IESO, distributors and retailers shall make and receive such payments, set-offs and credits relating to payments referred to in subsection (1) as may be required by the regulations.

Compliance

(3) The Board shall ensure that payments, set-offs and credits required under this section are made in accordance with the regulations.

39. Section 27 of the Act is repealed and the following substituted:

Use of IESO-controlled grid

27. A person shall not cause or permit electricity to be conveyed into, through or out of the IESO-controlled grid except in accordance with this Act and the market rules.

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

Conservation measures

29.1 (1) Subject to section 71 of the Ontario Energy Board Act, 1998 and such limits and criteria as may be prescribed by the regulations, a transmitter, distributor or the OPA may provide services that would assist the Government of Ontario in achieving its goals in electricity conservation, including services related to,

(a) the promotion of electricity conservation and the efficient use of electricity;

(b) electricity load management; or

(c) the promotion of cleaner energy sources, including alternative energy sources and renewable energy sources.

Same

(2) Nothing in subsection (1) allows a distributor or transmitter to generate electricity by any means except through an affiliate approved by the Board under section 71 of the Ontario Energy Board Act, 1998.

41. (1) Subsection 32 (1) of the Act is amended by striking out “IMO” in the portion before clause (a) and substituting “IESO”.

(2) Clauses 32 (1) (a) and (2) (b) of the Act are amended by striking out “IMO-controlled grid” wherever it appears and substituting in each case “IESO-controlled grid”.

(3) Clause 32 (2) (d) of the Act is amended by striking out “IMO” in the portion before subclause (i) and substituting “IESO”.

(4) Subclause 32 (2) (d) (i) of the Act is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(5) Clause 32 (2) (e) of the Act is amended by striking out “IMO” in the portion before subclause (i) and substituting “IESO”.

(6) Subclauses 32 (2) (e) (ii) and (iii) of the Act are amended,

(a) by striking out “IMO-administered markets” wherever it appears and substituting in each case “IESO-administered markets”; and

(b) by striking out “IMO-controlled grid” wherever it appears and substituting in each case “IESO-controlled grid”.

(7) Subsection 32 (5) of the Act is amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(8) Subsections 32 (6), (7) and (8) of the Act and subsection 32 (9) of the Act, as enacted and amended by the Statutes of Ontario, 2002, chapter 23, section 3, are repealed and the following substituted:

Notice to Board

(6) The IESO shall not make a rule under this section unless it first gives the Board an assessment of the impact of the rule on the interests of consumers with respect to prices and the reliability and quality of electricity service.

Transition

(7) All rules made before subsection 4 (1) of Schedule A to the Electricity Restructuring Act, 2004 comes into force remain in effect until amended or revoked in accordance with this Act.

42. Section 33 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 3, is repealed and the following substituted:

Amendment of market rules

33. (1) The IESO shall, in accordance with the market rules, publish any amendment to the market rules at least 22 days before the amendment comes into force.

Notice to the Board

(2) The IESO shall give the Board a copy of the amendment and such other information as is prescribed by the regulations on or before the date the IESO publishes the amendment under subsection (1). 

Board’s power to revoke

(3) Despite section 4.1 of the Statutory Powers Procedure Act and section 35.1 of this Act, the Board may, not later than 15 days after the amendment is published under subsection (1) and without holding a hearing, revoke the amendment on a date specified by the Board and refer the amendment back to the IESO for further consideration.

Application for review

(4) Any person may apply to the Board for review of an amendment to the market rules by filing an application with the Board within 21 days after the amendment is published under subsection (1).

Application of Ontario Energy Board Act, 1998

(5) Subsection 19 (4) of the Ontario Energy Board Act, 1998 applies to an application under subsection (4).

Review by Board

(6) The Board shall issue an order that embodies its final decision within 60 days after receiving an application for review of an amendment.

Stay of amendment

(7) No application for review of an amendment under this section shall stay the operation of the amendment pending the completion of the Board’s review of the amendment unless the Board orders otherwise.

Same

(8) In determining whether to stay the operation of an amendment, the Board shall consider,

(a) the public interest;

(b) the merits of the application;

(c) the possibility of irreparable harm to any person;

(d) the impact on consumers; and

(e) the balance of convenience.

Order

(9) If, on completion of its review, the Board finds that the amendment is inconsistent with the purposes of this Act or unjustly discriminates against or in favour of a market participant or class of market participants, the Board shall make an order,

(a) revoking the amendment on a date specified by the Board; and

(b) referring the amendment back to the IESO for further consideration. 

43. (1) Subsection 34 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 3, is amended by striking out “IMO” in the portion before paragraph 1 and substituting “IESO”.

(2) Subsection 34 (2) of the Act is amended by striking out “IMO” and substituting “IESO”.

(3) Subsections 34 (2.1) and (2.2) of the Act, as enacted and amended by the Statutes of Ontario, 2002, chapter 23, section 3, are repealed and the following substituted:

Notice to the Board

(2.1) The IESO shall give the Board a copy of the amendment and such other information as may be prescribed by the regulations on or before the date the IESO publishes the amendment under subsection (2).

Board’s power to revoke

(2.2) Despite section 4.1 of the Statutory Powers Procedure Act and section 35.1 of this Act, the Board may, not later than 15 days after the amendment is published under subsection (2) and without holding a hearing, revoke the amendment on a date specified by the Board and refer the amendment back to the IESO for further consideration.

(4) Clause 34 (6) (a) of the Act is amended by striking out “IMO” and substituting “IESO”.

44. (1) Subsection 35 (3) of the Act is repealed and the following substituted:

Review of market rule made by the Minister

(3) Subsection (1) does not apply to a provision of the market rules that was made by the Minister before May 1, 2002 unless the application is made before May 1, 2005.

(2) Subsections 35 (6) and (7) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

45. (1) Clauses 36 (1) (b) and (c) of the Act are amended,

(a) by striking out “IMO-administered markets” wherever it appears and substituting in each case “IESO-administered markets”; and

(b) by striking out “IMO-controlled grid” wherever it appears and substituting in each case “IESO-controlled grid”.

(2) Clause 36 (6) (c) of the Act is amended by striking out “IMO” and substituting “IESO”.

46. (1) Subsections 36.1 (1) and (2) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(2) Subsection 36.1 (3) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is repealed and the following substituted:

Determined by panel of directors

(3) The application shall be determined by a panel of at least two directors of the IESO assigned to the application by the chair of the IESO’s board of directors.

(3) Subsection 36.1 (5) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is repealed and the following substituted:

Exemption requires approval of two-thirds of panel

(5) An exemption shall not be granted unless the exemption is approved by at least two-thirds of the directors on the panel.

(4) Subsection 36.1 (10) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is amended by striking out “IMO” and substituting “IESO”.

(5) Subsection 36.1 (15) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is repealed and the following substituted:

Removal of exemption

(15) If the board of directors proposes to remove an exemption, subsections (2), (3), (4), (6), (9), (10), (11), (13) and (14) apply, with necessary modifications, and subsection (16) applies without modification. 

(6) Subsection 36.1 (17) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is amended by striking out “IMO” and substituting “IESO”.

(7) Subsection 36.1 (18) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, is repealed and the following substituted:

Rules

(18) The IESO’s directors may make rules governing the practice and procedure before panels of directors under this section.

(8) Subsections 36.1 (19) and (20) of the Act, as enacted by the Statutes of Ontario, 2001, chapter 9, Schedule F, section 1, are repealed and the following substituted:

Report

(19) The IESO shall, not later than May 1, 2007, submit a report to the Minister on the need for and operation of this section. 

Extension

(20) The Lieutenant Governor in Council may, before May 1, 2007, extend by not more than six months the date by which the report referred to in subsection (19) must be submitted.

47. (1) Subsection 37 (1) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 6, is amended by striking out “IMO-administered markets” and substituting “IESO-administered markets”.

(2) Subsection 37 (16) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 6, is repealed and the following substituted:

Submission of report

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

48. Subsections 38 (1) and (2), clause 38 (4) (b) and subsection 38 (5) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

49. (1) Subsections 39 (1), (3) and (4) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(2) Subsection 39 (6) of the Act is repealed.

50. Subsection 48.1 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 10, is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

51. Part IV.1 of the Act is amended by adding the following section:

Power to acquire land and property

53.6 (1) Ontario Power Generation Inc. may, without any further approval and without the consent of the owner, enter upon, take possession of, expropriate and use such land, property, waters, water privileges, water powers, rights of access and roads, buildings and works as in its opinion are necessary for the purpose of the expeditious development and construction of works for the conveying of water by subsurface tunnels from the Niagara River to any existing or future power generation facilities and ancillary works at Niagara.

Same

(2) Subsection (1) applies,

(a) despite any provision of this or any other Act;

(b) despite the devotion or deemed devotion of the land or property to a municipal or other public use;

(c) despite the power of the owner of the land or property to take land compulsorily;

(d) despite the origin, nature or sources of the owner’s title to or interest in the land or property; and

(e) despite the manner by which the land or property was acquired by the owner or any of the owner’s predecessors in title.

Easements continue until release

(3) Despite any provision of any other Act, if Ontario Power Generation Inc. acquires an easement through, over, under or otherwise affecting any land, the land shall continue to be subject to the easement and the easement shall be binding upon the owner and all subsequent owners of the land until Ontario Power Generation Inc. grants a release.

Acquisition of whole parcels

(4) Ontario Power Generation Inc. may acquire a whole parcel of land of which only a part may be acquired under the authority of this section, together with any right of way to it if the parcel is separated from the works, if Ontario Power Generation Inc. reasonably believes that the whole parcel may be obtained at a more reasonable price or there is a greater advantage to acquiring the whole parcel instead of only the part and Ontario Power Generation Inc. may later sell and convey all or part of the excess land as it considers expedient.

Expropriations Act application

(5) If a power exercised under subsection (1) does not constitute an expropriation, Ontario Power Generation Inc. shall provide compensation to the owner based on market value as provided by the Expropriations Act.

No court action

(6) No action or exercise of a power by Ontario Power Generation Inc. under this section shall be restrained by injunction or other process or proceeding in any court.

Definitions

(7) In this section,

“easement” means  an easement, right of way, right or licence in the nature of an easement, profit à prendre or other incorporeal hereditament; (“servitude”)

“land” means any real property and includes any estate, term, easement, right or interest in, to, over, under or affecting real property; (“bien-fonds”)

“owner” includes a mortgagee, lessee, tenant, occupant, a person entitled to a limited estate or interest in land and a guardian, committee, executor, administrator or trustee in whom land or any property is vested; (“propriétaire”)

“property” means property of any kind, other than land, and includes any interest in property; (“bien”)

“works” includes all property, plant, machinery, buildings, erections, constructions, installations, materials, devices, fittings, apparatus, appliances and equipment for the generation, transformation, transmission, distribution, supply or use of power. (“ouvrages”)

 

52. Subsection 102 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 21, is amended by striking out “IMO” in the portion before paragraph 1 and substituting “IESO”.

53. (1) Clause 114 (1) (a) of the Act is repealed and the following substituted:

(a) prescribing additional objects of the IESO;

(2) Subsection 114 (1) of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 69, 2002, chapter 23, section 3 and 2004, chapter 19, section 12, is amended by adding the following clause:

(a.1) prescribing classes of persons for the purposes of subsection 7 (4);

(3) Clause 114 (1) (c) of the Act is amended by striking out “IMO” and substituting “IESO”.

(4) Clause 114 (1) (g) of the Act is repealed and the following substituted:

(g) respecting limits and criteria for the purposes of section 29.1;

(5) Clause 114 (1) (g.1) of the Act, as enacted and amended by the Statutes of Ontario, 2002, chapter 23, section 3, is amended by striking out “33 (1.1)” and substituting “33 (2)”.

(6) Section 114 of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 69, 2002, chapter 23, section 3 and 2004, chapter 19, section 12, is amended by adding the following subsection:

Regulations, Part I

(1.1) The Lieutenant Governor in Council may make regulations,

(a) prescribing energy sources and criteria for the purposes of the definition of “alternative energy source” in subsection 2 (1) and prescribing criteria relating to the generation of electricity from energy sources for the purposes of subsection 2 (1.1);

(b) prescribing energy sources and criteria for the purposes of the definition of “renewable energy source” in subsection 2 (1) and prescribing criteria relating to the generation of electricity from energy sources for the purposes of subsection 2 (1.2).

(7) Section 114 of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 69, 2002, chapter 23, section 3 and 2004, chapter 19, section 12, is amended by adding the following subsection:

Regulations, Part II.1

(1.2) The Lieutenant Governor in Council may make regulations,

(a) prescribing additional objects of the OPA;

(b) governing the OPA’s borrowing, investment of funds and the management of its financial assets, liabilities and risks including,

(i) prescribing rules and restrictions that apply to borrowing, investment and management of financial assets, liabilities and risks,

(ii) prescribing purposes for which the OPA may borrow, invest or manage its financial assets, liabilities and risks,

(iii) prescribing the types of debt instruments and financial obligations that the OPA can issue or enter into for or in relation to borrowing,

(iv) prescribing classes of securities, investment instruments and financial agreements that the OPA is authorized to invest in or enter into or is not authorized to invest in or enter into;

(c) prescribing classes of persons for the purposes of subsection 25.4 (4);

(d) governing activities of the Conservation Bureau established by the OPA;

(e) respecting the calculation of the fees referred to in subsection 25.17 (4) and respecting the manner in which, and the time at which, they are to be paid;

(f) prescribing the types of expenditures the OPA may recover through fees and charges and any restrictions and limitations in respect of the recovery of an expenditure;

(g) respecting the calculation of the fees and charges referred to in section 25.20 and respecting the manner in which, and the time at which, they are collected by the IESO and paid to the OPA;

(h) governing the fees for the OPA’s 2005 fiscal year for the purposes of section 25.21;

(i) prescribing provisions of the Business Corporations Act, the Corporations Act or the Corporations Information Act that apply, with necessary modifications, to the OPA.

(8) Section 114 of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 69, 2002, chapter 23, section 3 and 2004, chapter 19, section 12, is amended by adding the following subsection:

Regulations, Part II.2

(1.3) The Lieutenant Governor in Council may make regulations,

(a) prescribing assessment periods for the purposes of section 25.29;

(b) governing integrated power system plans and procurement processes;

(c) prescribing principles to be applied in developing procurement processes and in evaluating proposals for reducing or managing electricity demand or for increasing electricity supply or capacity;

(d) prescribing conditions for the purposes of subsection 25.31 (2);

(e) governing procurement contracts;

(f) governing adjustments, payments, set-offs and credits for the purposes of section 25.33, including regulations,

(i) prescribing methods for determining the amounts of adjustments under subsections 25.33 (1), (2) and (3), the time periods to which the adjustments apply and the time periods within which the adjustments must or may be made,

(ii) prescribing adjustments that must or may be made by distributors or retailers with respect to consumers or other distributors or retailers, methods for determining the amount of the adjustments, the time periods to which the adjustments apply and the time periods within which the adjustments must or may be made,

(iii) prescribing classes of consumers for the purposes of paragraph 3 of subsection 25.33 (3),

(iv) governing the presentation of adjustments on invoices to consumers,

(v) requiring the OPA to make payments to the IESO, a distributor or a retailer and prescribing methods for determining the amounts payable,

(vi) requiring the IESO to make payments to the OPA, a distributor or a retailer and prescribing methods for determining the amounts payable,

(vii) requiring a distributor to make payments to the OPA, the IESO, another distributor or a retailer and prescribing methods for determining the amounts payable,

(viii) requiring a retailer to make payments to the OPA, the IESO or a distributor and prescribing methods for determining the amounts payable,

(ix) governing the calculation of the amounts of the payments required by regulations made under this clause, methods of payment and the times within which payments must or may be made,

(x) authorizing payments referred to in subclause (ix) to be made by way of set-offs and credits and prescribing conditions entitling or requiring amounts to be set off or credited,

(xi) governing methods for determining amounts to be set off or credited, and the times within which amounts must or may be set off or credited, 

(xii) requiring a distributor, retailer or generator to provide information to the OPA, the IESO, a distributor or the Board for the purposes of section 25.33 or a regulation made under this clause,

(xiii) requiring the IESO to provide information to the OPA or the Board for the purposes of section 25.33 or a regulation made under this clause,

(xiv) requiring the Financial Corporation or the OPA to provide information to the IESO or the Board for the purposes of section 25.33 or a regulation made under this clause;

(g) governing the establishment and maintenance of variance accounts referred to in subsection 25.33 (5);

(h) governing payments, set-offs and credits for the purposes of section 25.34, including,

(i) prescribing classes of contracts,

(ii) requiring the OPA to make payments to the IESO, a distributor or retailer and prescribing methods for determining the amounts payable,

(iii) requiring the IESO to make payments to the OPA, a distributor or a retailer and prescribing methods for determining the amounts payable,

(iv) requiring a distributor to make payments to the OPA, the IESO, another distributor or a retailer and prescribing methods for determining the amounts payable,

(v) requiring a retailer to make payments to the OPA, the IESO or a distributor and prescribing methods for determining the amounts payable,

(vi) governing the payments required under a regulation made under this clause, including methods of payment and the times within which payments must or may be made,

(vii) authorizing payments referred to in subclause (vi) to be made by way of set-offs and credits and prescribing conditions entitling or requiring amounts to be set off or credited,

(viii) governing methods for determining amounts to be set off or credited, and the times within which amounts must or may be set off or credited, 

(ix) requiring a distributor or retailer to provide information to the OPA, the IESO, a distributor or the Board for the purposes of section 25.34 or a regulation made under this clause,

(x) requiring the IESO to provide information to the OPA or the Board for the purposes of section 25.34 or a regulation made under this clause.

(9) Subsection 114 (2) of the Act is amended by striking out “subsection (1)” and substituting “subsection (1), (1.2) or (1.3)”.

(10) Subsection 114 (3) of the Act is repealed.

(11) Section 114 of the Act, as amended by the Statutes of Ontario, 2001, chapter 23, section 69, 2002, chapter 23, section 3 and 2004, chapter 19, section 12, is amended by adding the following subsections:

Subdelegation

(5) A regulation under clause (1.2) (b) or (1.3) (f) or (h) may authorize a person to require, authorize, prescribe or otherwise determine any matter that may be required, authorized, prescribed or otherwise determined by the Lieutenant Governor in Council under that clause. 

Provision of information

(6) A person may do anything required by a regulation made under subclause (1.3) (f) (xii) or (xiii) or (h) (ix) or (x) despite any agreement to the contrary, the person is not liable for doing the thing in contravention of any agreement to the contrary, and doing the thing shall be deemed not to constitute a breach, termination, repudiation or frustration of any contract.

Conflict with market rules

(7) In the event of a conflict, a regulation made under clause (1.3) (f) or (h) prevails over the market rules to the extent of the conflict.

54. (1) Subsection 116 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 24, is amended by striking out “IMO” and substituting “IESO”.

(2) Clause 116 (5) (c) of the Act is amended by striking out “IMO” and substituting “IESO”.

55. Paragraph 3 of subsection 124 (2) of the Act is amended by striking out “IMO” and substituting “IESO”.

56. (1) Subsection 138 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, section 28, is amended by striking out “IMO” and substituting “IESO”.

(2) Subsection 138 (1.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 43 and amended by 2002, chapter 1, Schedule A, section 28, is amended by striking out “IMO” in the portion before paragraph 1 and substituting “IESO”.

57. Subsection 142 (7) of the Act, as enacted by the Statutes of Ontario, 1999, chapter 14, Schedule F, section 3, is repealed.

58. Section 159.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 3, is repealed.

59. Section 159.2 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 3, is repealed.

60. Section 159.3 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 3, is repealed.

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

Part xi.1
Transition — Ontario Power Authority, Ontario Energy Board, Independent Electricity System Operator

Definitions, Part XI.1

161.1 In this Part,

“transfer order” means an order made under section 161.2; (“décret de transfert”)

“transferee” means a person to whom assets, liabilities, rights or obligations are transferred by a transfer order; (“destinataire”)

“transferor” means the person from whom assets, liabilities, rights or obligations are transferred by a transfer order. (“auteur”)

Transfer orders

161.2 (1) The Lieutenant Governor in Council may make orders transferring the following:

1. Assets, liabilities, rights and obligations of the IESO relating to market surveillance and the Market Surveillance Panel to the Board.

2. Assets, liabilities, rights and obligations of the IESO relating to the forecasting of electricity demand and the adequacy and reliability of electricity resources for the medium and long term to the OPA.

Binding on all persons

(2) A transfer order is binding on the transferor, transferee and all other persons and does not require the consent of any person.

Same

(3) Subsection (2) applies despite any general or special Act or any rule of law, including an Act or rule of law that requires notice or registration of transfers.

Regulations Act

(4) The Regulations Act does not apply to a transfer order.

Application of provisions of Part X

161.3 Sections 117, 118, 121 and 123, subsection 125 (1) and sections 126 to 135 apply for the purposes of this Part and, in the application of those provisions, references to Ontario Hydro shall be deemed to be references to the transferor under the transfer order. 

Regulations

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

(a) supplementing the provisions of this Part and governing the transfer of assets, liabilities, rights and obligations under this Part;

(b) prescribing contracts or classes of contracts to which subsection 129 (1), as made applicable by section 161.3, does not apply, subject to such conditions or restrictions as may be prescribed by the regulations;

(c) prescribing Acts or provisions of Acts that do not apply to a transfer for the purpose of section 135, as made applicable by section 161.3, subject to such conditions or restrictions as may be prescribed by the regulations;

(d) requiring the IESO, OPA and the Board to enter into contracts relating to the provision of services and such other matters as the Lieutenant Governor in Council considers necessary or advisable,

(i) to assist the Board and the Market Surveillance Panel with respect to market surveillance of the IESO-administered markets,

(ii) to assist the OPA with respect to the forecasting of electricity demand and the adequacy and reliability of electricity resources for the medium and long term.

General or particular

(2) A regulation under this section may be general or particular in its application.

Commencement

62. (1) Subject to subsection (2), this Schedule comes into force on the day the Electricity Restructuring Act, 2004 receives Royal Assent.

Same

(2) Sections 1 to 29 and 31 to 57 and section 61 come into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule B
Amendments to the Ontario Energy Board Act, 1998

1. Section 1 of the Ontario Energy Board Act, 1998, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 2, is repealed and the following substituted:

Board objectives, electricity

1. (1) The Board, in carrying out its responsibilities under this or any other Act in relation to electricity, shall be guided by the following objectives:

1. To protect the interests of consumers with respect to prices and the adequacy, reliability and quality of electricity service.

2. To promote economic efficiency and cost effectiveness in the generation, transmission, distribution, sale and demand management of electricity and to facilitate the maintenance of a financially viable electricity industry.

Facilitation of integrated power system plans

(2) In exercising its powers and performing its duties under this or any other Act in relation to electricity, the Board shall facilitate the implementation of all integrated power system plans approved under the Electricity Act, 1998.

2. Section 2 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 3, is amended by adding the following paragraph:

5.1 To facilitate the maintenance of a financially viable gas industry for the transmission, distribution and storage of gas.

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

Market Surveillance Panel

4.3.1 (1) The Market Surveillance Panel established by the board of directors of the Independent Electricity Market Operator under subsection 13 (1) of the Electricity Act, 1998 as it read on January 1, 2004 is continued as the Market Surveillance Panel of the Board.

Appointment

(2) The Board’s management committee shall appoint the members of the Market Surveillance Panel.

Membership

(3) No person shall be appointed as a member of the Market Surveillance Panel if he or she has any material interest in a market participant or is a director, officer, employee or agent of,

(a) a generator, distributor, transmitter or retailer;

(b) a person who sells electricity or ancillary services through the IESO-administered markets or directly to another person who is not a consumer;

(c) a market participant;

(d) an industry association that represents a person referred to in clause (a), (b) or (c);

(e) the OPA;

(f) the IESO; or

(g) an affiliate of a person listed in clause (a), (b), (c), (e) or (f).

Same

(4) Subsection (3) applies only with respect to persons who first become members of the Market Surveillance Panel on or after the day subsection (3) comes into force.

Staff and assistance

(5) Subject to the by-laws made under section 4.10, the Market Surveillance Panel may use the services of employees of the Board and the IESO, with the consent of their employers, and of persons who have technical or professional expertise that the panel considers necessary.

Testimony

(6) A person who is a member of the Market Surveillance Panel or an employee of the IESO or the Board and who is 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

(7) 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 IESO-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.

Confidential information relating to market participant

(8) A record that contains information provided to or obtained by the Market Surveillance Panel relating to a market participant and that is designated by the Panel 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. 

Regulations

(9) The Lieutenant Governor in Council may make regulations,

(a) prescribing a day on which the Market Surveillance Panel is dissolved and the Board commences to exercise the powers and perform the duties of the Panel under this or any other Act;

(b) governing the application, after the dissolution of the Panel, of any provision of this or any other Act that relates to the Market Surveillance Panel or its powers or duties.

4. Section 4.4 of the Act, as enacted by the Statutes of Ontario, 2003, chapter 3, section 9, is repealed and the following substituted:

Stakeholder input

4.4 The Board shall establish one or more processes by which consumers, distributors, generators, transmitters and other persons who have an interest in the electricity industry may provide advice and recommendations for consideration by the Board.

5. Subsection 4.10 (1) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 3, section 11, is amended by adding the following clause:

(f) governing the composition and functions of the Market Surveillance Panel and the appointment, removal and remuneration of members of the Market Surveillance Panel.

6. Subsection 11 (1) of the Act is repealed and the following substituted:

Liability

(1) No action or other civil proceeding shall be commenced against any of the following persons for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under any Act or regulation or for any neglect or default in the exercise or performance in good faith of such a power or duty:

1. A member of the Board.

2. An officer, employee or agent of the Board.

3. A member of the Market Surveillance Panel.

4. An officer, employee or agent of the IESO acting on behalf of the Market Surveillance Panel.

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

Directives re: commodity risk

28.2 The Minister may issue, and the Board shall implement, directives approved by the Lieutenant Governor in Council directing the Board to take such steps or develop such processes as may be required by the directive to address risks or liabilities associated with customer billing and payment cycles in respect of the cost of electricity at the retail and at the wholesale levels and risks or liabilities associated with non-payment or default by a consumer or retailer.

8. Subsection 30 (1) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 3, section 25, is repealed and the following substituted:

Costs

(1) The Board may order a person to pay all or part of a person’s costs of participating in a proceeding before the Board, a notice and comment process under section 45 or 70.2 or any other consultation process initiated by the Board.

9. (1) Section 56 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 40, is amended by adding the following definition:

“alternative energy source” means an energy source that is an alternative energy source for the purposes of the Electricity Act, 1998; (“source d’énergie de remplacement”)

(2) The definition of “ancillary services” in section 56 of the Act is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(3) The definition of “designated consumer” in section 56 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2002, chapter 23, section 4 and 2003, chapter 3, section 40, is repealed.

(4) Section 56 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 40, is amended by adding the following definition:

“Financial Corporation” has the same meaning as in the Electricity Act, 1998; (“Société financière”)

(5) The definitions of “IMO”, “IMO-administered markets” and “IMO-controlled grid” in section 56 of the Act are repealed and the following substituted:

“IESO” means the Independent Electricity System Operator under the Electricity Act, 1998; (“SIERE”)

“IESO-administered markets” means the markets established by the market rules under the Electricity Act, 1998; (“marchés administrés par la SIERE ”)

“IESO-controlled grid” means the transmission systems with respect to which, pursuant to agreements, the IESO has authority to direct operations; (“réseau dirigé par la SIERE” )

(6) The definition of “low-volume consumer” in section 56 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed.

(7) The definition of “market participant” in section 56 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended,

(a) by striking out “IMO-administered markets” and substituting “IESO-administered markets”; and

(b) by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(8) Section 56 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 40, is amended by adding the following definition:

“OPA” means the Ontario Power Authority established under the Electricity Act, 1998; (“OEO”)

(9) Section 56 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4 and 2003, chapter 3, section 40, is amended by adding the following definition:

“renewable energy source” means an energy source that is a renewable energy source for the purposes of the Electricity Act, 1998; (“source d’énergie renouvelable”) 

10. (1) Section 57 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 6, is amended by striking out the portion before clause (a) and substituting the following:

Requirement to hold licence

57. The OPA shall neither exercise its powers nor perform its duties under the Electricity Act, 1998 unless licensed to do so under this Part and no other person shall, unless licensed to do so under this Part,

. . . . .

(2) Clauses 57 (c), (e) and (f) of the Act are amended by striking out “IMO-administered markets” wherever it appears and substituting in each case “IESO-administered markets”.

11. (1) Clauses 70 (2) (j) and (k) of the Act are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(2) Subsection 70 (2) of the Act, as amended by the Statutes of Ontario, 2003, chapter 3, section 47, is amended by adding the following clause:

(l) requiring the licensee to implement transmission requirements identified in an integrated power system plan approved under Part II.2 of the Electricity Act, 1998.

(3) Subsection 70 (2) of the Act, as amended by the Statutes of Ontario, 2003, chapter 3, section 47, is amended by adding the following clause:

(m) requiring licensees, where a directive has been issued under section 28.2, to implement such steps or such processes as the Board or the directive requires in order to address risks or liabilities associated with customer billing and payment cycles in respect of the cost of electricity at the retail and at the wholesale levels and risks or liabilities associated with non-payment or default by a consumer or retailer.

(4) Clause 70 (5) (a) of the Act is amended by striking out “IMO-administered markets” and substituting “IESO-administered markets”.

(5) Section 70 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 7, 2002, chapter 23, section 4 and 2003, chapter 3, section 47, is amended by adding the following subsections:

Requirement to provide information

(7) Every licence shall be deemed to contain a condition that the licensee is required to provide such reasonable information to the IESO or the OPA as either of them may require, in the manner and form specified by whichever of them makes the request for the information.

Conditions of OPA licence

(8) The Minister may issue, and the Board shall implement, directives that have been approved by the Lieutenant Governor in Council respecting conditions to be included by the Board in a licence issued to the OPA.

12. Section 71 of the Act is repealed and the following substituted:

Restriction on business activity

71. (1) Subject to subsection 70 (9) and subsection (2) of this section, a transmitter or distributor shall not, except through one or more affiliates, carry on any business activity other than transmitting or distributing electricity. 

Exception

(2) Subject to section 80 and such rules as may be prescribed by the regulations, a transmitter or distributor may provide services in accordance with section 29.1 of the Electricity Act, 1998 that would assist the Government of Ontario in achieving its goals in electricity conservation, including services related to,

(a) the promotion of electricity conservation and the efficient use of electricity;

(b) electricity load management; or

(c) the promotion of cleaner energy sources, including alternative energy sources and renewable energy sources.

13. Section 74 of the Act, as amended by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed and the following substituted:

Amendment of licence

74. (1) The Board may, on the application of any person, amend a licence if it considers the amendment to be,

(a) necessary to implement a directive issued under this Act; or

(b) in the public interest, having regard to the objectives of the Board and the purposes of the Electricity Act, 1998.

Further power to amend

(2) In addition to its power to amend a licence under subsection (1), the Board may amend a licence under section 38 of the Electricity Act, 1998.

14. (1) Section 78 of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule D, section 2, 2002, chapter 1, Schedule B, section 8, 2003, chapter 3, section 52 and 2003, chapter 8, section 1, is amended by adding the following subsections:

Annual rate plan and separate rates for situations prescribed by regulation

(3.1) The Board shall, in accordance with rules prescribed by the regulations, approve or fix separate rates for the retailing of electricity,

(a) to such different classes of consumers as may be prescribed by the regulations; and

(b) for such different situations as may be prescribed by the regulations.

Same

(3.2) The first rates approved or fixed by the Board under subsection (3.1) shall remain in effect for not less than 12 months and the Board shall approve or fix separate rates under subsection (3.1) after that time for periods of not more than 12 months each or for such shorter time periods as the Minister may direct.

Rates to reflect cost of electricity

(3.3) In approving or fixing rates under subsection (3.1),

(a) the Board shall forecast the cost of electricity to be consumed by the consumers to whom the rates apply, taking into consideration the adjustments required under section 25.33 of the Electricity Act, 1998 and shall ensure that the rates reflect these costs; and

(b) the Board shall take into account balances in the OPA’s variance accounts established under section 25.33 of the Electricity Act, 1998 and shall make adjustments with a view to eliminating those balances within 12 months or such shorter time periods as the Minister may direct.

Forecasting cost of electricity

(3.4) In forecasting the cost of electricity for the purposes of subsection (3.3), the Board shall have regard to such matters as may be prescribed by the regulations.

Imposition of conditions on consumer who enters into retail contract

(3.5) A consumer who enters into or renews a retail contract for electricity after the day he or she becomes subject to a rate approved or fixed under subsection (3.1) is subject to such conditions as may be determined by the Board.

(2) Subsection 78 (5) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 1, is repealed.

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

Payments to prescribed generator

78.1 (1) The IESO shall make payments to a generator prescribed by the regulations, or to the OPA on behalf of a generator prescribed by the regulations, with respect to output that is generated by a unit at a generation facility prescribed by the regulations.

Payment amount

(2) Each payment referred to in subsection (1) shall be the amount determined,

(a) in accordance with the regulations to the extent the payment relates to a period that is on or after the day this section comes into force and before the later of,

(i) the day prescribed for the purposes of this subsection, and

(ii) the effective date of the Board’s first order in respect of the generator; and

(b) in accordance with the order of the Board then in effect to the extent the payment relates to a period that is on or after the later of,

(i) the day prescribed for the purposes of this subsection, and

(ii) the effective date of the Board’s first order under this section in respect of the generator.

OPA may act as settlement agent

(3) The OPA may act as a settlement agent to settle amounts payable to a generator under this section.

Board orders

(4) The Board shall make an order under this section in accordance with the rules prescribed by the regulations and may include in the order conditions, classifications or practices, including rules respecting the calculation of the amount of the payment.

Fixing other prices

(5) The Board may fix such other payment amounts as it finds to be just and reasonable,

(a) on an application for an order under this section, if the Board is not satisfied that the amount applied for is just and reasonable; or

(b) at any other time, if the Board is not satisfied that the current payment amount is just and reasonable.

Burden of proof

(6) Subject to subsection (7), the burden of proof is on the applicant in an application made under this section.

Order

(7) If the Board on its own motion or at the request of the Minister commences a proceeding to determine whether an amount that the Board may approve or fix under this section is just and reasonable,

(a) the burden of establishing that the amount is just and reasonable is on the generator; and

(b) the Board shall make an order approving or fixing an amount that is just and reasonable.

Application

(8) Subsections (4), (5) and (7) apply only on and after the day prescribed by the regulations for the purposes of subsection (2).

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

Payments to the Financial Corporation

78.2 (1) The IESO shall make payments to the Financial Corporation with respect to the Financial Corporation’s contracts with generators relating to output generated at generation facilities prescribed by the regulations and the provision of ancillary services at those generation facilities.

Payment amounts

(2) The payments to the Financial Corporation in respect of a contract referred to in subsection (1) shall equal the amounts required to reimburse the Financial Corporation for its indirect costs, as determined under the regulations, and its direct costs under the contract.

OPA may act as settlement agent

(3) The OPA may act as a settlement agent to settle amounts payable to the Financial Corporation under this section.

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

Payments to the OPA for output under procurement contracts

78.3 (1) The IESO shall make payments to the OPA with respect to output generated by units at generation facilities and ancillary services in respect of which the OPA has entered into procurement contracts under Part II.2 of the Electricity Act, 1998 that are prescribed by the regulations or that satisfy the rules prescribed by the regulations.

Payment amounts

(2) The payments under subsection (1) to the OPA shall equal the amounts payable by the OPA under the procurement contracts referred to in that subsection.

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

Payment to the OPA under procurement contracts

78.4 (1) The IESO shall make payments to the OPA with respect to amounts paid or payable by the OPA to an entity with whom the OPA has entered into a procurement contract under Part II.2 of the Electricity Act, 1998 that is prescribed by the regulations or that satisfies the rules prescribed by the regulations.

Payment amounts

(2) The payments under subsection (1) to the OPA shall be the amounts payable by the OPA under the procurement contracts referred to in that subsection.

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

Conflict with market rules

78.5 In the event of a conflict, sections 78.1 to 78.4 prevail over the market rules to the extent of the conflict.

20. Subsection 79.1 (20) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

21. Subsections 79.2 (1), (2) and (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

22. (1) Clauses 79.4 (1) (a) and (b) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 5, are repealed and the following substituted:

(a) with respect to electricity used on or after April 1, 2004 and before the date prescribed in the regulations for the purposes of this subsection, the prices determined in accordance with the regulations; and

(b) with respect to electricity used on or after the date prescribed for the purposes of this subsection, the rates determined by the Board in accordance with the regulations.

(2) Subclause 79.4 (2) (a) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO” and substituting  “IESO”.

(3) Subsection 79.4 (4) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

(4) Subsection 79.4 (5) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 5, is repealed and the following substituted:

Exception:  service transaction request, contract entered into after commencement

(5) If a consumer enters into or renews a contract after December 9, 2002 with respect to which a service transaction request as defined in the Retail Settlement Code is or has been implemented to enable the consumer to purchase electricity from a competitive retailer as defined in the Retail Settlement Code, subsection (1) does not apply to the consumer during the term of the contract.

23. Subclause 79.5 (1) (a) (ii) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO” and substituting  “IESO”.

24. Subsection 79.11 (1) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 8, section 10, is repealed and the following substituted:

Repeal

(1) Sections 79.3 to 79.10, sections 79.12 to 79.15, clauses 88 (1) (r) to (z.5) and subsections 88 (2.1) to (2.3) are repealed on a day to be named by proclamation of the Lieutenant Governor. 

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

Commodity price for electricity:  low volume consumers, etc.

79.16 (1) Despite any order under section 78 and, subject to subsection (7), despite any agreement to the contrary entered into or renewed on or before December 9, 2002, the rates for electricity payable by a consumer who is a member of a class of consumers prescribed by the regulations for the purposes of this section are,

(a) with respect to electricity used on or after the day this subsection comes into force and before the day prescribed by the regulations for the purposes of this subsection, the price determined in accordance with the regulations; and 

(b) with respect to electricity used on or after the day prescribed by the regulations for the purposes of this subsection, the rates determined by the Board in accordance with the regulations.

Same

(2) The Board shall not make any rate determinations for the purposes of clause (1) (b) unless a regulation has been made under clause 88 (1) (z.8). 

Adjustment to eliminate variances

(3) In determining rates under clause (1) (b), the Board shall take into account balances in variance accounts established under section 25.33 of the Electricity Act, 1998 and make adjustments with a view to eliminating those balances within 12 months or such shorter time periods as the Minister may direct.

Exception:  consumers who file statement

(4) Subsection (1) does not apply to a consumer if,

(a) the consumer indicates in a written statement that the consumer does not wish to have subsection (1) apply and the consumer files the written statement with,

(i) the distributor with whom the consumer has an account, if the consumer is not a market participant, or

(ii) the IESO, if the consumer is a market participant; and

(b) at the time the statement is filed under clause (a), a regulation prescribing criteria for the purpose of this clause is in force and those criteria are met. 

Application of subs. (1)

(5) Subsection (1) does not apply to a consumer to whom electricity is distributed through a distribution system that is not connected to the IESO-controlled grid. 

Exception:  service transaction request, contract entered into after December 9, 2002

(6) If a consumer enters into or renews a contract after December 9, 2002 with respect to which a service transaction request as defined in the Retail Settlement Code is or has been implemented to enable the consumer to purchase electricity from a competitive retailer as defined in the Retail Settlement Code, subsection (1) does not apply to the consumer during the term of the contract.

Contracts entered into after December 9, 2002

(7) Subject to subsection (6), the commodity price for electricity payable by a consumer under subsection (1) is subject to any contract the consumer renews or enters into after December 9, 2002.

Same

(8) A consumer who enters into or renews a retail contract for electricity after the date prescribed for the purposes of subsection (1) or becomes subject to a rate approved or fixed by the Board under this section is subject to such conditions as may be determined by the Board.

Repeal

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

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

Form of invoice for prescribed classes of consumers

79.17 (1) The Minister may require that invoices issued in respect of electricity to consumers who are members of a class of consumers prescribed by the regulations be in a form approved by the Minister. 

Different forms

(2) The Minister may approve different forms of invoices and may specify the circumstances in which each form shall be used.

Errors

(3) No defect, error or omission in the form or substance of an invoice issued in respect of electricity to a consumer referred to in subsection (1) invalidates any proceeding for the recovery of the amount payable under the invoice. 

27. (1) Subsection 83 (1) of the Act is amended by striking out “transmitters, distributors and retailers” and substituting “generators to whom section 78.1 applies, transmitters, distributors and retailers”.

(2) Subsection 83 (2) of the Act is amended by striking out “transmitters, distributors and retailers” and substituting “generators to whom section 78.1 applies, transmitters, distributors and retailers”.

28. Subsection 87 (2) of the Act is repealed and the following substituted:

Board to advise Minister

(2) The Board shall advise the Minister with respect to any of the following matters if requested by the Minister to do so or if the Board considers it advisable to do so:

1. Any abuse or potential abuse of market power in the electricity sector.

2. The circumstances giving rise to or that is capable of giving rise to unintended outcomes or effects that operate contrary to the interests of competition.

29. (1) Clause 88 (1) (b) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10 and 2002, chapter 23, section 4, is amended by striking out “IMO” and substituting “IESO”.

(2) Clause 88 (1) (g.2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed.

(3) Clause 88 (1) (g.3) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed.

(4) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clause:

(g.3.1) prescribing rules for the purposes of subsection 71 (2);

(5) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clause:

(g.6) prescribing different classes of consumers for the purposes of section 78 and the date or method of determining the date on which rates approved or fixed for a class of consumers take effect;

(6) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clauses:

(g.7) governing the approving or fixing under subsection 78 (3.1) of rates for the retailing of electricity, including,

(i) prescribing rules for the purposes of subsection 78 (3.1), and

(ii) prescribing matters for the purposes of subsection 78 (3.4) to be taken into consideration in forecasting the cost of electricity and the methods of and procedures for forecasting the cost of electricity, including the treatment of any outstanding balances in variance accounts held by the OPA;

(g.8) prescribing conditions for the purposes of subsection 78 (3.5);

(7) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clauses:

(i.1) prescribing generators and generation facilities and units for the purposes of section 78.1;

(i.2) prescribing generators or generation facilities and units at generation facilities whose generators may apply to the Board for an order that section 78.1 applies to the facility or unit and rules governing the procedure for applying, the criteria to be satisfied and any terms and limitations that must or may be included in the order;

(i.3) governing circumstances in which payments shall not be made under section 78.1;

(i.4) prescribing a date for the purposes of subsection 78.1 (2);

(i.5) prescribing payment amounts or methods for determining payment amounts for the purposes of clause 78.1 (2) (a) including prescribing separate prices or methods for different situations, including situations defined with respect to energy sources, time of generation and amounts of electricity generated; 

(i.6) governing the determination of payment amounts by the Board under section 78.1, including rules prescribing,

(i) methods of and procedures for determining payment amounts,

(ii) financial factors which the Board may take into consideration in determining payment amounts, and

(iii) different payment amounts or different methods of and procedures for determining payment amounts for different situations, including situations defined with respect to energy sources, time of generation and amounts of electricity generated; 

(i.7) authorizing or requiring generators to establish one or more variance or deferral accounts in connection with section 78.1;

(i.8) prescribing generation facilities for the purposes of section 78.2;

(i.9) prescribing rules for determining the amount of the Financial Corporation’s indirect costs in respect of a contract for the purposes of section 78.2;

(i.10)  prescribing procurement contracts or rules relating to procurement contracts for the purposes of section 78.3;

(i.11)  prescribing procurement contracts or rules relating to procurement contracts for the purposes of section 78.4;

(8) Clauses 88 (1) (r.1) and (r.2) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 11, are repealed and the following substituted:

(r.1) governing the determination of rates by the Board under clause 79.4 (1) (b), including,

(i) prescribing methods of and procedures for determining rates, including requiring persons licensed under this Part to participate in those methods and procedures and to enter into contracts or other arrangements as part of those methods and procedures, and

(ii) prescribing different situations for which separate rates must be determined, including situations defined with respect to types of consumers, amounts of electricity used and times when electricity is used;

(r.2) prescribing a date for the purposes of subsection 79.4 (1);

(9) Clause 88 (1) (z) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed.

(10) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clauses: 

(z.6) prescribing classes of consumers for the purposes of section 79.16;

(z.7) prescribing prices or methods for determining prices for the purpose of clause 79.16 (1) (a), including prescribing separate prices or methods for different situations, including situations defined with respect to types of consumers and amounts of electricity used;

(z.8) governing the determination of rates by the Board under clause 79.16 (1) (b), including,

(i) prescribing methods of and procedures for determining rates, including requiring persons licensed under this Part to participate in those methods and procedures and to enter into contracts or other arrangements as part of those methods and procedures, and

(ii) prescribing different situations for which separate rates must be determined, including situations defined with respect to types of consumers, amounts of electricity used and times when electricity is used;

(z.9) prescribing a date for the purpose of subsection 79.16 (1);

(z.10) prescribing criteria for the purposes of clause 79.16 (4) (b).

(11) Subsection 88 (1) of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following clauses:

(z.11) prescribing classes of consumers for the purposes of section 79.17 and information that must or may be included on invoices issued in respect of electricity to consumers in one or more of the prescribed classes;

(z.12) respecting the manner in which invoices issued in respect of electricity to consumers who are members of a class of consumers prescribed for the purposes of section 79.17 are to be provided to those consumers.

(12) Section 88 of the Act, as amended by the Statutes of Ontario, 2002, chapter 1, Schedule B, section 10, 2002, chapter 23, section 4, 2003, chapter 3, section 56 and 2003, chapter 8, section 11, is amended by adding the following subsections:

Retroactive

(2) A regulation made under clause (1) (i.5), (i.9) or (z.7) may apply in respect of an amount payable before the day the regulation is filed.

Same

(2.0.1) A regulation made under clause (1) (i.8), (i.9), (i.10) or (i.11) may apply with respect to a period before it is filed.

Conflict with market rules

(2.0.2) In the event of a conflict, a regulation made under clause (1) (i.5), (i.6), (i.9), (i.10) or (i.11) prevails over the market rules to the extent of the conflict.

30. (1) Clause 88.0.1 (1) (c) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO” and substituting  “IESO”.

(2) Clause 88.0.1 (1) (c.1) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 12, is repealed and the following substituted:

(c.1) to provide for payments to consumers, if the Minister determines that, in respect of all periods to which clause 79.4 (1) (a) or 79.16 (1) (a) applied, the total of the amount received by the Financial Corporation in connection with this Act and the amount received by the OPA under section 25.33 of the Electricity Act, 1998 exceeds the total of the amount expended by the Financial Corporation in connection with this Act and the amount expended by the OPA under section 25.33 of the Electricity Act, 1998;

(3) Clause 88.0.1 (1) (c.2) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 12, is amended by striking out “and the IMO” and substituting “the IESO and the OPA”.

(4) Clause 88.0.1 (1) (d) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO-administered markets” and substituting IESO-administered markets”.

(5) Clause 88.0.1 (1) (e) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “sections 79.4 and 79.5” and substituting “clause 79.4 (1) (a), section 79.5 and clause 79.16 (1) (a)”.

(6) Subsection 88.0.1 (1) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 12, is amended by adding the following clause:

(e.1) to compensate the OPA for payments made by it under section 25.33 of the Electricity Act, 1998 in respect of any period during which either clause 79.4 (1) (a) or 79.16 (1) (a) applies;

(7) Clause 88.0.1 (1) (f) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “IMO” and substituting  “IESO”.

(8) Clause 88.0.1 (2) (a) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed and the following substituted:

(a) requiring the Financial Corporation or a subsidiary of the Financial Corporation to make payments to distributors, retailers, the IESO or the OPA, requiring the OPA to make payments to distributors, retailers or the IESO and prescribing methods for determining the amounts payable;

(9) Clause 88.0.1 (2) (c) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is amended by striking out “the IMO” and substituting “the IESO, the OPA”.

(10) Clause 88.0.1 (2) (c.1) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 8, section 12, is repealed and the following substituted:

(c.1) requiring distributors, retailers or the IESO to make payments to consumers to whom either clause 79.4 (1) (a) or 79.16 (1) (a) applied and prescribing rules for calculating the amount of the payments and for determining the classes of consumers who are entitled to receive payments;

(11) Clause 88.0.1 (2) (e) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed and the following substituted:

(e) governing the calculation of amounts payable by distributors and consumers to the IESO for the operation of the IESO-administered markets and the operation of the IESO-controlled grid;

(12) Clause 88.0.1 (2) (f) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and clause 88.0.1 (2) (h) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 12, are amended by striking out “IMO” wherever it appears and substituting in each case “IESO”.

(13) Clause 88.0.1 (2) (h) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 12, is repealed and the following substituted:

(h) for the purposes of this section, requiring distributors, retailers or consumers to provide information to the Financial Corporation or a subsidiary of the Financial Corporation, the IESO, the OPA or distributors, requiring the IESO to provide information to the Financial Corporation or a subsidiary of the Financial Corporation, the OPA or distributors and requiring the OPA to provide information to the Financial Corporation or a subsidiary of the Financial Corporation, the IESO or distributors.

(14) Subsection 88.0.1 (2) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 12, is amended by adding the following clause:

(i) prescribing a day for the purposes of subsection (2.1).

(15) Section 88.0.1 of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4 and amended by 2003, chapter 8, section 12, is amended by adding the following subsection:

Application of regulations

(2.1) A regulation made under clause (2) (a), (b), (c), (c.1), (d), (e), (f), (g) or (h) applies only with respect to electricity generated or consumed before the day prescribed for the purposes of this subsection.

(16) Clauses 88.0.1 (7) (c) and (8) (c) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, are amended by striking out “or the IMO” wherever it appears and substituting in each case “the IESO or the OPA”.

(17) Subsection 88.0.1 (19) of the Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 4, is repealed and the following substituted:

Repeal

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

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

Reaffirmation of existing contracts

Application

88.9.1 (1) This section applies in respect of contracts for electricity between retailers and residential consumers that are entered into or renewed on or after June 15, 2004 and before the day prescribed by the regulations.

Contract ceases to have effect if not reaffirmed

(2) A contract for electricity to which this section applies ceases to have effect on a day determined under the regulations unless the consumer under the contract reaffirms the contract in accordance with the regulations.

Recovery of overpayments

(3) A consumer may recover an amount paid under a contract that ceases to have effect under subsection (2) if,

(a) the amount was paid before the contract ceased to have effect; and

(b) the amount was paid in respect of electricity that was to have been supplied after the contract ceased to have effect.

No cause of action

(4) No cause of action arises as a result of a contract ceasing to have effect under subsection (2).

Regulations

(5) The Lieutenant Governor in Council may make regulations,

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

(b) governing reaffirmations of contracts for the purposes of this section;

(c) prescribing rules for determining the day as of which a contract ceases to have effect if it is not reaffirmed.

32. Subsection 107 (2) of the Act, as enacted by the Statutes of Ontario, 2003, chapter 3, section 70, is repealed and the following substituted:

Application of subs. (1)

(2) Subsection (1) only applies to documents, records and information that relate to the following:

1. Activities for which a licence is required under section 48 or 57.

2. Gas distribution, gas transmission or gas storage, including the sale of gas by a gas distributor.

3. Transactions between a gas distributor, gas transmitter or gas storage company and its affiliates.

4. Transactions between a person required to have a licence under clause 57 (a) or (b) and its affiliates.

5. Adjustments, payments, set-offs and credits under sections 25.33 and 25.34 of the Electricity Act, 1998 and under the regulations made under clauses 114 (1.3) (f) and (h) of that Act.

6. Payments under sections 78.1 to 78.4.

33. Clause (b) of the definition of “enforceable provision” in section 112.1 of the Act, as enacted by the Statutes of Ontario, 2003, chapter 3, section 76, is repealed and the following substituted:

(b) section 25.33, 25.34, 26, 27, 28, 29 or 31 of the Electricity Act, 1998, or any other provision of that Act that is prescribed by the regulations,

(b.1) regulations made under clause 114 (1.3) (f) or (h) of the Electricity Act, 1998,

Commencement

34. (1) Subject to subsection (2), this Schedule comes into force on the day the Electricity Restructuring Act, 2004 receives Royal Assent.

Same

(2) Sections 1 to 33 come into force on a day to be named by proclamation of the Lieutenant Governor.

Schedule C
consequential Amendments to other Acts

1. Subsection 3.1 (7) of the Assessment Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 1, is amended by striking out “IMO-controlled grid” in the portion before clause (a) and substituting “IESO-controlled grid”.

2. Subclause 13.6 (2) (d) (i) of the Corporations Tax Act, as enacted by the Statutes of Ontario, 2002, chapter 23, section 2 and amended by 2004, chapter 16, section 2, is amended by striking out “IMO-controlled grid” and substituting “IESO-controlled grid”.

Commencement

3. (1) Subject to subsection (2), this Schedule comes into force on the day the Electricity Restructuring Act, 2004 receives Royal Assent.

Same

(2) Sections 1 and 2 come into force on the day subsection 2 (1) of Schedule A to the Electricity Restructuring Act, 2004 comes into force.