Bill 100 - Ontario Electricity Restructuring Act, 2004
The Ontario Electricity Restructuring Act, 2004 received Royal Assent on December 9, 2004. The legislation reorganizes Ontario's electricity system to more effectively address the critical need for new supply, increased conservation and price stability for consumers across Ontario.
The legislation will:
- Reorganize the institutional structure to ensure efficient and effective management of the electricity sector over the long-term
- Ensure sufficient electricity supply
- Encourage electricity conservation and renewable energy
- Facilitate electricity demand management
- Regulate prices in parts of the electricity sector and ensure competitive prices for Ontario's electricity consumers.
Highlights of the legislation include the following:
A new Ontario Power Authority to ensure long-term supply in Ontario. The Ontario Power Authority will:
- Assess adequacy and reliability of electricity resources
- Forecast future demand and the potential for conservation and renewable energy
- Prepare an integrated system plan for generation, transmission and conservation
- Procure new supply, transmission and demand management either by competition or by contract, when necessary
- Assist the government in achieving its goals for alternative and renewable energy
- Establish a Conservation Bureau, headed by a Chief Energy Conservation Officer, to provide leadership in planning and coordination of electricity conservation and demand management
- Be self-financing, with fees approved by the Ontario Energy Board.
- The Independent Electricity Market Operator will be renamed the Independent Electricity System Operator, and continue to operate the wholesale market and be responsible for the operation and reliability of the power system.
- Responsibility for the Market Surveillance Panel will be transferred from the IMO to the Ontario Energy Board. The Ontario Energy Board will have the authority to review and approve amendments to market rules for the Independent Electricity System Operator-administered markets.
- The government will set targets for conservation and renewable energy and set guidelines for diversity of supply. The McGuinty government has already stated its medium-term goals: five per cent of Ontario's capacity should come from new renewable sources by 2007, 10 per cent by 2010; and electricity demand should be reduced by five per cent by 2007 through conservation. The Ontario Power Authority will be charged with achieving the targets set by the government.
- The Ontario Energy Board will approve an annual rate plan for residential and other consumers based on regulated, contract and expected market prices, and guarantee public input and fairness. Consumers and small businesses that do not wish to participate in the regulated rate plan could continue to purchase their electricity from energy retailers. The Ontario Energy Board announced a proposal for a Regulated Pricing Plan on December 7, 2004, and will be receiving public comment on that proposal.
- Electricity costs for medium and large businesses will reflect a combination of regulated, contract and competitive market prices for electricity. These businesses could also opt to use energy retailers or financial hedging instruments to manage energy costs.
