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Electricity Act, 1998, S.O. 1998, c. 15, Sched. A

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49 more
O. Reg. 341/15 PRESCRIBED MUNICIPAL ELECTRICITY UTILITIES - SECTION 88 OF THE ACT
O. Reg. 288/14 OTHER OBJECTS, IESO
O. Reg. 280/14 IESO: ELIGIBLE INVESTMENTS AND BORROWING
O. Reg. 423/11 PAYMENTS IN LIEU (SECTION 92 OF THE ACT) RE GENERATING AND TRANSFORMER STATIONS
O. Reg. 326/09 MANDATORY INFORMATION RE CONNECTIONS
O. Reg. 214/08 RELIABILITY STANDARDS
O. Reg. 438/07 PRODUCT SAFETY
O. Reg. 431/07 PROCUREMENT CONTRACTS
O. Reg. 393/07 SMART METERING ENTITY
O. Reg. 215/07 EXEMPTION: COMPLIANCE WITH SECTION 144 OF THE ACT
O. Reg. 428/06 PRIORITY INSTALLATIONS
O. Reg. 427/06 SMART METERS: DISCRETIONARY METERING ACTIVITY AND PROCUREMENT PRINCIPLES
O. Reg. 425/06 CRITERIA AND REQUIREMENTS FOR METERS AND METERING EQUIPMENT, SYSTEMS AND TECHNOLOGY
O. Reg. 570/05 LICENSING OF ELECTRICAL CONTRACTORS AND MASTER ELECTRICIANS
O. Reg. 430/04 PAYMENTS RE SECTION 25.33 OF THE ACT
O. Reg. 429/04 ADJUSTMENTS UNDER SECTION 25.33 OF THE ACT
O. Reg. 22/04 ELECTRICAL DISTRIBUTION SAFETY
O. Reg. 114/03 CORRIDOR LAND
O. Reg. 371/02 TORONTO LAND USE - SECTION 46.2 OF THE ACT
O. Reg. 199/02 HYDRO ONE INC.
O. Reg. 135/02 WATER POWER LEASES - NIAGARA PARKS COMMISSION
O. Reg. 124/02 TAXES AND CHARGES ON HYDRO-ELECTRIC GENERATING STATIONS
O. Reg. 494/01 DEBT RETIREMENT CHARGE - ADMINISTRATION
O. Reg. 493/01 DEBT RETIREMENT CHARGE - RATES AND EXEMPTIONS
O. Reg. 162/01 PAYMENTS IN LIEU OF CORPORATE TAXES - MUNICIPAL ELECTRICITY UTILITIES
O. Reg. 80/01 ALLOCATION OF REVENUES
O. Reg. 77/01 TRANSITION - GENERATION CORPORATION TARIFFS
O. Reg. 12/01 APPEALS FROM PENALTIES IMPOSED UNDER THE MARKET RULES
O. Reg. 318/00 TRANSITION - GENERATION CORPORATION DESIGNATED RATE OPTIONS
O. Reg. 632/99 PENSION PLANS
O. Reg. 515/99 LOW-VOLUME CONSUMERS - SECTION 26 OF THE ACT
O. Reg. 207/99 PAYMENTS IN LIEU OF CORPORATE TAXES
O. Reg. 164/99 ELECTRICAL SAFETY CODE
O. Reg. 160/99 DEFINITIONS AND EXEMPTIONS
O. Reg. 159/99 REFERENCES TO ONTARIO HYDRO
O. Reg. 124/99 TRANSFER TAX ON MUNICIPAL ELECTRICITY PROPERTY
O. Reg. 115/99 FINANCIAL CORPORATION
O. Reg. 97/99 TRANSFER ORDERS AND TRANSFER BY-LAWS
O. Reg. 89/99 ELECTRICAL SAFETY AUTHORITY
O. Reg. 648/98 DESIGNATION OF THE GENERATION CORPORATION AND THE SERVICES CORPORATION
O. Reg. 610/98 THE IESO

 

Electricity Act, 1998

S.O. 1998, CHAPTER 15
Schedule A

Historical version for the period June 17, 2004 to November 3, 2004.

Disclaimer: This consolidation is not an official copy of the law because it is affected by one or more retroactive provisions which have not been incorporated into it. For information about the retroactive provisions, see S.O. 2004, chapter 16, subsection 5 (2) and Schedule D, Table, S.O. 2004, chapter 31, Schedule 11, subsections 8 (2-4) and S.O. 2005, chapter 31, Schedule 6, subsections 4 (2, 3).

Amended by:  1999, c. 9, ss. 102-104; 1999, c. 14, Sched. F, s. 3; 2000, c. 25, s. 46; 2000, c. 26, Sched. D, s. 1; 2000, c. 42, ss. 22-43; 2001, c. 8, s. 205; 2001, c. 9, Sched. F, s. 1; 2001, c. 23, ss. 67-69; 2002, c. 1, Sched. A; 2002, c. 17, Sched. F, Table; 2002, c. 22, ss. 61-63; 2002, c. 23, s. 3; 2002, c. 24, Sched. B, s. 33; 2004, c. 8, s. 46, Table.

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CONTENTS

PART I
GENERAL

1.

Purposes

2.

Interpretation

3.

Municipal Act, 2001

PART II
INDEPENDENT ELECTRICITY MARKET OPERATOR

4.

Independent Electricity Market Operator

5.

Objects and character

6.

Not Crown agent

7.

Board of directors

8.

Chief executive officer

9.

Director duties

10.

Conflict of interest

11.

Codes of conduct

12.

Delegation

13.

Panels

14.

Liability

14.1

Confidential information relating to market participant

15.

Liability of directors under the Employment Standards Act

16.

By-laws

17.

Province may purchase securities, etc.

18.

Fees

19.

Review of requirements and fees

20.

Auditor

21.

Annual report

22.

Other reports

23.

Information to Board

24.

Application of corporations statutes

25.

Statutory Powers Procedure Act

PART III
THE ELECTRICITY MARKETS

Access to Transmission and Distribution Systems

26.

Non-discriminatory access

27.

Use of IMO-controlled grid

28.

Distributor’s obligation to connect

29.

Distributor’s obligation to sell electricity

30.

Allocation during emergencies, etc.

31.

Termination of service

Market Rules

32.

Market rules

33.

Amendment of market rules

34.

Urgent amendments

35.

Other reviews of market rules

35.1

Statutory powers of decision

36.

Appeals from orders

36.1

Exemptions from market rules

Investigations

37.

Investigation by Market Surveillance Panel

37.1

Review of materials by Panel

37.2

No obstruction

37.3

Confidentiality

Abuse of Market Power

38.

Abuse of market power

Emergency Plans

39.

Emergency plans

Powers of Entry

40.

Powers of entry

Property Interests

41.

Public streets and highways

42.

Telecommunications services

42.1

Easement: generators, transmitters and distributors

43.

Easement over lands sold for taxes

43.1

Easement: municipal public utilities

44.

Ownership of fixtures

45.

Exemption from seizure

46.

Unregistered rights

46.1

Transition

46.2

Toronto land used by Ontario Hydro

47.

Affixing signs, etc.

PART IV
HYDRO ONE INC.

48.

Objects of Hydro One Inc.

48.1

Statutory duties and restrictions

48.2

Mandatory provisions in articles

49.

Rights of the Minister

50.

Corporations authorized re Hydro One Inc.

50.1

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

50.2

Right of the Minister re corporations and other entities and arrangements

50.3

Proceeds of disposition

50.4

Reporting requirements

51.

Non-application, Financial Administration Act, s. 28

52.

Residual power of the Crown

53.

Regulations

PART IV.1
ONTARIO POWER GENERATION INC.

53.1

Objects of Ontario Power Generation Inc.

53.2

Rights of the Minister

53.3

Corporations to hold shares

53.4

Reporting requirements

53.5

Residual power of the Crown

PART V
THE FINANCIAL CORPORATION

54.

Ontario Hydro Financial Corporation

55.

Objects and character

56.

Crown agent

57.

Property interests belonging to the Crown

58.

Board of directors

59.

Chief executive officer

60.

Delegation

61.

By-laws

62.

Use of revenues

63.

Special purpose account

65.

Limitation on borrowing

66.

Authorization to borrow

67.

Province may purchase securities, etc.

68.

Province may raise funds

69.

Guarantee and indemnity

70.

Delegation, order under ss. 66 to 69

71.

Fees payable to Minister of Finance

72.

Subsidiaries

73.

Entities established for effecting financing

74.

Directives

75.

Evidence of authority

76.

Employees

77.

Liability

78.

Waiver of immunity

79.

Judgments against Financial Corporation

80.

Audits

81.

Annual report

82.

Other reports

83.

Application of corporations statutes

84.

Tax exemption

84.1

Repeal, Part V

PART V.1
DEBT RETIREMENT CHARGE

The Residual Stranded Debt and the Debt Retirement Charge

85.

Charges to retire debt

85.1

Duty to meter consumption

85.2

Exemptions

Registration

85.3

Collectors of debt retirement charge

85.4

Registration of self-generating users

Assessment and Reassessment of Amounts Owing

85.5

Assessment payable by collector

85.6

Administrative penalties, collectors

85.7

Assessments payable by users

85.8

Administrative penalties, users

85.9

Administrative penalty, self-generating user

85.10

Liability of corporate directors

85.11

Assessment of interest payable

85.12

Notice of assessment

85.13

Effect of information and returns

Payments, Refunds and Rebates

85.14

Payment of assessed amounts

85.15

Refunds and rebates

85.16

Refund of overpayment

Objections and Appeals

85.17

Objections and appeals

Collection of Amounts Owing

85.18

Funds held in trust

85.19

Method of collection

Offences

85.20

Offences

85.21

Offence, directors of a corporation

85.22

Offence, confidentiality

85.23

Offences, false statements, etc., and fraud

85.24

General offence

85.25

Imprisonment, failure to pay fine

85.26

Limitation period and onus of proof

85.27

Payment of fines

Administration

85.28

Inspection

85.29

Confidentiality

85.30

Methods of giving notice

85.31

Proof of compliance

85.32

Evidence re collectors

85.33

Evidence re other documents

85.34

Affidavits, etc.

85.35

Forms

86.

Regulations, Parts V and V.I

87.

Repeal

PART VI
SPECIAL PAYMENTS

88.

Definitions, Part VI

89.

Payments in lieu of federal corporate tax

90.

Payments in lieu of provincial corporate tax

91.

Other payments

91.1

Allocation of Federal tax

92.

Payments in lieu of additional municipal and school taxes

92.1

Tax and charges on hydro-electric stations

93.

Municipal electricity utilities

94.

Municipal electricity property: transfer tax

95.

Application of Corporations Tax Act

95.1

Order to remit, Financial Corporation

96.

Regulations, Part VI

PART VII
PENSION PLANS

97.

Interpretation, Part VII

98.

Financial Corporation Pension Plan

99.

Employer contributions to FCPP

100.

Administrative costs of FCPP

101.

Additional pension plans of Financial Corporation

102.

Successor pension plans

103.

Members of successor plans

104.

Employer contributions to successor plans

104.1

Participation by affiliates in successor pension plans

105.

Administrative costs of successor plans

106.

Additional pension plans of successor employers

107.

Reciprocal transfer agreements

108.

FCPP membership temporarily extended

109.

Employer contributions re temporary members

110.

Subsidiary to act as agent of Financial Corporation

111.

Transfer agreements for successor plans

112.

Transfer of benefits to successor plans

PART VIII
ELECTRICAL SAFETY CODE

113.

Electrical safety code

PART IX
REGULATIONS

114.

Regulations

PART IX.1
OWNERSHIP AND USE OF CORRIDOR LAND

Interpretation

114.1

Definitions

Ownership and Use

114.2

Transfer of corridor land to the Crown

114.3

Effect of transfer to the Crown

114.4

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

114.5

Statutory right to use corridor land

114.6

Primacy of use for transmission or distribution system

114.7

Duty re use of corridor land

114.8

Directions re location of buildings, etc.

114.9

Relocation of buildings, etc.

114.10

Cessation of use for transmission system, etc.

114.11

Disposition of statutory right

114.12

Restriction on expropriation by holder of statutory right

114.13

Transfer of ownership by Crown to person with statutory right

General

114.14

Duty to provide records, information and reports

114.15

Residual power of the Crown

114.16

Indemnity re corridor land

114.17

Delegation of powers and duties

114.18

Regulations

PART X
TRANSITION — ONTARIO HYDRO

115.

Definitions, Part X

116.

Transfer orders

117.

Notice of date

118.

Description of things transferred

119.

Approvals under the Power Corporation Act

120.

Officers and employees

121.

Payment for transfer

122.

Province may assume obligations in return for securities

123.

Effective date of transfer

124.

Statements in registered documents

125.

Execution of agreements

126.

Enforcement of things transferred

127.

Actions and other proceedings

128.

Limitation periods

129.

Certain rights not affected by transfer

130.

No new cause of action

131.

Conditions on exercise of powers

132.

Information

133.

Transfer orders, other matters

134.

Amendment of transfer order

135.

Exemptions from other Acts

136.

Limitations

137.

Pensions

138.

Other transfer orders

139.

Provincial liability not limited

140.

Regulations, Part X

PART XI
TRANSITION — MUNICIPAL ELECTRICITY UTILITIES

141.

Interpretation, Part XI

142.

Incorporation of municipal electricity businesses

143.

No new commissions

144.

Restriction on municipal electricity activity

145.

Transfer by-laws

146.

Description of things transferred

147.

Employees

148.

Reserve funds

149.

Payment for transfer

150.

Effective date of transfer

151.

Statements in registered documents

152.

Execution of agreements

153.

Enforcement of things transferred

154.

Actions and other proceedings

155.

Limitation periods

156.

Certain rights not affected by transfer

157.

Information

158.

Transfer by-laws, other matters

159.

Exemptions from other Acts

159.1

Resolution

159.2

Compensation for certain shareholders

159.3

Definition

160.

Regulations, Part XI

161.

Conflict with other Acts

PART I
GENERAL

Purposes

1. The purposes of this Act are,

(a) to facilitate competition in the generation and sale of electricity and to facilitate a smooth transition to competition;

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

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

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

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

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

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

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

(g) to promote energy conservation, energy efficiency, load management and the use of cleaner energy sources, including alternative and renewable energy sources, in a manner consistent with the policies of the Government of Ontario.  1998, c. 15, Sched. A, s. 1; 2002, c. 1, Sched. A, s. 1; 2002, c. 23, s. 3 (1).

Interpretation

2. (1) In this Act,

“affiliate”, with respect to a corporation, has the same meaning as in the Business Corporations Act; (“membre du même groupe”)

“ancillary services” means services necessary to maintain the reliability of the IMO-controlled grid, including frequency control, voltage control, reactive power and operating reserve services; (“services accessoires”)

“Board” means the Ontario Energy Board; (“Commission”)

“consumer” means a person who uses, for the person’s own consumption, electricity that the person did not generate; (“consommateur”)

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

“distribute”, with respect to electricity, means to convey electricity at voltages of 50 kilovolts or less; (“distribuer”)

“distribution system” means a system for distributing electricity, and includes any structures, equipment or other things used for that purpose; (“réseau de distribution”)

“distributor” means a person who owns or operates a distribution system; (“distributeur”)

“Electrical Safety Authority” means the person or body designated by the regulations as the Electrical Safety Authority; (“Office de la sécurité des installations électriques”)

“Financial Corporation” means Ontario Hydro Financial Corporation, as continued under Part V; (“Société financière”)

Note:  Effective April 1, 1999, the name of the Ontario Hydro Financial Corporation has been changed by regulation to Ontario Electricity Financial Corporation in English and Société financière de l’industrie de l’électricité de l’Ontario in French.  See:  O. Reg. 115/99, s. 1.

“generate”, with respect to electricity, means to produce electricity or provide ancillary services, other than ancillary services provided by a transmitter or distributor through the operation of a transmission or distribution system; (“produire”)

“generation facility” means a facility for generating electricity or providing ancillary services, other than ancillary services provided by a transmitter or distributor through the operation of a transmission or distribution system, and includes any structures, equipment or other things used for that purpose; (“installation de production”)

“generator” means a person who owns or operates a generation facility; (“producteur”)

“Governance and Structure By-law” means the by-law made under subsection 16 (2); (“règlement de régie”)

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

“IMO” means the Independent Electricity Market Operator established under Part II; (“SIGMÉ”)

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

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

“integrated power system” means the IMO-controlled grid and the structures, equipment and other things that connect the IMO-controlled grid with transmission systems and distribution systems in Ontario and transmission systems outside Ontario; (“réseau d’électricité intégré”)

“licence” means a licence issued under Part V of the Ontario Energy Board Act, 1998; (“permis”)

“market participant” means a person who is authorized by the market rules to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid; (“intervenant du marché”)

“market rules” means the rules made under section 32; (“règles du marché”)

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

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

“regulations” means the regulations made under this Act; (“règlements”)

“retail”, with respect to electricity, means,

(a) to sell or offer to sell electricity to a consumer,

(b) to act as agent or broker for a retailer with respect to the sale or offering for sale of electricity, or

(c) to act or offer to act as an agent or broker for a consumer with respect to the sale or offering for sale of electricity; (“vendre au détail”)

“retailer” means a person who retails electricity; (“détaillant”)

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

“service area”, with respect to a distributor, means the area in which the distributor is authorized by its licence to distribute electricity; (“secteur de service”)

“standards authority” means the North American Electric Reliability Council, any successor thereof, or any other agency or body that recommends standards or criteria relating to the reliability of transmission systems; (“organisme de normalisation”)

“subsidiary”, with respect to a corporation, has the same meaning as in the Business Corporations Act; (“filiale”)

“transmission system” means a system for transmitting electricity, and includes any structures, equipment or other things used for that purpose; (“réseau de transport”)

“transmit”, with respect to electricity, means to convey electricity at voltages of more than 50 kilovolts; (“transporter”)

“transmitter” means a person who owns or operates a transmission system; (“transporteur”)

“voting security” has the same meaning as in the Business Corporations Act. (“valeur mobilière avec droit de vote”)  1998, c. 15, Sched. A, s. 2 (1); 2002, c. 1, Sched. A, s. 2 (1-6); 2002, c. 23, s. 3 (2).

Determinations of Board

(2) The definitions of “distribute”, “distribution system”, “distributor”, “transmission system”, “transmit” and “transmitter” in subsection (1) are subject to any determination made under section 84 of the Ontario Energy Board Act, 1998.  1998, c. 15, Sched. A, s. 2 (2).

References to Ontario Hydro

(3) Subject to the regulations, a reference in this or any other Act or in the regulations made under this or any other Act to Ontario Hydro shall be deemed, after section 54 comes into force, to be a reference to the Financial Corporation, unless the context requires otherwise.  1998, c. 15, Sched. A, s. 2 (3).

References to Financial Corporation

(4) A reference in this or any other Act or in the regulations made under this or any other Act to the Financial Corporation shall be deemed, before section 54 comes into force, to be a reference to Ontario Hydro, unless the context requires otherwise.  1998, c. 15, Sched. A, s. 2 (4).

References to Generation Corporation

(5) A reference to the Generation Corporation in the regulations made under this or any other Act, an order made under Part X or a statement made under section 124 shall be deemed to be a reference to Ontario Power Generation Inc.  2002, c. 1, Sched. A, s. 2 (7).

References to Services Corporation

(6) A reference to the Services Corporation in the regulations made under this or any other Act, an order made under Part X or a statement made under section 124 shall be deemed to be a reference to Hydro One Inc.  2002, c. 1, Sched. A, s. 2 (7).

Municipal Act, 2001

3. This Act applies despite the provisions of the Municipal Act, 2001 relating to the production, manufacture, distribution or supply of a public utility by a municipality or a municipal service board.  1998, c. 15, Sched. A, s. 3; 2002, c. 17, Sched. F, Table.

PART II
INDEPENDENT ELECTRICITY MARKET OPERATOR

Independent Electricity Market Operator

4. (1) A corporation without share capital to be known in English as the Independent Electricity Market Operator and in French as Société indépendante de gestion du marché de l’électricité is hereby established.  1998, c. 15, Sched. A, s. 4 (1).

Composition

(2) The IMO is composed of those persons who, from time to time, comprise its board of directors.  1998, c. 15, Sched. A, s. 4 (2).

Objects and character

5. (1) The objects of the IMO are,

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

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

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

(d) to establish and operate the IMO-administered markets to promote the purposes of this Act;

(e) to collect and provide to the public information relating to the current and future electricity needs of Ontario and the capacity of the integrated power system to meet those needs;

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

(g) to work with the responsible authorities outside Ontario to co-ordinate the IMO’s activities with their activities.  1998, c. 15, Sched. A, s. 5 (1).

Not for profit

(2) The business and affairs of the IMO shall be carried on without the purpose of gain and any profits shall be used by the IMO for the purpose of carrying out its objects.  1998, c. 15, Sched. A, s. 5 (2).

Capacity

(3) The IMO has the capacity and the rights, powers and privileges of a natural person for the purpose of carrying out its objects.  1998, c. 15, Sched. A, s. 5 (3).

Not Crown agent

6. The IMO is not an agent of Her Majesty for any purpose, despite the Crown Agency Act.  1998, c. 15, Sched. A, s. 6.

Board of directors

7. (1) The IMO’s board of directors shall manage or supervise the management of the IMO’s business and affairs.  1998, c. 15, Sched. A, s. 7 (1).

Composition

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

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

(b) at least 10 and not more than 20 other directors, including such number of independent directors as is fixed by the regulations, appointed by the Minister in accordance with the regulations.  1998, c. 15, Sched. A, s. 7 (2); 2001, c. 9, Sched. F, s. 1 (1).

Term of office

(3) A director appointed under clause (2) (b) shall hold office for a term not exceeding three years.  1998, c. 15, Sched. A, s. 7 (3).

Reappointment

(4) A director appointed under clause (2) (b) may be reappointed in accordance with the regulations.  1998, c. 15, Sched. A, s. 7 (4).

Chair

(5) The board of directors shall appoint one of the directors as chair of the board.  1998, c. 15, Sched. A, s. 7 (5).

Removal from office

(6) The Minister or the board of directors may remove a director from office for cause.  1998, c. 15, Sched. A, s. 7 (6).

Ceasing to hold office

(7) A director ceases to hold office in the circumstances specified by the Governance and Structure By-law.  1998, c. 15, Sched. A, s. 7 (7).

Chief executive officer

8. The board of directors of the IMO shall appoint a chief executive officer of the IMO.  1998, c. 15, Sched. A, s. 8.

Director duties

9. Every director of the IMO shall, in exercising and performing his or her powers and duties,

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

(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.  1998, c. 15, Sched. A, s. 9.

Conflict of interest

10. The directors and officers of the IMO shall comply with the provisions of the Governance and Structure By-law relating to conflict of interest.  1998, c. 15, Sched. A, s. 10.

Codes of conduct

11. (1) The board of directors of the IMO may establish codes of conduct applicable to the directors, officers, employees and agents of the IMO and to members of panels established by the IMO.  1998, c. 15, Sched. A, s. 11 (1).

Conflict

(2) Any provision of a code of conduct that conflicts with this Act or the IMO’s by-laws is void.  1998, c. 15, Sched. A, s. 11 (2).

Delegation

12. Subject to the Governance and Structure By-law, the board of directors of the IMO may delegate any of the IMO’s powers or duties to a committee of the board, to a panel established by the IMO or to any other person or body, subject to such conditions and restrictions as may be specified by the board of directors.  1998, c. 15, Sched. A, s. 12.

Panels

13. (1) The board of directors of the IMO shall establish a Market Surveillance Panel and may establish other panels for the purposes of this Act.  1998, c. 15, Sched. A, s. 13 (1).

Membership: Market Surveillance Panel

(2) The Market Surveillance Panel shall be composed of persons who do not have any material interest in a market participant and who are not directors, officers or employees of the IMO or of a market participant.  1998, c. 15, Sched. A, s. 13 (2).

Testimony

(3) A member of the Market Surveillance Panel and an employee of the IMO acting on behalf of the Panel shall not be required in any civil proceeding to give testimony with respect to information obtained in the course of his or her duties.  2002, c. 1, Sched. A, s. 3.

Law enforcement information

(3.1) A record that contains information provided to or obtained by the Market Surveillance Panel and that is designated by the Panel as relating to activity in the IMO-administered markets or to the conduct of a market participant shall be deemed, for the purpose of section 14 of the Freedom of Information and Protection of Privacy Act, to be a record the disclosure of which could reasonably be expected to interfere with a law enforcement matter.  2002, c. 1, Sched. A, s. 3.

Same

(4) A member of a panel established by the IMO 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 IMO, 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.  1998, c. 15, Sched. A, s. 13 (4).

Staff and assistance

(5) Subject to the by-laws of the IMO, a panel established by the IMO may use the services of the IMO’s employees and of other persons who have technical or professional expertise that the panel considers necessary.  1998, c. 15, Sched. A, s. 13 (5).

Liability

14. (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the IMO, or a member of a panel established by the IMO, 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 Act, the regulations, the IMO’s licence, the IMO’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.  1998, c. 15, Sched. A, s. 14 (1).

Same

(2) Subsection (1) does not relieve the IMO 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).  1998, c. 15, Sched. A, s. 14 (2).

Confidential information relating to market participant

14.1 A record that contains information provided to or obtained by the IMO relating to a market participant and that is designated by the IMO as confidential or highly confidential shall be deemed, for the purpose of section 17 of the Freedom of Information and Protection of Privacy Act, to be a record that reveals a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence implicitly or explicitly, the disclosure of which could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.  2002, c. 1, Sched. A, s. 4.

Liability of directors under the Employment Standards Act

15. Part XIV.2 of the Employment Standards Act does not apply to a director of the IMO.  1998, c. 15, Sched. A, s. 15.

By-laws

16. (1) The board of directors of the IMO may make by-laws regulating the business and affairs of the IMO.  1998, c. 15, Sched. A, s. 16 (1).

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 chair of the board of directors;

(b) the appointment of the chief executive officer of the IMO;

(c) the filling of vacancies in the board, the removal of directors from office by the board and, for the purpose of subsection 7 (7), circumstances in which a director ceases to hold office;

(d) conflict of interest;

(e) the delegation of the IMO’s powers and duties;

(f) the establishment, composition and functions of panels.  1998, c. 15, Sched. A, s. 16 (2).

Same

(3) The Governance and Structure By-law may be made only with the approval in writing of the Minister.  1998, c. 15, Sched. A, s. 16 (3).

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.  1998, c. 15, Sched. A, s. 16 (4).

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.  1998, c. 15, Sched. A, s. 16 (5).

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.  1998, c. 15, Sched. A, s. 16 (6).

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.  1998, c. 15, Sched. A, s. 16 (7).

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).  1998, c. 15, Sched. A, s. 16 (8).

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.  1998, c. 15, Sched. A, s. 16 (9).

Regulations Act

(10) The Regulations Act does not apply to by-laws made under this section.  1998, c. 15, Sched. A, s. 16 (10).

Province may purchase securities, etc.

17. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the IMO at such times and on such terms and conditions as the Minister may determine subject to the maximum principal amount and to any other terms and conditions that are specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 17 (1).

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).  1998, c. 15, Sched. A, s. 17 (2).

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.  1998, c. 15, Sched. A, s. 17 (3).

Fees payable to Minister of Finance

(4) The IMO 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.  1998, c. 15, Sched. A, s. 17 (4).

Fees

18. The IMO may establish and charge fees for anything done in connection with the IMO-controlled grid or the IMO-administered markets.  1998, c. 15, Sched. A, s. 18.

Review of requirements and fees

19. (1) At least 60 days before the beginning of each fiscal year, the IMO shall submit its proposed expenditure and revenue requirements for the year and the fees it proposes to charge during the year to the Board for review.  1998, c. 15, Sched. A, s. 19 (1).

Minister’s approval

(1.1) The IMO shall not submit anything to the Board under subsection (1) without the approval of the Minister.  2002, c. 23, s. 3 (3).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (4).  See: 2002, c. 23, ss. 3 (4), 7 (2).

Interests of consumers

(1.2) In deciding whether to give an approval under subsection (1.1), the Minister shall consider the interests of consumers with respect to prices and the reliability and quality of electricity service.  2002, c. 23, s. 3 (3).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1.2) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (4).  See: 2002, c. 23, ss. 3 (4), 7 (2).

Board’s powers

(2) The Board may approve the proposed requirements and the proposed fees or may refer them back to the IMO for further consideration with the Board’s recommendations.  1998, c. 15, Sched. A, s. 19 (2).

Changes in fees

(3) The IMO shall not establish, eliminate or change any fees without the approval of the Board.  1998, c. 15, Sched. A, s. 19 (3).

Refusal by Minister

(3.1) If the Minister refuses to give the approval required by subsection (1.1), the expenditure and revenue requirements and fees applicable to the current fiscal year continue to apply to the next fiscal year.  2002, c. 23, s. 3 (5).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (6).  See: 2002, c. 23, ss. 3 (6), 7 (2).

Current submission

(3.2) After this subsection comes into force, the Board shall take no further action with respect to the submission made by the IMO under subsection (1) for the 2003 fiscal year.  2002, c. 23, s. 3 (5).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3.2) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (6).  See: 2002, c. 23, ss. 3 (6), 7 (2).

Same

(3.3) The expenditure and revenue requirements and fees that applied to the 2002 fiscal year shall be deemed to apply to the 2003 fiscal year.  2002, c. 23, s. 3 (5).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3.3) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (6).  See: 2002, c. 23, ss. 3 (6), 7 (2).

Hearing

(4) The Board may hold a hearing before exercising its powers under this section, but it is not required to do so.  1998, c. 15, Sched. A, s. 19 (4).

Auditor

20. The board of directors of the IMO shall appoint one or more auditors licensed under the Public Accountancy Act to audit annually the accounts and transactions of the IMO.  1998, c. 15, Sched. A, s. 20.

Note:  On a day to be named by proclamation of the Lieutenant Governor, section 20 is amended by the Statutes of Ontario, 2004, chapter 8, section 46, Table by striking out “Public Accountancy Act” and substituting “Public Accounting Act, 2004”.  See:  2004, c. 8, ss. 46, Table; 51 (2).

Annual report

21. (1) The IMO 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.  1998, c. 15, Sched. A, s. 21 (1).

Financial statements

(2) The audited financial statements of the IMO shall be included in the annual report.  1998, c. 15, Sched. A, s. 21 (2).

Tabling

(3) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.  1998, c. 15, Sched. A, s. 21 (3).

Other persons

(4) The IMO may give its annual report to other persons before the Minister complies with subsection (3).  1998, c. 15, Sched. A, s. 21 (4).

Other reports

22. The IMO shall submit such other reports and information to the Minister as he or she may require from time to time.  1998, c. 15, Sched. A, s. 22.

Information to Board

23. The IMO shall provide the Board with such information as the Board may require from time to time.  1998, c. 15, Sched. A, s. 23.

Application of corporations statutes

24. Except as otherwise provided by the regulations, the Corporations Act and the Corporations Information Act do not apply to the IMO.  1998, c. 15, Sched. A, s. 24.

Statutory Powers Procedure Act

25. The Statutory Powers Procedure Act does not apply to a proceeding before the IMO, its board of directors or any committee, panel, person or body to which a power or duty has been delegated under this Part.  1998, c. 15, Sched. A, s. 25.

PART III
THE ELECTRICITY MARKETS

Access to Transmission and Distribution Systems

Non-discriminatory access

26. (1) A transmitter or distributor shall provide generators, retailers and consumers with non-discriminatory access to its transmission or distribution systems in Ontario in accordance with its licence.  1998, c. 15, Sched. A, s. 26 (1).

Same

(2) Until subsection (1) comes into force, a transmitter or distributor prescribed by the regulations shall provide a generator, retailer or consumer prescribed by the regulations with non-discriminatory access to its transmission or distribution systems in Ontario in accordance with its licence.  1998, c. 15, Sched. A, s. 26 (2).

Previous contracts with Ontario Hydro

(3) Any contract entered into between Ontario Hydro and a municipal corporation or any other person before December 11, 1998 for the supply of electricity to the municipal corporation or other person ceases to have effect on the day subsection (1) comes into force.  1998, c. 15, Sched. A, s. 26 (3); 2002, c. 1, Sched. A, s. 5 (1).

Previous contracts with municipal corporation

(4) Any contract entered into between a municipal corporation and any person before December 11, 1998 for the supply of electricity to the person ceases to have effect on the day subsection (1) comes into force.  1998, c. 15, Sched. A, s. 26 (4); 2002, c. 1, Sched. A, s. 5 (2).

Low-volume consumers

(5) Subsections (3) and (4) do not apply to a contract for the supply of electricity to a low-volume consumer.  1998, c. 15, Sched. A, s. 26 (5).

Same

(6) A contract for the sale of electricity between a low-volume consumer and a person who, at the time the contract was entered into, was not authorized under the Ontario Energy Board Act, 1998 to retail electricity ceases to have effect on the date subsection (1) comes into force unless, after the person becomes authorized under the Ontario Energy Board Act, 1998 to retail electricity and before the date subsection (1) comes into force, the low-volume consumer re-affirms the contract in writing.  1998, c. 15, Sched. A, s. 26 (6).

No cause of action

(7) No cause of action arises as a result of a contract ceasing to have effect under subsection (3), (4) or (6).  1998, c. 15, Sched. A, s. 26 (7).

Return of prepayment

(8) Despite subsection (7), a person to whom electricity was to be supplied under a contract referred to in subsection (3) or (4), or a low-volume consumer to whom electricity was to be sold under a contract referred to in subsection (6), may recover any amount paid under the contract before the day the contract ceased to have effect in respect of electricity that was to be supplied on or after that day.  1998, c. 15, Sched. A, s. 26 (8).

Application of subss. (3), (4) and (6)

(9) Subsections (3), (4) and (6) do not apply to contracts prescribed by the regulations.  1998, c. 15, Sched. A, s. 26 (9).

Definition

(10) In this section,

“low-volume consumer” means a person who annually uses less than the amount of electricity prescribed by the regulations.  1998, c. 15, Sched. A, s. 26 (10).

Use of IMO-controlled grid

27. A person shall not cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid except in accordance with the market rules.  1998, c. 15, Sched. A, s. 27.

Distributor’s obligation to connect

28. A distributor shall connect a building to its distribution system if,

(a) the building lies along any of the lines of the distributor’s distribution system; and

(b) the owner, occupant or other person in charge of the building requests the connection in writing.  1998, c. 15, Sched. A, s. 28.

Distributor’s obligation to sell electricity

29. (1) A distributor shall sell electricity to every person connected to the distributor’s distribution system, except a person who advises the distributor in writing that the person does not wish to purchase electricity from the distributor.  1998, c. 15, Sched. A, s. 29 (1).

Same

(2) If, under subsection (1), a person has advised a distributor that the person does not wish to purchase electricity from the distributor, the person may at any time thereafter request the distributor in writing to sell electricity to the person and the distributor shall comply with the request in accordance with its licence.  1998, c. 15, Sched. A, s. 29 (2).

Same

(3) If a person connected to a distributor’s distribution system purchases electricity from a retailer other than the distributor and the retailer is unable for any reason to sell electricity to the person, the distributor shall sell electricity to the person.  1998, c. 15, Sched. A, s. 29 (3).

Exemptions

(4) The Board may exempt a distributor from any provision of this section if, after holding a hearing, the Board is satisfied that there is sufficient competition among retailers in the distributor’s service area.  1998, c. 15, Sched. A, s. 29 (4).

Same

(5) An exemption under subsection (4) may be subject to such conditions and restrictions as may be specified by the Board.  1998, c. 15, Sched. A, s. 29 (5).

Same

(6) The Board shall not exempt a distributor entirely from all the provisions of this section unless, after holding a hearing, the Board is satisfied that consumers in the distributor’s service area will continue to have access to electricity.  1998, c. 15, Sched. A, s. 29 (6).

Allocation during emergencies, etc.

30. (1) If the supply of electricity to a distributor is interrupted or reduced as a result of an emergency or a breakdown, repair or extension of a transmission or distribution system, the distributor may allocate the available electricity among the consumers in its service area.  1998, c. 15, Sched. A, s. 30 (1).

No breach of contract

(2) An allocation of electricity under subsection (1) shall be deemed not to be a breach of any contract.  1998, c. 15, Sched. A, s. 30 (2).

Termination of service

31. (1) A distributor may shut off the distribution of electricity to a property if any amount payable by a person for the distribution or retail of electricity to the property pursuant to section 29 is overdue.  1998, c. 15, Sched. A, s. 31 (1).

Notice

(2) A distributor shall provide reasonable notice of the proposed shut-off to the person who is responsible for the overdue amount by personal service or prepaid mail or by posting the notice on the property in a conspicuous place.  1998, c. 15, Sched. A, s. 31 (2).

Recovery of amount

(3) A distributor may recover all amounts payable despite shutting off the distribution of electricity.  1998, c. 15, Sched. A, s. 31 (3).

Exception

(4) A distributor shall not shut off the distribution of electricity to a property under subsection (1) during the period that begins on the day this subsection comes into force and ends on March 31, 2003 or during any other period prescribed by the regulations.  2002, c. 23, s. 3 (7).

Restoration of electricity

(5) If a distributor shuts off the distribution of electricity to a property under subsection (1) after November 11, 2002 and before April 1, 2003, or during a period prescribed by the regulations, the distributor shall, as soon as possible,

(a) restore, without charge, the distribution of electricity to the property; and

(b) compensate any person who suffered a loss as a result of the shut-off of electricity.  2002, c. 23, s. 3 (7).

Market Rules

Market rules

32. (1) The IMO may make rules,

(a) governing the IMO-controlled grid;

(b) establishing and governing markets related to electricity and ancillary services.  1998, c. 15, Sched. A, s. 32 (1).

Examples

(2) Without limiting the generality of subsection (1), the market rules may include provisions,

(a) governing the making and publication of market rules;

(b) governing the conveying of electricity into, through or out of the IMO-controlled grid and the provision of ancillary services;

(c) governing standards and procedures to be observed in system emergencies;

(d) authorizing and governing the giving of directions by the IMO, including,

(i) for the purpose of maintaining the reliability of electricity service or the IMO-controlled grid, directions requiring persons, within such time as may be specified in the direction, to synchronize, desynchronize, increase, decrease or maintain electrical output, to take such other action as may be specified in the direction or to refrain from such action as may be specified in the direction, and

(ii) other directions requiring market participants, within such time as may be specified in the direction, to take such action or refrain from such action as may be specified in the direction, including action related to a system emergency; and

(e) authorizing and governing the making of orders by the IMO, including orders,

(i) imposing financial penalties on market participants,

(ii) authorizing a person to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid, or

(iii) terminating, suspending or restricting a person’s rights to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid.  1998, c. 15, Sched. A, s. 32 (2).

General or particular

(3) A market rule may be general or particular in its application.  1998, c. 15, Sched. A, s. 32 (3).

Regulations Act

(4) The Regulations Act does not apply to the market rules or to any directions or orders made under the market rules.  1998, c. 15, Sched. A, s. 32 (4).

Publication and inspection of market rules

(5) The IMO shall publish the market rules in accordance with the market rules and shall make the market rules available for public inspection during normal business hours at the offices of the IMO.  1998, c. 15, Sched. A, s. 32 (5).

Transition

(6) Despite subsections (1) and (5), until a date prescribed by the regulations,

(a) the Minister, instead of the IMO, may make the rules referred to in subsection (1);

(b) the Minister, instead of the IMO, shall publish the market rules; and

(c) sections 33, 34 and 35 do not apply to the market rules.  1998, c. 15, Sched. A, s. 32 (6).

Same

(7) A rule made under clause (6) (a) that includes a provision referred to in subclause (2) (e) (i) or (iii) shall not come into force before the date prescribed for the purposes of subsection (6).  1998, c. 15, Sched. A, s. 32 (7).

Same

(8) After the date prescribed for the purposes of subsection (6), the IMO may, under subsection (1), amend the rules made under clause (6) (a).  1998, c. 15, Sched. A, s. 32 (8).

Notice to Minister

(9) The IMO shall not make a rule under this section unless it first gives the Minister 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.  2002, c. 23, s. 3 (8).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (9) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (9).  See: 2002, c. 23, ss. 3 (9), 7 (2).

Amendment of market rules

33. (1) The IMO shall, in accordance with the market rules, publish any amendment to the market rules at least 22 days before the amendment comes into force.  1998, c. 15, Sched. A, s. 33 (1).

Notice to Minister

(1.1) The IMO shall give the Minister a copy of the amendment and such other information as is prescribed by the regulations on or before the date the IMO publishes the amendment under subsection (1).  2002, c. 23, s. 3 (10).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (11).  See: 2002, c. 23, ss. 3 (11), 7 (2).

Minister’s power to revoke

(1.2) If the Minister is of the opinion that the amendment will unduly and adversely affect the interests of consumers with respect to prices or the reliability or quality of electricity service, the Minister may, not later than 15 days after the amendment is published under subsection (1), revoke the amendment on a date specified by the Minister and refer the amendment back to the IMO for further consideration.  2002, c. 23, s. 3 (10).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1.2) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (11).  See: 2002, c. 23, ss. 3 (11), 7 (2).

Review by Board

(2) On application by any person, the Board shall review any amendment to the market rules.  1998, c. 15, Sched. A, s. 33 (2).

Time for application

(3) The application must be filed within 21 days after the amendment is published under subsection (1).  1998, c. 15, Sched. A, s. 33 (3).

Effect of revocation by Minister

(3.1) If the Minister revokes the amendment under subsection (1.2),

(a) subsection (2) ceases to apply to the amendment; and

(b) the Board shall not proceed with any review that arises from an application that was made under subsection (2) before the Minister revoked the amendment.  2002, c. 23, s. 3 (12).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (3.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (13).  See: 2002, c. 23, ss. 3 (13), 7 (2).

Stay of amendment

(4) An application under this section does not stay the operation of the amendment pending the completion of the review unless the Board orders otherwise.  1998, c. 15, Sched. A, s. 33 (4).

Same

(5) 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; and

(d) the balance of convenience.  1998, c. 15, Sched. A, s. 33 (5).

Order

(6) 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 IMO for further consideration.  1998, c. 15, Sched. A, s. 33 (6).

Urgent amendments

34. (1) Section 33 does not apply if the IMO files a statement with the Board indicating that, in its opinion, an amendment to the market rules is urgently required for one or more of the following reasons:

1. To avoid, reduce the risk of or mitigate the effects of conditions that affect the ability of the integrated power system to function normally.

2. To avoid, reduce the risk of or mitigate the effects of the abuse of market power.

3. To implement standards or criteria of a standards authority.

4. To avoid, reduce the risk of or mitigate the effects of an unintended adverse effect of a market rule.

5. A reason prescribed by the regulations.  1998, c. 15, Sched. A, s. 34 (1); 2002, c. 23, s. 3 (14).

Publication of urgent amendment

(2) The IMO shall publish the amendment in accordance with the market rules at the same time or as soon as reasonably possible after the statement referred to in subsection (1) is filed.  1998, c. 15, Sched. A, s. 34 (2).

Notice to Minister

(2.1) The IMO shall give the Minister a copy of the amendment and such other information as is prescribed by the regulations on or before the date the IMO publishes the amendment under subsection (2).  2002, c. 23, s. 3 (15).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (2.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (16).  See: 2002, c. 23, ss. 3 (16), 7 (2).

Minister’s power to revoke

(2.2) If the Minister is of the opinion that the amendment will unduly and adversely affect the interests of consumers with respect to prices or the reliability or quality of electricity service, the Minister may, not later than 15 days after the amendment is published under subsection (2), revoke the amendment on a date specified by the Minister and refer the amendment back to the IMO for further consideration.  2002, c. 23, s. 3 (15).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (2.2) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (16).  See: 2002, c. 23, ss. 3 (16), 7 (2).

Review by Board

(3) On application by a person who is directly affected by the amendment, the Board shall review the amendment.  1998, c. 15, Sched. A, s. 34 (3); 2002, c. 23, s. 3 (17).

Time for application

(4) The application must be filed within 21 days after the amendment is published under subsection (2).  1998, c. 15, Sched. A, s. 34 (4).

Effect of revocation by Minister

(4.1) If the Minister revokes the amendment under subsection (2.2),

(a) subsection (3) ceases to apply to the amendment; and

(b) the Board shall not proceed with any review that arises from an application that was made under subsection (3) before the Minister revoked the amendment.  2002, c. 23, s. 3 (18).

Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (4.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (19).  See: 2002, c. 23, ss. 3 (19), 7 (2).

Stay of amendment

(5) An application under this section does not stay the operation of the amendment pending the completion of the review.  1998, c. 15, Sched. A, s. 34 (5).

Referral back to IMO

(6) 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,

(a) shall make an order referring the amendment back to the IMO for further consideration; and

(b) may make an order revoking the amendment on a date specified by the Board.  1998, c. 15, Sched. A, s. 34 (6).

Other reviews of market rules

35. (1) On application by a person who is directly affected by a provision of the market rules, the Board may review the provision.  2002, c. 23, s. 3 (20).

Exception

(2) Subsection (1) does not apply to a provision of the market rules that was reviewed by the Board under section 33 or 34 within the 24 months before the application.  1998, c. 15, Sched. A, s. 35 (2).

Same

(3) Subsection (1) does not apply to a provision of the market rules that was made under clause 32 (6) (a) if the application is made more than three years after the date prescribed for the purposes of subsection 32 (6).  1998, c. 15, Sched. A, s. 35 (3).

Restriction

(4) An application shall not be made under this section by a market participant unless the applicant has made use of the provisions of the market rules relating to the review of market rules.  1998, c. 15, Sched. A, s. 35 (4).

Stay of provision

(5) An application under this section does not stay the operation of the provision pending the completion of the review.  1998, c. 15, Sched. A, s. 35 (5).

Referral back to IMO

(6) If, on completion of a review under this section, the Board finds that the provision 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 directing the IMO to amend the market rules in a manner and within the time specified by the Board.  1998, c. 15, Sched. A, s. 35 (6).

Publication

(7) The IMO shall, in accordance with the market rules, publish any amendment made pursuant to an order under subsection (6).  1998, c. 15, Sched. A, s. 35 (7).

Further reviews

(8) Sections 33 and 34 do not apply to an amendment made in accordance with an order under subsection (6).  1998, c. 15, Sched. A, s. 35 (8).

Statutory powers of decision

35.1 The powers of the Board to make orders under sections 33, 34 and 35 shall be deemed to be statutory powers of decision for the purpose of the Statutory Powers Procedure Act.  2000, c. 26, Sched. D, s. 1 (1).

Appeals from orders

36. (1) A person who is subject to an order made under the market rules may appeal the order to the Board if the order,

(a) requires the person to pay a financial penalty or other amount of money that exceeds the amount prescribed by the regulations;

(b) denies the person authorization to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid; or

(c) terminates, suspends or restricts the person’s rights to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid.  1998, c. 15, Sched. A, s. 36 (1).

Other methods of resolution

(2) An appeal shall not be commenced under subsection (1) unless the appellant has made use of the provisions of the market rules relating to dispute resolution.  1998, c. 15, Sched. A, s. 36 (2).

Time for appeal

(3) The appeal must be filed within the time prescribed by the rules of the Board.  1998, c. 15, Sched. A, s. 36 (3).

Stay of order

(4) An appeal does not stay the operation of the order pending the determination of the appeal unless the Board orders otherwise.  1998, c. 15, Sched. A, s. 36 (4).

Same

(5) In determining whether to stay the operation of an order, the Board shall consider,

(a) the public interest;

(b) the merits of the appeal;

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

(d) the balance of convenience.  1998, c. 15, Sched. A, s. 36 (5).

Powers of Board

(6) After considering the appeal, the Board may make an order,

(a) dismissing the appeal;

(b) revoking or amending the order appealed from; or

(c) making any other order or decision that the IMO could have made.  1998, c. 15, Sched. A, s. 36 (6).

Same

(7) In addition to its powers under subsection (6), the Board may also make an order revoking, suspending or adding or amending a condition of the appellant’s licence.  1998, c. 15, Sched. A, s. 36 (7).

(8) Repealed:  2000, c. 26, Sched. D, s. 1 (2).

Exemptions from market rules

36.1  (1) A person may apply to the IMO for an exemption from any provision of the market rules.  2001, c. 9, Sched. F, s. 1 (2).

Notice of application

(2) The IMO shall, in accordance with the market rules, publish notice of the application.  2001, c. 9, Sched. F, s. 1 (2).

Panel of independent directors

(3) The application shall be determined by a panel of at least two independent directors of the IMO assigned to the application by the chair of the IMO’s board of directors.  2001, c. 9, Sched. F, s. 1 (2).

Written submissions

(4) The panel is not required to hold a hearing but shall consider all written submissions made in accordance with the market rules in respect of the application.  2001, c. 9, Sched. F, s. 1 (2).

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 independent directors on the panel.  2001, c. 9, Sched. F, s. 1 (2).

Terms of exemption

(6) An exemption,

(a) may be granted in whole or in part; and

(b) may be granted subject to conditions or restrictions.  2001, c. 9, Sched. F, s. 1 (2).

Expiry of exemption

(7) If an exemption is granted, it shall specify that it expires,

(a) on a date fixed by the panel; or

(b) on the occurrence of an event specified by the panel.  2001, c. 9, Sched. F, s. 1 (2).

Same

(8) A date fixed for the expiry of an exemption under clause (7) (a) shall not be later than five years after the exemption takes effect, unless the panel is satisfied that the circumstances justify a later date.  2001, c. 9, Sched. F, s. 1 (2).

Reasons

(9) When the panel decides to grant or refuse to grant an exemption, it shall give written reasons for its decision.  2001, c. 9, Sched. F, s. 1 (2).

Notice of decision

(10) When the panel decides to grant or refuse to grant an exemption, the IMO shall, in accordance with the market rules, publish notice of the decision.  2001, c. 9, Sched. F, s. 1 (2).

Appeal

(11) A person who is directly affected by the panel’s decision to grant or refuse to grant an exemption and who made written submissions to the panel may appeal to the Board within 14 days after publication of the notice of the decision.  2001, c. 9, Sched. F, s. 1 (2).

Short-term exemptions

(12) Subsection (11) does not apply to a decision to grant an exemption that expires less than 60 days after it is granted.  2001, c. 9, Sched. F, s. 1 (2).

Stay

(13) An appeal does not stay the decision of the panel pending the determination of the appeal.  2001, c. 9, Sched. F, s. 1 (2).

Powers of Board

(14) After considering the appeal, the Board may make an order,

(a) dismissing the appeal; or

(b) if the Board finds that the decision of the panel is inconsistent with the purposes of this Act,

(i) referring the application for the exemption back to the panel for further consideration,

(ii) revoking or amending the decision of the panel, or

(iii) making any decision that the panel could have made.  2001, c. 9, Sched. F, s. 1 (2).

Removal of exemption

(15) The IMO may apply to a panel of independent directors to remove an exemption, and, subject to subsection (16), subsections (2), (3), (4), (6), (9), (10), (11), (13) and (14) apply, with necessary modifications.  2001, c. 9, Sched. F, s. 1 (2).

Appeal of removal of exemption

(16) If a decision is made to remove an exemption, the only person who may appeal under subsection (11) is the person in whose favour the exemption was granted.  2001, c. 9, Sched. F, s. 1 (2).

Previous exemptions

(17) An exemption from a provision of the market rules that was granted by the IMO before the day this subsection came into force in respect of a metering installation that was in service before April 17, 2000 or in respect of which the major components were ordered or procured before or within 30 days following April 17, 2000 shall be deemed to have been authorized by law and shall continue until it expires pursuant to its terms or until it is removed under subsection (15).  2001, c. 9, Sched. F, s. 1 (2).

Rules

(18) The independent directors of the IMO may make rules governing the practice and procedure before panels of independent directors under this section.  2001, c. 9, Sched. F, s. 1 (2).

Report

(19) Not later than the fifth anniversary of the day subsection 26 (1) comes into force, the IMO shall submit a report to the Minister on the need for and operation of this section.  2001, c. 9, Sched. F, s. 1 (2).

Extension

(20) The Lieutenant Governor in Council may, before the fifth anniversary of the day subsection 26 (1) comes into force, extend by not more than six months the date by which the report referred to in subsection (19) must be submitted.  2001, c. 9, Sched. F, s. 1 (2).

Tabling of report

(21) The Minister shall submit the report to the Lieutenant Governor in Council and shall then table the report in the Assembly.  2001, c. 9, Sched. F, s. 1 (2).

Investigations

Investigation by Market Surveillance Panel

37. (1) The Market Surveillance Panel may investigate any activity related to the IMO-administered markets or the conduct of a market participant.  2002, c. 1, Sched. A, s. 6.

Right to examine

(2) For the purposes of an investigation under this section, the Panel may examine any documents or other things, whether they are in the possession or control of the person whose activities are being investigated or any other person.  2002, c. 1, Sched. A, s. 6.

Power to compel testimony

(3) For the purposes of an investigation under this section, the Panel has the same power to summon and enforce the attendance of any person and to compel him or her to testify on oath or otherwise, and to summon and compel any person to produce documents and other things, as is vested in the Superior Court of Justice for the trial of civil actions.  2002, c. 1, Sched. A, s. 6.

Contempt

(4) The Superior Court of Justice has the same power to punish for contempt a person who refuses to attend, testify or produce documents or other things when required to do so by the Panel under this section as it would if the person had disobeyed an order of the Court.  2002, c. 1, Sched. A, s. 6.

Rights of witness

(5) A person giving evidence under subsection (3) may be represented by counsel and may claim any privilege to which the person is entitled.  2002, c. 1, Sched. A, s. 6.

Inspection

(6) A person authorized in writing by the Panel may, on production of the authorization, enter any business premises, other than premises used as a dwelling, during business hours for the purposes of conducting an investigation under this section, where the person reasonably believes that relevant documents, records or other things may be found in the business premises.  2002, c. 1, Sched. A, s. 6.

Copies

(7) On giving a receipt, a person mentioned in subsection (6) may remove documents, records or other things for the purpose of making copies or extracts, and shall promptly return them to the person who produced them.  2002, c. 1, Sched. A, s. 6.

Documents in electronic form

(8) If a document, record or other thing is kept in electronic form, the person mentioned in subsection (6) may require that a copy of it be provided on paper or in a machine-readable medium or both.  2002, c. 1, Sched. A, s. 6.

Authorization to search

(9) For the purposes of an investigation under this section, a person authorized in writing by the Panel may apply to a judge of the Ontario Court of Justice in the absence of the public and without notice for a warrant authorizing the person or persons named in the warrant to enter and search any building, receptacle or place specified and to seize anything described in the authorization that is found in the building, receptacle or place and to bring it before the judge granting the authorization or another judge to be dealt with according to law.  2002, c. 1, Sched. A, s. 6.

Grounds

(10) No authorization shall be granted under subsection (9) unless the judge to whom the application is made is satisfied on information under oath that there are reasonable grounds to believe that there is in the building, receptacle or place to be searched anything that may reasonably relate to an investigation under this section.  2002, c. 1, Sched. A, s. 6.

Power to enter, search and seize

(11) A person named in a warrant under subsection (9) may, on production of the warrant, enter any building, receptacle or place specified in the warrant between 6 a.m. and 9 p.m. and search for and seize anything specified in the warrant.  2002, c. 1, Sched. A, s. 6.

Expiration

(12) Every warrant under subsection (9) shall name the day that it expires, which shall not be later than 15 days after the warrant is granted.  2002, c. 1, Sched. A, s. 6.

Dwellings

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

“building, receptacle or place” does not include premises used as a dwelling.  2002, c. 1, Sched. A, s. 6.

Application

(14) Sections 159 and 160 of the Provincial Offences Act apply to searches and seizures under this section with such modifications as the circumstances require.  2002, c. 1, Sched. A, s. 6.

Report and recommendations

(15) On completion of an investigation, the Panel shall prepare a report that may include recommendations for amendment of the market rules or other recommendations.  2002, c. 1, Sched. A, s. 6.

Same

(16) The Panel shall submit the report to the IMO, the Board and any other person that the Panel considers appropriate.  2002, c. 1, Sched. A, s. 6.

Same

(17) The report shall be deemed, for the purpose of section 14 of the Freedom of Information and Protection of Privacy Act, to be a report prepared in the course of law enforcement, inspections or investigations by an agency which has the function of enforcing and regulating compliance with a law.  2002, c. 1, Sched. A, s. 6.

Review of materials by Panel

37.1 (1) Every market participant shall deliver to the Market Surveillance Panel, at any time required by the Panel, any books, records or documents that are required to be kept by the market participant under the market rules or Ontario law.  2002, c. 1, Sched. A, s. 6.

Same

(2) The Panel may review and keep copies of any books, records or documents provided under subsection (1) for the purposes of market surveillance.  2002, c. 1, Sched. A, s. 6.

Inspection

(3) A person authorized in writing by the Panel may enter the business premises of any market participant, other than premises used as a dwelling, during business hours, and may examine and make copies of any books, records or documents mentioned in subsection (1) for the purposes of market surveillance.  2002, c. 1, Sched. A, s. 6.

No obstruction

37.2 (1) No person shall obstruct, hinder or interfere with a person who is acting pursuant to an authorization granted under subsection 37 (6) or (9) or 37.1 (3).  2002, c. 1, Sched. A, s. 6.

Penalty

(2) Every person who contravenes subsection (1) is guilty of an offence and on conviction is liable to a fine not exceeding $50,000.  2002, c. 1, Sched. A, s. 6.

Confidentiality

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

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

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

(c) the information is communicated to or access to or inspection of the material is allowed to a police force or other investigatory agency or to a regulatory agency.  2002, c. 1, Sched. A, s. 6.

Not evidence in proceedings

(2) No document, record, copy or other thing obtained pursuant to section 37 or 37.1 is admissible in evidence in any proceeding, except a review by the Board under section 38, unless the Panel has made an order under subsection (3).  2002, c. 1, Sched. A, s. 6.

Disclosure by Panel

(3) The Panel shall make an order permitting the disclosure of information or material obtained pursuant to section 37 or 37.1 if, after giving the person from whom the information or material was obtained and any other person who, in the opinion of the Panel, is an interested party an opportunity to be heard, the Panel is of the opinion that disclosure is in the public interest.  2002, c. 1, Sched. A, s. 6.

Abuse of Market Power

Abuse of market power

38. (1) If the Market Surveillance Panel submits a report to the IMO and the Board under section 37 that contains recommendations relating to the abuse or possible abuse of market power, the IMO shall, within 30 days after receiving the report, inform the Board what action the IMO has taken or intends to take in response to the report.  1998, c. 15, Sched. A, s. 38 (1).

Review by Board

(2) After receiving the report of the Market Surveillance Panel and after receiving any information provided by the IMO under subsection (1), the Board may conduct a review to determine whether the market rules or the licence of any market participant should be amended.  1998, c. 15, Sched. A, s. 38 (2).

Minister’s directive

(3) If directed to do so by the Minister under section 28 of the Ontario Energy Board Act, 1998, the Board shall, in accordance with the directive, conduct a review to determine whether the market rules or the licence of any market participant should be amended.  1998, c. 15, Sched. A, s. 38 (3).

Powers of Board

(4) On the completion of a review under subsection (2) or (3), the Board may, for the purpose of avoiding, reducing the risk of or mitigating the effects of an abuse of market power,

(a) amend the licence of any market participant; or

(b) make an order directing the IMO to amend the market rules in a manner and within the time specified by the Board.  1998, c. 15, Sched. A, s. 38 (4).

Publication

(5) The IMO shall, in accordance with the market rules, publish any amendment made pursuant to an order under clause (4) (b).  1998, c. 15, Sched. A, s. 38 (5).

Further reviews

(6) Sections 33 and 34 do not apply to an amendment made in accordance with an order under clause (4) (b).  1998, c. 15, Sched. A, s. 38 (6).

Emergency Plans

Emergency plans

39. (1) The Minister shall require the IMO to prepare and file with the Minister such emergency plans as the Minister considers necessary.  1998, c. 15, Sched. A, s. 39 (1).

Same

(2) The Minister may require a market participant to prepare and file with the Minister such emergency plans as the Minister considers necessary.  1998, c. 15, Sched. A, s. 39 (2).

Co-ordination of plans

(3) The IMO shall assist in co-ordinating the preparation of plans under subsections (1) and (2).  1998, c. 15, Sched. A, s. 39 (3).

Implementation

(4) The Minister may direct the IMO or a market participant to implement an emergency plan filed under subsection (1) or (2), with such changes as the Minister considers necessary.  1998, c. 15, Sched. A, s. 39 (4).

Nuclear generation facilities

(5) Every generator that owns or operates a nuclear generation facility shall file with the Minister a copy of any emergency plans relating to the facility that are filed with the Canadian Nuclear Safety Commission.  1998, c. 15, Sched. A, s. 39 (5).

Same

(6) Until section 74 of the Nuclear Safety and Control Act (Canada) comes into force, the reference in subsection (5) to the Canadian Nuclear Safety Commission shall be deemed to be a reference to the Atomic Energy Control Board.  1998, c. 15, Sched. A, s. 39 (6).

Powers of Entry

Powers of entry

40. (1) A transmitter or distributor may, at reasonable times, enter land on which its transmission or distribution system is located,

(a) to inspect, maintain, repair, alter, remove, replace or disconnect wires or other facilities used to transmit or distribute electricity; or

(b) to install, inspect, read, calibrate, maintain, repair, alter, remove or replace a meter.  1998, c. 15, Sched. A, s. 40 (1).

Same: multi-unit buildings

(2) If a transmitter or distributor has the necessary consent of an owner or occupant to connect a line of its transmission or distribution system to part of a building and other parts of the building are owned by different owners or are in the possession of different occupants, the transmitter or distributor may, at reasonable times, enter on the other parts of the building to install, construct or maintain its transmission or distribution system, including anything necessary to make the connection.  1998, c. 15, Sched. A, s. 40 (2).

Same: common passages

(3) If a transmitter or distributor has the necessary consent of an owner or occupant to connect a line of its transmission or distribution system to land and the owner or occupant shares a mutual driveway or other common passage with the owners or occupants of neighbouring land, the transmitter or distributor may, at reasonable times, enter the common passage to install, construct or maintain its transmission or distribution system, including anything necessary to make the connection.  1998, c. 15, Sched. A, s. 40 (3).

Same: removal of obstructions

(4) A transmitter or distributor may enter any land for the purpose of cutting down or removing trees, branches or other obstructions if, in the opinion of the transmitter or distributor, it is necessary to do so to maintain the safe and reliable operation of its transmission or distribution system.  1998, c. 15, Sched. A, s. 40 (4).

Shutting off electricity

(5) For the purposes of this section, the transmitter or distributor may shut off or reduce the supply of electricity to the property or connect or disconnect equipment or open or close circuits.  1998, c. 15, Sched. A, s. 40 (5).

Employees, etc.

(6) If a person has a power of entry under this section, the power may be exercised by an employee or agent of the person who may be accompanied by any other person under the direction of the employee or agent.  1998, c. 15, Sched. A, s. 40 (6).

Identification

(7) A person exercising a power of entry under this section must on request display or produce proper identification.  1998, c. 15, Sched. A, s. 40 (7).

Notice, compensation, etc.

(8) If a person exercises a power of entry under this section, the person shall,

(a) provide reasonable notice of the entry to the occupier of the property;

(b) in so far as is practicable, restore the property to its original condition; and

(c) provide compensation for any damages caused by the entry.  1998, c. 15, Sched. A, s. 40 (8).

Property Interests

Public streets and highways

41. (1) A transmitter or distributor may, over, under or on any public street or highway, construct or install such structures, equipment and other facilities as it considers necessary for the purpose of its transmission or distribution system, including poles and lines.  1998, c. 15, Sched. A, s. 41 (1).

Inspection, etc.

(2) The transmitter or distributor may inspect, maintain, repair, alter, remove or replace any structure, equipment or facilities constructed or installed under subsection (1) or a predecessor of subsection (1).  1998, c. 15, Sched. A, s. 41 (2).

Entry

(3) The transmitter or distributor may enter the street or highway at any reasonable time to exercise the powers referred to in subsections (1) and (2).  1998, c. 15, Sched. A, s. 41 (3).

Employees, etc.

(4) The powers of a transmitter or distributor under subsections (1), (2) and (3) may be exercised by an employee or agent of the transmitter or distributor, who may be accompanied by any other person under the direction of the employee or agent.  1998, c. 15, Sched. A, s. 41 (4).

No consent required

(5) The exercise of powers under subsections (1), (2) and (3) does not require the consent of the owner of or any other person having an interest in the street or highway.  1998, c. 15, Sched. A, s. 41 (5).

Identification

(6) A person exercising a power of entry under this section must on request display or produce proper identification.  1998, c. 15, Sched. A, s. 41 (6).

Notice, compensation, etc.

(7) If a transmitter or distributor exercises a power of entry under this section, it shall,

(a) provide reasonable notice of the entry to the owner or other person having authority over the street or highway;

(b) in so far as is practicable, restore the street or highway to its original condition; and

(c) provide compensation for any damages caused by the entry.  1998, c. 15, Sched. A, s. 41 (7).

No compensation

(8) Subject to clause (7) (c), the transmitter or distributor is not required to pay any compensation in order to exercise its powers under subsections (1), (2) and (3), and the Expropriations Act does not apply in respect of anything done pursuant to those powers.  1998, c. 15, Sched. A, s. 41 (8).

Location

(9) The location of any structures, equipment or facilities constructed or installed under subsection (1) shall be agreed on by the transmitter or distributor and the owner of the street or highway, and in case of disagreement shall be determined by the Board.  1998, c. 15, Sched. A, s. 41 (9).

Application of subs. (9)

(10) Subsection (9) does not apply if section 92 of the Ontario Energy Board Act, 1998 applies.  1998, c. 15, Sched. A, s. 41 (10).

Telecommunications services

42. (1) If part of a transmission or distribution system is located on land with respect to which the transmitter or distributor has an easement or other right to use the land, the transmitter or distributor may,

(a) use the land that is subject to the easement or other right for the purpose of providing telecommunications service; or

(b) enter into agreements with other persons, including affiliates of the transmitter or distributor, authorizing them to use the land that is subject to the easement or other right for the purpose of providing telecommunications service.  1998, c. 15, Sched. A, s. 42 (1).

Same

(2) Subject to subsection (3), subsection (1) applies despite any other Act and despite any agreement or instrument to the contrary.  1998, c. 15, Sched. A, s. 42 (2).

Same

(3) Clause (1) (a) is subject to section 71 of the Ontario Energy Board Act, 1998.  1998, c. 15, Sched. A, s. 42 (3).

No compensation

(4) The transmitter or distributor is not required to pay any compensation for attaching wires or other telecommunications facilities to a transmission or distribution pole pursuant to clause (1) (a).  1998, c. 15, Sched. A, s. 42 (4).

Same

(5) A person who is authorized to use land pursuant to an agreement entered into under clause (1) (b) is not required to pay any compensation, other than compensation provided for in the agreement, for attaching wires or other telecommunications facilities to a transmission or distribution pole pursuant to the agreement.  1998, c. 15, Sched. A, s. 42 (5).

Definition

(6) In this section,

“telecommunications service” has the same meaning as in the Telecommunications Act (Canada).  1998, c. 15, Sched. A, s. 42 (6).

Easement: generators, transmitters and distributors

42.1 An easement in favour of a generator, transmitter or distributor for the purpose of generation, transmission or distribution does not have to be appurtenant or annexed to or for the benefit of any specific parcel of land to be valid.  2002, c. 1, Sched. A, s. 7.

Easement over lands sold for taxes

Transmitters and distributors

43. (1) Despite any other Act, if land that was or is subject to easements, ways, rights of way or entry, licences or rights to maintain property thereon, owned by or belonging to a transmitter or distributor, has been or is sold for taxes, or in respect of which a tax arrears certificate has been or is registered, such easements, ways, rights of way or entry, licences, or rights to maintain property shall be deemed not to have been or be affected by the sale or registration.  1998, c. 15, Sched. A, s. 43 (1).

Same: generators

(2) Despite any other Act, if land that was or is subject to flooding rights owned by or belonging to a generator has been or is sold for taxes, or in respect of which a tax arrears certificate has been or is registered, such flooding rights shall be deemed not to have been or be affected by the sale or registration.  1998, c. 15, Sched. A, s. 43 (2).

Easement: municipal public utilities

43.1 Section 91 of the Municipal Act, 2001 applies, with necessary modifications, with respect to a corporation incorporated under section 142 and its subsidiaries as if the corporation or subsidiary, as the case may be, were a municipality and with respect to an easement in favour of a generator, transmitter or distributor for the purpose of generation, transmission or distribution as if it were an easement of a public utility under that section.  2002, c. 1, Sched. A, s. 8.

Ownership of fixtures

44. Despite any other Act, if property of a transmitter or distributor has been affixed to realty, the property remains subject to the rights of the transmitter or distributor as fully as it was before being so affixed and does not become part of the realty unless otherwise agreed by the transmitter or distributor in writing.  1998, c. 15, Sched. A, s. 44.

Exemption from seizure

45. Personal property of a transmitter or distributor that is used for or in connection with transmitting or distributing electricity to land is exempt from seizure,

(a) against the owner or occupant of the land under the Execution Act; and

(b) against a person with a leasehold interest in the land for overdue rent.  1998, c. 15, Sched. A, s. 45.

Unregistered rights

46. (1) If, immediately before the repeal of section 48 of the Power Corporation Act under the Energy Competition Act, 1998, land was subject to a right referred to in subsection 48 (2) or (3) of the Power Corporation Act, the land continues to be subject to the right until the right expires or until it is released by the holder of the right.  1998, c. 15, Sched. A, s. 46 (1).

Transfer of right

(2) A right referred to in subsection (1) may be transferred to,

(a) Hydro One Inc.;

(b) Ontario Power Generation Inc.;

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

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

(d) a corporation established pursuant to section 142 that is authorized to transmit or distribute electricity; or

(e) a subsidiary of a corporation established pursuant to section 142, if the subsidiary is authorized to transmit or distribute electricity.  1998, c. 15, Sched. A, s. 46 (2); 2002, c. 1, Sched. A, s. 9.

Information

(3) On the request of the owner of land or a person intending to acquire an interest in land, the holder of a right referred to in subsection (1) shall make a search of its records and, within 21 days after receiving the request, shall inform the owner or person whether or not it has a right affecting the land that is not registered under the Land Titles Act or the Registry Act and, if it has such a right, shall also inform the owner or person of the term and extent of the right.  1998, c. 15, Sched. A, s. 46 (3).

Compensation

(4) A person who suffers loss or damage due to the failure of the holder of a right to comply with subsection (3) is entitled to compensation for the loss or damage from the holder of the right.  1998, c. 15, Sched. A, s. 46 (4).

Application of Expropriations Act

(5) The Expropriations Act applies with necessary modifications to a claim for compensation under subsection (4) as if it constituted injurious affection and, for the purpose,

(a) a reference to the statutory authority shall be deemed to be a reference to the holder of the right; and

(b) a reference to the owner shall be deemed to be a reference to the person mentioned in subsection (4).  1998, c. 15, Sched. A, s. 46 (5).

Transition

Use of land in connection with generation

46.1 (1) If, on March 31, 1999, the occupier of land used or could lawfully have used the land in connection with the generation of electricity, any occupier of the land may,

(a) use the land in connection with the generation of electricity,

(i) for the use for which the land was used on March 31, 1999, or

(ii) for any use for which the land could lawfully have been used on March 31, 1999; and

(b) use or erect on the land any building or structure in connection with a use of the land that is authorized by clause (a).  2001, c. 23, s. 67.

Same

(2) For the purpose of subsection (1), if, on March 31, 1999, land was used or could lawfully have been used in connection with a generation facility that used a type of fuel prescribed by the regulations to generate electricity and, with respect to that type of fuel, the regulations prescribe another type of fuel as a substitute fuel, it shall be deemed to have been lawful on March 31, 1999 to use the land in connection with a generation facility that used the substitute fuel to generate electricity.  2001, c. 23, s. 67.

Transition: use of land in connection with transmission or distribution

(3) If, on March 31, 1999, the occupier of land used or could lawfully have used the land in connection with the transmission or distribution of electricity, any occupier of the land may,

(a) use the land in connection with the transmission or distribution of electricity,

(i) for the use for which the land was used on March 31, 1999, or

(ii) for any use for which the land could lawfully have been used on March 31, 1999; and

(b) use or erect on the land any building or structure in connection with a use of the land that is authorized by clause (a).  2001, c. 23, s. 67.

Planning Act

(4) This section applies despite any provision of the Planning Act that was enacted before the day the Responsible Choices for Growth and Fiscal Responsibility Act (Budget Measures), 2001 received Royal Assent and despite any by-law, regulation or order made under the Planning Act before that day.  2001, c. 23, s. 67.

Toronto land used by Ontario Hydro

46.2 (1) Despite section 46.1, if, before March 31, 1999, Ontario Hydro occupied and used land in the City of Toronto in connection with the generation of electricity using fossil fuels and for any ancillary use, any occupier of the land may,

(a) use the land in connection with any one or more of the generation of electricity using a type of fuel prescribed by the regulations, the transmission of electricity and the distribution of electricity and for any ancillary uses; and

(b) use or erect on the land any building or structure in connection with a use of the land that is authorized by clause (a).  2002, c. 23, s. 3 (21).

Conflict

(2) This section applies despite any provision of the Planning Act or any other Act and despite any by-law, regulation or order made under the Planning Act or any other Act.  2002, c. 23, s. 3 (21).

Affixing signs, etc.

47. Every person who, without the consent of a transmitter or distributor, nails or otherwise attaches anything, or causes anything to be nailed or otherwise attached to or upon any wooden transmission or distribution pole of the transmitter or distributor is guilty of an offence and on conviction is liable to a fine of not more than $200.  1998, c. 15, Sched. A, s. 47.

PART IV
HYDRO ONE INC.

Objects of Hydro One Inc.

48. (1) The objects of Hydro One Inc. include, in addition to any other objects, owning and operating transmission systems and distribution systems through one or more subsidiaries.  2002, c. 1, Sched. A, s. 10.

Status

(2) Hydro One Inc. and its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.  2002, c. 1, Sched. A, s. 10.

Statutory duties and restrictions

48.1 (1) Hydro One Inc. shall, through one or more subsidiaries, operate generation facilities and distribution systems in, and shall distribute electricity within, such communities as may be prescribed by regulation that are not connected to the IMO-controlled grid and shall do so in accordance with such conditions and restrictions as may be prescribed by regulation.  2002, c. 1, Sched. A, s. 10.

Restriction

(2) Hydro One Inc. shall not own or operate transmission systems or distribution systems in Ontario except through one or more subsidiaries.  2002, c. 1, Sched. A, s. 10.

Same

(3) A subsidiary of Hydro One Inc. shall not transmit or distribute electricity in Ontario if it transmits or distributes electricity outside Ontario.  2002, c. 1, Sched. A, s. 10.

Mandatory provisions in articles

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

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

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

3. Such provisions as may be prescribed by regulation with respect to the enforcement of the constraints.  2002, c. 1, Sched. A, s. 10.

Restrictions

(2) The articles of incorporation and by-laws of Hydro One Inc. and of its subsidiaries that are prescribed for the purposes of subsection (1) must not contain any provisions that are inconsistent with those required by subsection (1).  2002, c. 1, Sched. A, s. 10.

Enforcement

(3) Without limiting the generality of paragraph 3 of subsection (1), the provisions referred to in that paragraph may provide for the filing of declarations, the suspension of voting rights, the forfeiture of dividends, the refusal to issue or register voting securities and the sale of voting securities held contrary to the constraints and payment of the net proceeds of the sale to the person or entity entitled to those proceeds.  2002, c. 1, Sched. A, s. 10.

Non-application of Business Corporations Act, s. 42

(4) Subsection (1) applies despite subsection 42 (1) of the Business Corporations Act.  2002, c. 1, Sched. A, s. 10.

Same

(5) Subsection 42 (2) of the Business Corporations Act does not operate to prohibit any offer to the public of shares that are subject to the rights, privileges, restrictions, conditions and constraints required by subsection (1).  2002, c. 1, Sched. A, s. 10.

Rights of the Minister

49. (1) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of and otherwise deal with securities or debt obligations of, or any other interest in, Hydro One Inc. or any of its subsidiaries.  2002, c. 1, Sched. A, s. 10.

Agreements

(2) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1).  2002, c. 1, Sched. A, s. 10.

Corporations authorized re Hydro One Inc.

50. (1) The Lieutenant Governor in Council may cause corporations to be incorporated under the Business Corporations Act or the Corporations Act for the purpose of acquiring, holding, disposing of and otherwise dealing with securities or debt obligations of, or any other interest in, Hydro One Inc. or any of its subsidiaries.  2002, c. 1, Sched. A, s. 10.

Same

(2) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of and otherwise deal with securities or debt obligations of, or any other interest in, a corporation incorporated pursuant to subsection (1).  2002, c. 1, Sched. A, s. 10.

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1) or (2).  2002, c. 1, Sched. A, s. 10.

Crown agent

(4) A corporation incorporated pursuant to subsection (1) is an agent of Her Majesty for all purposes.  2002, c. 1, Sched. A, s. 10.

Dividends paid to Crown agent

(5) If an agent of Her Majesty in right of Ontario is paid dividends in respect of the shares of Hydro One Inc., the agent shall pay the dividends to the Financial Corporation, less any amount that it considers is required to pay obligations it has assumed, or Her Majesty in right of Ontario has assumed, under clause 122 (1) (a).  2002, c. 1, Sched. A, s. 10.

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

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

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

(b) interests in or entitlements to those securities, assets, liabilities, rights, obligations, revenues and income.  2002, c. 1, Sched. A, s. 10.

Status

(2) A corporation or other entity established under subsection (1) is not an agent of Her Majesty for any purpose, despite the Crown Agency Act.  2002, c. 1, Sched. A, s. 10.

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1).  2002, c. 1, Sched. A, s. 10.

Direction by Minister

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

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

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

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

(d) to transfer to any person or entity an interest in or entitlement to any securities, assets, liabilities, rights, obligations, revenues and income of any subsidiary of which Hydro One Inc. is the only holder, directly or indirectly, of voting securities.  2002, c. 1, Sched. A, s. 10.

Same

(5) The Minister may impose conditions and restrictions when giving a direction under subsection (4).  2002, c. 1, Sched. A, s. 10.

Types of entities

(6) Without limiting the generality of subsection (1), a trust or a partnership may be established under that subsection.  2002, c. 1, Sched. A, s. 10.

Right of the Minister re corporations and other entities and arrangements

50.2 (1) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of or otherwise deal with securities or debt obligations of, or any other interest in, a corporation or other entity established under subsection 50.1 (1).  2002, c. 1, Sched. A, s. 10.

Same

(2) The Minister, on behalf of Her Majesty in right of Ontario, may acquire, hold, dispose of or otherwise deal with any interest in an arrangement made under subsection 50.1 (1).  2002, c. 1, Sched. A, s. 10.

Agreements, etc.

(3) The Minister, on behalf of Her Majesty in right of Ontario, may enter into any agreement or arrangement that the Minister considers necessary or incidental to the exercise of a power under subsection (1) or (2).  2002, c. 1, Sched. A, s. 10.

Proceeds of disposition

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

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

(b) less the amount of any costs incurred by Her Majesty in right of Ontario in disposing of the securities, debt obligations or other interest.  2002, c. 1, Sched. A, s. 10.

Payments in respect of capital

(2) All amounts payable to Her Majesty in right of Ontario in respect of capital for any shares of Hydro One Inc. shall be paid to the Financial Corporation less the amount, if any, described in clause (1) (a).  2002, c. 1, Sched. A, s. 10.

Non-application of Financial Administration Act

(3) Clause 1.1 (1) (b) and subsection 2 (1) of the Financial Administration Act do not apply with respect to proceeds to be paid to the Financial Corporation under subsection (1).  2002, c. 1, Sched. A, s. 10.

Repeal

(4) This section is repealed on the day on which Part V is repealed under section 84.1.  2002, c. 1, Sched. A, s. 10.

Reporting requirements

50.4 (1) Hydro One Inc. shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of the board of directors.  2002, c. 1, Sched. A, s. 10.

Same

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.  2002, c. 1, Sched. A, s. 10.

Same

(3) Hydro One Inc. may give its annual report to other persons before the Minister complies with subsection (2).  2002, c. 1, Sched. A, s. 10.

Additional reports and information

(4) Hydro One Inc. shall give such other reports and information to the Minister of Finance or to the Minister as each of them may require from time to time.  2002, c. 1, Sched. A, s. 10.

Repeal

(5) This section is repealed on a day to be named by proclamation of the Lieutenant Governor.  2002, c. 1, Sched. A, s. 10.

Non-application, Financial Administration Act, s. 28

51. Section 28 of the Financial Administration Act does not apply with respect to any transaction authorized by this Part.  2002, c. 1, Sched. A, s. 10.

Residual power of the Crown

52. Nothing in this Part restricts the powers of Her Majesty in right of Ontario or any member of the Executive Council at common law or under any Act, whether as a shareholder or otherwise.  2002, c. 1, Sched. A, s. 10.

Regulations

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

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

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

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

(d) prescribing subsidiaries for the purposes of subsection 48.2 (1).  2002, c. 1, Sched. A, s. 10.

Types of constraints

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

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

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

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

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

(e) the manner of determining how much of the equity of a corporation a person or class of persons owns.  2002, c. 1, Sched. A, s. 10.

Non-application re constraints, etc.

(3) A regulation under clause (1) (c) may provide that a provision imposing a constraint or a provision for the enforcement of a constraint does not apply with respect to such persons and in such circumstances as are described in the regulation.  2002, c. 1, Sched. A, s. 10.

Limited application re constraints, etc.

(4) A regulation under clause (1) (c) may provide that a provision imposing a constraint or a provision for the enforcement of a constraint applies only with respect to such persons and in such circumstances as are described in the regulation.  2002, c. 1, Sched. A, s. 10.

General or specific

(5) A regulation may be general or specific.  2002, c. 1, Sched. A, s. 10.

Restriction on powers

(6) On the day on which this subsection comes into force, the Lieutenant Governor in Council ceases to have the authority to make regulations under clause (1) (c).  2002, c. 1, Sched. A, s. 10.

Effect of restriction

(7) Despite subsection (6),

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

(b) on and after the day on which subsection (6) comes into force, the Lieutenant Governor in Council retains the authority to revoke a regulation made under clause (1) (c) before that day or to revoke one or more provisions of such a regulation.  2002, c. 1, Sched. A, s. 10.

Commencement

(8) Subsections (6) and (7) come into force on a day to be named by proclamation of the Lieutenant Governor.  2002, c. 1, Sched. A, s. 10.

PART iV.1
ONTARIO POWER GENERATION INC.

Objects of Ontario Power Generation Inc.

53.1 (1) The objects of Ontario Power Generation Inc. include, in addition to any other objects, owning and operating generation facilities.  2002, c. 1, Sched. A, s. 11.

Status

(2) Ontario Power Generation Inc. and its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.  2002, c. 1, Sched. A, s. 11.

Rights of the Minister

53.2 The Minister, on behalf of Her Majesty in right of Ontario, may acquire and hold shares of Ontario Power Generation Inc.  2002, c. 1, Sched. A, s. 11.

Corporations to hold shares

53.3 (1) The Lieutenant Governor in Council may cause corporations to be incorporated under the Business Corporations Act for the purpose of acquiring and holding shares in Ontario Power Generation Inc.  2002, c. 1, Sched. A, s. 11.

Same

(2) Shares in a corporation incorporated pursuant to subsection (1) may be acquired and held in the name of Her Majesty in right of Ontario by a member of the Executive Council designated by the Lieutenant Governor in Council.  2002, c. 1, Sched. A, s. 11.

Crown agent

(3) A corporation incorporated pursuant to subsection (1) is an agent of Her Majesty for all purposes.  2002, c. 1, Sched. A, s. 11.

Dividends paid to Crown agent

(4) If an agent of Her Majesty in right of Ontario is paid dividends in respect of shares of Ontario Power Generation Inc., the agent shall pay the dividends to the Financial Corporation, less any amount that it considers is required to pay obligations it has assumed under clause 122 (1) (a).  2002, c. 1, Sched. A, s. 11.

Reporting requirements

53.4 (1) Ontario Power Generation Inc. shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of the board of directors.  2002, c. 1, Sched. A, s. 11.

Same

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.  2002, c. 1, Sched. A, s. 11.

Same

(3) Ontario Power Generation Inc. may give its annual report to other persons before the Minister complies with subsection (2).  2002, c. 1, Sched. A, s. 11.

Additional reports and information

(4) Ontario Power Generation Inc. shall give such other reports and information to the Minister of Finance or to the Minister as each of them may require from time to time.  2002, c. 1, Sched. A, s. 11.

Residual power of the Crown

53.5 Nothing in this Part restricts the powers of Her Majesty in right of Ontario or any member of the Executive Council at common law or under any Act, whether as a shareholder or otherwise.  2002, c. 1, Sched. A, s. 11.

PART V
THE FINANCIAL CORPORATION

Ontario Hydro Financial Corporation

54. (1) Ontario Hydro is continued as a corporation without share capital under the name Ontario Hydro Financial Corporation in English and Société financière Ontario Hydro in French.  1998, c. 15, Sched. A, s. 54 (1).

Note:  Effective April 1, 1999, the name of the Ontario Hydro Financial Corporation has been changed by regulation to Ontario Electricity Financial Corporation in English and Société financière de l’industrie de l’électricité de l’Ontario in French.  See:  O. Reg. 115/99, s. 1.

Regulations

(2) The Lieutenant Governor in Council may make regulations changing the name of the Financial Corporation.  1998, c. 15, Sched. A, s. 54 (2).

Same

(3) Despite subsection 2 (3) but subject to the regulations, if a regulation is made changing the name of the Financial Corporation, a reference in this or any other Act or in the regulations made under this or any other Act to Ontario Hydro or to the Financial Corporation shall be deemed to be a reference to the new name, unless the context requires otherwise.  1998, c. 15, Sched. A, s. 54 (3).

Rights to Ontario Hydro name

(4) Despite subsections (1) and (2) but subject to any transfer order made under Part X, the Financial Corporation retains all rights to the name Ontario Hydro.  1998, c. 15, Sched. A, s. 54 (4).

Composition

(5) The Financial Corporation is composed of those persons who, from time to time, comprise its board of directors.  1998, c. 15, Sched. A, s. 54 (5).

Objects and character

55. (1) The objects of the Financial Corporation include, in addition to any other objects,

(a) managing its debt;

(b) receiving payments made to the Financial Corporation under this Act or pursuant to any other authority;

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

(d) exercising and performing powers and duties under Part VII;

(e) effecting financings, including establishing trusts, corporations, partnerships or other entities for that purpose; and

(f) such other objects as may be specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 55 (1); 2002, c. 1, Sched. A, s. 12 (1).

Managing debt

(2) For the purpose of this section, managing the Financial Corporation’s debt includes,

(a) servicing and retiring debt;

(b) borrowing, including refinancing, renewing or replacing debt;

(c) investing funds; and

(d) managing financial assets, financial liabilities and financial risks.  1998, c. 15, Sched. A, s. 55 (2).

Capacity

(3) The Financial Corporation has the capacity and the rights, powers and privileges of a natural person.  1998, c. 15, Sched. A, s. 55 (3); 2002, c. 1, Sched. A, s. 12 (2).

Crown agent

56. The Financial Corporation is an agent of Her Majesty for all purposes.  1998, c. 15, Sched. A, s. 56.

Note: Section 57 comes into force on a day to be named by proclamation of the Lieutenant Governor.  See: 1998, c. 15, Sched. A, s. 162.

Property interests belonging to the Crown

57. (1) Any interest of the Financial Corporation in real property that is not transferred under Part X belongs to Her Majesty in right of Ontario.  1998, c. 15, Sched. A, s. 57 (1).

Financial Corporation may administer and dispose

(2) The Financial Corporation may administer, deal with and dispose of any interest referred to in subsection (1) as the agent of Her Majesty in right of Ontario and section 62 applies to any revenues received by the Financial Corporation in that capacity.  1998, c. 15, Sched. A, s. 57 (2).

Rights under s. 46

(3) For the purpose of this section, an interest in real property includes a right referred to in subsection 46 (1).  1998, c. 15, Sched. A, s. 57 (3).

Board of directors

58. (1) The Financial Corporation’s board of directors shall manage or supervise the management of the Corporation’s business and affairs.  1998, c. 15, Sched. A, s. 58 (1).

Composition

(2) The board of directors shall be composed of at least two and not more than 12 directors appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance.  1998, c. 15, Sched. A, s. 58 (2).

Term of office

(3) A director shall hold office at pleasure for a term not exceeding three years and may be reappointed for successive terms not exceeding three years each.  1998, c. 15, Sched. A, s. 58 (3).

Chair

(4) The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, shall designate one of the directors as the chair of the board of directors.  1998, c. 15, Sched. A, s. 58 (4).

Vice-chairs

(5) The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may designate one or more of the directors as a vice-chair of the board of directors.  1998, c. 15, Sched. A, s. 58 (5).

Powers and duties of vice-chair

(6) If the office of chair is vacant or if the chair is absent or unable to act, a vice-chair shall exercise the powers and perform the duties of the chair.  1998, c. 15, Sched. A, s. 58 (6).

Former directors cease to hold office

(7) A person who was a member of the board of directors immediately before subsection (2) comes into force ceases to be a member of the board of directors when subsection (2) comes into force, but nothing in this subsection prevents the person from being reappointed.  1998, c. 15, Sched. A, s. 58 (7).

Chief executive officer

59. The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may appoint a chief executive officer of the Financial Corporation.  1998, c. 15, Sched. A, s. 59.

Delegation

60. (1) Subject to its by-laws, the board of directors of the Financial Corporation may delegate any of its powers or duties to a committee of the board or to any one or more of the directors, subject to such conditions and restrictions as may be specified by the board of directors.  1998, c. 15, Sched. A, s. 60 (1).

Exceptions

(2) Subsection (1) does not permit the board of directors to delegate its power to make by-laws or to approve the financial statements or annual report of the Financial Corporation.  1998, c. 15, Sched. A, s. 60 (2).

By-laws

61. (1) The board of directors of the Financial Corporation may make by-laws regulating the business and affairs of the Corporation.  1998, c. 15, Sched. A, s. 61 (1).

Approval

(2) A by-law is not effective unless it has been approved in writing by the Minister of Finance.  1998, c. 15, Sched. A, s. 61 (2).

Investment powers

(3) The power of the Financial Corporation to borrow, invest funds and manage financial risks may only be exercised under the authority of a by-law.  1998, c. 15, Sched. A, s. 61 (3).

Regulations Act

(4) The Regulations Act does not apply to by-laws made under this section.  1998, c. 15, Sched. A, s. 61 (4).

Use of revenues

62. Despite the Financial Administration Act, the revenues received by the Financial Corporation do not form part of the Consolidated Revenue Fund and shall be used by the Corporation for the purpose of carrying out its objects.  1998, c. 15, Sched. A, s. 62.

Special purpose account

63. (1) If the Lieutenant Governor in Council authorizes Her Majesty in right of Ontario to assume obligations under clause 122 (1) (a), the Minister of Finance shall establish a special purpose account in the Consolidated Revenue Fund for the purposes of this section.  1998, c. 15, Sched. A, s. 63 (1).

Dividends

(2) Dividends paid to Her Majesty in right of Ontario in respect of shares of Hydro One Inc. and Ontario Power Generation Inc. shall be paid into the account, less any amount that the Minister of Finance considers is required to pay obligations assumed by Her Majesty under clause 122 (1) (a).  1998, c. 15, Sched. A, s. 63 (2); 2002, c. 1, Sched. A, s. 13.

Payment to Financial Corporation

(3) Money paid into the account shall be paid out, at such times as the Minister of Finance may direct, to the Financial Corporation.  1998, c. 15, Sched. A, s. 63 (3).

Closure of account

(4) Before this Part is repealed under section 84.1, the special purpose account shall be closed and any money remaining in the special purpose account shall be paid out to the Financial Corporation.  1998, c. 15, Sched. A, s. 63 (4); 2000, c. 42, s. 22.

64. Repealed:  2002, c. 1, Sched. A, s. 14.

Limitation on borrowing

65. The Financial Corporation shall not borrow money except as authorized under this or any other Act.  1998, c. 15, Sched. A, s. 65.

Authorization to borrow

66. (1) The Lieutenant Governor in Council may by order authorize the Financial Corporation to borrow such sums of money as the Corporation considers necessary for the purpose of carrying out its objects.  1998, c. 15, Sched. A, s. 66 (1).

Methods of borrowing

(2) The Financial Corporation may exercise the authority referred to in subsection (1) by the issuance of notes, bonds, debentures, deposit receipts, securities or other evidences of indebtedness, by giving short term security, by loan agreement or in any other manner approved by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 66 (2).

Approval by Minister of Finance

(3) The Lieutenant Governor in Council may authorize the Minister of Finance to approve the terms and conditions of the exercise by the Financial Corporation of the authority referred to in subsection (1), subject to the maximum principal amount and to any other terms and conditions that are specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 66 (3).

Short term securities

(4) If an order of the Lieutenant Governor in Council under subsection (1) expressly refers to this subsection and authorizes the Financial Corporation to borrow a maximum principal amount of money by the issue and sale of short term securities during a specified period not exceeding 25 years, the following terms and conditions apply:

1. Throughout the specified period, the Financial Corporation may issue, reissue, renew or replace securities issued under the order during the period if the maximum aggregate principal amount of the securities issued under the order and outstanding from time to time does not at any time exceed the maximum principal amount specified in the order.

2. Every security issued under the authority of the order shall bear a date of maturity not later than five years from its date of issue.  1998, c. 15, Sched. A, s. 66 (4).

Loans

(5) If an order of the Lieutenant Governor in Council under subsection (1) expressly refers to this subsection and authorizes the Financial Corporation to borrow a maximum principal amount of money for a period not exceeding five years from any bank, corporation, government, person or authority, the Financial Corporation may borrow from time to time such sums not exceeding at any one time the maximum principal amount specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 66 (5).

Application

(6) This section does not apply to money borrowed by the Financial Corporation pursuant to section 67 or 68.  1998, c. 15, Sched. A, s. 66 (6).

Province may purchase securities, etc.

67. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the Financial Corporation at such times and on such terms and conditions as the Minister may determine, subject to,

(a) the maximum principal amount specified by the Lieutenant Governor in Council that may be purchased or advanced or that may be outstanding at any time; and

(b) any other terms and conditions that are specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 67 (1).

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).  1998, c. 15, Sched. A, s. 67 (2).

Province may raise funds

68. The Lieutenant Governor in Council may raise by way of loan in the manner provided by the Financial Administration Act such sums as the Lieutenant Governor in Council considers necessary for the purposes of the Financial Corporation, and the sums so raised shall be used to make advances to the Corporation by way of loan or to purchase securities issued by the Corporation on such terms and conditions as the Minister of Finance may determine.  1998, c. 15, Sched. A, s. 68.

Guarantee and indemnity

69. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance, on behalf of Ontario, to agree to guarantee or indemnify,

(a) any debts, obligations, securities or undertakings of the Financial Corporation or a subsidiary of the Financial Corporation; or

(b) any debts, obligations, costs or undertakings of any other person arising in connection with a guarantee or indemnity given under clause (a).  1998, c. 15, Sched. A, s. 69 (1).

Terms and conditions

(2) In respect of a guarantee or indemnity authorized under subsection (1), the Lieutenant Governor in Council may fix such terms and conditions as are considered advisable or may authorize the Minister of Finance, subject to any maximum liability specified for the guarantee or indemnity by the Lieutenant Governor in Council, to determine the terms, conditions and amount on which the guarantee or indemnity will be given.  1998, c. 15, Sched. A, s. 69 (2).

Delegation, order under ss. 66 to 69

70. In an order under section 66, 67, 68 or 69, 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 that section.  1998, c. 15, Sched. A, s. 70.

Fees payable to Minister of Finance

71. (1) The Financial Corporation shall pay to the Minister of Finance such fees as are prescribed by the regulations,

(a) in respect of securities purchased and sums loaned under section 67;

(b) in respect of sums advanced or securities purchased under section 68; and

(c) in respect of guarantees and indemnities given under section 69.  1998, c. 15, Sched. A, s. 71 (1).

Application

(2) Subsection (1) applies in respect of sums advanced or applied and guarantees and indemnities given before or after the coming into force of this section.  1998, c. 15, Sched. A, s. 71 (2).

Subsidiaries

72. (1) The Financial Corporation may establish a subsidiary in Ontario or elsewhere only with the approval of the Minister of Finance.  1998, c. 15, Sched. A, s. 72 (1).

Subsidiary may act otherwise than as agent of Crown

(2) A subsidiary of the Financial Corporation may declare in writing in any of its contracts, securities or instruments that it is not acting as an agent of Her Majesty for the purposes of the contract, security or instrument.  1998, c. 15, Sched. A, s. 72 (2).

Same

(3) If a subsidiary makes a declaration in accordance with subsection (2), it shall be deemed not to be an agent of Her Majesty for the purposes of the contract, security or instrument and Her Majesty is not liable for any liability or obligation of the subsidiary under the contract, security or instrument.  1998, c. 15, Sched. A, s. 72 (3).

Entities established for effecting financing

73. In addition to the restriction in subsection 72 (1) on establishing subsidiaries, the Financial Corporation may establish a trust, partnership or other entity in Ontario or elsewhere for the purpose of effecting a financing only with the approval of the Minister of Finance.  1998, c. 15, Sched. A, s. 73.

Directives

74. (1) The Minister of Finance may issue directives in writing to the Financial Corporation or any subsidiary of the Financial Corporation on matters relating to its exercise of powers and duties.  1998, c. 15, Sched. A, s. 74 (1).

Implementation

(2) The board of directors of the Financial Corporation or subsidiary shall ensure that directives under this section are implemented promptly and efficiently.  1998, c. 15, Sched. A, s. 74 (2).

Supervision

(3) A directive may, without limiting the generality of subsection (1), provide for the supervision, management and operation of the whole or any part of the business and affairs of the Financial Corporation or subsidiary by the Ontario Financing Authority or such other agency of the Crown as may be specified in the directive and may restrict, in whole or in part, the powers of the directors of the Financial Corporation or subsidiary to manage or supervise the management of the business and affairs of the Financial Corporation or subsidiary.  1998, c. 15, Sched. A, s. 74 (3).

Same

(4) An agency of the Crown specified in a directive referred to in subsection (3) has all the rights, powers, duties and liabilities of the board of directors of the Financial Corporation or subsidiary to the extent that the directive restricts the powers of the board of directors to manage or supervise the management of the business and affairs of the Financial Corporation or subsidiary and the directors of the Financial Corporation or subsidiary are relieved of their duties and liabilities to the same extent.  1998, c. 15, Sched. A, s. 74 (4).

Same

(5) Without limiting the powers and capacities of the Ontario Financing Authority, its objects shall include any activities described in a directive applicable to it under subsection (3).  1998, c. 15, Sched. A, s. 74 (5).

Subsidiaries

(6) Subsection (1) does not apply in respect of a contract, security or instrument with respect to which a subsidiary of the Financial Corporation has made a declaration in accordance with subsection 72 (2).  1998, c. 15, Sched. A, s. 74 (6).

Evidence of authority

75. A recital or declaration in any resolution of the Financial Corporation that a transaction is for the purpose of carrying out the Corporation’s objects is conclusive evidence to that effect.  1998, c. 15, Sched. A, s. 75.

Employees

76. (1) Without limiting the power of the Financial Corporation to hire employees, employees may be appointed or transferred to the Corporation under the Public Service Act.  1998, c. 15, Sched. A, s. 76 (1).

Same

(2) The chief executive officer of the Financial Corporation has the powers of a deputy minister and the chair of the board of directors has the powers of a minister under the Public Service Act with respect to the employees of the Corporation to whom that Act applies.  1998, c. 15, Sched. A, s. 76 (2).

Agreements to provide services

(3) Any minister of the Crown may enter into agreements with the Financial Corporation for the provision by employees of the Crown or any agency of the Crown of any service required by the Corporation.  1998, c. 15, Sched. A, s. 76 (3).

Liability

77. (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Financial Corporation or a subsidiary of the Financial Corporation, or of an agency of the Crown specified in a directive referred to in subsection 74 (3), 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 Act, the regulations or the by-laws of the Corporation or subsidiary, or for any neglect or default in the exercise or performance in good faith of such a power or duty.  1998, c. 15, Sched. A, s. 77 (1).

Declaration under subs. 72 (2)

(2) Subsection (1) does not apply to any act, neglect or default in respect of a contract, security or instrument with respect to which a subsidiary of the Financial Corporation has made a declaration in accordance with subsection 72 (2).  1998, c. 15, Sched. A, s. 77 (2).

Actions against Crown

(3) No action or other civil proceeding shall be commenced against the Crown for any act, neglect or default by a person referred to in subsection (1) or for any act, neglect or default of the Financial Corporation, a subsidiary of the Financial Corporation or an agency of the Crown specified in a directive referred to in subsection 74 (3).  1998, c. 15, Sched. A, s. 77 (3).

Same

(4) Subsections (1) and (3) do not relieve the Financial Corporation, a subsidiary of the Financial Corporation or an agency of the Crown specified in a directive referred to in subsection 74 (3) 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).  1998, c. 15, Sched. A, s. 77 (4).

Same

(5) Subsection (3) does not relieve the Crown of any liability pursuant to a guarantee or indemnity under section 69 or a guarantee referred to in clause 130 (a).  1998, c. 15, Sched. A, s. 77 (5).

Definition

(6) In this section,

“employee” includes an employee employed under the Public Service Act.  1998, c. 15, Sched. A, s. 77 (6).

Waiver of immunity

78. The Financial Corporation or any of its subsidiaries may waive any immunity to which it may be entitled outside Ontario as an agent of Her Majesty and may submit to the jurisdiction of a court outside Ontario.  1998, c. 15, Sched. A, s. 78.

Judgments against Financial Corporation

79. (1) The Minister of Finance shall pay from the Consolidated Revenue Fund the amount of any judgment against the Financial Corporation or a subsidiary of the Corporation that remains unpaid after it has made reasonable efforts, including liquidating its assets, to pay the amount of the judgment.  1998, c. 15, Sched. A, s. 79 (1).

Application

(2) Subsection (1) does not apply to a judgment in respect of a matter that arose before this section comes into force.  1998, c. 15, Sched. A, s. 79 (2).

Subsidiaries

(3) Subsection (1) does not apply to a judgment arising from a contract, security or instrument in respect of which a subsidiary has made a declaration in accordance with subsection 72 (2).  1998, c. 15, Sched. A, s. 79 (3).

Audits

80. The accounts and financial transactions of the Financial Corporation shall be audited annually by the Provincial Auditor.  1998, c. 15, Sched. A, s. 80.

Annual report

81. (1) The Financial Corporation shall, within 90 days after the end of every fiscal year, submit to the Minister of Finance an annual report on its affairs during that fiscal year, signed by the chair of its board of directors.  1998, c. 15, Sched. A, s. 81 (1).

Financial statements

(2) The audited financial statements of the Financial Corporation shall be included in the annual report.  1998, c. 15, Sched. A, s. 81 (2).

Tabling

(3) The Minister of Finance shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.  1998, c. 15, Sched. A, s. 81 (3).

Other persons

(4) The Financial Corporation may give its annual report to other persons before the Minister of Finance complies with subsection (3).  1998, c. 15, Sched. A, s. 81 (4).

Other reports

82. The Financial Corporation shall submit such other reports and information to the Minister of Finance as he or she may require from time to time.  1998, c. 15, Sched. A, s. 82.

Application of corporations statutes

83. Except as otherwise provided by the regulations, the Corporations Act and the Corporations Information Act do not apply to the Financial Corporation.  1998, c. 15, Sched. A, s. 83.

Tax exemption

84. (1) Despite the Assessment Act or any other general or special Act, the Financial Corporation and its property are not subject to taxation for municipal or school purposes, except for local improvements.  1998, c. 15, Sched. A, s. 84 (1).

Annual payments to municipalities

(2) The Financial Corporation shall pay in each year to any municipality in which are situated lands owned by the Financial Corporation or buildings used exclusively for executive, administrative or commercial purposes and owned by the Financial Corporation or buildings owned by the Financial Corporation and rented by it to other persons, an amount equal to the taxes for municipal and school purposes that would be payable if the lands and buildings were taxable.  1998, c. 15, Sched. A, s. 84 (2).

Same

(3) In addition to the amounts payable under subsection (2), the Financial Corporation shall pay in each year to any municipality in which are situated generating station buildings or structures or transformer station buildings or structures owned by the Financial Corporation, an amount equal to the taxes for municipal and school purposes that would be payable if the buildings or structures were taxable and the assessed value were determined on the basis of $86.11 for each square metre of inside ground floor area of the actual building or structure housing the generating, transforming and auxiliary equipment and machinery.  1998, c. 15, Sched. A, s. 84 (3).

Same

(4) In addition to the amounts payable under subsections (2) and (3), the Financial Corporation shall pay in each year, to any municipality in which land owned by it and described in paragraph 2 of subsection 315 (1) of the Municipal Act, 2001 is situated, an amount equal to the tax that would be imposed under section 315 of the Municipal Act, 2001 on that land if the land were taxable.  1998, c. 15, Sched. A, s. 84 (4); 2002, c. 17, Sched. F, Table.

Same

(5) The Financial Corporation shall pay in each year to any municipality in which is situated land owned by it and used as a transmission or distribution corridor and leased to another person for rent or other valuable consideration, an amount equal to the taxes for municipal and school purposes that would be payable if the land were taxable and subsection (2) does not apply with respect to the land.  1998, c. 15, Sched. A, s. 84 (5).

Limitation

(6) Despite subsections (2) and (3), the total amount payable thereunder by the Financial Corporation to any municipality in any year shall not exceed 50 per cent of the total of the amounts required for the purposes of the municipality and of all of its local boards being raised by the imposition, rating and levying of all rates, assessments and taxation, except local improvement rates, upon rateable property in the municipality in that year.  1998, c. 15, Sched. A, s. 84 (6).

Use of valuations for computing rates

(7) The valuations made under this section shall be used for the purpose of computing upper-tier municipality rates, school rates and legislative grants in all respects as though the properties valued were not exempt from taxation for such purposes.  1998, c. 15, Sched. A, s. 84 (7); 2002, c. 17, Sched. F, Table.

Valuation

(8) The assessments and assessed values referred to in this section are valuations made in each year for the purposes of this section by the Municipal Property Assessment Corporation, and subject to subsections (2), (3) and (14), the valuation shall be made on the same basis as real property liable to municipal taxation in the municipality.  1998, c. 15, Sched. A, s. 84 (8); 2001, c. 8, s. 205 (1).

Minister of Finance’s decision

(9) The decision of the Minister of Finance as to whether this section applies to any property of the Financial Corporation is final.  1998, c. 15, Sched. A, s. 84 (9).

Valuation notice

(10) The Municipal Property Assessment Corporation shall, on completion of the valuation of the Financial Corporation’s property in a municipality, deliver or mail to the clerk of the municipality and to the Financial Corporation a notice setting out the valuations referred to in subsection (8).  1998, c. 15, Sched. A, s. 84 (10); 2001, c. 8, s. 205 (1).

Appeals

(11) The municipality or the Financial Corporation may appeal to the Assessment Review Board against the valuation and a notice of appeal to the Board under this subsection shall be sent by the party appealing, by registered mail, to the secretary of the Board within 90 days after the notice of the valuation has been delivered or mailed under subsection (10).  1998, c. 15, Sched. A, s. 84 (11).

Hearing

(12) Upon receipt of a notice of appeal under this section, the secretary of the Assessment Review Board shall arrange a time and place for hearing the appeal and shall send notice thereof to all parties concerned in the appeal at least 14 days before the hearing.  1998, c. 15, Sched. A, s. 84 (12).

Jurisdiction on appeal

(13) The Assessment Review Board upon appeal shall determine the amount at which the property in question shall be valued and its decision is final and binding and there is no appeal therefrom.  1998, c. 15, Sched. A, s. 84 (13).

Exemptions

(14) In making the valuations referred to in subsection (8), there shall be no value included for machinery whether fixed or not nor for the foundation on which it rests, works, structures other than buildings or structures referred to in subsection (2) or (3), substructures, superstructures, rails, ties, poles, towers, lines nor any of the things excepted from exemption from taxation by paragraph 17 of section 3 of the Assessment Act, nor for other property, works or improvements not referred to in subsection (2) or (3), nor for an easement or the right or use of occupation or other interest in land not owned by the Financial Corporation.  1998, c. 15, Sched. A, s. 84 (14).

(15) Repealed:  2001, c. 8, s. 205 (2).

Repeal, Part V

84.1 (1) This Part is repealed on a day to be named by proclamation of the Lieutenant Governor.  2000, c. 42, s. 23.

Dissolution of Financial Corporation

(2) On the day this Part is repealed, the Financial Corporation is dissolved and its assets and liabilities are transferred to Her Majesty in right of Ontario.  2000, c. 42, s. 23.

Restriction on proclamation

(3) No proclamation shall be issued under this section unless, in the opinion of the Minister of Finance, substantially all the debts and other liabilities of the Financial Corporation have been retired or defeased.  2000, c. 42, s. 23.

Determination final

(4) The determination of the Minister of Finance that substantially all the debts and other liabilities of the Financial Corporation have been retired or defeased is final and conclusive and shall not be stayed, varied or set aside by any court.  2000, c. 42, s. 23.

part v.1
debt retirement charge

The Residual Stranded Debt and the Debt Retirement Charge

Charges to retire debt

85. (1) In this Part,

“collector” means a person appointed as a collector under subsection 85.3 (1); (“percepteur”)

“debt retirement charge” means, with respect to a user, the debt retirement charge payable by the user under subsection 85 (4); (“redevance de liquidation de la dette”)

“inspector” means a person appointed as an inspector under subsection 85.28 (1); (“inspecteur”)

“person” includes Her Majesty in right of Ontario, a partnership, a municipal corporation, a local board as defined in the Municipal Affairs Act, a police village, or a board, commission or authority established under an Act of the Assembly; (“personne”)

“residual stranded debt” means the stranded debt, reduced by,

(a) the amounts that, in the opinion of the Minister of Finance, will be paid under sections 89, 90, 91, 92, 93 and 94, and

(b) other amounts prescribed by the regulations; (“reliquat de la dette insurmontable”)

“self-generating user” means a person who generates electricity for his, her or its own consumption or for consumption by another person at the expense of the person who generates it; (“usager autoproducteur”)

“stranded debt” means the amount of the debts and other liabilities of the Financial Corporation that, in the opinion of the Minister of Finance, cannot reasonably be serviced and retired in a competitive electricity market; (“dette insurmontable”)

“user” means,

(a) a person who purchases or acquires electricity for his, her or its own consumption or for consumption by another person at the expense of the person who purchases or acquires it,

(b)   a person who purchases or acquires electricity on behalf of, or as agent for, a principal who wishes to acquire electricity for consumption by the principal or by other persons at the principal’s expense, and

(c) a self-generating user. (“usager”)  1998, c. 15, Sched. A, s. 85 (1); 2000, c. 42, s. 25 (1); 2002, c. 17, Sched. F, Table.

Determinations

(2) The Minister of Finance shall determine the stranded debt and shall from time to time determine the residual stranded debt in accordance with the regulations.  1998, c. 15, Sched. A, s. 85 (2).

Reporting

(3) The determinations made by the Minister under subsection (2) shall be subject to such reporting requirements as are prescribed by the regulations.  1998, c. 15, Sched. A, s. 85 (3).

Duty to pay debt retirement charge

(4) Every user shall pay to the Financial Corporation a debt retirement charge in respect of the amount of electricity consumed in Ontario, to be calculated at the prescribed rate or rates.  2000, c. 42, s. 25 (2).

Determination re amount consumed

(4.1) For the purposes of subsection (4), the amount of electricity consumed in Ontario is to be determined in accordance with the regulations.  2000, c. 42, s. 25 (2).

Time and manner of payment

(5) The user shall pay the debt retirement charge at the time and in the manner specified by the regulations.  2000, c. 42, s. 25 (2).

Exemption from payment

(5.1) Such users or classes of users as may be prescribed are exempted from paying the debt retirement charge in such circumstances as may be prescribed.  2000, c. 42, s. 25 (2).

Same, under other Acts

(5.2) No person otherwise subject to the debt retirement charge is exempt from paying it by reason of an exemption granted to the person, or granted in respect of the personal or real property of the person, by or under any other Act unless the other Act expressly mentions this Act.  2000, c. 42, s. 25 (2).

Retirement of residual stranded debt

(6) When the Minister of Finance determines that the residual stranded debt has been retired, the Minister of Finance shall publish notice of that fact in The Ontario Gazette.  1998, c. 15, Sched. A, s. 85 (6).

Determination final

(7) The determination of the Minister of Finance that the residual stranded debt has been retired is final and conclusive and shall not be stayed, varied or set aside by any court.  1998, c. 15, Sched. A, s. 85 (7).

Application

(8) Subsections (2) to (6) do not apply after the Minister of Finance publishes notice under subsection (6) that the residual stranded debt has been retired.  1998, c. 15, Sched. A, s. 85 (8).

Duty to meter consumption

85.1 Such users or classes of users as may be prescribed shall meter their consumption of electricity and shall do so in accordance with the regulations.  2000, c. 42, s. 26.

Exemptions

85.2 Such users or classes of users as may be prescribed are exempted from such obligations as are specified in the regulation in the circumstances described in the regulation.  2000, c. 42, s. 26.

Registration

Collectors of debt retirement charge

85.3 (1) Such persons as may be prescribed are appointed as collectors of the debt retirement charge.  2000, c. 42, s. 26.

Registration of collectors

(2) Every collector shall register with the Minister of Finance in accordance with the prescribed requirements and shall maintain his, her or its registration.  2000, c. 42, s. 26.

Duties of collectors

(3) Every collector shall do the following:

1. Levy and collect the debt retirement charge in accordance with the regulations.

2. Remit, in accordance with the regulations, the debt retirement charge collectable and payable by the collector.

3. Keep the prescribed records in accordance with the prescribed requirements.

4. Submit returns to the Minister of Finance in accordance with the prescribed requirements.  2000, c. 42, s. 26.

Status

(4) Every collector is an agent of the Financial Corporation for the purpose of levying and collecting the debt retirement charge.  2000, c. 42, s. 26.

Registration of self-generating users

85.4 (1) Every self-generating user shall register with the Minister of Finance in accordance with the prescribed requirements and shall maintain his, her or its registration.  2000, c. 42, s. 26.

Duties

(2) Every self-generating user shall do the following:

1. Remit, in accordance with the regulations, the debt retirement charge payable by the self-generating user.

2. Keep the prescribed records in accordance with the prescribed requirements.

3. Submit returns to the Minister of Finance in accordance with the prescribed requirements.  2000, c. 42, s. 26.

Assessment and Reassessment of Amounts Owing

Assessment payable by collector

85.5 (1) At any time the Minister of Finance considers reasonable, he or she may assess or reassess the debt retirement charge collected by a collector for which the collector has not accounted,

(a) if the collector fails to submit a return or remittance as required by this Part; or

(b) if the collector’s returns are not substantiated by the collector’s records.  2000, c. 42, s. 27.

Assessment upon inspection

(2) If it appears to an inspector that a collector has not complied with this Part, the Minister of Finance may assess or reassess the amount of the debt retirement charge collected by the collector or the amount of the penalty authorized by subsection 85.6 (4), based on the inspector’s calculation that is described in subsection (3).  2000, c. 42, s. 27.

Calculation of amount

(3) For the purposes of an assessment or reassessment under subsection (2), the inspector shall calculate the amount of the debt retirement charge or the amount of the penalty and shall make the calculation in the manner and form and using such procedures as the Minister of Finance considers adequate and expedient.  2000, c. 42, s. 27.

Deemed charge

(4) The amount assessed or reassessed by the Minister of Finance under this section shall be deemed to be a debt retirement charge collected by the collector.  2000, c. 42, s. 27.

Administrative penalties, collectors

85.6 (1) If a collector fails to submit a return to the Minister of Finance as required under this Part, the Minister of Finance may assess a penalty against the collector in an amount equal to the sum of 10 per cent of the amount collectable by the collector in respect of the period for which the return should have been submitted and 5 per cent of the amount payable by the collector in respect of that period.  2000, c. 42, s. 27.

Same, failure to pay

(2) If a collector submits a return to the Minister of Finance as required under this Part but fails to remit the full amount shown on the return as collectable or payable by the collector, the Minister of Finance may assess a penalty against the collector in an amount equal to the sum of 10 per cent of the amount collectable and not remitted by the collector and 5 per cent of the amount payable and not remitted by the collector.  2000, c. 42, s. 27.

Same, wilful non-compliance

(3) If the Minister of Finance makes an assessment or reassessment under subsection 85.5 (1) or (2) and if the Minister of Finance is satisfied that the non-compliance that gave rise to the assessment or reassessment was attributable to neglect, carelessness, wilful default or fraud, the Minister of Finance may assess a penalty against the collector equal to the greater of,

(a) $100; or

(b) 25 per cent of the amount assessed or reassessed under subsection 85.5 (1) or (2), as the case may be.  2000, c. 42, s. 27.

Same, failure to collect

(4) If a collector fails to collect a debt retirement charge that the collector is required under this Part to collect, the Minister of Finance may assess a penalty against the collector in an amount equal to the amount that should have been collected.  2000, c. 42, s. 27.

Exception

(5) The Minister of Finance shall not assess a penalty under subsection (4) against the collector if the Minister of Finance has made an assessment or reassessment under section 85.7 against the user from whom the collector should have collected the amount.  2000, c. 42, s. 27.

Time limit

(6) The Minister of Finance shall not assess a penalty under subsection (4) with respect to an amount that should have been collected by the collector more than four years before the date of the assessment.  2000, c. 42, s. 27.

Exception, where misrepresentation, etc.

(7) Subsection (6) does not apply if the Minister of Finance establishes that the collector has made a misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in making a return or supplying information under this Part or in omitting to disclose information.  2000, c. 42, s. 27.

Administrative penalty, wilful failure to collect

(8) If a collector fails to collect a debt retirement charge that the collector is required under this Part to collect and if the Minister of Finance is satisfied that the failure is attributable to neglect, carelessness, wilful default or fraud, the Minister of Finance may assess a penalty against the collector,

(a) in an amount equal to the greater of $25 and 25 per cent of the amount that should have been collected, if a penalty has been assessed against the collector under subsection (4) for the failure to collect; or

(b) in an amount equal to the greater of $25 and 125 per cent of the amount that should have been collected, if no penalty has been assessed against the collector under subsection (4) for the failure to collect.  2000, c. 42, s. 27.

Assessments payable by users

85.7 (1) The Minister of Finance may assess or reassess any debt retirement charge payable by a user.  2000, c. 42, s. 27.

Time limit

(2) The assessment or reassessment under subsection (1) must be made,

(a) in the case of a user that is not a self-generating user, within four years after the date on which the debt retirement charge became payable; and

(b) in the case of a self-generating user, within four years after the end of the calendar year during which the debt retirement charge became payable.  2000, c. 42, s. 27.

Exception, where misrepresentation, etc.

(3) Subsection (2) does not apply if the Minister of Finance establishes that the user has made any misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in making a return or supplying information under this Part or in omitting to disclose information.  2000, c. 42, s. 27.

Assessment upon inspection

(4) If it appears to an inspector that a user has not complied with this Part, the Minister of Finance may assess or reassess the amount of the debt retirement charge payable by the user, based on the inspector’s calculation that is described in subsection (5).  2000, c. 42, s. 27.

Calculation of amount

(5) For the purposes of an assessment or reassessment under subsection (4), the inspector shall calculate the amount payable by the user and shall make the calculation in the manner and form and using such procedures as the Minister of Finance considers adequate and expedient.  2000, c. 42, s. 27.

Administrative penalties, users

85.8 If the Minister of Finance makes an assessment or reassessment under section 85.7 and if the Minister of Finance is satisfied that the non-compliance that gave rise to the assessment or reassessment was attributable to neglect, carelessness, wilful default or fraud, the Minister of Finance may assess a penalty against the user equal to the greater of,

(a) $100; or

(b) 25 per cent of the amount assessed or reassessed under section 85.7.  2000, c. 42, s. 27.

Administrative penalty, self-generating user

85.9 (1) If a self-generating user fails to submit a return to the Minister of Finance as required under this Part, the Minister of Finance may assess a penalty against the user in an amount equal to 5 per cent of the debt retirement charge payable by the user in respect of the period for which the return should have been submitted.  2000, c. 42, s. 27.

Same, failure to remit payment

(2) If a self-generating user submits a return to the Minister of Finance but fails to remit the full amount shown on the return as payable by the user, the Minister of Finance may assess a penalty against the user in an amount equal to 5 per cent of the amount payable and not remitted.  2000, c. 42, s. 27.

Liability of corporate directors

85.10 (1) This section applies if a corporation fails to collect a debt retirement charge, fails to remit a debt retirement charge that it has collected or fails to pay any interest or penalty under this Part relating to such a charge.  2000, c. 42, s. 27.

Same

(2) The individuals who were directors of the corporation when the corporation failed to collect or remit the debt retirement charge or failed to pay the interest or penalty are jointly and severally liable, together with the corporation, to pay the charge, interest or penalty to the Financial Corporation.  2000, c. 42, s. 27.

Assessment

(3) The Minister of Finance may assess or reassess any individual for any amount payable by him or her under subsection (2).  2000, c. 42, s. 27.

Same

(4) Section 43 of the Retail Sales Tax Act applies, with necessary modifications, with respect to the liability of individuals under subsection (2), assessments or reassessments by the Minister of Finance under this section and the collection of amounts payable.  2000, c. 42, s. 27.

Assessment of interest payable

85.11 (1) The Minister of Finance may assess interest that is payable on a debt owing to the Financial Corporation under this Part and interest that is payable on a penalty imposed under this Part.  2000, c. 42, s. 27.

Calculation, re debt

(2) The interest on a debt is payable from the date on which the debt is due to the date on which the amount of the debt plus the interest is received by the Financial Corporation and it is to be calculated at the prescribed rate and in the prescribed manner.  2000, c. 42, s. 27.

Same, re penalty

(3) The interest on a penalty is payable from the date of the default to which the penalty relates to the date on which the amount of the penalty plus the interest is received by the Financial Corporation and it is to be calculated at the prescribed rate and in the prescribed manner.  2000, c. 42, s. 27.

Calculation of debt owing

(4) For the purposes of subsection (1), the amount of a debt owing by a person to the Financial Corporation on a particular date is the amount by which “A” exceeds “B” where,

  “A” is the aggregate of,

(a) the amount of the debt retirement charge collectable by the person as a collector or payable by the person as a user under this Part before that date,

(b) all amounts or penalties or both assessed under this Part against the person before that date, and

(c) the total of all amounts of interest assessed and payable under this section against the person in respect of a period of time before that date, and

  “B” is the aggregate of,

(a) the amount of the debt retirement charge remitted or paid by the person under this Part before that date,

(b) all amounts or penalties or both assessed under this Part and paid by the person before that date, and

(c) the total of all amounts of interest credited to the person in respect of a period of time before that date.  2000, c. 42, s. 27.

Notice of assessment

85.12 The Minister of Finance shall give a written notice of assessment or reassessment to a user, collector or individual who is assessed or reassessed under this Part.  2000, c. 42, s. 27.

Effect of information and returns

85.13 (1) The Minister of Finance is not bound by information given or by a return made by or on behalf of a person under this Part and may make assessments under this Part even though no information is given or return is made or even though the information or return is incomplete or incorrect.  2000, c. 42, s. 27.

Liability

(2) A person’s liability to pay a debt retirement charge is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.  2000, c. 42, s. 27.

Payments, Refunds and Rebates

Payment of assessed amounts

85.14 (1) Every person against whom an assessment is made under this Part shall pay to the Financial Corporation the amount assessed, whether or not an objection to the assessment or an appeal from the assessment is outstanding.  2000, c. 42, s. 27.

Status of assessment

(2) An assessment by the Minister of Finance under this Part shall be deemed to be valid and binding despite any error, defect or omission either in the assessment or in any proceeding under this Part relating to the assessment and the amount assessed shall be deemed to be conclusively established as a debt owing to the Financial Corporation.  2000, c. 42, s. 27.

Same

(3) Subsection (2) does not prevent the assessment from being varied or vacated on an objection or an appeal and does not prevent a reassessment being made.  2000, c. 42, s. 27.

Penalty

(4) If a person purports to pay or remit an amount owing under this Part by delivering anything other than legal tender within the meaning of subsection 8 (1) of the Currency Act (Canada) and if, as a result, the Financial Corporation fails to receive full and unconditional payment or settlement, the person is liable to pay to the Financial Corporation the additional fee that is prescribed and the Minister of Finance may assess the additional fee as a penalty.  2000, c. 42, s. 27.

Same

(5) A penalty assessed under subsection (4) cannot be appealed under this Part and an objection to it cannot be initiated under this Part.  2000, c. 42, s. 27.

Refunds and rebates

85.15 (1) An amount paid under this Part that is not payable as a debt retirement charge and that was not paid to discharge a liability under an assessment made under this Part shall be refunded.  2000, c. 42, s. 27.

Rebate

(2) A rebate of a debt retirement charge shall be paid in such circumstances and in accordance with such requirements as may be prescribed.  2000, c. 42, s. 27.

Interest on refund or rebate

(3) Interest is payable on the amount refunded or the amount of the rebate and shall be calculated at the prescribed rate and in the prescribed manner for the period beginning 21 days after the date on which the Minister of Finance receives the application for the refund or rebate to the date of the refund or rebate.  2000, c. 42, s. 27.

Time limit for refund

(4) A person is not entitled to a refund under subsection (1) unless application for the refund is made to the Minister of Finance within four years after the date on which the person paid the amount to be refunded or within such longer period as may be permitted by regulation.  2000, c. 42, s. 27.

Disallowance

(5) If an application for a refund or rebate is made in accordance with this Part and if the application is refused, in whole or in part, the Minister of Finance shall give the applicant a written statement of disallowance specifying the amount that is disallowed and the reasons for disallowing it.  2000, c. 42, s. 27.

Refund by collector

(6) A collector may refund to a user, in accordance with the regulations, all or part of a debt retirement charge collected from the user by the collector if the user was not required to pay the debt retirement charge and if the refund is made within four years after the user paid it.  2000, c. 42, s. 27.

Same

(7) The collector may deduct from subsequent remittances under this Part any amount refunded under subsection (6), if the collector makes the deduction within four years after making the refund to the user.  2000, c. 42, s. 27.

Refund by the Financial Corporation

(7.1) The Minister of Finance may authorize the Financial Corporation to make a refund under subsection (1) to a person if the Minister is satisfied that the amount to be refunded was wrongly paid and that it has not been refunded by a collector.  2002, c. 22, s. 61.

Error in refund or rebate

(8) If a person receives a refund or rebate to which the person is not entitled under this Part, the Minister of Finance may assess or reassess the amount to which the person was not entitled and shall give the person a written statement describing the reasons that the person was not entitled to the amount assessed or reassessed.  2000, c. 42, s. 27.

Refund of overpayment

85.16 (1) If it is established in a manner described in subsection (2) that a person has paid more than the person is required to pay as or on account of the debt retirement charge under this Part, the amount of the overpayment shall be refunded together with interest calculated at the prescribed rate and in the prescribed manner from the date on which the overpayment arose.  2000, c. 42, s. 27.

Same

(2) An overpayment may be established as a consequence of an assessment or reassessment under this Part or as a consequence of a final decision of a court in proceedings commenced as a result of an appeal under this Part.  2000, c. 42, s. 27.

Refund by the Financial Corporation

(3) The Financial Corporation shall refund the amount described in subsection (1) to the person described in that subsection.  2002, c. 22, s. 62.

Objections and Appeals

Objections and appeals

85.17 (1) Any of the following persons may object to, or appeal from, an assessment or a reassessment made under this Part, a statement of disallowance given under this Part or a penalty imposed under this Part:

1. A collector.

2. A user.

3. An individual against whom an assessment has been made under section 85.10.  2000, c. 42, s. 27.

Same

(2) Sections 24, 25, 26, 27, 28, 29 and 30 of the Retail Sales Tax Act apply, with necessary modifications, with respect to objections and appeals under this section.  2000, c. 42, s. 27.

Collection of Amounts Owing

Funds held in trust

85.18 (1) An amount collectable or collected by a collector as a debt retirement charge or on account of such a charge shall be deemed, despite any security interest in the amount,

(a) to be held in trust for the Financial Corporation;

(b) to be held separate and apart from the collector’s property; and

(c) to be held separate and apart from property held by any secured creditor that, but for any security interest, would be the collector’s property.  2000, c. 42, s. 27.

Same

(2) Section 22 of the Retail Sales Tax Act applies, with necessary modifications, with respect to an amount described in subsection (1).  2000, c. 42, s. 27.

Method of collection

85.19 Any amount payable to the Financial Corporation under this Part that remains unpaid after it becomes due and payable may be collected by the Minister of Finance on behalf of the Financial Corporation and, for that purpose, sections 23 and 36, subsections 37 (1) and (2) and sections 38 and 39 of the Retail Sales Tax Act apply, with necessary modifications.  2000, c. 42, s. 27.

Offences

Offences

85.20 (1) Every person who contravenes or fails to comply with any of the following provisions is guilty of an offence and, on conviction, is liable to a fine of not less than $100 for each day during which the offence continues:

1. Section 85.1 (duty to meter consumption).

2. Subsection 85.3 (2) (registration of collectors) or paragraph 4 of subsection 85.3 (3) (duty to submit returns, collectors).

3. Subsection 85.4 (1) (registration of self-gene­rating users) or paragraph 3 of subsection 85.4 (2) (duty to submit returns, self-generating users).

4. Subsection 85.28 (3) (prohibition re inspection).  2000, c. 42, s. 27.

Same, re failure to collect

(2) Every collector who is required by paragraph 1 of subsection 85.3 (3) to levy and collect a debt retirement charge and who fails to do so is guilty of an offence and, on conviction, is liable to a fine equal to the sum of,

(a) the amount of the debt retirement charge that should have been collected, as determined under subsection (3); and

(b) an amount that is not less than $50 and not more than $2,000.  2000, c. 42, s. 27.

Determination of amount

(3) For the purposes of clause (2) (a), the Minister of Finance shall determine the amount of the debt retirement charge that should have been collected and shall issue a certificate setting out that amount.  2000, c. 42, s. 27.

Same

(4) The determination made under subsection (3) shall be based upon such information as is available to the Minister of Finance and, unless he or she considers that the collector has engaged in deliberate evasion of this Part, the Minister of Finance shall not consider information respecting a period of more than four years in making the determination.  2000, c. 42, s. 27.

Effect of certificate

(5) A certificate issued under subsection (3) is proof, in the absence of evidence to the contrary, of the amount of the debt retirement charge that should have been collected and of the authority of the person signing the certificate without any proof of appointment or signature.  2000, c. 42, s. 27.

Offence, re failure to remit

(6) Every collector who fails to remit an amount collected as, or on account of, a debt retirement charge as required by paragraph 2 of subsection 85.3 (3) is guilty of an offence and, on conviction, is liable to either or both of the following penalties in addition to any other penalty imposed under this Part:

1. A fine in an amount that is,

i. not less than the greater of $100 and 25 per cent of the amount collected and not remitted, and

ii. not more than the greater of $100 and double the amount collected and not remitted.

2. Imprisonment for a term of not more than two years.  2000, c. 42, s. 27.

Offence, re records

(7) Every collector who is required by paragraph 3 of subsection 85.3 (3) to keep records and who fails to do so in accordance with the regulations is guilty of an offence and on conviction is liable to a fine of not less than $50 and not more than $5,000.  2000, c. 42, s. 27.

Same, self-generating user

(8) Every self-generating user who is required by paragraph 2 of subsection 85.4 (2) to keep records and who fails to do so in accordance with the regulations is guilty of an offence and on conviction is liable to a fine of not less than $50 and not more than $5,000.  2000, c. 42, s. 27.

Offence, directors of a corporation

85.21 (1) Any officer, director or agent of a corporation or any other person who directs, authorizes, assents to, acquiesces in or participates in an action or omission by the corporation that is an offence under this Part is guilty of an offence.  2000, c. 42, s. 27.

Penalty upon conviction

(2) A person convicted of an offence under subsection (1) is liable to the penalty provided for the offence by the corporation, whether or not the corporation has been prosecuted for or convicted of the offence.  2000, c. 42, s. 27.

Offence, confidentiality

85.22 Every person who contravenes subsection 85.29 (1), (2), (5) or (6) is guilty of an offence and on conviction is liable to a fine of not more than $2,000.  2000, c. 42, s. 27.

Offences, false statements, etc., and fraud

85.23 (1) Every person who engages in any of the following acts or omissions is guilty of an offence:

1. Making, participating in, assenting to or acquiescing in the making of a false or deceptive statement in a return, statement or other document or in an answer required or submitted under this Part.

2. Destroying, altering, mutilating, hiding or otherwise disposing of information or records of a user or collector, for the purpose of evading payment of an amount under this Part.

3. Making, assenting to or acquiescing in the making of a false or deceptive entry of a material particular in a record of a user or collector.

4. Omitting to make or assenting to or acquiescing in the omission of an entry of a material particular in a record of a user or collector.

5. For the purpose of evading a payment under this Part, destroying, altering or otherwise causing a meter to inaccurately measure the consumption of electricity or to cease measuring the consumption of electricity or replacing a meter with another meter that is calculated to mislead.

6. Wilfully evading or attempting to evade, in any manner, payment of an amount under this Part or compliance with an obligation under this Part.  2000, c. 42, s. 27.

Penalty upon conviction

(2) A person convicted of an offence under subsection (1) is liable to either or both of the following penalties in addition to any other penalty imposed under this Part:

1. A fine in an amount that is,

i. not less than the greater of $1,000 and 50 per cent of the amount that should have been remitted or that the person sought to evade, and

ii. not more than the greater of $1,000 and double the amount that should have been remitted or that the person sought to evade.

2. Imprisonment for a term of not more than two years.  2000, c. 42, s. 27.

Offence, obtaining refund or rebate by fraud

(3) Every person who, by deceit, falsehood or any other fraudulent means, obtains or attempts to obtain a refund or rebate under this Part to which the person is not entitled is guilty of an offence and, on conviction, is liable to either or both of the following penalties:

1. A fine of not less than $500 and not more than double the amount of the refund or rebate sought.

2. Imprisonment for a term of not more than two years.  2000, c. 42, s. 27.

General offence

85.24 Every person who contravenes, by any act or omission, a requirement imposed under this Part is guilty of an offence and, on conviction, is liable, where no other penalty is provided for the offence, to a fine of not less than $50 and not more than $5,000.  2000, c. 42, s. 27.

Imprisonment, failure to pay fine

85.25 If a fine is imposed on an individual under section 85.20, 85.21, 85.22, 85.23 or 85.24 as a result of his or her conviction of an offence under this Part, a sentence of imprisonment for not more than one year in default of payment of the fine may also be imposed on the individual.  2000, c. 42, s. 27.

Limitation period and onus of proof

85.26 (1) A proceeding to prosecute an offence under this Part must be commenced within six years after the date on which the matter of the offence arose.  2000, c. 42, s. 27.

Onus of proof

(2) In a prosecution for a failure to pay, collect or remit a debt retirement charge, as the case may be, the accused has the onus of proving that the debt retirement charge was paid, collected or remitted.  2000, c. 42, s. 27.

Payment of fines

85.27 Fines imposed under sections 85.20, 85.21, 85.22, 85.23 and 85.24 are payable to the Minister of Finance on behalf of the Crown in right of Ontario.  2000, c. 42, s. 27.

Administration

Inspection

85.28 (1) The Minister of Finance may appoint one or more inspectors who are authorized to exercise any of the powers and perform any of the duties of a person authorized by the Minister of Finance under subsection 31 (1) of the Retail Sales Tax Act for any purpose related to the administration and enforcement of this Part.  2000, c. 42, s. 27.

Same

(2) Subsections 31 (1), (2) and (2.1) of the Retail Sales Tax Act apply, with necessary modifications, with respect to the administration and enforcement of this Part.  2000, c. 42, s. 27.

Interference with inspection

(3) No person shall prevent or interfere with, or attempt to prevent or interfere with, an inspector doing anything that he or she is authorized to do under this section.  2000, c. 42, s. 27.

Confidentiality

85.29 (1) Except as authorized by this section, no person employed by the Government of Ontario shall,

(a) knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Finance for the purposes of this Part; or

(b) knowingly allow any person to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this Part.  2000, c. 42, s. 27.

Testimony

(2) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings,

(a) to give evidence relating to any information obtained by or on behalf of the Minister of Finance for the purposes of this Part; or

(b) to produce any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this Part.  2000, c. 42, s. 27.

Exception

(3) Subsections (1) and (2) do not apply in respect of,

(a) criminal proceedings under an Act of the Parliament of Canada;

(b) proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

(c) proceedings relating to the collection of the debt retirement charge under this Part.  2000, c. 42, s. 27.

Communication

(4) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this Part,

(a) communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law, information obtained by or on behalf of the Minister of Finance for the purposes of this Part; and

(b) allow another person employed by the Government of Ontario in the administration or enforcement of any law, to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this Part.  2000, c. 42, s. 27.

Reciprocal communication

(5) A person who receives information or obtains access to any record or thing under subsection (4) has a duty to communicate or furnish to the Minister of Finance on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this Part.  2000, c. 42, s. 27.

Use of information

(6) Any information, record or thing communicated or furnished under this Part may be used only for the administration or enforcement of this Part or an Act that is administered or enforced by the person receiving the information, record or thing.  2000, c. 42, s. 27.

Methods of giving notice

85.30 (1) When the Minister of Finance is required under this Part to give a person a document or to give notice to a person, he or she may do so by sending the document or notice by prepaid mail to the person at the person’s last known address or by serving the document or notice on the person.  2000, c. 42, s. 27.

Same, partnership

(2) If the document or notice is to be given to a partnership, the document or notice may be sent to or served on a partner, manager, agent or representative of the partnership.  2000, c. 42, s. 27.

Same, corporation

(3) If the document or notice is to be given to a corporation, the document or notice may be sent to or served on the president, secretary or another director or on a manager, agent or representative of the corporation.  2000, c. 42, s. 27.

Proof of compliance

85.31 (1) An affidavit of the Minister of Finance, a person employed in the Ministry of Finance or a person employed by the Financial Corporation about whether this Part has, or has not, been complied with is proof in the absence of evidence to the contrary of the facts set out in the affidavit, without proof of the signature or office of the person making the affidavit.  2000, c. 42, s. 27.

Status

(2) An affidavit described in subsection (1) may be introduced into evidence without notice, despite section 35 of the Evidence Act.  2000, c. 42, s. 27.

Right to cross-examine

(3) A party against whom an affidavit described in subsection (1) is adduced may, with the leave of the court, require the deponent to attend court to be cross-examined.  2000, c. 42, s. 27.

Evidence re collectors

85.32 (1) A copy of a person’s application for registration as a collector that is filed with the Minister of Finance under this Part is proof, in the absence of evidence to the contrary, that the person is a collector and is required to remit to the Minister of Finance the debt retirement charge under this Part.  2000, c. 42, s. 27.

Same

(2) Subject to subsection (4), if a collector is described as a partnership on an application for registration as a collector that is filed with the Minister of Finance under this Part, a copy of the application is proof, in the absence of evidence to the contrary, that the persons named in it are members of the partnership.  2000, c. 42, s. 27.

Same

(3) Subject to subsection (4), a copy of a return filed by a person or a partnership as a collector is proof, in the absence of evidence to the contrary, that the person or partnership collected the debt retirement charge specified in the return.  2000, c. 42, s. 27.

Certification

(4) The copy of the application or return must be certified by an official of the Ministry of Finance who has access to the records that are maintained by the Ministry of Finance about the collector, and it may be a copy of an application or return made electronically and reproduced from original data stored electronically.  2000, c. 42, s. 27.

Evidence re self-generating users

(5) Subsections (1), (2) and (4) apply, with necessary modifications, with respect to applications and returns of a self-generating user.  2000, c. 42, s. 27.

Evidence re other documents

85.33 (1) For any purpose relating to the administration or enforcement of this Part, the Minister of Finance or a person authorized by him or her may reproduce from original data stored electronically any document previously issued under this Part or any information previously submitted in any form by a collector or a self-generating user, and the reproduction is admissible in evidence and has the same probative force as the original document or information would have had if it had been proved in the ordinary way.  2000, c. 42, s. 27.

Same

(2) If a book, record or other document is examined or produced under section 85.28 (inspection), the person by whom it is examined or to whom it is produced may make (or cause to be made) one or more copies of it, and a document purporting to be certified by the person to be a copy made under the authority of this subsection is admissible in evidence and has the same probative force as the original document would have had if it had been proved in the ordinary way.  2000, c. 42, s. 27.

Affidavits, etc.

85.34 (1) Any of the following documents may be sworn by any person who has authority to administer an oath or any person authorized for the purposes of this section by the Lieutenant Governor in Council:

1. A declaration or affidavit relating to a return made under this Part.

2. A statement of information given under section 85.28 (inspection).  2000, c. 42, s. 27.

Same

(2) A person authorized for the purposes of this section by the Lieutenant Governor in Council shall not charge a fee for swearing a document described in subsection (1).  2000, c. 42, s. 27.

Forms

85.35 The Minister of Finance may approve the use of forms for any purpose of this Part and the forms may provide for such information to be furnished as the Minister of Finance may require.  2000, c. 42, s. 27.

Regulations, Parts V and V.I

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

(a) respecting the calculation of the fees referred to in subsection 71 (1) and respecting the manner in which, and the time at which, they are to be paid;

(b) prescribing provisions of the Business Corporations Act, the Corporations Act or the Corporations Information Act that apply, with necessary modifications, to the Financial Corporation;

(c) prescribing other amounts for the purpose of clause (b) of the definition of “residual stranded debt” in subsection 85 (1);

(d) governing determinations of the stranded debt and the residual stranded debt for the purpose of section 85, including the time period over which the residual stranded debt should be retired, and prescribing reporting requirements applicable to the determinations;

(e) prescribing one or more rates for the purposes of subsections 85 (4) and 85 (4.1), including rates applicable to particular users, classes of users or uses of electricity, prescribing the amount of electricity with respect to which a rate is applied and prescribing one or more methods for determining the amount of electricity consumed;

(f) exempting particular users or classes of users from paying a debt retirement charge, specifying the circumstances in which the exemption applies and imposing conditions or restrictions with respect to an exemption;

(g) providing for the rebate of the debt retirement charge in whole or in part, prescribing the circumstances in which and conditions under which rebates may be made and prescribing the method of determining the amount of a rebate;

(h) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable in connection with this Part.

(i) Repealed:  2000, c. 42, s. 28 (1).

(j) Repealed:  2000, c. 42, s. 28 (1).

(k) Repealed:  2000, c. 42, s. 28 (1).

(l) Repealed:  2000, c. 42, s. 28 (1).

1998, c. 15, Sched. A, s. 86 (1); 2000, c. 42, s. 28 (1).

Regulations, Minister of Finance

(1.1) The Minister of Finance may make regulations,

(a) determining anything that the Minister of Finance is permitted or required by this Part to determine;

(b) defining, for the purposes of this Part, any word or expression used in this Part;

(c) exempting particular users or classes of users from one or more obligations under this Part, other than the obligation to pay a debt retirement charge, specifying the circumstances in which the exemption applies and imposing conditions or restrictions with respect to an exemption;

(d) prescribing the time or times at which a particular user or class of users is required to pay a debt retirement charge;

(e) prescribing, for the purpose of section 85.1, the users or classes of users that are required to meter the consumption of electricity and prescribing methods, procedures and requirements with respect to the metering of electricity;

(f) governing the appointment, registration and duties of collectors;

(g) governing the registration and duties of self-generating users;

(h) prescribing methods of collecting and remitting a debt retirement charge and establishing requirements relating to the collection and remittance, including requirements about invoicing;

(i) requiring the debt retirement charge to be paid or remitted in instalments, specifying when the instalments are to be paid or remitted, and requiring the payment of interest or administrative penalties or both for late payments;

(j) prescribing the additional fee referred to in subsection 85.14 (4);

(k) governing refunds by collectors;

(l) prescribing procedures to be followed by collectors and users in connection with refunds and rebates under this Part;

(m) prescribing, for the purpose of subsection 85.15 (4), a time limit for applying for a refund;

(n) governing payments to a collector when the collector pays a debt retirement charge on behalf of a user and the user then defaults on paying the debt retirement charge to the collector;

(o) prescribing a rate of interest or a method of determining a rate of interest for debts owing under this Part to the Financial Corporation and for amounts owing to a person as a refund or rebate under this Part;

(p) prescribing the records to be kept by a collector or a self-generating user for the purposes of this Part.  2000, c. 42, s. 28 (2).

General or particular

(2) A regulation made under this section may be general or particular in its application.  1998, c. 15, Sched. A, s. 86 (2).

Retroactivity

(3) A regulation is, if it so provides, effective with reference to a period before it was filed.  2000, c. 42, s. 28 (2).

Repeal

87. (1) This Part is repealed on a day to be named by proclamation of the Lieutenant Governor.  1998, c. 15, Sched. A, s. 87 (1).

(2) Repealed:  2000, c. 42, s. 29.

(3) Repealed:  2000, c. 42, s. 29.

(4) Repealed:  2000, c. 42, s. 29.

PART VI
SPECIAL PAYMENTS

Definitions, Part VI

88. In this Part,

“municipal electricity utility” means,

(a) a municipal corporation that generates, transmits, distributes or retails electricity directly,

(b) a commission established under the Public Utilities Act or any other general or special Act through which a municipal corporation generates, transmits, distributes or retails electricity,

(c) any other body, however established, through which a municipal corporation generates, transmits, distributes or retails electricity,

(d) a corporation established pursuant to section 142 or a subsidiary of such a corporation, if a municipal corporation holds an interest, directly or indirectly, in one or more shares of such a corporation or subsidiary,

(e) a police village that generates, transmits, distributes or retails electricity directly or indirectly, or a corporation or other entity owned by the members of a police village for the purpose of generating, transmitting, distributing or retailing electricity, or

(f) a person or entity prescribed by the regulations; (“service municipal d’électricité”)

“taxation year” has the same meaning as in the Corporations Tax Act. (“année d’imposition”)  1998, c. 15, Sched. A, s. 88; 2000, c. 42, s. 30.

Payments in lieu of federal corporate tax

89. (1) If Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.  1998, c. 15, Sched. A, s. 89 (1); 2002, c. 1, Sched. A, s. 15 (1).

Corridor land

(1.1) The amount payable under subsection (1) by a person or entity from whom corridor land is transferred by section 114.2 shall be determined, for the taxation year in which the transfer occurs and for subsequent taxation years, as if the transfer did not occur.  2002, c. 1, Sched. A, s. 15 (2).

Payments to Minister of Finance

(2) After Part V is repealed under section 84.1, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 89 (2); 2000, c. 42, s. 31.

Commencement of new taxation year

(3) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.  1998, c. 15, Sched. A, s. 89 (3).

Payments in lieu of provincial corporate tax

90. (1) If Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is exempt under subsection 57 (1), section 57.11 or subsection 71 (1) of the Corporations Tax Act from the payment of a tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.  1998, c. 15, Sched. A, s. 90 (1); 2002, c. 1, Sched. A, s. 16 (1).

Corridor land

(1.1) The amount payable under subsection (1) by a person or entity from whom corridor land is transferred by section 114.2 shall be determined, for the taxation year in which the transfer occurs and for subsequent taxation years, as if the transfer did not occur.  2002, c. 1, Sched. A, s. 16 (2).

Payments to Minister of Finance

(2) After Part V is repealed under section 84.1, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 90 (2); 2000, c. 42, s. 32.

Commencement of new taxation year

(3) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.  1998, c. 15, Sched. A, s. 90 (3).

Other payments

91. (1) If Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, the Lieutenant Governor in Council may from time to time order it to pay to the Financial Corporation an amount specified by the Lieutenant Governor in Council.  1998, c. 15, Sched. A, s. 91 (1); 2002, c. 1, Sched. A, s. 17 (1).

Restriction

(2) No payment may be required under subsection (1) if the payment would impair the ability of Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. to meet its financial liabilities or obligations as they come due or to fulfil its contractual commitments.  1998, c. 15, Sched. A, s. 91 (2); 2002, c. 1, Sched. A, s. 17 (2).

Payments to Minister of Finance

(3) After Part V is repealed under section 84.1, any order made under this section shall require payments to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 91 (3); 2000, c. 42, s. 33.

Allocation of Federal tax

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

1. Hydro One Inc.

2. A subsidiary of Hydro One Inc.

3. A municipal electricity utility.

4. A successor of any of them.  2002, c. 1, Sched. A, s. 18.

Payment

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

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

2. Her Majesty in right of Ontario receives the amount from, or is credited with the amount by, Her Majesty in right of Canada in respect of the liability described in paragraph 1.  2002, c. 1, Sched. A, s. 18.

Same, by corporation

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

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

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

3. Her Majesty in right of Canada intends that the corporation shall pay the amount to the Financial Corporation for the repayment of the debt of the Financial Corporation.  2002, c. 1, Sched. A, s. 18.

Payments in lieu of additional municipal and school taxes

92. (1) Hydro One Inc. and each of its subsidiaries, Ontario Power Generation Inc. and each of its subsidiaries and every municipal electricity utility shall pay to the Financial Corporation in each year the difference between,

(a) the amount of taxes that it would be liable to pay in the year for municipal and school purposes if the assessed value of land owned by it on which are situated generating station buildings or structures or transformer station buildings or structures were determined on the basis of the amount prescribed by the regulations for each square metre of inside ground floor area of the actual building or structure housing the generating, transforming and auxiliary equipment and machinery; and

(b) the amount of taxes that it is liable to pay in the year for municipal and school purposes in respect of land owned by it on which are situated generating station buildings or structures or transformer station buildings or structures.  1998, c. 15, Sched. A, s. 92 (1); 2002, c. 1, Sched. A, s. 19 (1).

Subsequent owners

(1.1) If a generating station building or structure is owned by one of the persons referred to in subsection (1) on January 1, 2000 and is subsequently disposed of by that person, this section continues to apply to any subsequent owner.  2000, c. 25, s. 46 (1).

Notice to Financial Corporation

(2) When a notice of assessment is delivered under section 31 of the Assessment Act in respect of land described in subsection (1), the Municipal Property Assessment Corporation shall send a copy of the notice to the Financial Corporation.  1998, c. 15, Sched. A, s. 92 (2); 2001, c. 8, s. 205 (3).

Payments to Minister of Finance

(3) After Part V is repealed under section 84.1, all payments that Hydro One Inc., a subsidiary of Hydro One Inc., Ontario Power Generation Inc. or a subsidiary of Ontario Power Generation Inc. is required to make under this section shall be paid to one or more municipalities in the manner specified by the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 92 (3); 2000, c. 42, s. 34; 2002, c. 1, Sched. A, s. 19 (2).

Payments after retirement of residual stranded debt

(4) After the Minister of Finance publishes notice under subsection 85 (6) that the residual stranded debt has been retired, all payments that a municipal electricity utility is required to make under this section shall be paid to one or more municipalities in the manner specified by the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 92 (4).

Payments for partial year

(5) If this section comes into force after January 1 in any year, the amount of the payment required for the remainder of the year shall be pro rated, based on the number of days remaining in the year.  1998, c. 15, Sched. A, s. 92 (5).

Payments under Assessment Act, s. 27

(6) The references in subsection (1) to taxes for municipal and school purposes shall be deemed to include payments under section 27 of the Assessment Act.  1998, c. 15, Sched. A, s. 92 (6).

(7) Repealed:  2001, c. 8, s. 205 (4).

Application of Corporations Tax Act

(8) Any amount payable under this section that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.  1999, c. 9, s. 102.

Non-application

(9) This section does not apply to a hydro-electric generating station, as defined in subsection 92.1 (24), after December 31, 2000.  2000, c. 25, s. 46 (1).

Tax and charges on hydro-electric stations

92.1 (1) The owner of a hydro-electric generating station shall pay in each year to Her Majesty in right of Ontario a tax computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.  2000, c. 25, s. 46 (2).

Same

(2) Despite subsection (1), if the owner of a hydro-electric generating station was, on or before December 31, 2000, required to make payments under subsection 92 (1), whether or not there is a change in ownership after that date, the owner or any subsequent owner shall pay to the Financial Corporation a charge computed at the rates specified in subsection (4) on the gross revenue from the generation of electricity.  2000, c. 25, s. 46 (2).

Payment to Ontario

(3) After Part V is repealed under section 84.1, all payments under subsection (2) are payable to Her Majesty in right of Ontario instead of to the Financial Corporation.  2000, c. 25, s. 46 (2); 2001, c. 9, Sched. F, s. 1 (3).

Rates

(4) For the purpose of subsections (1) and (2), the rates shall be calculated as follows:

1. 2.5 per cent on gross revenue from the first 50 gigawatt hours of annual generation from the generating station.

2. 4.5 per cent on gross revenue from annual generation from the generating station above 50 gigawatt hours up to and including 400 gigawatt hours.

3. 6.0 per cent on gross revenue from annual generation from the generating station above 400 gigawatt hours up to and including 700 gigawatt hours.

4. 26.5 per cent on gross revenue from annual generation from the generating station above 700 gigawatt hours.  2000, c. 25, s. 46 (2).

Additional charge

(5) In addition to the taxes or charges under subsection (1) or (2), the holder of a water power lease shall pay a water rental charge to Her Majesty in right of Ontario calculated at 9.5 per cent on gross revenue from annual generation from the hydro-electric generating station, and the holder’s lease is hereby amended to substitute this charge for any water rental charge set out in the lease.  2000, c. 25, s. 46 (2).

Exception, water power lease under Niagara Parks Act

(5.1) Each prescribed holder of a water power lease under the Niagara Parks Act shall make such payments as may be prescribed to The Niagara Parks Commission, in the time and manner prescribed by regulation, and those payments reduce the amount of the charge payable by the holder under subsection (5).  2001, c. 23, s. 68 (1).

Exception

(6) There may be deducted, in determining the amount of gross revenue referred to in subsections (4) and (5), the amount of gross revenue resulting from the generation of electricity from eligible capacity, as determined by regulation, for the time period that is the longer of,

(a) the first 120 months after the eligible capacity is put in service, as determined by regulation; and

(b) such length of time, after the eligible capacity is first put in service, as the Minister of Finance may prescribe in the regulations.  2002, c. 23, s. 3 (22).

Transition

(7) If the holder of a water power lease was not required to pay a hydro-electric charge as required under the Public Lands Act because the hydro-electric generating station has been in service for less than 10 calendar years, subsection (5) does not apply for the remainder of the 10-year period, if any.  2000, c. 25, s. 46 (2).

Payment of taxes and charges

(8) The taxes and charges payable under this section shall be paid at the times and in the manner prescribed by regulation.  2000, c. 25, s. 46 (2).

Application

(9) For the purposes of this section,

(a)   the provisions of the Corporations Tax Act relating to assessments, refunds of overpayments, objections to assessments, appeals and administration and enforcement apply to taxes and charges under this section; and

(b) any amount payable under this section that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.  2000, c. 25, s. 46 (2).

Demand for information

(10) The Minister of Finance may, for any purpose related to the administration or enforcement of this section, by registered letter or by a demand served personally or delivered by courier service, require any person to provide any information or records to the Minister within such reasonable time as is stipulated in the letter or demand.  2000, c. 25, s. 46 (2).

Offence

(11) Any person who fails to provide the information or records as required under subsection (10) is guilty of an offence and is on conviction liable to a fine of not more than $100 for each day during which the default continues.  2000, c. 25, s. 46 (2).

Confidentiality

(12) Except as authorized by this section, no person employed by the Government of Ontario shall,

(a) knowingly communicate or knowingly allow to be communicated to any person any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b) knowingly allow any person to inspect or to have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2).

Testimony

(13) No person employed by the Government of Ontario shall be required, in connection with any legal proceedings,

(a) to give evidence relating to any information obtained by or on behalf of the Minister of Finance for the purposes of this section; or

(b) to produce any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2).

Exception

(14) Subsections (12) and (13) do not apply in respect of,

(a) criminal proceedings under an Act of the Parliament of Canada;

(b) proceedings in respect of the trial of any person for an offence under an Act of the Legislature; or

(c) proceedings relating to the collection of taxes or charges under this section.  2000, c. 25, s. 46 (2).

Communication

(15) A person employed by the Government of Ontario may, in the course of duties in connection with the administration or enforcement of this section,

(a) communicate or allow to be communicated to another person employed by the Government of Ontario in the administration or enforcement of any law, information obtained by or on behalf of the Minister of Finance for the purposes of this section; and

(b) allow another person employed by the Government of Ontario in the administration or enforcement of any law, to inspect or have access to any record or thing obtained by or on behalf of the Minister of Finance for the purposes of this section.  2000, c. 25, s. 46 (2).

Reciprocal communication

(16) A person who receives information or obtains access to any record or thing under subsection (15) has a duty to communicate or furnish to the Minister of Finance on a reciprocal basis any information, record or thing obtained by the person that affects the administration or enforcement of this section.  2000, c. 25, s. 46 (2).

Use of information

(17) Any information, record or thing communicated or furnished under this section may be used only for the administration or enforcement of this section or an Act that is administered or enforced by the person receiving the information, record or thing.  2000, c. 25, s. 46 (2).

Offence

(18) Every person who contravenes subsection (12), (13), (14), (15), (16) or (17) is guilty of an offence and on conviction is liable to a fine of not more than $2,000.  2000, c. 25, s. 46 (2).

Gross lease recovery

(19) If the owner of the hydro-electric generating station is not the person who generates electricity from that facility and is unable to recover the liability imposed under this section under the terms of its contract or sublease with the person who generates electricity, the amount of such liability may be recovered from the person generating the electricity.  2000, c. 25, s. 46 (2).

Section 444.1 to apply

(20) The amount specified under subsection (19) may be recovered in the same manner as amounts are recovered under subsection 444.1 (2) of the Municipal Act, as that Act read immediately before its repeal by the Municipal Act, 2001, and subsections 444.1 (5), (6) and (8) of that Act apply in respect of the amount.  2000, c. 25, s. 46 (2); 2002, c. 17, Sched. F, Table.

Regulations

(21) The Minister of Finance may make regulations,

(a) determining eligibility for a deduction under subsection (6);

(b) defining gross revenue for the purposes of this section;

(c) prescribing the times and the manner in which taxes and charges under this section shall be paid;

(d) providing for lower rates to be applied to specified hydro-electric generating stations for the purposes of subsections (4) and (5);

(e) determining the annual generation for the purposes of subsections (4) and (5) pursuant to energy transfers between a hydro-electric generating station in Ontario and a hydro-electric generating station in another jurisdiction or between hydro-electric generating stations in Ontario;

(e.1) prescribing a length of time longer than 120 months that applies to one or more hydro-electric generating stations for the purposes of subsection (6);

(f) exempting any hydro-electric generating station from the tax or charge or a portion of the tax or charge under subsection (1), (2) or (5);

(f.1) prescribing water power lease holders for the purposes of subsection (5.1), specifying the amount of the payments to be made under that subsection and the time and manner in which the payments are to be made;

(g) defining any word or expression used in this section that is not already defined;

(h) providing for compensation to be paid to municipalities in which a hydro-electric generating station is located in respect of revenues foregone as a result of the enactment of paragraph 28 of subsection 3 (1) of the Assessment Act.  2000, c. 25, s. 46 (2); 2001, c. 23, s. 68 (2); 2002, c. 23, s. 3 (23).

General or specific

(22) A regulation under subsection (21) may be general or specific and may apply to different hydro-electric generating stations and different owners differently.  2000, c. 25, s. 46 (2).

Retroactive

(23) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.  2000, c. 25, s. 46 (2).

Definitions

(24) In this section,

“holder of a water power lease” means a person who has entered into an agreement, lease or other writing respecting the use of water under subsection 42 (2) of the Public Lands Act or under the Niagara Parks Act or the The St. Lawrence Development Act, 1952 (No. 2) or who is required to enter into such agreement, lease or other writing in order to be entitled to occupy public lands; (“titulaire d’un bail pour l’exploitation de ressources hydro-électriques”)

“hydro-electric generating station” includes any building or structure in which electricity is generated through the use of water power or from the movement of water; (“centrale hydro-électrique”)

“owner” includes a tenant of land owned by the Crown or a municipality on which a hydro-electric generating station is located or a tenant of land owned by any other person if the tenant is the generator of electricity from the hydro-electric generating station. (“propriétaire”)  2000, c. 25, s. 46 (2).

Municipal electricity utilities

Payments in lieu of federal corporate tax

93. (1) If a municipal electricity utility is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.  1998, c. 15, Sched. A, s. 93 (1).

Same: payments in lieu of provincial corporate tax

(2) If a municipal electricity utility is exempt under subsection 57 (1), section 57.11 or subsection 71 (1) of the Corporations Tax Act from the payment of a tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.  1998, c. 15, Sched. A, s. 93 (2).

Payments to Minister of Finance

(3) After Part V is repealed under section 84.1, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 93 (3); 2000, c. 42, s. 35.

Commencement of new taxation year

(4) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.  1998, c. 15, Sched. A, s. 93 (4).

Municipal electricity property: transfer tax

94. (1) A municipal corporation or municipal electricity utility shall not transfer to any person any interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity unless, before the transfer takes effect, it pays to the Financial Corporation the amount determined by multiplying the fair market value of the interest by the prescribed percentage or furnishes security in that amount to the Financial Corporation that meets such requirements as may be prescribed and that is satisfactory to the Financial Corporation.  2000, c. 42, s. 36 (1).

Forms of property

(1.1) For the purposes of subsection (1), real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity includes cash, amounts receivable, investments, customer lists, licences, goodwill and other intangible property used in connection with those activities.  2000, c. 42, s. 36 (1).

Same

(2) For the purpose of subsection (1), an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity shall be deemed to include any interest in a corporation, partnership or other entity that derives its value in whole or in part from real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity.  1998, c. 15, Sched. A, s. 94 (2).

Deductions from amount payable

(3) Subject to subsection (5), the amount payable under subsection (1) in a taxation year by a municipal electricity utility may be reduced by the following amounts:

1. Any amount payable and paid by the municipal electricity utility under section 93 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year.

2. Any amount payable and paid by the municipal electricity utility under Part II, II.1 or III of the Corporations Tax Act in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year.

3. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than the capital gain realized on the transfer of its interest in the property.  1998, c. 15, Sched. A, s. 94 (3); 2000, c. 42, s. 36 (2); 2002, c. 22, s. 63 (1, 2).

Same

(4) Subject to subsections (5) and (6.1), the amount payable under subsection (1) in a taxation year by a municipal corporation may be reduced by the following amounts:

1. Any amount payable and paid by a municipal electricity utility under section 93 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year, but only if the municipal electricity utility is related to the municipal corporation immediately before the transfer.

2. Any amount payable and paid by a municipal electricity utility under Part II, II.1 or III of the Corporations Tax Act in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year, but only if the municipal electricity utility is related to the municipal corporation immediately before the transfer.  2000, c. 42, s. 36 (3); 2002, c. 22, s. 63 (3, 4).

Same

(5) An amount referred to in paragraph 1, 2 or 3 of subsection (3) or paragraph 1 or 2 of subsection (4) may be applied under those subsections to reduce the amount payable by a municipal corporation or municipal electricity utility under subsection (1) only to the extent that it has not previously been applied to reduce an amount payable by a municipal corporation or municipal electricity utility under subsection (1).  1998, c. 15, Sched. A, s. 94 (5).

Same

(6) A municipal electricity utility shall be deemed to be related to a municipal corporation for the purpose of subsection (4) if they are related persons within the meaning of section 251 of the Income Tax Act (Canada).  1998, c. 15, Sched. A, s. 94 (6).

Exception

(6.1) Despite subsection (6), if two or more municipal corporations hold an interest in a municipal electricity utility at the time of the transfer, the amount determined under paragraphs 1 and 2 of subsection (4) in respect of the transfer is the amount calculated in respect of each corporation using the formula,

A ´ B/C

in which,

  “A” is the total of the amounts,

(a) that are payable and paid by the municipal electricity utility under section 93 in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year, and

(b) that are payable and paid by the municipal electricity utility under Part II, II.1 or III of the Corporations Tax Act in respect of the part of the taxation year up to and including the date of the transfer or in respect of a previous taxation year,

  “B” is the fair market value of the municipal corporation’s interest in shares of the municipal electricity utility at the time of the transfer, and

  “C” is the aggregate fair market value of all issued and outstanding shares of the municipal electricity utility at the time of the transfer.  2000, c. 42, s. 36 (4); 2002, c. 22, s. 63 (5).

(7) Repealed:  1998, c. 15, Sched. A, s. 94 (11).

Same

(8) Subsection (1) does not apply to transfers prescribed by the regulations.  1998, c. 15, Sched. A, s. 94 (8).

Effect of non-compliance

(9) A transfer that does not comply with subsection (1) is void.  1998, c. 15, Sched. A, s. 94 (9).

Payments to Minister of Finance

(10) After Part V is repealed under section 84.1, payments referred to in subsection (1) must be paid to the Minister of Finance, instead of to the Financial Corporation.  1998, c. 15, Sched. A, s. 94 (10); 2000, c. 42, s. 36 (5).

Status of police village

(10.1) A police village shall be deemed to be a municipal corporation for the purposes of this section.  2000, c. 42, s. 36 (6).

(11) Spent:  1998, c. 15, Sched. A, s. 94 (11).

Application of Corporations Tax Act

95. The Minister of Finance is responsible for enforcing sections 89, 90, 93 and 94 and, for that purpose,

(a) the provisions of the Corporations Tax Act relating to returns, payments, assessments, refunds of overpayments, objections to assessments, appeals, and administration and enforcement apply, with necessary modifications; and

(b) any amount payable under section 89, 90, 93 or 94 that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.  1998, c. 15, Sched. A, s. 95; 1999, c. 9, s. 103.

Order to remit, Financial Corporation

95.1 (1) On the recommendation of the Minister of Finance, the Lieutenant Governor in Council may order the Financial Corporation to remit an amount payable under Part V.1 or VI or under section 83.1 of the Corporations Tax Act if the Lieutenant Governor in Council considers it to be in the public interest to do so.  2000, c. 42, s. 37; 2002, c. 1, Sched. A, s. 20 (1).

Scope of remission

(2) A remission ordered under subsection (1) may be total or partial, conditional or unconditional and may be made,

(a) before, after or pending any suit or proceeding for the recovery of the amount in respect of which the remission is granted;

(b) before or after any payment of the amount payable under Part V.1 or VI or under section 83.1 of the Corporations Tax Act has been made or enforced by process or execution; or

(c) in any particular case or class of cases and before the liability to pay arises.  2000, c. 42, s. 37; 2002, c. 1, Sched. A, s. 20 (2).

Form of remission

(3) A remission ordered under subsection (1) may be made,

(a) by forbearing to institute a suit or proceeding for the recovery of the amount in respect of which remission is granted;

(b) by delaying, staying or discontinuing any suit or proceeding already instituted;

(c) by forbearing to enforce, staying or abandoning any execution or process upon any judgment;

(d) by the entry of satisfaction upon any judgment; or

(e) by repaying any sum of money paid to or recovered by the Financial Corporation.  2000, c. 42, s. 37.

Conditional remission

(4) If a remission ordered under subsection (1) is made subject to a condition and the condition is not performed, the amount remitted or to be remitted may be collected or all proceedings may be had as if there had been no remission.  2000, c. 42, s. 37.

Effect of remission

(5) An unconditional remission and, upon performance of the condition, a conditional remission have effect as if the remission was made after the amount in respect of which it was granted had been sued for and recovered.  2000, c. 42, s. 37.

Regulations, Part VI

96. (1) The Minister of Finance may make regulations,

(0.a) prescribing persons and entities for the purposes of clause (f) of the definition of “municipal electricity utility” in section 88;

(a) prescribing modifications to the method of calculating the amount of any payment required by section 89, 90 or 93;

(b) prescribing amounts for the purpose of clause 92 (1) (a);

(c) prescribing percentages for the purpose of subsection 94 (1) and prescribing modifications to the method of calculating the amount of the payment required by section 94;

(d) deeming a transaction or series of transactions, for the purpose of section 94, to be a transfer to a person of an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity;

(e) prescribing transfers to which subsection 94 (1) does not apply, subject to such conditions or restrictions as may be specified in the regulations;

(e.1) prescribing requirements relating to security for the purposes of subsection 94 (1);

(f) requiring payments under this Part to be paid in instalments, prescribing the times when the payments or instalments are required to be paid and requiring the payment of interest or penalties on late payments;

(g) prescribing procedures that must be followed in connection with any payment required by this Part;

(h) respecting any other matter that the Minister of Finance considers necessary or advisable in connection with this Part.  1998, c. 15, Sched. A, s. 96 (1); 2000, c. 42, s. 38.

General or particular

(2) A regulation made under this section may be general or particular in its application.  1998, c. 15, Sched. A, s. 96 (2).

Retroactivity

(3) A regulation made under this section is, if it so provides, effective with reference to a period before it is filed.  1999, c. 9, s. 104.

cl. (1) (f), previous payments

(4) In a regulation made under clause (1) (f), the Minister may provide that payments made in 1999 before the regulation is made have been properly made under that regulation.  1999, c. 9, s. 104.

PART VII
PENSION PLANS

Interpretation, Part VII

97. (1) In this Part,

“changeover date” means the date prescribed under subsection (3); (“date du changement”)

“commencement date” means, in relation to a successor pension plan, the date prescribed under subsection 102 (6); (“date d’effet”)

“FCPP” means the Ontario Hydro Financial Corporation Pension Plan; (“RRSF”)

Note:  Effective April 1, 1999, the name of the Ontario Hydro Financial Corporation Pension Plan has been changed by regulation to Ontario Electricity Financial Corporation Pension Plan in English and Régime de retraite de la Société financière de l’industrie de l’électricité de l’Ontario in French.  See:  O. Reg. 115/99, s. 2 (1).

“former member” means a person who is a former member of a pension plan within the meaning of the Pension Benefits Act and includes any other person who is entitled to receive or is receiving a payment from the pension fund by virtue of the person’s relationship to the former member; (“ancien participant”)

“successor employer” means a person who is required to establish a pension plan under subsection 102 (1); (“employeur subséquent”)

“successor pension plan” means a pension plan established in accordance with section 102. (“régime de retraite subséquent”)  1998, c. 15, Sched. A, s. 97 (1).

Pension plans

(2) Expressions in this Part relating to pension plans have the same meaning as under the Pension Benefits Act unless the context requires otherwise.  1998, c. 15, Sched. A, s. 97 (2).

Changeover date

(3) The Lieutenant Governor in Council may, by regulation, prescribe the changeover date for the purposes of this Part and may do so after the date has passed.  1998, c. 15, Sched. A, s. 97 (3).

Financial Corporation Pension Plan

98. (1) The Ontario Hydro Pension and Insurance Plan is continued under the name Ontario Hydro Financial Corporation Pension Plan in English and Régime de retraite de la Société financière Ontario Hydro in French.  1998, c. 15, Sched. A, s. 98 (1).

Note:  Effective April 1, 1999, the name of the Ontario Hydro Financial Corporation Pension Plan has been changed by regulation to Ontario Electricity Financial Corporation Pension Plan in English and Régime de retraite de la Société financière de l’industrie de l’électricité de l’Ontario in French.  See:  O. Reg. 115/99, s. 2 (1).

Fund continued

(2) The Pension and Insurance Fund of Ontario Hydro is continued as the pension fund for the FCPP under the name Ontario Hydro Financial Corporation Pension Fund in English and Caisse de retraite de la Société financière Ontario Hydro in French.  1998, c. 15, Sched. A, s. 98 (2).

Note:  Effective April 1, 1999, the name of the Ontario Hydro Financial Corporation Pension Fund has been changed by regulation to Ontario Electricity Financial Corporation Pension Fund in English and Caisse de retraite de la Société financière de l’industrie de l’électricité de l’Ontario in French.  See:  O. Reg. 115/99, s. 2 (2).

Change of name

(3) The Lieutenant Governor in Council may, by regulation, change the name of the FCPP and the name of the pension fund for the FCPP.  1998, c. 15, Sched. A, s. 98 (3).

Status of plan

(4) The FCPP shall be deemed not to be a multi-employer pension plan for the purposes of the Pension Benefits Act.  1998, c. 15, Sched. A, s. 98 (4).

Administrator

(5) The Financial Corporation is the administrator of the FCPP.  1998, c. 15, Sched. A, s. 98 (5).

(6) Repealed:  1998, c. 15, Sched. A, s. 98 (9).

Certain benefits

(7) On the day this section comes into force, the FCPP ceases to provide,

(a) disability benefits that are being provided under a contract between the Financial Corporation and an insurer or a subsidiary of an insurer immediately before this section comes into force; and

(b) life insurance that is being provided under an insurance contract between the Financial Corporation and an insurer or a subsidiary of an insurer immediately before this section comes into force.  1998, c. 15, Sched. A, s. 98 (7).

Same

(8) The amount held by the Pension and Insurance Fund of Ontario Hydro immediately before this section comes into force that was allocated for the provision of the benefits and insurance described in subsection (7) is payable to the Financial Corporation in trust for the provision of those benefits and that insurance.  1998, c. 15, Sched. A, s. 98 (8).

(9) Spent:  1998, c. 15, Sched. A, s. 98 (9).

Employer contributions to FCPP

99. (1) The Financial Corporation shall contribute to the pension fund for the FCPP for a year the amount by which the normal cost of the FCPP exceeds the contributions to the pension fund made by the members, as determined by the FCPP actuary.  1998, c. 15, Sched. A, s. 99 (1).

Same

(2) If the FCPP has a surplus or a prior year credit balance or both, the Financial Corporation, in its sole discretion acting in its capacity as employer, may reduce or suspend the Corporation’s contributions to the pension fund to the extent permitted under the Pension Benefits Act.  1998, c. 15, Sched. A, s. 99 (2).

Refund of contributions

(3) Despite subsection 78 (1) of the Pension Benefits Act, the administrator of the FCPP shall refund to the Financial Corporation, without interest, the contributions made by Ontario Hydro that were required to pay the normal cost of the pension plan in respect of service after March 31, 1998 and before the day that subsection (2) comes into force.  1998, c. 15, Sched. A, s. 99 (3).

Unfunded liability or solvency deficiency

(4) If a report on the FCPP filed with the Superintendent reveals a going concern unfunded liability or solvency deficiency or both, each successor employer shall pay to the pension fund for the FCPP, as its share of the total amount of each monthly special payment required as a result of the report, the amount determined by the plan actuary in accordance with the following formula:

in which,

  “A” is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members and former members of the FCPP who will become members or former members of the successor plan established by the successor employer;

  “B” is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members and former members of the FCPP; and

  “C” is the total amount of the monthly special payment required as a result of the report.  1998, c. 15, Sched. A, s. 99 (4).

Definition

(5) In subsection (4),

“actuarial liabilities” means,

(a) in the case of a going concern valuation, the going concern liabilities, and

(b) in the case of a solvency valuation, the solvency liabilities.  1998, c. 15, Sched. A, s. 99 (5).

Administrative costs of FCPP

100. The costs of administering the FCPP (including the costs of administering and investing the pension fund) are payable out of the pension fund.  1998, c. 15, Sched. A, s. 100.

Additional pension plans of Financial Corporation

101. (1) This section applies if the Financial Corporation establishes another pension plan in the circumstances described in section 80 or 81 of the Pension Benefits Act.  1998, c. 15, Sched. A, s. 101 (1).

Transfer of assets

(2) The Financial Corporation, in its sole discretion acting in its capacity as employer, may decide whether to transfer assets from the FCPP to the other pension plan and may decide upon all matters relating to the transfer, subject to the consent of the Superintendent of Financial Services as required under the Pension Benefits Act.  1998, c. 15, Sched. A, s. 101 (2).

Requirements continued

(3) Subsections 98 (5) and 99 (2) and section 100 apply with respect to the other pension plan.  1998, c. 15, Sched. A, s. 101 (3).

Successor pension plans

102. (1) The IMO, Hydro One Inc., Ontario Power Generation Inc. and the Electrical Safety Authority shall each establish a pension plan to provide pension benefits and ancillary benefits for the following persons:

1. Its employees whose employment is transferred to it by or pursuant to an order made under section 116 and who are, or are entitled to be, members of the FCPP before their employment is transferred.

2. Such other employees as it considers appropriate.

3. Such former members of the FCPP as the Financial Corporation, in its sole discretion acting in its capacity as employer, designates for transfer to the pension plan.

4. Such other persons as this Part may require.  1998, c. 15, Sched. A, s. 102 (1); 2002, c. 1, Sched. A, s. 21 (1).

Selection of former members

(2) In determining which former members of the FCPP are to be transferred to a successor pension plan, the Financial Corporation shall comply with the following rules:

1. All former members of the FCPP must be transferred to the successor pension plans.

2. The Financial Corporation shall consider which successor employer, if any, would most likely have become the employer of each former employee of Ontario Hydro (assuming, only for the purposes of this rule, that the former employee had been employed by Ontario Hydro immediately before the date on which employees of Ontario Hydro are transferred to the successor employers by or pursuant to orders made under section 116).

3. If the Financial Corporation concludes that a former employee would most likely have remained an employee of the Financial Corporation or a subsidiary of the Financial Corporation, the Financial Corporation shall transfer the former member to the successor pension plan established by Ontario Power Generation Inc.  1998, c. 15, Sched. A, s. 102 (2); 2002, c. 1, Sched. A, s. 21 (2).

Status of plan

(3) During the period that employees of the subsidiary of the Financial Corporation established under section 110 are members of the pension plan established under subsection (1) by Ontario Power Generation Inc., that plan shall be deemed not to be a multi-employer pension plan for the purposes of the Pension Benefits Act.  1998, c. 15, Sched. A, s. 102 (3); 2002, c. 1, Sched. A, s. 21 (3).

Administrator

(4) The successor employer is the administrator of the applicable successor pension plan.  1998, c. 15, Sched. A, s. 102 (4).

Commencement date

(5) Each successor pension plan comes into effect as of the prescribed commencement date for the plan.  1998, c. 15, Sched. A, s. 102 (5).

Regulation

(6) The Lieutenant Governor in Council may, by regulation, prescribe a commencement date for each successor pension plan.  1998, c. 15, Sched. A, s. 102 (6).

Members of successor plans

103. (1) An employee of a successor employer who has established a successor pension plan becomes a member of the successor pension plan on the following date:

1. If the employee was a member of the FCPP immediately before becoming employed by the successor employer, the later of the following dates:

i. The date on which he or she becomes employed by the successor employer.

ii. The commencement date for the plan.

2. If, under the terms of the successor pension plan, the employee is required to be a member of the plan, the latest of the following dates:

i. The date on which he or she becomes employed by the successor employer.

ii. The date on which, under the terms of the successor pension plan, he or she is required to become a member of the plan.

iii. The commencement date for the plan.

3. If, under the terms of the successor pension plan, the employee is required to become a member of the plan after meeting certain conditions, the later of the following dates:

i. The date on which he or she meets those conditions.

ii. The commencement date for the plan.

4. If, under the terms of the successor pension plan, the employee is entitled, but not required, to become a member of the plan after meeting certain conditions, the later of the following dates:

i. The date on which he or she becomes a member of the plan.

ii. The commencement date for the plan.  1998, c. 15, Sched. A, s. 103 (1).

Former members

(2) The former members described in paragraph 3 of subsection 102 (1) become former members of the successor pension plan on the changeover date.  1998, c. 15, Sched. A, s. 103 (2).

Employer contributions to successor plans

104. (1) A successor employer shall contribute to the pension fund for the applicable successor pension plan for a year the amount by which the normal cost of the plan exceeds the contributions to the pension fund made by the members, as determined by the plan actuary.  1998, c. 15, Sched. A, s. 104 (1).

Same

(2) If the plan has a surplus or a prior year credit balance or both, the successor employer, in its sole discretion acting in its capacity as employer, may reduce or suspend the employer’s contributions to the pension fund to the extent permitted under the Pension Benefits Act.  1998, c. 15, Sched. A, s. 104 (2).

Participation by affiliates in successor pension plans

104.1 (1) A successor employer may permit an affiliate to be a participating employer under a successor pension plan with respect to such employees of the affiliate, for such period and on such terms as the successor employer determines in its sole discretion acting in its capacity as an employer.  2000, c. 42, s. 39.

Contributions by participating affiliates

(2) The participating affiliate shall contribute to the pension fund for the plan for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the plan who are employees of the affiliate, other than their pensionable earnings, if any, as employees of the successor employer.  2000, c. 42, s. 39.

Reduction in contributions of successor employer

(3) Despite subsection 104 (1), a successor employer who permits an affiliate to be a participating employer under the plan shall contribute to the pension fund for the plan for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the plan who are employees of the successor employer, other than their pensionable earnings, if any, as employees of a participating affiliate.  2000, c. 42, s. 39.

Rate for employer contributions

(4) The rate for a year is determined by calculating the amount by which the normal cost in respect of all members of the plan exceeds the contributions made for the year to the pension fund for the plan by all members and dividing that amount by the pensionable earnings of all members of the plan for the year, as determined by the actuary of the plan.  2000, c. 42, s. 39.

Reduction, etc., in contributions

(5) If the plan has a surplus or a prior year credit balance or both, the successor employer, in its sole discretion acting in its capacity as an employer, may permit the participating affiliate to reduce or suspend its contributions to the pension fund to the extent permitted under the Pension Benefits Act, and the affiliate, in its sole discretion acting as employer, may do so.  2000, c. 42, s. 39.

Status of plan

(6) The plan shall be deemed not to be a multi-employer pension plan for the purposes of the Pension Benefits Act.  2000, c. 42, s. 39.

Definitions

(7) In this section,

“affiliate” means, in relation to a successor employer,

(a) a corporation that is a subsidiary of the successor employer within the meaning of the Business Corporations Act, or

(b) a corporation or partnership that is controlled by the successor employer, by the person who controls the successor employer or by a person who is controlled by the successor employer, as described in subsection (8); (“membre du même groupe”)

“participating affiliate” means, with respect to a successor employer and a successor pension plan, an affiliate permitted under subsection (1) to be a participating employer under the plan. (“membre du même groupe participant”)  2000, c. 42, s. 39.

Interpretation, control

(8) For the purposes of clause (b) of the definition of “affiliate” in subsection (7), a corporation or partnership is controlled by another person or by the successor employer if the person or successor employer holds the following, directly or indirectly, other than by way of security:

1. Voting securities carrying more than 50 per cent of the votes for the election of directors of the corporation.

2. An ownership or other interest that confers on the holder more than 50 per cent of the voting interest or other governance rights in the partnership or more than 50 per cent of the income of the partnership.  2000, c. 42, s. 39.

Administrative costs of successor plans

105. The costs of administering a successor pension plan (including the costs of administering and investing the pension fund) are payable out of the pension fund.  1998, c. 15, Sched. A, s. 105.

Additional pension plans of successor employers

106. (1) This section applies if a successor employer establishes another pension plan in the circumstances described in section 80 or 81 of the Pension Benefits Act.  1998, c. 15, Sched. A, s. 106 (1).

Transfer of assets

(2) The successor employer, in its sole discretion acting in its capacity as employer, may decide whether to transfer assets from the successor pension plan to the other pension plan and may decide upon all matters relating to the transfer, subject to the consent of the Superintendent of Financial Services as required under the Pension Benefits Act.  1998, c. 15, Sched. A, s. 106 (2).

Requirements continued

(3) Subsections 102 (4) and 104 (2) and sections 104.1 and 105 apply with respect to the other pension plan.  1998, c. 15, Sched. A, s. 106 (3); 2000, c. 42, s. 40.

Reciprocal transfer agreements

107. (1) This section applies with respect to the pension plans referred to in subsections 101 (1), 102 (1) and 106 (1).  1998, c. 15, Sched. A, s. 107 (1).

Same

(2) The administrators shall ensure that reciprocal transfer agreements between each of the pension plans are entered into and filed under the Pension Benefits Act.  1998, c. 15, Sched. A, s. 107 (2).

Same

(3) The reciprocal transfer agreements may be bilateral or multilateral.  1998, c. 15, Sched. A, s. 107 (3).

Dispute resolution

(4) If the administrator of a pension plan fails to enter into a reciprocal transfer agreement with the administrator of another pension plan before the prescribed date, the matters remaining in dispute between them shall be resolved in accordance with such requirements as may be prescribed.  1998, c. 15, Sched. A, s. 107 (4).

Regulations

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

(a) prescribing, for the purpose of subsection (4), dates applicable to pension plans that are specified by the regulations;

(b) governing the resolution of matters remaining in dispute between the administrators of specified pension plans after the prescribed date.  1998, c. 15, Sched. A, s. 107 (5).

Costs

(6) The costs of dispute resolution after the prescribed date shall be borne equally by the applicable pension plans and are payable out of the pension funds of those plans.  1998, c. 15, Sched. A, s. 107 (6).

FCPP membership temporarily extended

108. (1) In any of the following circumstances, an employee of a successor employer is a member of the FCPP until the commencement date for the applicable successor plan:

1. The employee was a member of the FCPP immediately before becoming employed by the successor employer.

2. The employee would be required to be a member of the FCPP, if the employee were employed by the Financial Corporation.

3. The employee would be required to be a member of the FCPP after meeting certain conditions, if the employee were employed by the Financial Corporation.  The employee meets those conditions before the commencement date.

4. The employee would be entitled, but not required, to become a member of the FCPP after meeting certain conditions, if the employee were employed by the Financial Corporation.  The employee becomes a member of the FCPP before the commencement date.  1998, c. 15, Sched. A, s. 108 (1).

Employee contributions

(2) An employee who is a member of the FCPP shall make employee contributions to the pension fund for the FCPP until the commencement date.  1998, c. 15, Sched. A, s. 108 (2).

Employer contributions re temporary members

109. (1) This section applies with respect to each year or part thereof in which employees of any successor employer are members of the FCPP under section 108.  1998, c. 15, Sched. A, s. 109 (1).

Obligation, successor employers

(2) Each successor employer shall contribute to the pension fund for the FCPP for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the FCPP who are its employees, other than their pensionable earnings, if any, as employees of the Financial Corporation.  1998, c. 15, Sched. A, s. 109 (2).

Same, Financial Corporation

(3) Despite subsection 99 (1), the Financial Corporation shall contribute to the pension fund for the FCPP for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the FCPP who are its employees, other than their pensionable earnings, if any, as employees of a successor employer.  1998, c. 15, Sched. A, s. 109 (3).

Rate

(4) The rate for a year is determined by calculating the amount by which the normal cost in respect of all members of the FCPP exceeds the contributions made to the pension fund for the FCPP by all members for the year and dividing this amount by the pensionable earnings of all members of the FCPP for the year, as determined by the FCPP actuary.  1998, c. 15, Sched. A, s. 109 (4).

Reductions

(5) Subsection 99 (2) applies, with necessary modifications, to the Financial Corporation and to each successor employer.  1998, c. 15, Sched. A, s. 109 (5).

Administrator

(6) Despite subsection 8 (1) of the Pension Benefits Act, the Financial Corporation is the sole administrator of the FCPP while the successor employers are required to make contributions under this section.  1998, c. 15, Sched. A, s. 109 (6).

Subsidiary to act as agent of Financial Corporation

110. (1) The Financial Corporation shall establish a subsidiary and shall retain the subsidiary to act as the agent of the Financial Corporation in its capacity as administrator of the FCPP.  1998, c. 15, Sched. A, s. 110 (1).

Application of s. 72

(2) Section 72 does not apply to the subsidiary established under subsection (1).  1998, c. 15, Sched. A, s. 110 (2).

Employees

(3) The employees of the subsidiary shall be deemed not to be civil servants, Crown employees or public servants for the purpose of the Public Service Act or any other Act.  1998, c. 15, Sched. A, s. 110 (3).

Application of subss. (5) and (6)

(4) Subsections (5) and (6) cease to apply when the subsidiary is no longer retained for the purpose referred to in subsection (1).  1998, c. 15, Sched. A, s. 110 (4).

Participation in FCPP

(5) The following rules apply until the commencement date for the successor pension plan established by the Generation Corporation:

1. The employees of the subsidiary are, or are entitled to be, members of the FCPP on the same basis as employees of the Financial Corporation.

2. The subsidiary is an employer who is required to make contributions to the pension fund for the FCPP.

3. Section 109 applies, with necessary modifications, with respect to the rights and duties of the Financial Corporation and the subsidiary.  1998, c. 15, Sched. A, s. 110 (5).

Participation in successor pension plan

(6) The following rules apply on and after the commencement date for the successor pension plan established by Ontario Power Generation Inc.:

1. The employees of the subsidiary are, or are entitled to be, members of the successor pension plan established by Ontario Power Generation Inc.

2. Section 103 applies, with necessary modifications, with respect to the employees of the subsidiary.

3. The subsidiary is an employer who is required to make contributions to the pension fund for the successor pension plan.

4. Section 109 applies, with necessary modifications, with respect to the rights and duties of Ontario Power Generation Inc. and the subsidiary.  1998, c. 15, Sched. A, s. 110 (6); 2002, c. 1, Sched. A, s. 22.

Transfer agreements for successor plans

111. (1) The administrator of the FCPP and the administrator of each successor pension plan shall enter into an agreement governing the division and transfer of assets and liabilities from the FCPP to the successor pension plan.  1998, c. 15, Sched. A, s. 111 (1).

Transfer of assets

(2) The administrator of the FCPP shall transfer assets and liabilities from the FCPP to a successor pension plan in accordance with the transfer agreement relating to the successor pension plan.  1998, c. 15, Sched. A, s. 111 (2).

Value of assets

(3) Subject to subsection (4), the value of the assets to be transferred to a successor pension plan is calculated as of the changeover date using the formula,

in which,

  “A” is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members of the FCPP who, on or after the commencement date and before the changeover date, become members of the successor pension plan and who, on the changeover date, become entitled to accrued pension benefits under the successor pension plan in respect of their employment before becoming members of the successor pension plan;

  “B” is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of former members of the FCPP who, on the changeover date, become former members of the successor pension plan;

  “C” is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of persons who, immediately before the changeover date, are members and former members of the FCPP; and

  “D” is the value of the assets held in the pension fund of the FCPP.  1998, c. 15, Sched. A, s. 111 (3).

Same

(4) The amount calculated under subsection (3) is subject to such adjustments as the transfer agreement may permit.  1998, c. 15, Sched. A, s. 111 (4).

Same

(5) Subsections 80 (5) to (7) of the Pension Benefits Act apply with respect to the transfer of assets.  1998, c. 15, Sched. A, s. 111 (5).

Tax exemption

(5.1) The Land Transfer Tax Act and the Retail Sales Tax Act do not apply with respect to the transfer of assets.  2000, c. 42, s. 41.

Dispute resolution

(6) If the administrators do not enter into a transfer agreement before the prescribed date, the matters remaining in dispute between them shall be resolved in accordance with such requirements as may be prescribed.  1998, c. 15, Sched. A, s. 111 (6).

Regulations

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

(a) prescribing, for the purpose of subsection (6), dates applicable to pension plans that are specified by the regulations;

(b) governing the resolution of matters remaining in dispute after the prescribed date.  1998, c. 15, Sched. A, s. 111 (7).

Costs

(8) The costs of dispute resolution after the prescribed date are payable out of the pension fund for the FCPP.  1998, c. 15, Sched. A, s. 111 (8).

Transfer of benefits to successor plans

112. (1) This section applies if the Superintendent of Financial Services consents to the transfer of assets described in section 111 from the FCPP to a successor pension plan.  1998, c. 15, Sched. A, s. 112 (1).

Same

(2) The following changes occur as of the changeover date:

1. Members of the FCPP who become members of the successor pension plan on or after the commencement date and before the changeover date become entitled to pension benefits under the successor pension plan in respect of their employment before becoming members of the successor pension plan and they cease to be entitled to those benefits under the FCPP.

2. Former members of the FCPP who become former members of the successor pension plan on the changeover date become entitled to pension benefits under the successor pension plan in respect of the applicable person’s employment before the changeover date.

3. Those former members cease to be former members of the FCPP.

4. Those members and former members become entitled to credit in the successor pension plan for the period of membership of the member or the applicable former member in the FCPP, for the purpose of determining entitlement to ancillary benefits under the successor pension plan.  1998, c. 15, Sched. A, s. 112 (2).

Transfer of responsibility

(3) As of the changeover date, the successor employer assumes responsibility for the accrued pension benefits under the FCPP of the members and former members described in subsection (2), and the Financial Corporation ceases to be responsible for those accrued pension benefits.  1998, c. 15, Sched. A, s. 112 (3).

PART VIII
ELECTRICAL SAFETY CODE

Electrical safety code

113. (1) The Electrical Safety Authority, subject to the approval of the Lieutenant Governor in Council, may make regulations,

(a) prescribing the design, construction, installation, protection, use, maintenance, repair, extension, alteration, connection and disconnection of all works and matters used or to be used in the generation, transmission, distribution, retail or use of electricity in Ontario;

(b) prohibiting the use in Ontario of any such works or matters until they have been inspected and approved;

(c) prohibiting the advertising, display, offering for sale, or other disposal, and the sale or other disposal, publicly or privately, in Ontario, of any such works or matters unless and until they have been inspected and approved, and prescribing the precautions to be taken in the sale or other disposal of such works or matters and the warnings and instructions to be given to purchasers and others in advertisements and by circular or otherwise to prevent their use in such manner or under such conditions as may be likely to result in undue hazard to persons or property;

(d) providing for the inspection, test and approval of all such works and matters before being used for any such purposes;

(e) adopting by reference, in whole or in part, with such changes as the Authority considers necessary or advisable, any code or standard and requiring compliance with any code or standard that is so adopted;

(f) requiring compliance with any code or standard under a rule of a person retailing electricity to such works.  1998, c. 15, Sched. A, s. 113 (1).

Issuing of plans and specifications

(2) The Authority may prepare and issue plans and specifications governing the design, construction and test of any of the works or matters mentioned in subsection (1), and may alter such plans and specifications.  1998, c. 15, Sched. A, s. 113 (2).

Appointment of persons or associations to inspect and test

(3) The Authority may appoint persons or associations having, in the opinion of the Authority, special knowledge and facilities to inspect, test and report upon any of the works or matters mentioned in subsection (1).  1998, c. 15, Sched. A, s. 113 (3).

Approval by adoption of report

(4) The Authority may approve of any of the works or matters mentioned in subsection (1) by adopting the report made under subsection (3) or otherwise as the Authority considers advisable.  1998, c. 15, Sched. A, s. 113 (4).

Orders relating to installations, alterations, etc.

(5) The Authority may issue such orders relating to work to be done in the installation, removal, alteration, repair, protection, connection or disconnection of any of the works or matters mentioned in subsection (1) as the Authority considers necessary or advisable for the safety of persons or the protection of property.  1998, c. 15, Sched. A, s. 113 (5).

Appointment of inspectors

(6) The Authority may appoint such inspectors and other officers as are considered necessary or advisable for the purposes of this section.  1998, c. 15, Sched. A, s. 113 (6).

Fees for permits, inspection, test and approval

(7) The Authority, subject to the approval of the Minister, may establish the fees to be paid for permits and for inspection, test and approval of all such works and matters mentioned in subsection (1) and of plans and specifications relating thereto, and may direct the time and manner of payment of the fees.  1998, c. 15, Sched. A, s. 113 (7).

Collection and disposition of fees and fines

(8) The Authority shall collect the fees established by it under the authority of subsection (7), and shall provide for the remuneration, travelling and other expenses of the inspectors and other qualified persons, together with all other expenses incurred in carrying out this section.  1998, c. 15, Sched. A, s. 113 (8).

Agreement to exercise Authority’s powers

(9) The Authority may enter into agreements with any person or body prescribed by the regulations authorizing the person or body to exercise and perform any of the powers and duties of the Authority under subsections (5) to (8) and, for that purpose, a reference in subsection (11), (12) or (13) to the Authority shall be deemed to be a reference to the person or body.  1998, c. 15, Sched. A, s. 113 (9).

Powers of inspectors

(10) Every inspector appointed under this section may enter any land, building or premises at any reasonable hour for the purpose of performing the duties assigned to him or her under this section.  1998, c. 15, Sched. A, s. 113 (10).

Liability

(11) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Authority, or an inspector or officer appointed under this section, 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 Act or the regulations, or for any neglect or default in the exercise or performance in good faith of such a power or duty.  1998, c. 15, Sched. A, s. 113 (11).

Same

(12) Subsection (11) does not relieve the Authority 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 (11).  1998, c. 15, Sched. A, s. 113 (12).

Offences

(13) Every person or entity,

(a) disturbing or interfering with an inspector or other officer in the performance of the inspector’s or officer’s duty under this section is guilty of an offence and on conviction is liable to a fine of not more than $500 for each offence;

(b) refusing or neglecting to comply with this section, or with any regulation, plan or specification made under its authority is guilty of an offence and on conviction is liable to a fine of not more than $5,000 for each offence;

(c) refusing or neglecting to comply with an order issued by the Authority under subsection (5) is guilty of an offence and on conviction is liable to a fine of not more than $5,000 and a further fine of not more than $500 for each day upon which such refusal or neglect is repeated or continued.  1998, c. 15, Sched. A, s. 113 (13).

Section not to apply to mines

(14) This section does not apply to a mine as defined in the Mining Act, save only as regards any dwelling house or other building not connected with or required for mining operations or purposes or used for the treatment of ore or mineral.  1998, c. 15, Sched. A, s. 113 (14).

PART IX
REGULATIONS

Regulations

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

(a) governing the appointment and reappointment of directors of the IMO;

(b) respecting the calculation of the fees referred to in subsection 17 (4) and respecting the manner in which, and the time at which, they are to be paid;

(c) prescribing provisions of the Business Corporations Act, the Corporations Act or the Corporations Information Act that apply, with necessary modifications, to the IMO;

(d) prescribing transmitters, distributors, generators, retailers and consumers or classes of transmitters, distributors, generators, retailers and consumers for the purpose of subsection 26 (2);

(e) prescribing contracts or classes of contracts to which subsection 26 (3), (4) or (6) does not apply, subject to such conditions or restrictions as may be specified in the regulations;

(f) prescribing the amount of electricity referred to in the definition of “low-volume consumer” in subsection 26 (10);

(f.1) prescribing periods for the purpose of subsections 31 (4) and (5);

(g) prescribing a date for the purpose of subsection 32 (6);

(g.1) prescribing information for the purposes of subsections 33 (1.1) and 34 (2.1);

Note: On a day to be named by proclamation of the Lieutenant Governor, clause (g.1) is repealed by the Statutes of Ontario, 2002, chapter 23, subsection 3 (25).  See: 2002, c. 23, ss. 3 (25), 7 (2).

(g.2) prescribing reasons for the purpose of paragraph 5 of subsection 34 (1);

(h) prescribing an amount for the purpose of clause 36 (1) (a);

(h.1) for the purpose of subsection 46.1 (2), prescribing types of fuel and, with respect to each type of fuel that is prescribed, prescribing one or more other types of fuel as substitute fuels;

(h.2) for the purpose of clause 46.2 (1) (a), prescribing types of fuel;

(i) designating a person or body as the Electrical Safety Authority for the purposes of this Act;

(j) prescribing persons or bodies or classes of persons or bodies with which the Electrical Safety Authority may enter into agreements under subsection 113 (9);

(k) prescribing consumer protection requirements that apply to market participants;

(l) governing standards for and the use of electricity meters;

(l.1) requiring persons to offer, install or use electricity meters or other devices of a type specified by the regulations for the purpose of promoting energy conservation, energy efficiency or load management;

(m) exempting any person or class of persons from any provision of this Act, subject to such conditions or restrictions as may be prescribed by the regulations;

(n) defining any word or expression used in this Act that is not defined in this Act;

(o) deeming a reference in any Act to Ontario Hydro to be a reference to a person or other entity specified in the regulations, subject to such conditions as may be prescribed by the regulations;

(p) providing for such transitional matters as the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of this Act;

(q) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the purposes of this Act.  1998, c. 15, Sched. A, s. 114 (1); 2001, c. 23, s. 69; 2002, c. 23, s. 3 (24).

General or particular

(2) A regulation made under subsection (1) may be general or particular in its application.  1998, c. 15, Sched. A, s. 114 (2).

Appointment of IMO directors

(3) A regulation made under clause (1) (a) may authorize the board of directors of the IMO to make by-laws governing the appointment or reappointment of directors of the IMO, subject to such conditions or restrictions as may be prescribed by the regulations.  1998, c. 15, Sched. A, s. 114 (3).

Transitional regulations

(4) A regulation made under clause (1) (p),

(a) may provide that it has retroactive application to a date not earlier than the day this section comes into force; and

(b) may provide that it applies despite this or any other general or special Act.  1998, c. 15, Sched. A, s. 114 (4).

part ix.1
ownership and use of corridor land

Interpretation

Definitions

114.1 In this Part,

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

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

“statutory right to use corridor land” or “statutory right to use the land” means, in relation to corridor land, the right created by section 114.5 to use the land for a purpose described in that section. (“droit légal d’utiliser des biens-fonds réservés aux couloirs”, “droit légal d’utiliser les biens-fonds”)  2002, c. 1, Sched. A, s. 23.

Ownership and Use

Transfer of corridor land to the Crown

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

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

2. All real property in Ontario that Hydro One Inc. or a subsidiary of Hydro One Inc. owned, directly or indirectly, in fee simple on the effective date that abuts real property described in paragraph 1.  2002, c. 1, Sched. A, s. 23.

Exceptions

(2) Buildings, structures and equipment on corridor land are not transferred to Her Majesty in right of Ontario by subsection (1).  2002, c. 1, Sched. A, s. 23.

Compensation

(3) No compensation of any kind is payable in respect of a transfer made by this section; however, the statutory right to use the land is given in exchange for the transfer.  2002, c. 1, Sched. A, s. 23.

Non-application of Expropriations Act

(4) The Expropriations Act does not apply with respect to a transfer made by this section or with respect to a subsequent transfer by Her Majesty in right of Ontario of the real property described in this section, despite section 2 of that Act.  2002, c. 1, Sched. A, s. 23.

Evidence of transfer

(5) In a document registered on title in a land titles office or registry office, a statement that real property described in the document was transferred to Her Majesty in right of Ontario by this section, and any other statement in the document relating to the transfer, shall be deemed to be conclusive evidence of the facts stated.  2002, c. 1, Sched. A, s. 23.

Effect of transfer to the Crown

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

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

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

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

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

(e) shall be deemed not to give rise to any estoppel.  2002, c. 1, Sched. A, s. 23.

Same

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

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

(b) a party to a contract with Hydro One Inc. or any of its subsidiaries that was entered into before the transfer.  2002, c. 1, Sched. A, s. 23.

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

114.4 (1) The transfer made by section 114.2 does not affect any right or interest of a person in the corridor land that is subordinate to the fee simple interest.  2002, c. 1, Sched. A, s. 23.

Same

(2) Despite the transfer made by section 114.2, Hydro One Inc. and its subsidiaries continue to have the benefit of, and be subject to all obligations under, any lease or agreement entered into or licence obtained before the effective date that affects corridor land or any easement or right created before the effective date with respect to corridor land.  2002, c. 1, Sched. A, s. 23.

Statutory right to use corridor land

114.5 (1) The person or entity from whom corridor land is transferred by section 114.2 has a right to use the land to operate a transmission system or distribution system.  2002, c. 1, Sched. A, s. 23.

Duty to maintain

(2) The person or entity who has the right created by subsection (1) has a duty to maintain the corridor land at his, her or its own expense, including repairing or replacing buildings, equipment and structures on the land that are used by the person or entity, or used with his, her or its permission, if a prudent person would repair or replace them.  2002, c. 1, Sched. A, s. 23.

Same

(3) The Chair of Management Board may direct the person or entity who has the right created by subsection (1) to engage in such additional activities to maintain the corridor land at his, her or its own expense as the Chair of Management Board considers appropriate.  2002, c. 1, Sched. A, s. 23.

Exception

(4) The person or entity who has the right created by subsection (1) is not required to maintain corridor land that is being used for a purpose other than the operation of a transmission system or distribution system, unless it is being used for that purpose with the permission of the person or entity.  2002, c. 1, Sched. A, s. 23.

Taxes, etc.

(5) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to the right created by subsection (1).  2002, c. 1, Sched. A, s. 23.

Status of right

(6) The right created by subsection (1) is an easement.  2002, c. 1, Sched. A, s. 23.

Binding

(7) The right created by subsection (1) is binding on all persons and entities.  2002, c. 1, Sched. A, s. 23.

Evidence of right

(8) In a document registered on title in a land titles office or registry office, a statement that a person or entity has a right created by subsection (1) to use real property described in the document for the purposes described in subsection (1), and any other statement in the document relating to the right, shall be deemed to be conclusive evidence of the facts stated.  2002, c. 1, Sched. A, s. 23.

Payment to holder of right

(9) If Her Majesty in right of Ontario uses corridor land or if a person or entity to whom Her Majesty in right of Ontario transfers corridor land uses it, the Chair of Management Board shall make payments from the Consolidated Revenue Fund to the person or entity who has the right created by subsection (1) with respect to such incremental costs incurred by the person or entity in the operation of a transmission system or distribution system as may be prescribed by regulation.  2002, c. 1, Sched. A, s. 23.

Primacy of use for transmission or distribution system

114.6 (1) A person or entity who owns corridor land shall not use it in such a way that the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the land is reduced.  2002, c. 1, Sched. A, s. 23.

Expansion of use for transmission system or distribution system

(2) If, under Part VI of the Ontario Energy Board Act, 1998, the Board authorizes a person or entity who has the statutory right to use corridor land to expand a transmission system or distribution system on the land, the Board may make an order described in this section if the Board considers it to be in the public interest to do so.  2002, c. 1, Sched. A, s. 23.

Order re other uses

(3) The Board may order the owner of the corridor land to restrict or discontinue any use of the land that interferes with the expansion of the transmission system or distribution system as authorized under Part VI of the Ontario Energy Board Act, 1998.  2002, c. 1, Sched. A, s. 23.

Restriction

(4) The Board shall not make an order under subsection (3) to restrict or discontinue a  use of the land if the Board determines that the expansion of the transmission system or distribution system can be reasonably accommodated without the restriction or without discontinuing the use, as the case may be.  2002, c. 1, Sched. A, s. 23.

Order re incremental costs

(5) The Board may order the owner of the corridor land to reimburse the person or entity seeking the expansion of the transmission system or distribution system for such incremental costs as the Board considers appropriate that are incurred by the person or entity in order to accommodate the other uses of the land.  2002, c. 1, Sched. A, s. 23.

Effect of agreement

(6) If an owner of corridor land and the person or entity who has the statutory right to use the land enter into an agreement governing the expansion of a transmission system or distribution system on the land or the use of the land, the Board shall not make an order under this section that is inconsistent with the agreement.  2002, c. 1, Sched. A, s. 23.

Status of agreement

(7) An agreement described in subsection (6) may be registered on title in the applicable land titles office or registry office and, when it is registered, it is binding on all persons and entities.  2002, c. 1, Sched. A, s. 23.

Status of orders

(8) The Ontario Energy Board Act, 1998 applies with respect to an order made under this section as if the order had been made under that Act.  2002, c. 1, Sched. A, s. 23.

Duty re use of corridor land

114.7 A person or entity who has the statutory right to use corridor land shall, to the extent practicable, ensure that the design and construction of any transmission system on the land maximizes the area available for other uses.  2002, c. 1, Sched. A, s. 23.

Directions re location of buildings, etc.

114.8 (1) The Chair of Management Board may give directions to a person or entity who has the statutory right to use corridor land in respect of the location on the land of any proposed building, structure or equipment or of any proposed expansion of a building, structure or equipment, and the person or entity shall comply with the directions.  2002, c. 1, Sched. A, s. 23.

Restriction

(2) The Chair of Management Board shall not give a direction under this section that would have the effect of reducing the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the corridor land.  2002, c. 1, Sched. A, s. 23.

Duty to obtain authorizations, etc.

(3) A direction by the Chair of Management Board under this section does not relieve the person or entity from the obligation to obtain such authorizations and consents as may be required by law, and the person or entity shall make reasonable efforts to obtain them.  2002, c. 1, Sched. A, s. 23.

Compensation

(4) If the Chair of Management Board directs that the construction or expansion must be located in a different place than the person or entity proposed, the Chair of Management Board shall pay the reasonable incremental costs associated with the direction.  2002, c. 1, Sched. A, s. 23.

Procedural matters

(5) The person or entity who proposes to construct or expand a building, structure or equipment on corridor land shall comply with such requirements as may be prescribed concerning notice to the Chair of Management Board and information to be given to him or her.  2002, c. 1, Sched. A, s. 23.

Effect of non-compliance

(6) A person or entity who fails to comply with this section shall remove the building, structure or equipment when given notice to do so by the Chair of Management Board and shall do so at his, her or its own expense.  2002, c. 1, Sched. A, s. 23.

Relocation of buildings, etc.

114.9 (1) The Chair of Management Board may direct a person or entity who has the statutory right to use corridor land and who owns a building, structure or equipment located on the land to move it, and may impose conditions or restrictions with respect to the direction.  2002, c. 1, Sched. A, s. 23.

Restriction

(2) The Chair of Management Board shall not give a direction under this section that would have the effect of reducing the level of service provided by a transmission or distribution system owned by the person or entity who has the statutory right to use the corridor land.  2002, c. 1, Sched. A, s. 23.

Duty to obtain authorizations, etc.

(3) A direction by the Chair of Management Board under this section does not relieve the person or entity from the obligation to obtain such authorizations and consents as may be required by law to relocate the building, structure or equipment, and the person or entity shall make reasonable efforts to obtain them.  2002, c. 1, Sched. A, s. 23.

Compliance

(4) After obtaining all authorizations and consents otherwise required by law, the person or entity shall comply with the direction, and the Chair of Management Board shall pay the person’s or entity’s reasonable costs of complying with the direction.  2002, c. 1, Sched. A, s. 23.

Effect of non-compliance

(5) A person or entity who fails to comply with this section shall remove the building, structure or equipment when given notice to do so by the Chair of Management Board and shall do so at his, her or its own expense.  2002, c. 1, Sched. A, s. 23.

Cessation of use for transmission system, etc.

114.10 (1) This section applies if a person or entity who has the statutory right to use corridor land decides that the land is not needed for the purposes of a transmission system or distribution system.  2002, c. 1, Sched. A, s. 23.

Duty to notify

(2) The person or entity who has the statutory right to use the land shall give written notice to the Chair of Management Board that it is not needed for the purposes of a transmission system or distribution system.  2002, c. 1, Sched. A, s. 23.

Same

(3) The notice must contain such information as may be prescribed by regulation and must be given in a manner authorized by regulation.  2002, c. 1, Sched. A, s. 23.

Transfer of statutory right

(4) The Chair of Management Board may require the person or entity to transfer to Her Majesty in right of Ontario the statutory right to use the land described in the written notice.  2002, c. 1, Sched. A, s. 23.

Payment for transfer

(5) No amount is payable for the transfer of the statutory right required under subsection (4).  2002, c. 1, Sched. A, s. 23.

Taxes, etc.

(6) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to a transfer required under subsection (4).  2002, c. 1, Sched. A, s. 23.

Disposition of statutory right

114.11 (1) A person or entity who has the statutory right to use corridor land may dispose of it and shall give prior written notice to the Chair of Management Board when disposing of the right.  2002, c. 1, Sched. A, s. 23.

Same

(2) The notice must contain such information as may be prescribed by regulation.  2002, c. 1, Sched. A, s. 23.

Restriction on expropriation by holder of statutory right

114.12 (1) A person or entity who has the statutory right to use corridor land is not permitted to expropriate the land under section 99 of the Ontario Energy Board Act, 1998.  2002, c. 1, Sched. A, s. 23.

Expropriation of statutory right

(2) Nothing in this Part restricts the expropriation under any Act of the statutory right to use corridor land.  2002, c. 1, Sched. A, s. 23.

Transfer of ownership by Crown to person with statutory right

114.13 (1) The Chair of Management Board, on behalf of Her Majesty in right of Ontario, may transfer the fee simple interest in all or any part of the corridor land to a  person or entity who has the statutory right to use the land and the Chair of Management Board may do so with or without the consent of the person or entity.  2002, c. 1, Sched. A, s. 23.

Restriction re encumbrances

(2) The Chair of Management Board shall not make a transfer under subsection (1) if the corridor land is subject to encumbrances created with the consent of Her Majesty in right of Ontario that are greater than those to which it was subject on the effective date, unless the person or entity who has the statutory right to use the land consents to the transfer.  2002, c. 1, Sched. A, s. 23.

Restriction re condition of land

(3) The Chair of Management Board shall not make a transfer under subsection (1) if the condition of the corridor land has been significantly changed since the effective date with the consent of Her Majesty in right of Ontario, unless the person or entity who has the statutory right to use the land consents to the transfer.  2002, c. 1, Sched. A, s. 23.

Payment for transfer

(4) The amount payable by the person or entity for the transfer is the fair market value of the corridor land on the effective date.  2002, c. 1, Sched. A, s. 23.

Termination of right

(5) Immediately before the transfer, the statutory right of the person or entity under this Part to use the land is terminated.  2002, c. 1, Sched. A, s. 23.

Payment for termination of right

(6) The amount payable to the person or entity upon the termination of the statutory right is the fair market value of the corridor land on the effective date.  2002, c. 1, Sched. A, s. 23.

Taxes, etc.

(7) The Land Transfer Tax Act and such other statutes or provisions of statutes or regulations as may be prescribed do not apply with respect to the transfer described in subsection (1) or the termination of the right.  2002, c. 1, Sched. A, s. 23.

General

Duty to provide records, information and reports

114.14 (1) A person or entity who has an interest in, or has entered into an agreement to use, corridor land or a building, structure or equipment located on corridor land shall give the Chair of Management Board, upon request, such records, information and reports as he or she may specify with respect to the land and the use of the land, building, structure or equipment and shall do so within the time specified by the Chair of Management Board.  2002, c. 1, Sched. A, s. 23.

Use of records, information and reports

(2) The Chair of Management Board may use records, information and reports obtained under this section for the purpose of administering and enforcing this Part.  2002, c. 1, Sched. A, s. 23.

Residual power of the Crown

114.15 (1) This Part does not restrict the authority of Her Majesty in right of Ontario to acquire, hold, dispose of or otherwise deal with corridor land.  2002, c. 1, Sched. A, s. 23.

Exception

(2) Subsection (1) does not authorize Her Majesty in right of Ontario to deal with corridor land contrary to section 114.6.  2002, c. 1, Sched. A, s. 23.

Indemnity re corridor land

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

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

(b) that are a direct or indirect result of an act or omission by any person before the effective date.  2002, c. 1, Sched. A, s. 23.

Same

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

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

(b) that are a direct or indirect result of an act or omission by any person before the effective date.  2002, c. 1, Sched. A, s. 23.

Same, by holder of statutory right

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

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

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

(i) the person or entity,

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

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

(iv) another person or entity who was invited or permitted to use the land by the person or entity who holds, or held, the statutory right to use it.  2002, c. 1, Sched. A, s. 23.

Delegation of powers and duties

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

1. Subsection 114.5 (3).

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

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

4. Subsection 114.13 (1).

5. Section 114.14.  2002, c. 1, Sched. A, s. 23.

Assignment of powers and duties

(2) The Chair of Management Board may assign his or her powers and duties under any of the provisions listed in subsection (1) to any person or entity, subject to such conditions as the Chair of Management Board may impose.  2002, c. 1, Sched. A, s. 23.

Effect

(3) Despite the Executive Council Act, an agreement that is signed by a person or entity authorized to do so by a delegation or an assignment made under this section has the same effect as if the agreement had been signed by the Chair of Management Board.  2002, c. 1, Sched. A, s. 23.

Regulations

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

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

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

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

(d) prescribing the information to be included in a notice given under section 114.11.  2002, c. 1, Sched. A, s. 23.

General or particular

(2) A regulation may be general or particular.  2002, c. 1, Sched. A, s. 23.

PART X
TRANSITION — ONTARIO HYDRO

Definitions, Part X

115. In this Part,

“transfer order” means an order made under section 116; (“décret de transfert ou de mutation”)

“transferee” means a person to whom officers, employees, assets, liabilities, rights or obligations are transferred by a transfer order. (“destinataire”)  1998, c. 15, Sched. A, s. 115.

Transfer orders

116. (1) The Lieutenant Governor in Council may make orders transferring officers, employees, assets, liabilities, rights and obligations of Ontario Hydro to Hydro One Inc., Ontario Power Generation Inc., the IMO, the Board, the Electrical Safety Authority, the subsidiary of the Financial Corporation established under section 110, Her Majesty in right of Ontario or any other person.  1998, c. 15, Sched. A, s. 116 (1); 2002, c. 1, Sched. A, s. 24 (1).

Binding on all persons

(2) A transfer order is binding on Ontario Hydro, the transferee and all other persons.  1998, c. 15, Sched. A, s. 116 (2).

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.  1998, c. 15, Sched. A, s. 116 (3).

No consent required

(4) A transfer order does not require the consent of Ontario Hydro, the transferee or any other person.  1998, c. 15, Sched. A, s. 116 (4).

Same

(5) Despite subsection (4), the consent of the transferee is required if the transferee is a person other than,

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

Note:  On a day to be named by proclamation of the Lieutenant Governor, clause (a) is repealed by the Statutes of Ontario, 2002, chapter 1, Schedule A, subsection 24 (3).  See:  2002, c. 1, Sched. A, ss. 24 (3), 31 (3).

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

(c) the IMO;

(d) the Board;

(e) the Electrical Safety Authority;

(f) the subsidiary of the Financial Corporation established under section 110; or

(g) Her Majesty in right of Ontario.  1998, c. 15, Sched. A, s. 116 (5); 2002, c. 1, Sched. A, s. 24 (2).

Regulations Act

(6) The Regulations Act does not apply to a transfer order.  1998, c. 15, Sched. A, s. 116 (6).

Notice of date

117. (1) The Minister shall, within 90 days after the date that a transfer order is made or amended, publish notice of the date in The Ontario Gazette.  1998, c. 15, Sched. A, s. 117 (1).

Amendments

(2) Notice of the date that a transfer order was amended shall identify the transfer order that was amended.  1998, c. 15, Sched. A, s. 117 (2).

Non-compliance

(3) Non-compliance with this section does not affect the validity of a transfer order or any amendment to a transfer order.  1998, c. 15, Sched. A, s. 117 (3).

Description of things transferred

118. A transfer order may describe officers, employees, assets, liabilities, rights or obligations to be transferred,

(a) by reference to specific officers, employees, assets, liabilities, rights or obligations;

(b) by reference to any class of officers, employees, assets, liabilities, rights or obligations; or

(c) partly in accordance with clause (a) and partly in accordance with clause (b).  1998, c. 15, Sched. A, s. 118.

Approvals under the Power Corporation Act

119. If the approval of the Lieutenant Governor in Council was at any time required under the Power Corporation Act or a predecessor of that Act with respect to an asset, liability, right or obligation that is to be transferred by or pursuant to a transfer order, the approval shall be deemed to have been given.  1998, c. 15, Sched. A, s. 119.

Officers and employees

120. (1) The office or employment of an officer or employee who is transferred by or pursuant to a transfer order is not terminated by the transfer and shall be deemed to have been transferred to the transferee without interruption in service.  1998, c. 15, Sched. A, s. 120 (1).

Service

(2) Service with Ontario Hydro of an officer or employee who is transferred by or pursuant to a transfer order shall be deemed to be service with the transferee for the purpose of determining probationary periods, benefits or any other employment-related entitlements under the Employment Standards Act or any other Act or under any employment contract or collective agreement.  1998, c. 15, Sched. A, s. 120 (2).

No constructive dismissal

(3) An officer or employee who is transferred by or pursuant to a transfer order shall be deemed not to have been constructively dismissed.  1998, c. 15, Sched. A, s. 120 (3).

Future changes

(4) If an officer or employee is transferred by or pursuant to a transfer order, nothing in this Act,

(a) prevents the office or employment from being lawfully terminated after the transfer; or

(b) prevents any term or condition of the office or employment from being lawfully changed after the transfer.  1998, c. 15, Sched. A, s. 120 (4).

Payment for transfer

121. (1) A transfer order may require Ontario Hydro or the transferee to pay for anything transferred by or pursuant to the order and may specify to whom the payment shall be made.  1998, c. 15, Sched. A, s. 121 (1).

Amount of payment

(2) The transfer order may,

(a) fix the amount of the payment;

(b) specify a method for determining the amount of the payment; or

(c) provide that the amount of the payment be determined by the Minister of Finance or a person designated by the Minister of Finance.  1998, c. 15, Sched. A, s. 121 (2).

Form of payment

(3) The transfer order may require that the payment be made in cash, by set off, through the issuance of securities or in any other form specified by the order.  1998, c. 15, Sched. A, s. 121 (3).

Securities

(4) If the transfer order requires that the payment be made through the issuance of securities, it may specify the terms and conditions of the securities or may authorize the Minister of Finance or a person designated by the Minister of Finance to specify the terms and conditions.  1998, c. 15, Sched. A, s. 121 (4).

Valuations

(5) A transfer order may,

(a) fix the value of anything transferred by or pursuant to the order;

(b) specify a method for determining the value of anything transferred by or pursuant to the order; or

(c) provide that the value of anything transferred by or pursuant to the order be determined by the Minister of Finance or a person designated by the Minister of Finance.  1998, c. 15, Sched. A, s. 121 (5).

Province may assume obligations in return for securities

122. (1) If, pursuant to a transfer order, Hydro One Inc. or Ontario Power Generation Inc. issues securities to Ontario Hydro, the Lieutenant Governor in Council, by order,

(a) may authorize Her Majesty in right of Ontario or an agent of Her Majesty in right of Ontario to assume obligations of Hydro One Inc. or Ontario Power Generation Inc. under the securities; and

(b) may require Hydro One Inc. or Ontario Power Generation Inc. to issue, and may authorize Her Majesty in right of Ontario or an agent of Her Majesty in right of Ontario to acquire, additional securities in such amount as the Lieutenant Governor in Council may specify.  1998, c. 15, Sched. A, s. 122 (1); 2002, c. 1, Sched. A, s. 25 (1).

Exchange of securities

(2) The Lieutenant Governor in Council may by order require Hydro One Inc. or Ontario Power Generation Inc. to issue securities to Ontario Hydro in exchange for securities it previously issued to Ontario Hydro pursuant to a transfer order.  1998, c. 15, Sched. A, s. 122 (2); 2002, c. 1, Sched. A, s. 25 (2).

Application of s. 28 of the Financial Administration Act

(3) Section 28 of the Financial Administration Act does not apply to anything done pursuant to an order under subsection (1) or (2).  1998, c. 15, Sched. A, s. 122 (3).

Terms and conditions of securities

(4) An order under subsection (1) or (2) may specify the terms and conditions of the securities issued under clause (1) (b) or subsection (2) or may authorize the Minister of Finance or a person designated by the Minister of Finance to specify the terms and conditions.  1998, c. 15, Sched. A, s. 122 (4).

Money required

(5) Money required for the purpose of meeting obligations assumed by Her Majesty under clause (1) (a) may be paid out of the Consolidated Revenue Fund.  1998, c. 15, Sched. A, s. 122 (5).

Non-application

(6) Clause (1) (b) and subsection (2) cease to apply with respect to Hydro One Inc. on the date specified in the regulations.  2002, c. 1, Sched. A, s. 25 (3).

Effective date of transfer

123. (1) A transfer order may specify the date that a transfer takes effect and any interest in property that is transferred by the order vests in the transferee on that date.  1998, c. 15, Sched. A, s. 123 (1).

Effective on payment

(2) A transfer order may provide that a transfer not take effect until payment has been made for anything transferred by or pursuant to the order.  1998, c. 15, Sched. A, s. 123 (2).

Retroactive transfer

(3) A transfer order may provide that a transfer shall be deemed to have taken effect on a date earlier than the date the transfer order is made, but the effective date shall not be earlier than the day this section comes into force.  1998, c. 15, Sched. A, s. 123 (3).

Sequence of events

(4) A transfer order may provide that transfers specified in the order and other transactions associated with the transfers shall be deemed to have occurred in a sequence and at times specified in the order.  1998, c. 15, Sched. A, s. 123 (4).

Statements in registered documents

124. (1) A statement, in a registered document to which a person referred to in subsection (2) is a party, that land described in the document was transferred to the person from Ontario Hydro by or pursuant to a transfer order, and any other statement in the document relating to the transfer order, shall be deemed to be conclusive evidence of the facts stated.  1998, c. 15, Sched. A, s. 124 (1).

Persons referred to in subs. (1)

(2) The persons referred to in subsection (1) are:

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

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

3. The IMO.

4. The Board.

5. The subsidiary of the Financial Corporation established under section 110.

6. Her Majesty in right of Ontario.

7. The Electrical Safety Authority.

8. Any other person prescribed by the regulations.  1998, c. 15, Sched. A, s. 124 (2); 2002, c. 1, Sched. A, s. 26.

No new interest

(3) Subsection (1) does not give any person an interest in land that Ontario Hydro did not have.  1998, c. 15, Sched. A, s. 124 (3).

References to unregistered transfer orders

(4) A document that is otherwise capable of being registered or deposited under the Registry Act or registered under the Land Titles Act and that refers to an unregistered transfer order may be registered or deposited under the Registry Act or registered under the Land Titles Act despite any provision of those Acts.  1998, c. 15, Sched. A, s. 124 (4).

Definitions

(5) In this section,

“land” means land, tenements, hereditaments and appurtenances, or any estate or interest therein; (“bien-fonds”)

“registered document” means a document registered or deposited under the Registry Act or registered under the Land Titles Act. (“document enregistré”)  1998, c. 15, Sched. A, s. 124 (5).

Execution of agreements

125. (1) A transfer order may require Ontario Hydro or a transferee,

(a) to enter into any written agreement or execute any instrument specified in the order; and

(b) to register in accordance with the order any agreement or instrument entered into or executed under clause (a).  1998, c. 15, Sched. A, s. 125 (1).

Exception

(2) Subsection (1) does not apply to a transfer agreement referred to in subsection 111 (1).  1998, c. 15, Sched. A, s. 125 (2).

Enforcement of things transferred

126.  (1) A transfer order may provide,

(a) that any liability or obligation that is transferred by the order may be enforced against Ontario Hydro, the transferee, or both of them;

(b) that any right that is transferred by the order may be enforced by Ontario Hydro, the transferee, or both of them;

(c) that any liability or obligation that is transferred by the order may be transferred to one or more transferees on a joint and several basis, as specified in the order; and

(d) that any liability or obligation that is transferred by the order may be allocated among two or more transferees on the basis set out in the order.  1998, c. 15, Sched. A, s. 126 (1); 2000, c. 42, s. 42.

Release of Ontario Hydro

(2) Subject to subsection (1), the transfer of a liability or obligation under this Part releases Ontario Hydro from the liability or obligation.  1998, c. 15, Sched. A, s. 126 (2).

Actions and other proceedings

127. Subject to section 126, any action or other proceeding that was commenced by or against Ontario Hydro before a transfer order takes effect and that relates to an officer, employee, asset, liability, right or obligation that is transferred by the order shall be continued by or against the transferee.  1998, c. 15, Sched. A, s. 127.

Limitation periods

128. An action or other proceeding shall not be commenced against a transferee in respect of any officer, employee, asset, liability, right or obligation that has been transferred to the transferee if, had there been no transfer, the time for commencing the action or other proceeding would have expired.  1998, c. 15, Sched. A, s. 128.

Certain rights not affected by transfer

129. (1) A transfer by or pursuant to a transfer order,

(a) shall be deemed not to constitute,

(i) a breach, termination, repudiation or frustration of any contract, including a contract of employment or insurance,

(ii) a breach of any Act, regulation or municipal by-law, or

(iii) an event of default or force majeure;

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

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

(d) shall be deemed not to give rise to any estoppel.  1998, c. 15, Sched. A, s. 129 (1).

Exemptions

(2) Subsection (1) does not apply to the contracts prescribed by the regulations.  1998, c. 15, Sched. A, s. 129 (2).

No new cause of action

130. Subject to subsection 129 (2), nothing in this Act and nothing done by or pursuant to a transfer order creates any new cause of action in favour of,

(a) a holder of a debt instrument that was issued by Ontario Hydro and guaranteed by the Province of Ontario before this section comes into force; or

(b) a party to a contract with Ontario Hydro that was entered into before this section comes into force.  1998, c. 15, Sched. A, s. 130.

Conditions on exercise of powers

131. A transfer order may impose conditions on the exercise of powers by the transferee that are related to officers, employees, assets, liabilities, rights or obligations transferred by the transfer order, including a condition that the powers be exercised only with the approval of the Board.  1998, c. 15, Sched. A, s. 131.

Information

132. Ontario Hydro shall provide a transferee with records or copies of records, and other information, that are in its custody or control and that relate to an officer, employee, asset, liability, right or obligation that is transferred by or pursuant to a transfer order, including personal information.  1998, c. 15, Sched. A, s. 132.

Transfer orders, other matters

133. A transfer order may contain provisions dealing with other matters not specifically referred to in this Part that the Lieutenant Governor in Council considers necessary or advisable in connection with a transfer.  1998, c. 15, Sched. A, s. 133.

Amendment of transfer order

134. The Lieutenant Governor in Council may, at any time within 24 months after making a transfer order, make a further order amending the transfer order in any way that the Lieutenant Governor in Council considers necessary or advisable.  1998, c. 15, Sched. A, s. 134; 2002, c. 1, Sched. A, s. 27 (1).

Note: On a day to be named by proclamation of the Lieutenant Governor, section 134 is amended by the Statutes of Ontario, 2002, chapter 1, Schedule A, subsection 27 (2) by adding the following subsection:

Same

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

See:  2002, c. 1, Sched. A, ss. 27 (2), 31 (3).

Exemptions from other Acts

135. The Bulk Sales Act, the Land Transfer Tax Act, the Retail Sales Tax Act and such other Acts or provisions as are prescribed by the regulations do not apply to any transfer of officers, employees, assets, liabilities, rights or obligations by or pursuant to a transfer order.  1998, c. 15, Sched. A, s. 135.

Limitations

136. (1) If possession of land transferred by or pursuant to a transfer order has been taken by another person, the right of Ontario Hydro or the transferee, or anyone claiming under them, to recover it, is not barred by reason of the lapse of time, despite the Real Property Limitations Act or any other Act, or by reason of any claim based on possession adverse to it for any period of time that might otherwise be made lawfully at common law, unless it is shown that it had actual notice in writing of the adverse possession, and such notice was had by it 10 years before it or the person claiming under it commenced action to recover the land.  1998, c. 15, Sched. A, s. 136 (1); 2002, c. 24, Sched. B, s. 33 (1).

Same

(2) No claim under subsection (1) shall be acquired by possession, prescription, custom, user or implied grant to any way, easement, watercourse or use of water or water right or privilege or flooding privilege of Ontario Hydro or the transferee, or to any way, easement, watercourse, or use of water, or right of drainage along, over, upon, on or from any land, or water, or water right, or privilege of Ontario Hydro or the transferee, despite the Real Property Limitations Act or any other Act or any claim at common law based on lapse of time, or length of enjoyment or use.  1998, c. 15, Sched. A, s. 136 (2); 2002, c. 24, Sched. B, s. 33 (2).

Pensions

137. (1) A transfer order shall not include any provision relating to,

(a) the Ontario Hydro Pension and Insurance Plan or the Pension and Insurance Fund of Ontario Hydro, referred to in section 24 of the Power Corporation Act, as continued by Part VII of this Act; or

(b) the pension benefits and ancillary benefits within the meaning of the Pension Benefits Act that are provided under a pension plan with respect to officers or employees transferred by or pursuant to a transfer order.  1998, c. 15, Sched. A, s. 137 (1).

Exception

(2) Despite clause (1) (a), a transfer order may include provisions relating to the following matters:

1. The disability benefits and life insurance described in subsection 98 (7) and the amount referred to in subsection 98 (8).

2. Any liability or obligation associated with a proceeding or potential proceeding relating to the Ontario Hydro Pension and Insurance Plan and the Pension and Insurance Fund of Ontario Hydro or relating to the Ontario Hydro Financial Corporation Pension Plan and the pension fund for it.  1998, c. 15, Sched. A, s. 137 (2).

Other transfer orders

Pension subsidiary of Financial Corporation

138. (1) The Lieutenant Governor in Council may make orders transferring officers, employees, assets, liabilities, rights and obligations of the subsidiary of the Financial Corporation established under section 110 to Hydro One Inc., Ontario Power Generation Inc., the IMO, the Board, the Electrical Safety Authority or any other person.  1998, c. 15, Sched. A, s. 138 (1); 2002, c. 1, Sched. A, s. 28 (1).

Financial Corporation assets, etc.

(1.1) The Lieutenant Governor in Council may make orders transferring the following assets, liabilities, rights and obligations to Hydro One Inc., Ontario Power Generation Inc., the IMO, the Electrical Safety Authority or any other person:

1. Assets, liabilities, rights and obligations of, or relating to, the Ontario Hydro Pension and Insurance Plan and the Pension and Insurance Fund of Ontario Hydro.

2. Assets, liabilities, rights and obligations of, or relating to, the Ontario Hydro Financial Corporation Pension Plan and the Ontario Hydro Financial Corporation Pension Fund.

3. Assets, liabilities, rights and obligations of the Financial Corporation relating to an act or omission by the Financial Corporation in connection with its rights or duties under Part VII or by any other person in connection with the person’s rights or duties under that Part.  2000, c. 42, s. 43 (1); 2002, c. 1, Sched. A, s. 28 (2).

Restriction on scope of order

(1.2) An order under subsection (1.1) shall not contain a provision that conflicts with a provision of an agreement entered into under section 111.  2000, c. 42, s. 43 (1).

Applications of this Part

(2) This Part, except section 137, applies with necessary modifications to an order made under subsection (1) or (1.1) and, for that purpose,

(a) a reference in this Part to a transfer order shall be deemed to be a reference to an order made under subsection (1) or (1.1), as the case may be;

(b) a reference in this Part to Ontario Hydro in connection with an order made under subsection (1) shall be deemed to be a reference to the subsidiary of the Financial Corporation established under section 110; and

(c) a reference in this Part to Ontario Hydro in connection with an order made under subsection (1.1) shall be deemed to be a reference to the Financial Corporation.  2000, c. 42, s. 43 (2).

Provincial liability not limited

139. The liability of the Province of Ontario as guarantor of a security or other liability of Ontario Hydro pursuant to a written guarantee given by the Province before this section comes into force is not limited by anything in this Act or by any transfer by or pursuant to a transfer order.  1998, c. 15, Sched. A, s. 139.

Regulations, Part X

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

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

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

(b) prescribing persons for the purpose of paragraph 8 of subsection 124 (2);

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

(d) prescribing Acts or provisions of Acts that do not apply to a transfer for the purpose of section 135, subject to such conditions or restrictions as may be prescribed by the regulations.  1998, c. 15, Sched. A, s. 140 (1); 2002, c. 1, Sched. A, s. 29.

General or particular

(2) A regulation made under this section may be general or particular in its application.  1998, c. 15, Sched. A, s. 140 (2).

PART XI
TRANSITION — MUNICIPAL ELECTRICITY UTILITIES

Interpretation, Part XI

141. (1) In this Part,

“transfer by-law” means a by-law made under section 145; (“règlement municipal de transfert ou de mutation”)

“transferee” means the corporation incorporated under the Business Corporations Act pursuant to section 142; (“destinataire”)

“transferor” means the municipal corporation, commission or other body whose employees, assets, liabilities, rights or obligations are transferred pursuant to a transfer by-law. (“auteur”)  1998, c. 15, Sched. A, s. 141 (1).

Same

(2) For the purposes of this Part, a municipal corporation generates, transmits, distributes or retails electricity indirectly if it carries on any of those activities through,

(a) a commission established under the Public Utilities Act or any other general or special Act; or

(b) any other body, however established.  1998, c. 15, Sched. A, s. 141 (2).

Incorporation of municipal electricity businesses

142. (1) One or more municipal corporations may cause a corporation to be incorporated under the Business Corporations Act for the purpose of generating, transmitting, distributing or retailing electricity.  1998, c. 15, Sched. A, s. 142 (1).

Conversion of existing electricity businesses

(2) Not later than the second anniversary of the day this section comes into force, every municipal corporation that generates, transmits, distributes or retails electricity, directly or indirectly, shall cause a corporation to be incorporated under subsection (1) for the purpose of carrying on those activities.  1998, c. 15, Sched. A, s. 142 (2).

Two or more municipal corporations

(3) Two or more municipal corporations may incorporate a single corporation for the purpose of complying with subsection (2).  1998, c. 15, Sched. A, s. 142 (3).

Ownership

(4) The municipal corporation or corporations that incorporate a corporation pursuant to this section shall subscribe for all the initial shares issued by the corporation that are voting securities.  1998, c. 15, Sched. A, s. 142 (4).

Same

(5) A municipal corporation may acquire, hold, dispose of and otherwise deal with shares of a corporation incorporated pursuant to this section that carries on business in the municipality.  2002, c. 1, Sched. A, s. 30.

Not a local board, etc.

(6) A corporation incorporated pursuant to this section shall be deemed not to be a local board, public utilities commission or hydro-electric commission for the purposes of any Act.  1998, c. 15, Sched. A, s. 142 (6).

Municipal Freedom of Information and Protection of Privacy Act

(7) Despite the definition of “institution” in subsection 2 (1) of the Municipal Freedom of Information and Protection of Privacy Act and despite subsection 2 (3) of that Act, a corporation incorporated pursuant to this section shall be deemed not to be an institution for the purposes of that Act and shall be deemed not to be part of a municipal corporation for the purposes of that Act.  1999, c. 14, Sched. F, s. 3.

No new commissions

143. Except as provided by section 142, a municipal corporation shall not, after section 142 comes into force,

(a) establish a commission or other body to generate, transmit, distribute or retail electricity; or

(b) authorize a commission or other body that was established before section 142 came into force to generate, transmit, distribute or retail electricity, if the commission or other body was not authorized to carry on that activity immediately before section 142 came into force.  1998, c. 15, Sched. A, s. 143.

Restriction on municipal electricity activity

144. After the second anniversary of the day section 142 comes into force, a municipal corporation shall not generate, transmit, distribute or retail electricity, directly or indirectly, except through a corporation incorporated under the Business Corporations Act pursuant to section 142.  1998, c. 15, Sched. A, s. 144.

Transfer by-laws

145. (1) The council of a municipality may make by-laws transferring employees, assets, liabilities, rights and obligations of the municipal corporation, or of a commission or other body through which the municipal corporation generates, transmits, distributes or retails electricity, to a corporation incorporated under the Business Corporations Act pursuant to section 142 for a purpose associated with the generation, transmission, distribution or retailing of electricity by the corporation incorporated pursuant to section 142.  1998, c. 15, Sched. A, s. 145 (1).

Debentures

(2) Despite subsection (1), a transfer by-law may not transfer any liabilities, rights or obligations arising under a debenture issued or authorized to be issued by a municipal corporation.  1998, c. 15, Sched. A, s. 145 (2).

Binding on all persons

(3) A transfer by-law is binding on the transferee, the transferor and all other persons.  1998, c. 15, Sched. A, s. 145 (3).

Same

(4) Subsection (3) 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.  1998, c. 15, Sched. A, s. 145 (4).

No consent required

(5) A transfer by-law does not require the consent of the transferor, the transferee or any other person.  1998, c. 15, Sched. A, s. 145 (5).

Description of things transferred

146. A transfer by-law may describe employees, assets, liabilities, rights or obligations to be transferred,

(a) by reference to specific employees, assets, liabilities, rights or obligations;

(b) by reference to any class of employees, assets, liabilities, rights or obligations; or

(c) partly in accordance with clause (a) and partly in accordance with clause (b).  1998, c. 15, Sched. A, s. 146.

Employees

147. (1) The employment of an employee who is transferred by or pursuant to a transfer by-law is not terminated by the transfer and shall be deemed to have been transferred to the transferee without interruption in service.  1998, c. 15, Sched. A, s. 147 (1).

Service

(2) Service with the transferor of an employee who is transferred by or pursuant to a transfer by-law shall be deemed to be service with the transferee for the purpose of determining probationary periods, benefits or any other employment-related entitlements under the Employment Standards Act or any other Act or under any employment contract or collective agreement.  1998, c. 15, Sched. A, s. 147 (2).

No constructive dismissal

(3) An employee who is transferred by or pursuant to a transfer by-law shall be deemed not to have been constructively dismissed.  1998, c. 15, Sched. A, s. 147 (3).

Future changes

(4) If an employee is transferred by or pursuant to a transfer by-law, nothing in this Act,

(a) prevents the employment from being lawfully terminated after the transfer; or

(b) prevents any term or condition of the employment from being lawfully changed after the transfer.  1998, c. 15, Sched. A, s. 147 (4).

Reserve funds

148. (1) If employees or assets are transferred by or pursuant to a transfer by-law, the by-law or another transfer by-law shall transfer to the transferee,

(a) the portion of any reserve fund established under section 33 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services; and

(b) the portion of any reserve fund referred to in section 63 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services.  1998, c. 15, Sched. A, s. 148 (1).

Use of amount transferred

(2) Any amount transferred under subsection (1) shall be used by the transferee only to pay for capital costs in respect of electrical power services for which the amount transferred was collected.  1998, c. 15, Sched. A, s. 148 (2).

Effect on municipal by-law

(3) A municipal by-law that relates to development charges in respect of which an amount is transferred under subsection (1) ceases to apply in respect of electrical power services on the date of the transfer but otherwise continues to have effect, with necessary modifications.  1998, c. 15, Sched. A, s. 148 (3).

Payment for transfer

149. (1) A transfer by-law may require the transferor or the transferee to pay for anything transferred by or pursuant to the by-law and may specify to whom the payment shall be made.  1998, c. 15, Sched. A, s. 149 (1).

Amount of payment

(2) The transfer by-law may,

(a) fix the amount of the payment;

(b) specify a method for determining the amount of the payment; or

(c) provide that the amount of the payment be determined by a person designated by the by-law.  1998, c. 15, Sched. A, s. 149 (2).

Form of payment

(3) The transfer by-law may require that the payment be made in cash, by set off, through the issuance of securities or in any other form specified by the by-law.  1998, c. 15, Sched. A, s. 149 (3).

Securities

(4) If the transfer by-law requires that the payment be made through the issuance of securities, it may specify the terms and conditions of the securities or may authorize a person designated by the by-law to specify the terms and conditions.  1998, c. 15, Sched. A, s. 149 (4).

Valuations

(5) A transfer by-law may,

(a) fix the value of anything transferred by or pursuant to the by-law;

(b) specify a method for determining the value of anything transferred by or pursuant to the by-law; or

(c) provide that the value of anything transferred by or pursuant to the by-law be determined by a person designated by the by-law.  1998, c. 15, Sched. A, s. 149 (5).

Effective date of transfer

150. (1) A transfer by-law may specify a date not later than the second anniversary of the day section 142 comes into force as the date that a transfer takes effect and any interest in property that is transferred by the by-law vests in the transferee on that date.  1998, c. 15, Sched. A, s. 150 (1).

Effective on payment

(2) A transfer by-law may provide that a transfer not take effect until payment has been made for anything transferred by or pursuant to the by-law.  1998, c. 15, Sched. A, s. 150 (2).

Retroactive transfer

(3) A transfer by-law may provide that a transfer shall be deemed to have taken effect on a date earlier than the date the transfer by-law is made, but the effective date shall not be earlier than the day this section comes into force.  1998, c. 15, Sched. A, s. 150 (3).

Sequence of events

(4) A transfer by-law may provide that transfers specified in the by-law and other transactions associated with the transfers shall be deemed to have occurred in a sequence and at times specified in the by-law.  1998, c. 15, Sched. A, s. 150 (4).

Statements in registered documents

151. (1) A statement, in a registered document to which a corporation incorporated under the Business Corporations Act pursuant to section 142 is a party, that land described in the document was transferred to the corporation, by or pursuant to a transfer by-law, from a municipal corporation or from a commission or other body through which a municipal corporation generated, transmitted, distributed or retailed electricity, and any other statement in the document relating to the transfer by-law, shall be deemed to be conclusive evidence of the facts stated.  1998, c. 15, Sched. A, s. 151 (1).

No new interest

(2) Subsection (1) does not give any person an interest in land that the municipal corporation or the commission or other body did not have.  1998, c. 15, Sched. A, s. 151 (2).

References to unregistered transfer by-laws

(3) A document that is otherwise capable of being registered or deposited under the Registry Act or registered under the Land Titles Act and that refers to an unregistered transfer by-law may be registered or deposited under the Registry Act or registered under the Land Titles Act despite any provision of those Acts.  1998, c. 15, Sched. A, s. 151 (3).

Definitions

(4) In this section,

“land” means land, tenements, hereditaments and appurtenances, or any estate or interest therein; (“bien-fonds”)

“registered document” means a document registered or deposited under the Registry Act or registered under the Land Titles Act. (“document enregistré”)  1998, c. 15, Sched. A, s. 151 (4).

Execution of agreements

152. A transfer by-law may require the transferor or the transferee,

(a) to enter into any written agreement or execute any instrument specified in the by-law; and

(b) to register in accordance with the by-law any agreement or instrument entered into or executed under clause (a).  1998, c. 15, Sched. A, s. 152.

Enforcement of things transferred

153. (1) A transfer by-law may provide,

(a) that any liability or obligation that is transferred by the by-law may be enforced against the transferor, the transferee, or both of them; and

(b) that any right that is transferred by the by-law may be enforced by the transferor, the transferee, or both of them.  1998, c. 15, Sched. A, s. 153 (1).

Release of transferor

(2) Subject to subsection (1), the transfer of a liability or obligation under this Part releases the transferor from the liability or obligation.  1998, c. 15, Sched. A, s. 153 (2).

Actions and other proceedings

154. Subject to section 153, any action or other proceeding that was commenced by or against the transferor before a transfer by-law takes effect and that relates to an employee, asset, liability, right or obligation that is transferred by the by-law shall be continued by or against the transferee.  1998, c. 15, Sched. A, s. 154.

Limitation periods

155. An action or other proceeding shall not be commenced against a transferee in respect of any employee, asset, liability, right or obligation that has been transferred to the transferee if, had there been no transfer, the time for commencing the action or other proceeding would have expired.  1998, c. 15, Sched. A, s. 155.

Certain rights not affected by transfer

156. (1) A transfer by or pursuant to a transfer by-law,

(a) shall be deemed not to constitute,

(i) a breach, termination, repudiation or frustration of any contract, including a contract of employment or insurance,

(ii) a breach of any Act, regulation or municipal by-law, or

(iii) an event of default or force majeure;

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

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

(d) shall be deemed not to give rise to any estoppel.  1998, c. 15, Sched. A, s. 156 (1).

Exemptions

(2) Subsection (1) does not apply to the contracts prescribed by the regulations.  1998, c. 15, Sched. A, s. 156 (2).

Information

157. A transferor shall provide a transferee with records or copies of records, and other information, that are in its custody or control and that relate to an employee, asset, liability, right or obligation that is transferred by or pursuant to a transfer by-law, including personal information.  1998, c. 15, Sched. A, s. 157.

Transfer by-laws, other matters

158. A transfer by-law may contain provisions dealing with other matters not specifically referred to in this Part that the municipal council considers necessary or advisable in connection with a transfer.  1998, c. 15, Sched. A, s. 158.

Exemptions from other Acts

159. The Bulk Sales Act, the Land Transfer Tax Act, the Retail Sales Tax Act and such other Acts or provisions as are prescribed by the regulations do not apply to any transfer of employees, assets, liabilities, rights or obligations by or pursuant to a transfer by-law.  1998, c. 15, Sched. A, s. 159.

Resolution

159.1 (1) A municipality which has an interest described in subsection (3) in respect of a corporation that was incorporated as provided in subsection 142 (1) and that is licensed under the Ontario Energy Board Act, 1998 to distribute electricity may, within 90 days after this section comes into force, pass a resolution providing that the municipality affirms that the corporation should continue to be incorporated as provided in subsection 142 (1).  2002, c. 23, s. 3 (26).

Where more than one municipality

(2) Where an interest described in paragraphs 1 or 2 of subsection (3) is held by more than one municipality, or where two or more municipalities together have the rights described in paragraph 3 of subsection (3), each of those municipalities may pass the resolution described in subsection (1).  2002, c. 23, s. 3 (26).

Interests in corporation

(3) The following are the interests in a corporation for the purposes of subsection (1):

1. Direct or indirect beneficial ownership or voting control of all or a majority of the voting shares of the corporation.

2. Direct or indirect beneficial ownership of all or a majority of the voting shares of a corporation that owns all or a majority of the voting shares of the corporation.

3. Any other form of corporate organization that gives the municipality rights or entitlements similar to those of a person who owns all or a majority of the voting securities in a corporation incorporated under the Business Corporations Act.  2002, c. 23, s. 3 (26).

When subs. (5) and (7) apply

(4) Subsections (5) and (7) apply if, within 90 days after this section comes into force, the Minister does not receive a certificate or certificates certifying the passing of the resolution in the form provided for in the regulations from the clerk or other appropriate official of the municipality or municipalities that alone or together,

(a) directly or indirectly beneficially own a majority of the voting shares of a corporation described in subsection (1);

(b) directly or indirectly beneficially own a majority of the voting shares of a corporation that owns all or a majority of the voting shares of a corporation described in subsection (1); or

(c) with respect to a corporation mentioned in subsection (1), have the rights or entitlements similar to those of a person who owns all or a majority of the voting securities of a corporation incorporated under the Business Corporations Act.  2002, c. 23, s. 3 (26).

Consequences of failure to pass resolution

(5) If the Minister does not receive the certificate or certificates within the time set out in subsection (4), the following apply:

1. The board of directors of the corporation described in subsection (1) shall not declare, and the corporation shall not pay, dividends for the benefit of any person.

2. The corporation described in subsection (1) shall not sell, lease or otherwise dispose of all or substantially all of its assets, liabilities, rights or obligations, and shall not dismiss all or substantially all of its employees.

3. A shareholder of the corporation described in subsection (1) shall not sell, convey, transfer, assign or otherwise dispose of any of its interest in the corporation except as provided in section 159.2.

4. The corporation described in subsection (1) shall not increase the amount of an obligation to a shareholder that is a municipality provided for in a debt obligation within the meaning of the Business Corporations Act, either by creating a new debt obligation or amending an existing debt obligation, and where such a debt obligation was created or amended after November 25, 2002, the increased amount of obligation shall be deemed not to exist.

5. If the corporation mentioned in subsection (1) increases the amount of an obligation to a shareholder other than a municipality that is provided for in a debt obligation within the meaning of the Business Corporations Act or in a contractual obligation, either by creating a new debt obligation or contractual obligation or amending an existing debt obligation or contractual obligation, that shareholder shall not increase the amount of its obligations to a municipality, and where such an obligation was created or amended after November 25, 2002, the increased amount of obligation shall be deemed not to exist.

6. A corporation described in subsection (1) shall not enter into an agreement for goods or services with an affiliate, a shareholder of the corporation or a municipality other than in the ordinary course of business for fair value of the goods or services provided under that agreement and where such an agreement was entered into after November 25, 2002, the agreement is void. 

7. A corporation described in subsection (1) shall not amend or cause to be amended any existing agreement for goods or services with an affiliate, a shareholder of the corporation or a municipality that increases the financial obligations or liability of the corporation and where such an amendment was made after November 25, 2002, the amendment is void.  2002, c. 23, s. 3 (26).

Non-application of articles, etc.

(6) Subsection (5) applies despite,

(a) the articles of incorporation of any corporation;

(b) the by-laws of any corporation;

(c) any shareholder agreement or resolution or direction of shareholders;

(d) any other instrument or agreement; and

(e) the Business Corporations Act and any other Act or law.  2002, c. 23, s. 3 (26).

Additional consequences of failure to pass resolution

(7) If the Minister does not receive the appropriate certificate or certificates within the time set out in subsection (4), an application shall be deemed to have been made to the Board under section 78 of the Ontario Energy Board Act, 1998 to replace each order made by the Board under section 78 of that Act with respect to the corporation.  2002, c. 23, s. 3 (26).

Authority for deemed application

(8) Section 79.6 of the Ontario Energy Board Act, 1998 does not apply to an application that is deemed to be made under subsection (7).  2002, c. 23, s. 3 (26).

Contents of application

(9) An application described in subsection (7) shall be deemed to be based on a projected revenue requirement that incorporates a 0 per cent return on common equity.  2002, c. 23, s. 3 (26).

Board must make order

(10) The Board shall, upon giving notice to the corporation, make an order that incorporates a 0 per cent return on common equity despite section 78 or 79 of the Ontario Energy Board Act, 1998 and in making the order shall not increase any of the other components of the revenue requirement or increase any rates set out in any order that is in effect at the time that the deemed application is made.  2002, c. 23, s. 3 (26).

No hearing

(11) The Board shall make the order described in subsection (10) without holding a hearing.  2002, c. 23, s. 3 (26).

Effectiveness of order

(12) An order described in subsection (10) shall be deemed to have come into force 90 days after this section came into force.  2002, c. 23, s. 3 (26).

Regulations

(13) The Minister may make regulations governing the form and content of the certificate for the purposes of subsection (4).  2002, c. 23, s. 3 (26).

Compensation for certain shareholders

159.2 (1) A shareholder of a corporation to which an order described in subsection 159.1 (10) applies or of a corporation that beneficially owns, directly or indirectly, all or a majority of the voting shares of a corporation to which an order described in subsection 159.1 (10) applies is entitled to be paid by the municipality or, if voting shares in the corporation are beneficially owned, directly or indirectly by more than one municipality, by the municipalities, the fair value of all or part of its voting securities in the corporation of which it is a shareholder, determined as of the close of business on November 8, 2002, if the shareholder is not,

(a) a municipality; or

(b) a corporation of which a municipality beneficially owns, directly or indirectly, all or a majority of the voting shares.  2002, c. 23, s. 3 (26).

Demand for payment of fair value

(2) A shareholder who is entitled to be paid under subsection (1) and who wishes to exercise his or her entitlement shall deliver to the municipality or municipalities, within 30 days from the making of the order described in subsection 159.1 (10), a written notice containing,

(a) the shareholder’s name and mailing address;

(b) the number and class of securities in respect of which the shareholder is claiming payment;

(c) a demand for payment of the fair value of the voting securities; and

(d) the name of a valuator designated by the shareholder from a list of valuators set by the Minister.  2002, c. 23, s. 3 (26).

Valuation by mutual agreement

(3) The shareholder and the municipality or municipalities, as the case may be, may enter into any agreement or arrangement to determine the fair value of the shareholder’s voting securities, the timing and method of the payment to the shareholder of the fair value, the transfer of the voting securities to the municipality or municipalities, as the case may be, or any other related matter.  2002, c. 23, s. 3 (26).

Same

(4) Where the shareholder and the municipality or municipalities, as the case may be, enter into an agreement or arrangement described in subsection (3), subsections (5) to (13) do not apply or shall cease to apply, as the case may be.  2002, c. 23, s. 3 (26).

Valuator chosen by municipality

(5) Where the shareholder and the municipality or municipalities, as the case may be, do not enter into a written agreement or arrangement described in subsection (3), the municipality or municipalities shall, within 45 days of receiving the notice under subsection (2), designate a valuator from a list of valuators set by the Minister that is not the valuator designated by the shareholder.  2002, c. 23, s. 3 (26).

Designation of valuator

(6) The following rules apply to the designation of a valuator:

1. If the shareholder or the municipality or municipalities have not designated a valuator or if paragraph 2 applies, the Lieutenant Governor in Council shall designate a valuator for the shareholder or municipality or municipalities from the list of valuators set by the Minister. 

2. A valuator is not eligible to be chosen by the shareholder or the municipality or municipalities, as the case may be, if the valuator has provided any service to either the shareholder or the municipality or municipalities in the prior 12-month period.

3. If more than one municipality beneficially owns, directly or indirectly, voting shares in the corporation, all the municipalities must agree on the valuator, and if they cannot agree on the valuator, the valuator shall be designated as under paragraph 1.

4. The reasonable remuneration and expenses of the valuator shall be paid by the party who designated the valuator, or for whom the valuator was designated.  2002, c. 23, s. 3 (26).

Report

(7) Within 90 days from the day that the second valuator is designated, each valuator shall deliver to the municipality or municipalities and to the shareholder a report,

(a) determining the amount of the payment to which, in the opinion of the valuator, the shareholder is entitled under subsection (1); and

(b) setting out, in detail, the basis upon which the valuator determined the amount.  2002, c. 23, s. 3 (26).

SPPA

(8) The Statutory Powers Procedure Act does not apply to the determination of an amount by a valuator under this section.  2002, c. 23, s. 3 (26).

Criteria

(9) The Minister may establish criteria to be applied by valuators in determining amounts under subsection (7).  2002, c. 23, s. 3 (26).

Not regulations

(10) Criteria established by the Minister under subsection (9) are not regulations for the purposes of the Regulations Act.  2002, c. 23, s. 3 (26).

Payment of fair value

(11) The municipality or municipalities shall pay a shareholder who is entitled to be paid under subsection (1) the arithmetic mean of the two amounts determined by the valuators within six months after both reports of the valuators have been delivered.  2002, c. 23, s. 3 (26).

Where more than one municipality

(12) If more than one municipality beneficially owns, directly or indirectly, voting securities in the corporation whose voting securities are being valued, the amounts that they are liable to pay shall be determined and the deemed transfer under subsection (13) shall be made on a proportional basis in accordance with the extent of their ownership in the corporation.  2002, c. 23, s. 3 (26).

Claims nullified

(13) Where payment has been tendered under subsection (11),

(a) the voting securities shall be deemed to be transferred to the municipality or municipalities; and

(b) the shareholder shall be deemed to be fully compensated for its voting securities in the corporation, and shall have no claim or cause of action for any further compensation or payment in relation to anything done in accordance with this section or section 159.1.  2002, c. 23, s. 3 (26).

Definition

159.3 In sections 159.1 and 159.2,

“municipality” includes a municipal corporation and a municipality acting through its council.  2002, c. 23, s. 3 (26).

Regulations, Part XI

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

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

(b) prescribing contracts or classes of contracts to which subsection 156 (1) 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 159, subject to such conditions or restrictions as may be prescribed by the regulations.  1998, c. 15, Sched. A, s. 160 (1).

General or particular

(2) A regulation made under this section may be general or particular in its application.  1998, c. 15, Sched. A, s. 160 (2).

Conflict with other Acts

161. This Part applies despite the provisions of the Municipal Act, 2001 relating to the production, manufacture, distribution or supply of a public utility by a municipality or a municipal service board and despite any other general or special Act.  1998, c. 15, Sched. A, s. 161; 2002, c. 17, Sched. F, Table.

162. Omitted (provides for coming into force of provisions of this Act).  1998, c. 15, Sched. A, s. 162.

163. Omitted (enacts short title of this Act).  1998, c. 15, Sched. A, s. 163.

Note:  The Crown and its agents are protected from certain liabilities relating to or resulting from amendments made to this Act by the Electricity Pricing, Conservation and Supply Act, 2002, or from any action taken pursuant to those amendments or pursuant to regulations made under those amendments.  See:  2002, c. 23, s. 6.

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