Published plans and annual reports 2019-2020: Ministry of Energy, Northern Development and Mines

Ministry overview

Purpose

The Ministry of Energy, Northern Development and Mines (ENDM) is responsible for the provincial energy and minerals sectors and is the regional ministry for Northern Ontario. The ministry strives to make Ontario strong, healthy, prosperous and Open for Business through the following program areas:

Energy

• Develops electricity, natural gas and oil policies that maintain a safe, reliable and affordable energy supply across the province, to power the economy in Ontario.

Northern economic development

• Advances economic development in Northern Ontario through collaborative partnerships and solutions that reflect the unique needs of northerners.

Mines and Minerals

• Supports a strong and sustainable minerals sector and ensures the fair, effective and efficient administration of Ontario's Mining Act, for the protection of public health and safety, and the environment.

Ministry contribution to priority outcomes

ENDM provides leadership and support to the energy sector to ensure safe, reliable, affordable and sustainable energy supply, transmission and distribution systems.

A top priority of the government is to reduce electricity bills for families, farms and small businesses. As part of this commitment, the ministry is working with the Independent Electricity System Operator (IESO) to streamline electricity conservation programs and reduce costs. Efforts are focused on the most cost-effective initiatives and phasing out inefficient programs. These changes are expected to save customers and taxpayers up to $442 million over the next three years.

The ministry is responsible for Government Business Enterprises whose revenues contribute to the fiscal plan (approximately $1.5 billion in net income attributed to the Province in 2017-18). This includes: $372 million in net income from Hydro One, and $1,092 million net income from the Ontario Power Generation (OPG).

As the regional ministry for Northern Ontario, ENDM supports provincial initiatives in the north and addresses unique regional needs. The ministry leads government programs aimed at growing the economy, building strong northern communities and creating sustainable job opportunities in the north. This includes the Northern Ontario Heritage Fund Corporation (NOHFC) chaired by the Minister of Energy, Northern Development and Mines. Through a network of offices and strategic program and policy development, ENDM ensures northerners have access to government programs and services and a voice in government decisions affecting the north.

ENDM works with partner ministries, municipalities and Indigenous communities to expand and maintain the northern highways system, roads in unincorporated areas, resource access roads and winter roads. ENDM provides support to the Ontario Northland Transportation Commission (ONTC). The ONTC is making ongoing efforts to contain costs while enhancing service delivery and customer satisfaction. This includes the recent expansion of motor coach (bus) services across Northeastern Ontario and continued investments in ONTC infrastructure including refurbishing the Polar Bear Express passenger train.

ENDM also supports a safe and sustainable mineral industry by promoting mineral sector exploration and investment. This includes collecting and distributing geoscience information, encouraging and facilitating Indigenous participation in the minerals sector, administering Ontario's Mining Act and diamond royalties, and ensuring safe, environmentally sound mineral development and rehabilitation of mining lands.

As the lead ministry responsible for development in the Ring of Fire, ENDM consults with Indigenous peoples, northerners, the mining industry, federal departments and other provincial ministries to encourage responsible and sustainable development. Located more than 500 kilometres northeast of Thunder Bay, the Ring of Fire is one of the most significant mineral discoveries in the province.

ENDM is undertaking an integrated, intergovernmental coordination and planning approach to develop strategic transportation and community infrastructure in the Ring of Fire region in an environmentally responsible way.

Ministry programs

ENDM carries out its mandate under five activities: Ministry Administration, Northern Economic Development, Mines and Minerals, Energy Development and Management, and Electricity Price Mitigation.

Ministry administration program

Ministry Administration provides executive direction and strategic business and resource planning services to ensure the efficient and effective delivery of ministry programs. It supports ministry operations through advice and services in the areas of human resources, business planning, accounting and administration, and professional support services such as legal and audit services. It provides core strategic support in the areas of corporate/strategic policy, communications including French Language Services, and Freedom of Information requests.

Northern economic development program

The ministry leads, delivers and coordinates government programs aimed at supporting economic growth and business development, and addressing infrastructure and transportation network needs, in Northern Ontario.

Under the banner of Northern Economic Development, the ministry delivers the following five programs:

1. Northern and Regional Policy Interests
2. Northern Transportation Networks
3. Business Development and Support
4. ONTC Commercial Services
5. Community Support

Northern and Regional Policy Interests

The Northern and Regional Policy Interests program undertakes research and collects and analyzes regional information to support the development and implementation of strategic policies and programs. This analysis supports Northern Ontario's economy, ultimately strengthening and diversifying Northern Ontario's communities and businesses. The ministry advances the policies and priorities of the government in collaboration with various partners including governments, industry and business, municipalities, Indigenous communities and organizations, and other public and private sector institutions to reflect the voice of the north.

Northern Transportation Networks

The Northern Transportation Networks program plans and delivers an efficient core transportation network to meet transportation needs in the north, promoting economic development while moving people and goods.

The ministry supports strategic investments in infrastructure through programs such as the Northern Highways Program, Local Roads Boards, Winter Roads Program and the Polar Bear Express passenger train through the ONTC.

Business Development and Support

The Business Development and Support program promotes and delivers programs, services and funding to assist business start-ups, expansions, inward investment, trade, and innovation efforts. A network of integrated area teams (Sudbury, Thunder Bay, Sault Ste. Marie, Timmins, North Bay and Kenora) with offices in 25 communities across the north serve as the focal point for private sector clients and northern stakeholders for the delivery of programs and services in support of economic development.

In addition, the ministry promotes Northern Ontario by assisting local companies to grow and expand their business globally through collaborative international marketing, sales support services and lead generation.

The Northern Industrial Electricity Rate (NIER) Program supports Northern Ontario's largest industrial electricity consumers to reduce costs, sustain jobs and maintain global competitiveness. With funding of up to $120 million per year, the program protects jobs in the north and supports the development of industrial energy management plans.

Through the NOHFC funding programs, the Ministry invests in Business Development and Support projects across the north.

ONTC Commercial Services

ONTC Commercial Services support the delivery of ONTC commercial activities in rail freight, motor coach (bus), and remanufacturing and repairs in northeastern Ontario.

Community Support

The Community Support program promotes and delivers programs, services and funding to build community infrastructure and assist communities in undertaking economic development projects. Advice and funding to support services in unincorporated areas without municipal structure is also provided.

Aboriginal Economic Development

Aboriginal Economic Development funding supports the engagement of Aboriginal groups across core ministry functions on a variety of policy objectives.

Resource Revenue Sharing

The Resource Revenue Sharing program was developed to improve socio-economic conditions for Indigenous communities and increase Indigenous participation in Ontario's economy.

Mines and minerals

The ministry supports a strong and sustainable minerals sector by promoting investment and exploration, by providing information to global clients on Ontario's wealth of mineral resources, and by the fair, effective and efficient administration of Ontario's Mining Act, in a manner consistent with Indigenous reconciliation, protection of public health and safety, and the environment.

Regulatory administration of the Mining Act

The Mines and Minerals Division administers the Mining Act through regulatory tools that promote and sustain mineral exploration and mining in a socially and environmentally responsible manner.

As part of this mandate, the ministry has transformed and modernized mineral tenure administration in Ontario by implementing an integrated, client-driven electronic system that enables clients to register mining claims and manage these claims online. This ensures that mineral exploration and development in Ontario is undertaken in a manner that promotes a balanced approach that benefits all Ontarians, while registering claims in a manner that is respectful of private landowners and Indigenous communities.

The ministry also invests in the rehabilitation of abandoned mine sites on Crown-held lands to ensure public safety, improve the environment, and make the lands available for productive use.

The ministry is in the process of reviewing and updating the One Window Coordination Protocol (OWCP) to ensure continued effective and efficient processes for coordination and delivery of environmental assessments, permitting and approvals across provincial ministries and with the federal government.

Geoscience information

The Ontario Geological Survey (OGS) collects and disseminates geoscience information for all regions across Ontario to support investment decisions and policy development related to mineral exploration and development, public health and safety, the environment, and land use planning.

Geoscience services support economic development through: source water protection, mineral, energy, and groundwater-resource related development opportunities; land use planning; and safeguarding public health and safety related to geological hazards.

Mineral Development Investment and Opportunity

The Mineral Development Investment and Opportunity program ensures Ontario receives a fair share of the value of mineral resources extracted from the province, identifies strategic investment opportunities, and influences policy issues that support Ontario's mineral competitiveness.

Indigenous Affairs

The Indigenous Affairs program develops and sustains productive and effective relationships among government, Indigenous communities, industry, municipalities and other partners in support of greater economic development opportunities, including the minerals sector, that benefit Indigenous peoples by strengthening Indigenous participation and enhancing the readiness of Indigenous communities to participate in Ontario's economy, including mineral sector opportunities.

Ring of Fire Indigenous Relations

The Ring of Fire Indigenous Relations program focuses on building positive relationships with First Nation communities potentially impacted by Ring of Fire development, and with industry and other stakeholders with interests in the area. Key activities include working with communities to build partnerships that enable participation in the benefits from mineral and related developments in the Ring of Fire and working with industry and other stakeholders on activities related to mineral exploration and development.

The Ring of Fire Indigenous Relations works closely with provincial and federal counterparts to enable initiatives that advance community priorities including: economic development projects, infrastructure development, skills and training development and supports with community wellness.

Ontario supports work with First Nations through individual agreements that address individual community priorities such as all-season roads, economic development opportunities, community readiness, and cultural and environmental studies.

Ring of Fire Infrastructure Development

The Ring of Fire Infrastructure Development Program facilitates development and collaborative approaches with industry, First Nations and economic development organizations to advance infrastructure development in the Ring of Fire, such as all-season roads.

Marten Falls and Webequie First Nations are proponents for and have commenced Environmental Assessments for a multi-purpose community access road connecting Marten Falls First Nation to the existing provincial highway at Aroland First Nation/Nakina, and a supply road from Webequie First Nation to the Ring of Fire, respectively.

Energy development and management

The ministry is responsible for developing Ontario's energy policy framework, which is central to the building of a strong and prosperous economy.

Energy Conservation Programs

ENDM helps consumers manage energy costs through several initiatives. Electricity conservation programs delivered by the Independent Electricity System Operator (IESO) and the natural gas conservation programs delivered by Enbridge Gas are funded through the respective electricity and natural gas rate bases.

Residential and Low-Income Programs

• Natural Gas Conservation Programs, delivered by Enbridge Gas, provide financial incentives to residential natural gas customers for making energy efficient home upgrades.
• The First Nation Conservation Program assists First Nation communities by providing home energy efficiency assessments and energy savings measures on reserve at no cost.
• IESO's Home Assistance Program helps low-income consumers manage their energy costs by providing home energy efficiency assessments and energy saving measures at no cost.
• The Affordability Fund, administered by an independent trust, provides funding for energy efficiency measures to Ontarians who do not qualify for the Home Assistance Program, but need support to improve energy efficiency in their homes. The Affordability Fund is funded through an original onetime payment from the tax base in 2016/17.
• Low-Income Conservation Programs, delivered by Enbridge Gas, provide eligible customers with free home improvements such as insulation and draft proofing.

Business Programs

• Natural Gas Conservation Programs, delivered by Enbridge Gas, provide businesses with incentives for efficient building equipment and systems retrofits such as space heating, water heating and food services.
• Electricity Conservation Programs, delivered by the IESO, provide financial incentives helping businesses reduce their use and manage costs through energy audits, retrofits, and process and system improvements.
• The Industrial Conservation Initiative (ICI) allows all electricity consumers with average peak monthly electricity demand over 1 MW, as well as manufacturers and greenhouses over 500 Kilowatts (kW), to lower their electricity costs by reducing their demand during the top five peak hours of the year. The outcome benefits companies financially and benefits the electricity system by deferring the need for new peak generation.
• The Demand Response Auction, available through the IESO, provides participating businesses with availability payments for reducing their electricity consumption when called upon by the IESO to do so to meet system needs.

An affordable, reliable energy supply

According to the IESO, Ontario has an adequate supply of electricity to meet our needs at this time. Approximately 93% of the electricity generated in Ontario in 2018 was emissions-free. Nuclear energy provided approximately 61% of Ontario's electricity generation in 2018, and hydroelectric stations provided approximately 24% of Ontario's electricity generation in 2018. Nuclear and hydropower are Ontario's reliable sources of round-the-clock “baseload” power. The remainder of supply comes from a mix of natural gas, wind, solar and bioenergy.

The ministry supports Ontario's commitment to nuclear energy as a reliable, cost-effective and emission-free source of electricity. Ontario is progressing with refurbishment of four nuclear units at Darlington Nuclear Generating Station and six at Bruce Nuclear Generating Station over the next 14 years. Ontario is also committed to the continued operation of Pickering Nuclear Generating Station until 2024.

Ontario is actively monitoring the development of next-generation nuclear technologies, such as Small Modular Reactors (SMRs), that could provide clean energy and economic opportunities for Ontario's nuclear supply chain, while advancing Ontario's global leadership in nuclear and clean energy innovation.

Ontario is committed to lowering the cost of fuels such as gasoline, diesel and natural gas to make energy more affordable for families and businesses. The government eliminated the provincial cap-and-trade carbon tax and is committed to fighting the federal carbon tax, which includes promoting greater transparency for consumers on its cost impact for fuels in Ontario.

In December 2018, Ontario passed Bill 32, the Access to Natural Gas Act, 2018. This Act allows for the creation of a new Natural Gas Expansion Program that could expand access to natural gas for over 70 new communities and 33,000 customers in Ontario. On July 1, 2019, the first phase of this program will go into effect, providing over $55 million in funding support to nine expansion projects.

Ontario has taken a number of steps to help reduce electricity system costs and put downward pressure on electricity bills, including:

In July 2018, the government wound down unneeded long-term renewable energy contracts for electricity that the system does not need at this time. More than 750 contracts were subsequently wound down by the IESO, which expects to avoid a net present value of $790 million in long-term system costs ($2018).

In July 2018, the government introduced the White Pines Wind Project Termination Act, 2018, which was subsequently passed into law, and which cancelled the White Pines wind project under construction in Prince Edward County, expecting to avoid a net present value of $60 million in long-term system costs ($2018).

Improving transparency in the energy sector

Ontario Energy Board Modernization, through the Fixing the Hydro Mess Act, 2019, aims to overhaul the Ontario Energy Board to make the regulatory system more efficient and accountable, while continuing to protect consumers. Once Schedule 2 of Bill 87 is proclaimed, the amendments will:

• Establish a new governance structure, including a board of directors and a CEO, to better separate management, administration, and adjudication responsibilities.
• Streamline processes by amending the consumer education objective and reducing duplicate responsibilities in transmission procurement with the IESO.
• Promote efficiency and reduce the regulatory burden by requiring the OEB to report annually on its efforts to simplify regulations for the energy sector.

Ensuring the Crown's duty to consult is met on energy projects

The ministry ensures that the Crown's duty consult is met with respect to energy projects and facilitates accommodation, where required, and economic partnerships between project developers and Indigenous communities. The ministry works closely with proponents, First Nations and Métis, and regulatory ministries to ensure Indigenous communities are consulted on energy activities, including transmission developments and intra-provincial hydro carbon pipelines, that could potentially affect their Aboriginal or treaty rights.

Electricity price mitigation

Electricity Rate Mitigation programs help Ontarians manage electricity costs.

Global Adjustment (GA) Refinancing will be replaced by a new on-bill rebate effective November 2019 through an expansion of the current 8% Ontario Rebate for Electricity Consumers (OREC). In the interim, the government is keeping eligible electricity consumers' bills stable. On May 1, 2019, the increases to the average residential electricity bill were held to the rate of inflation.

Eligible consumers can also receive support on their electricity bills through the following programs:

• Distribution Rate Protection and Rural or Remote Rate Protection, which provides distribution charge relief for customers of local distribution companies (LDC).
• The Ontario Electricity Support Program (OESP), which helps eligible low-income consumers.
• The Northern Ontario Energy Credit, which helps eligible low-to-middle-income northern residents manage energy costs. For the 2019 benefit year, qualifying individuals can receive up to $154 annually and families (including single parents) can receive up to $237 annually.
• The First Nations Delivery Credit, which provides a 100% credit for delivery or service charges for all on-reserve First Nations residential customers of licensed electricity utilities.

Highlights of 2018-19 results

Key ministry achievements from 2018-19 include:

• On March 21, 2019, Ontario introduced Bill 87, Fixing the Hydro Mess Act, 2019, which includes replacing Global Adjustment Refinancing with a rate relief structure that will take advantage of significantly lower government borrowing costs, while increasing transparency. A new, on-bill rebate on consumer bills will come into effect on November 1, 2019 to replace Global Adjustment Refinancing through an expansion of the current eight per cent OREC.
• The ministry supported the renewal of governance at Hydro One, including the replacement of the Board of Directors, the retirement of the CEO, and the passing of the Hydro One Accountability Act, 2018 in August 2018. The ministry worked with Hydro One's board on a new executive compensation framework that included significantly lower salaries for new executives and board members compared to the previous framework and linked the new CEO's performance incentives with the CEO's contribution to reducing system costs.
• The July 2018 directive from the Minister of Energy, Northern Development and Mines, approved by the Lieutenant Governor in Council, enabled the IESO to terminate more than 750 energy contracts, which is expected to avoid $790 million in electricity system costs ($2018).
• The government also passed legislation in December 2018 to ensure that any costs associated with getting out of these contracts will be covered by the tax base, not the electricity rate base.
• Termination of the White Pines wind project is expected to avoid $60 million in long-term electricity system costs ($2018). The government also passed legislation in December 2018 to ensure that any costs associated with getting out of these contracts will be covered by the tax base, not electricity ratepayers.
• On December 6, 2018, Bill 34, Green Energy Repeal Act, 2018 received Royal Assent, repealing the Green Energy Act, 2009 and re-introduced conservation and energy efficiency initiatives in the Electricity Act, 1998; changed the Planning Act to restore municipal authority over siting renewable energy projects; and, put authority in the Environmental Protection Act to prohibit the issuance of Renewable Energy Approvals, including where demand for electricity is not met.
• On March 21, 2019, Orders in Council and Directives were issued to refocus and centralize the delivery of conservation programs to save electricity customers and taxpayers up to $442 million over the next three years. The decision will lower system costs and will reduce hydro rates for medium and large employers, increasing competitiveness and opportunities for growth.
• The ministry continued to provide policy oversight of Ontario's nuclear refurbishments and continued operation of the Pickering Nuclear Generating Station until 2024.
• Bill 32, the Access to Natural Gas Act, an amendment to the Ontario Energy Board Act, 1998, provides rate protection for consumers on costs incurred by gas distributors in making a qualifying investment with a purpose of providing access to a natural gas distribution system to those consumers.
• The Province is working with Wataynikaneyap Power LP and the Government of Canada to connect 16 remote First Nation communities to the electricity grid. The connection project represents a significant infrastructure investment in the north that will end these First Nations communities' reliance on diesel generation.
• The ministry supported the development of O.Reg. 54/19 (Compensation Disclosure), made under the Hydro One Accountability Act, 2018, making Hydro One's executive compensation information transparent and accessible to Ontarians each year.
• In February 2019, the ministry asked the Ontario Energy Board to ensure transparency of the federal carbon tax on natural gas bills (e.g., separate line item).
• The Federal Carbon Tax Transparency Act, 2019, was introduced on April 11, 2019, which if passed, would require the application of stickers on all Ontario retail gasoline pumps showing the cost of the federal carbon tax on gasoline.
• The ministry participated in the development of the Canadian Roadmap for Small Modular Reactors (SMRs) to study the opportunity for SMRs in Canada, which was released in November 2018.
• The Northern Ontario Heritage Fund Corporation committed approximately $116 million toward 638 projects, leveraging approximately $459 million for project partners.
• Approximately $573 million was committed for northern highways, including $115 million for expansion work and $458 million for rehabilitation.
• The Northern Industrial Electricity Rate (NIER) Program provided more than $117 million in funding to reduce electricity costs and sustain jobs for 21 companies, representing 28 industrial facilities across Northern Ontario.
• The province's Northern Communities Investment Readiness (NCIR) program approved 33 community projects in 2018-19, of which 14 were for Indigenous communities.
• The Owen Sound Transportation Company, an agency of the province, achieved two per cent increases in passenger ridership and vehicle traffic. The agency's Travel in Good Spirits marketing campaign was nominated for a 2018 Strategy Award.
• Successful negotiation of three Resource Revenue Sharing Agreements for mining and forestry with three Indigenous organizations and 31 First Nations.
• The OGS delivered 65 geological projects across Ontario during 2018-19 and published 91 new geoscience products with more than 515,000 file downloads of digital products.
• The ministry, through the OGS published two airborne geophysical surveys, one in the Elliot Lake area and another one in the Far North in collaboration with the Sandy Lake First Nation.
• The final Phase (Phase III) of Mining Act Modernization was completed on April 10, 2018. This included introduction of legislative and regulatory changes that culminated in introduction of the online registration of mining claims through the Mining Lands Administration System (MLAS).
• In 2018, three new mine developments and 209 permits were approved and approximately 45,500 new mining claims were recorded.

Ministry organization chart

• Minister of Energy, Northern Development and Mines
• Associate Minister, Energy
  • Deputy Minister Energy, Northern Development and Mines
    • Communications Branch
    • Legal Services (Energy), Legal Services (Northern Development and Mines)
    • IT Services
    • Energy Supply Policy Division
      • Electricity Policy, Economics & System Planning Branch
      • Nuclear Supply Branch
      • Fuels Policy & Liaison Branch
    • Strategic, Network & Agency Policy Division
      • Distribution & Agency Policy Branch
      • Strategic Policy & Analytics Branch
      • Energy Networks & Indigenous Policy Branch
    • Conservation & Renewable Energy Division
      • Conservation & Energy Efficiency Branch
      • Renewables Integration & Distributed Energy Resources Branch
      • Conservation Programs & Partnerships Branch
    • Corporate Management Division
      • Business Planning
      • Controllership Office and Service Management
      • Human Resources Business Branch
      • Corporate Services
    • Mines and Minerals Division
      • Mineral Development Branch
      • Ontario Geological Survey
      • Strategic Services Branch
      • Indigenous Consultation & Partnership Branch
      • Information & Lands Branch
    • Northern Development Division
      • Regional Economic Development Branch
      • Strategic Initiatives Branch
      • Transportation, Trade & Investment Branch
      • Northern Ontario Heritage Fund Corporation
        • Transportation Agency (ONTC)
    • Strategic Policy Division
      • Corporate Policy Secretariat
      • Ring of Fire - Policy Coordination

Statutes administered

The Ministry of Energy, Northern Development and Mines administers the following provincial statutes:

1. Electricity Act, 1998, S.O 1998, c. 15, Sched. A<
   • Except Part VIII and Part IX.1 (Minister of Government and Consumer Services)
2. Energy Consumer Protection Act, 2010, S.O 2010, c. 8
3. Hydro One Accountability Act, 2018, S.O 2018, c. 10, Sched. 1
4. Hydro One Inc. Directors and Officers Act, 2002, S.O 2002, c. 3
5. Mining Act, R.S.O 1990, c. M.14
6. Ministry of Energy Act, 2011, S.O 2011, c. 9, Sched. 25
7. Ministry of Northern Development, Mines and Forestry Act, R.S.O 1990, c. M.32 (formerly Ministry of Northern Development and Mines Act)
8. Northern Ontario Grow Bonds Corporation Repeal Act, 2011, S.O 2011, c. 9, Sched. 30
9. Northern Ontario Heritage Fund Act, R.S.O 1990, c. N.5
10. Northern Services Boards Act, R.S.O 1990, c. L.28 (formerly Local Services Boards Act)
11. Ontario Clean Energy Benefit Act, 2010, S.O 2010, c. 26, Sched. 13
12. Ontario Energy Board Act, 1998, S.O 1998, c. 15, Sched. B
13. Ontario Fair Hydro Plan Act, 2017, S.O 2017, c. 16, Sched. 1
14. Ontario Northland Transportation Commission Act, R.S.O 1990, c. O.32
15. Ontario Rebate for Electricity Consumers Act, 2016, S.O 2016, c. 19
16. Power Corporation Act, R.S.O 1990, c. P. 18
17. Professional Geoscientists Act, 2000, S.O 2000, c. 13
18. Toronto District Heating Corporation Act, 1998, S.O 1998, c. 15, Sched. C
19. White Pines Wind Project Termination Act, 2018, S.O 2018, c. 10, Sched. 2

Additional information regarding these statutes administered is available on e-Laws at: e-Laws

Agencies, boards and commissions (ABCs)

Independent Electricity System Operator (IESO)

The IESO delivers key services across the electricity sector including: managing real-time operations of Ontario's power grid system, designing and procuring delivery of conservation and demand management programs, planning for the Province's future energy needs, and designing a more efficient electricity marketplace to support sector evolution. The IESO's mandate is embodied in the Electricity Act, 1998.

The IESO's expenses are consolidated onto the ministry's financial records. Its annual operating costs are recovered from annual fees set by the OEB for domestic and export market participants.

Northern Ontario Heritage Fund Corporation (NOHFC)

The NOHFC is a statutory corporation established under the Northern Ontario Heritage Fund Act. It was established in 1988 to advise and make recommendations on any matter relating to the growth and diversification of the economy of Northern Ontario, and to promote and stimulate economic initiatives. The Corporation is a funding organization that provides loans and grants to stabilize, diversify and foster the economic growth of Northern Ontario.

The Corporation is an Operational Service Agency of the Province, and its directors are appointed by minister's prerogative Order in Council. The Minister of ENDM is the Chair of the Board of Directors.

Ontario Energy Board (OEB)

The OEB, a quasi-judicial adjudicative and regulatory tribunal, regulates the Province's electricity and natural gas sectors in the public interest.

The OEB's mandate and powers in relation to the energy sector are set out principally in three statutes – the Ontario Energy Board Act, 1998; the Electricity Act, 1998; and the Energy Consumer Protection Act, 2010, and the regulations made under these statutes. Other statutes, such as the Statutory Powers and Procedure Act, 1990 also inform the OEB 's jurisdictions.

Through Bill 87, the Fixing the Hydro Mess Act, 2019, the government plans to reform the OEB's governance structure, modernizing the OEBto become a best-in-class energy regulator.

The OEB's annual operating expenses are consolidated onto the ministry's financial records. Its operations and activities are fully funded by its regulated stakeholders in the gas and electricity sectors, under the cost-assessment authority in Ontario Regulation 16/08 (Assessment of Expenses and Expenditures) of the Ontario Energy Board Act, 1998.

Ontario Northland Transportation Commission (ONTC)

The ONTC is a statutory corporation established under the Temiskaming and Northern Ontario Railway Act, 1902 (Ontario) and continued under the Ontario Northland Transportation Commission Act.

The ONTC delivers motor coach (bus), Polar Bear Express passenger train, rail freight, and remanufacturing and repair services.

The ONTC is an Operational Enterprise Agency of the Province, and its directors are appointed by the Lieutenant Governor in Council on the recommendation of the Minister.

Detailed financial information

Historic Trend Analysis Data

For additional financial information, see:

Expenditure Estimates: Expenditure Estimates

Ontario Budget 2019: 2019 Ontario Budget - Protecting What Matters Most

Public Accounts (2016-17): The Public Accounts of Ontario 2016-17

Public Accounts (2017-18): The Public Accounts of Ontario 2017-18

Ministry of Energy, Northern Development and Mines: Ministry of Energy, Northern Development and Mines

Appendix: 2018-19 annual report - Results

1. Fixing the Hydro Mess and bringing accountability to the energy sector

   On March 21, 2019, Ontario introduced Bill 87, Fixing the Hydro Mess Act, 2019, which includes the winding down of Global Adjustment Refinancing, a key part the Fair Hydro Plan, taking advantage of lower provincial borrowing costs.

2. Making affordability a priority

   In July 2018, in accordance with the Order in Council, the Independent Electricity Systems Operator (IESO) terminated more than 750 energy contracts. Winding down these contracts is expected to avoid $790 million in long-term electricity system costs, ($2018).

   Additionally, Ontario terminated the White Pines wind project. Terminating this project is expected to avoid $60 million in long-term electricity system costs, on a net present value basis ($2018).

   On December 6, 2018, the government passed legislation to ensure that any costs associated with terminating these renewable energy contracts is covered by the fiscal plan and not by electricity ratepayers.

   Reducing Costs by Centralizing and Refocusing Conservation Programs
   On March 21, 2019, Orders in Council and Directives were issued to refocus and centralize the delivery of conservation programs to save electricity customers and taxpayers up to $442 million over the next three years.

   Under this approach, the focus of electricity conservation programs will be towards those who need them the most, including low-income families, small, medium and large businesses and First Nations communities.

   The decision will lower system costs and will reduce hydro rates for medium and large employers, increasing competitiveness and opportunities for growth. The cost savings will reduce the amount recovered from the Global Adjustment and will decrease the fiscal costs of rate mitigation initiatives.

   Industrial Electricity Pricing
   On March 28, 2019, the government announced that it will hold consultations across the province to hear from businesses about industrial electricity pricing and programs. Consultations begin on April 1, 2019 on the Ontario online consultation directory. Electronic submissions will be accepted for 60 days. In-person sessions will also begin in April 2019 and will be held in every region of the province. The consultation includes sector-specific sessions with key industries including: automotive, forestry, mining, agriculture, steel, manufacturing and chemicals.

3. Ensuring there is a reliable source of energy for all Ontarians

   Nuclear Refurbishments & Pickering Operation to 2024
   The ministry provides policy oversight of Ontario's nuclear refurbishments. Ontario is progressing with refurbishment of four nuclear units at Darlington Nuclear Generating Station and six at Bruce Nuclear Generating Station over the next 14 years.

   The first Darlington nuclear unit (Unit 2) refurbishment passed the 80% completion mark and remained on time and on budget. The December 2018 Auditor General's report on Darlington refurbishment confirmed that Ontario Power Generation is managing the project well and has a robust project management and oversight structure in place.

   The IESO continued to oversee implementation of the updated Bruce refurbishment agreement, including ongoing investments in the life extension of the Bruce nuclear units. Unit 6 refurbishment will commence in January 2020. Bruce Power is solely responsible for risk of executing the refurbishment on time and on budget. If refurbishment is completed under budget, any cost savings will be shared equally between Bruce Power and the IESO.

   The government's commitment to the continued operation of Pickering Nuclear Station until 2024 was confirmed during Premier Ford's visit on June 21, 2018.

   Natural Gas Expansion
   In December 2018, the government passed Bill 32, the Access to Natural Gas Act, 2018. This Act allows for the creation of a new Natural Gas Expansion Program that could help expand access to natural gas for over 70 new communities and 33,000 customers in Ontario. On July 1, 2019, the first phase of this program will go into effect, providing over $55 million in funding support to nine expansion projects.

4. Demonstrating respect for Ontarians by improving transparency

   Improving Accountability and Transparency at Hydro One
   In the summer of 2018, the ministry supported the renewal of governance at Hydro One, including the replacement of the Board of Directors, the retirement of the CEO, and the passing of the Hydro One Accountability Act, 2018.

   The new executive compensation framework includes lower levels of compensation for new executives and board members compared to the previous framework, including a limit of $1.5 million on total maximum direct compensation for the new CEO. Performance targets include the CEO's contribution to reducing system costs and supporting the government's commitment to reduce electricity rates by 12 per cent.

   The ministry supported the development of O.Reg. 54/19 (Compensation Disclosure), made under the Hydro One Accountability Act, 2018, making Hydro One's executive compensation information transparent and accessible to the people of Ontario each year. Hydro One posted its disclosure for 2018 on its website on March 29, 2019.

   Federal Carbon Tax Transparency
   Ontario is committed to fighting the federal government's carbon tax on fuels through a court challenge in the Ontario Court of Appeal and in the interim, ensuring transparency in fuel pricing.

   In February 2019, the Minister wrote to the Ontario Energy Board (OEB) asking for disclosure of the federal carbon tax on natural gas (e.g., separate line item) and to ensure that stakeholders have an opportunity to express their views to the OEB on how this charge should appear on natural gas consumers' bills.

   The government developed legislation, which if passed, would require the application of stickers on all Ontario retail gasoline pumps showing the cost of the federal carbon tax on gasoline. The Federal Carbon Tax Transparency Act, 2019, was subsequently introduced on April 11, 2019.

   The ministry continues to monitor and report on the price and supply of fuels in Ontario (e.g.: natural gas, gasoline and diesel).

   Repeal of the Green Energy Act, 2009
   With the repeal the Green Energy Act, 2009, the government reintroduced select energy efficiency and conservation provisions in existing legislation. Associated regulations were revoked and re-made under the new legislative provisions. These provisions related to initiatives that provide electricity ratepayers with the information and tools to lower their electricity costs. Initiatives include Energy and Water Reporting and Benchmarking, Broader Public Sector Energy Reporting and Energy Efficiency Standards.

5. Driving efficiencies in the sector

   Ontario Energy Board Modernization
   Informed by the OEB Modernization Review Panel (composed of Chair Richard Dicerni, Cara Clairman, and Bruce Campbell), the Fixing the Hydro Mess Act, 2019 overhauls the Ontario Energy Board to make the regulatory system more efficient and accountable, while continuing to protect consumers. The amendments, if proclaimed, would:

   • Establish a new governance structure, including a board of directors and a CEO, and better separate the OEB 's management, administration, and adjudication responsibilities.
   • Streamline processes by amending the OEB's consumer education objective and reducing duplicate responsibilities in transmission procurement between the OEBand the IESO.
   • Promote efficiency and reduce the regulatory burden by requiring the OEB to report annually on its efforts to simplify regulations for the energy sector.

   Nuclear Innovation
   Ontario is actively monitoring the development of next-generation nuclear technologies, such as Small Modular Reactors (SMRs), that could provide clean energy and economic opportunities for Ontario's nuclear supply chain, while advancing Ontario's global leadership in nuclear and clean energy innovation.

   Ontario participated in the development of the Canadian Roadmap for Small Modular Reactors to study the opportunity for SMRs in Canada, an emerging area of nuclear energy innovation. The report was released in November 2018.

6. Building a stronger northern economy

   Northern Ontario Heritage Fund Corporation (NOHFC)

   The NOHFC promotes economic development, diversification and job creation/retention in the north. Since June 2018, the NOHFC has invested more than $60 million in 387 projects, creating or retaining over 659 jobs.

   NOHFC helps northern communities thrive by:

   • Delivering on Ontario's commitment to create more opportunities for Indigenous people and addressing the skilled labour shortage across the north through the revamped and more accessible Northern Ontario Internship Program.
   • Improving networking capacity through investments in vital information and communications technology infrastructure that provides high-speed connectivity to communities and institutions across the north.
   • Improving innovation through investments that foster research and development in the north, with priority given to projects in the key economic sectors.
   • Ensuring a competitive mining supply and services sector through investments that promote business expansion and the development of new technologies.

   Northern Industrial Electricity Rate (NIER) Program
   The NIER program supports Northern Ontario's largest industrial electricity consumers to reduce costs, sustain jobs and maintain global competitiveness. With ongoing funding of up to $120 million per year, the program protects jobs in the north and supports the development of energy management plans.

   In 2018-19, the NIER program provided more than $117 million in funding to reduce electricity costs and sustain jobs for 21 companies, representing 28 facilities across Northern Ontario that employ more than 18,000 people.

   Protecting jobs at Algoma Steel
   On January 10, 2019, the ministry announced a $60 million repayable loan to support Algoma Steel Inc. in Sault Ste. Marie, protecting thousands of jobs, pensions and the environment.

   The investment is part of the purchase and restructuring of Algoma Steel, securing a $600 million capital investment at the steel making facility. The restructuring includes a long-term commitment to protect jobs and fund Algoma Steel's three defined benefit pension plans, benefiting approximately 3,000 current and 6,300 former or retired employees.

7. Strengthening northern transportation

   Ontario Northland Transportation Commission (ONTC)
   The ONTC delivers the Polar Bear Express passenger train service between Cochrane and Moosonee, rail freight services, remanufacturing and repair services, and scheduled bus and bus parcel express services.

   In 2018-19, the ONTC achieved several significant milestones, including increasing bus services in Northeastern Ontario. Additionally, the ONTC put three new passenger rail cars, two of which are fully accessible, into service on the Polar Bear Express.

   The ONTC bus services transported over 300,000 passengers and almost 160,000 parcels across Northeastern Ontario.

   The Polar Bear Express transported more than 50,000 passengers and 3,000 vehicles between Cochrane and Moosonee.

   Owen Sound Transportation Company (OSTC)
   The OSTC provides state-of-the-art passenger, vehicle and cargo transportation services on northern and southwestern Ontario waterways. The OSTC is an operational enterprise agency of the Province of Ontario.

   The OSTC owns and operates a passenger ferry, the MS Chi-Cheemaun, and a landing craft style ferry, MV Niska I. The MS Chi-Cheemaun operates from Tobermory to South Baymouth on Manitoulin Island and the MV Niska I operate between Moosonee and Moose Factory Island. The OSTC also provides vessel management services for the Ministry of Transportation (MTO) for three vessels, the MV Pelee Islander I and II and the MV Jiimaan.

   During 2018-19, OSTC continued capital renovations to the crew's mess, stairwells, halls, and engine top-ends, steering system and electrical breakers repairs on the Chi-Cheemaun. The South Baymouth and Tobermory terminal renovations included new lot resurfacing and terminal lighting.

   Northern Highways Program
   Through the Northern Highways Program, the ministry continues to strengthen the economy in the north by improving critical infrastructure such as roads and bridges and making highway travel safer and more efficient. Northern Ontario has more than 11,000 kilometres of provincial highways, about 60 per cent of the provincial highway network.

   In 2018-19, Ontario committed more than $573 million through the Northern Highways Program, creating or sustaining nearly 4,000 jobs and supporting highway rehabilitation and expansion projects across the north.

   The Northern Highways Program included more than 47 kilometres of new or expanded highways and six new bridges. It also included more than 361 kilometres of rehabilitated highways and 23 rehabilitated bridges.

   Winter Roads Network
   In 2018-19, the ministry invested $5.7 million to support the construction and operation of roughly 3,170 kilometres of temporary winter road system linking 31 First Nations, and the Town of Moosonee, to the provincial highway network.

   This investment provides vital connections to all-season roads, making it easier to bring in essential goods and services such as food, medical and construction supplies to remote communities. The winter road network serves a total resident population of about 24,000.

8. Unlocking potential in the Ring of Fire

   Taking a more effective approach to development in the Ring of Fire
   Ontario is supporting Marten Falls and Webequie First Nations, who are moving forward with environmental assessments for their respective proposed road projects in the region. Ontario's support includes funding for the preparation of the environmental assessments and advice and guidance to meet the requirements of the Environmental Assessment Act.

   In 2018, Ontario provided over $8 million to Webequie and Marten Falls First Nations for work on their respective environmental assessments. In 2019, Ontario has allocated $16 million for these communities to continue this important work.

   Both proponents have begun work on their respective Terms of Refence for the environmental assessments. The proponents are targeting submission of the Terms of Reference to the Ministry of Environment, Conservation and Parks for review and decision in fall 2019.

   Marten Falls First Nation is moving forward with an environmental assessment to develop an all-season, multi-purpose road along a north-south corridor connecting their community to the provincial highway network.

   Webequie First Nation has also started an environmental assessment for an all-season supply road from Webequie to the Ring of Fire region.

9. Boosting investment in mining

   Minerals sector highlights
   In 2018, Ontario generated $10.1 billion worth of minerals and $583 million was spent on mineral exploration in Ontario, compared to $10.1 billion and $540 million in 2017.

   The province's mineral wealth is generated by its 38 underground and surface operations, which include 29 metal mines and 9 non-metal mines. Some mining success stories include:

   • In January 2019, Harte Gold achieved commercial production at its Sugar Zone mine near White River. Sugar Zone is Ontario's newest gold mine and is expected to be in operation for a decade.
   • On March 21, 2019, Greenstone received provincial approval for Hardrock's amended environmental assessment. Greenstone can now start securing the required permits and approvals to construct a gold mine.

   Ontario's mining industry creates more than 26,000 direct and 50,000 indirect jobs. Mining is the second-largest private sector employer of Indigenous people in Canada and the third-largest in Ontario.

   Toronto is the mining financial capital of the world. In 2018, the TSX and TSXV raised $6.5 billion in new mining equity capital.

   Establishing the Mining Working Group
   On March 4, 2019, the ministry established a special Mining Working Group focused on reducing red tape and attracting major new investments to Ontario.

   The group, chaired by Minister Greg Rickford, brings together industry representatives that reflect the diversity and strength of the province's mining sector. They include accomplished leaders from mining and exploration companies, prospectors and Indigenous business organizations.

   Members will provide the province with input on important issues affecting the minerals sector, while identifying opportunities to ensure future growth, competitiveness and prosperity.

   The Mining Working Group met March 4 and are set to meet again in June 2019.

   Ontario is Open for Business

   Ontario's government is creating jobs by keeping energy and power rates low and cutting red tape. The province has set a target to reduce red tape barriers to business growth by 25 per cent by 2020. Once fully implemented, these changes are expected to provide Ontario businesses with over $400 million in ongoing savings on their compliance costs. ENDM will participate in these efforts by considering opportunities to reduce regulatory burden in the mining sector.

   Each year, the ministry showcases Ontario's mineral projects, successes and opportunities at the Prospectors and Developers Association of Canada's (PDAC) convention, sending a strong signal to the world that Ontario's mineral sector is open for business and open for jobs. Nearly 26,000 people from more than 130 countries attended this year's PDAC from March 3 to 6, 2019.

Staff strength^{footnote 4[4]}: 615.66