Minister’s Directive  
To: The Independent Electricity System Operator

I, Stephen Lecce, Minister of Energy and Mines ("Minister"), hereby direct the Independent Electricity System Operator ("IESO") pursuant to section 25.32 of the Electricity Act, 1998 (the "Act") with regard to undertaking initiatives and activities related to the supply and capacity of electricity resources to ensure the reliable operation of Ontario’s electricity system in response to ongoing and growing electricity needs expected in the future, as follows:

Background

The Independent Electricity System Operator (IESO) has forecast electricity demand to increase significantly over the next 25-years. By 2050, the IESO has identified a potential need for an additional 17,800 MW of nuclear capacity.

The Bruce Nuclear Generating Station, operated by Bruce Power, is the largest operating nuclear plant in the world. It currently provides about 30% of Ontario’s annual electricity needs. In 2023, Bruce Power commenced pre-development work to site the first new large-scale nuclear generation project in over 30 years to potentially provide up to 4,800 MW of reliable, emissions-free power to help meet rising electricity demand.

In August 2024, Bruce Power commenced a federal Impact Assessment (“IA”) process, which is expected to be completed in 2028/2029. Among other things, the IA process would help evaluate the suitability of the site by examining the impacts of a new nuclear generation facility at the Bruce site on the environment, the public and Indigenous communities. It is the first step in a multi-year process for approving new large-scale nuclear generation projects in Canada.

In June 2025, the Ontario Government released its first-ever integrated energy plan, “Energy for Generations” which advances a range of actions that leverage every energy resource and positions the province for long-term success, including:

  • Meeting Growing Electricity Demand – Investing in energy efficiency, generation, storage and distribution, including competitive procurements and the largest nuclear buildout on the continent, while reaching more than 99% zero-emissions electricity by 2050.
  • Positioning Ontario as a Global Clean Energy Superpower – Growing exports of Ontario-made electricity, nuclear technology, medical isotopes and engineering expertise to global markets, while supporting east-west grid connections across Canada.

Nuclear power will continue to serve as the backbone of the province’s electricity system, providing round-the-clock baseload power, with the following initiatives underway to meet the increasing demand for electricity through the 2030s and 2040s:

  • Refurbishments at Darlington and Bruce Nuclear Generating Stations are progressing on time and on budget, securing about 10,000 MW of capacity;
  • Refurbishment of Pickering “B” Nuclear Generating Station, with a total capacity of 2,200 MW;
  • Construction of the first of four small modular reactors (SMRs) as well as planning and preparation for the three remaining SMRs at the Darlington new nuclear site, for a total of 1,200 MW; and
  • Pre-development work for up to 4,800 MW of new nuclear generation at the Bruce Power nuclear site (the “Bruce C project”) and up to 10,000 MW of new nuclear generation at the Wesleyville site.

This directive to IESO regarding executing a funding agreement for pre-development of the Bruce C project would help ensure that Bruce Power proceeds with the pre-development work in a cost-effective manner, and would support the government’s plan to develop an option for the build-out of new nuclear generation capacity at the Bruce Power site to meet Ontario’s projected electricity needs in a timely manner.

IESO and the Ministry of Energy and Mines will work together to ensure Ontario’s electricity system continues to be ready to meet the needs of Ontario’s residents and businesses.

Directive

Therefore, in accordance with the authority under subsection 25.32 of the Act, IESO is hereby directed as follows:

  1. IESO shall use reasonable efforts to enter into a funding agreement with Bruce Power for the sharing and recovery of costs incurred for undertaking pre-development work for the Bruce C project, substantially in the form of the draft funding agreement submitted by IESO to me on November 28, 2025.

General

This Directive takes effect on the date it is issued.

Order in Council 1665/2025