PART V REGULATION OF ELECTRICITY
Order re: transmission of electricity
78 (1) No transmitter shall charge for the transmission of electricity except in accordance with an order of the Board, which is not bound by the terms of any contract. 2000, c. 26, Sched. D, s. 2 (7). Order re: distribution of electricity (2) No distributor shall charge for the distribution of electricity or for meeting its obligations under section 29 of the Electricity Act, 1998 except in accordance with an order of the Board, which is not bound by the terms of any contract. 2000, c. 26, Sched. D, s. 2 (7). Order re the Smart Metering Entity (2.1) The Smart Metering Entity shall not charge for meeting its obligations under Part IV.2 of the Electricity Act, 1998 except in accordance with an order of the Board, which is not bound by the terms of any contract. 2006, c. 3, Sched. C, s. 5 (1). (2.3) Repealed: 2019, c. 4, Sched. 4, s. 1 (1). Rates (3) The Board may make orders approving or fixing just and reasonable rates for the transmitting or distributing of electricity, unit smart metering or such other activity as may be prescribed and for the retailing of electricity in order to meet a distributor’s obligations under section 29 of the Electricity Act, 1998. 2009, c. 12, Sched. D, s. 12 (1); 2010, c. 8, s. 38 (14); 2019, c. 4, Sched. 4, s. 1 (2). Rates (3.0.1) The Board may make orders approving or fixing just and reasonable rates for the Smart Metering Entity in order for it to meet its obligations under this Act or under Part IV.2 of the Electricity Act, 1998. 2006, c. 3, Sched. C, s. 5 (1). Orders re deferral or variance accounts (3.0.2) The Board may make orders permitting the Smart Metering Entity or distributors to establish one or more deferral or variance accounts related to costs associated with the smart metering initiative, in the circumstances prescribed in the regulations. 2006, c. 3, Sched. C, s. 5 (1). Orders re recovery of smart metering initiative costs (3.0.3) The Board may make orders relating to the ability of the Smart Metering Entity, distributors, retailers and other persons to recover costs associated with the smart metering initiative, in the situations or circumstances prescribed by regulation and the orders may require them to meet such conditions or requirements as may be prescribed, including providing for the time over which costs may be recovered. 2006, c. 3, Sched. C, s. 5 (1). Orders re deferral or variance accounts, s. 27.2 (3.0.4) The Board may make orders permitting the IESO, distributors or other licensees to establish one or more deferral or variance accounts related to costs associated with complying with a directive issued under section 27.2. 2009, c. 12, Sched. D, s. 12 (2); 2014, c. 7, Sched. 23, s. 6 (1). Methods re incentives or recovery of costs (3.0.5) The Board may, in approving or fixing just and reasonable rates or in exercising the power set out in clause 70 (2) (e), adopt methods that provide, (a)  incentives to a transmitter or a distributor in relation to the siting, design and construction of an expansion, reinforcement or other upgrade to the transmitter’s transmission system or the distributor’s distribution system; or (b)  for the recovery of costs incurred or to be incurred by a transmitter or distributor in relation to the activities referred to in clause (a). 2009, c. 12, Sched. D, s. 12 (2). Annual rate plan and separate rates for situations prescribed by regulation (3.1) The Board shall, in accordance with rules prescribed by the regulations, approve or fix separate rates for the retailing of electricity, (a)  to such different classes of consumers as may be prescribed by the regulations; and (b)  for such different situations as may be prescribed by the regulations. 2004, c. 23, Sched. B, s. 14 (1). Same (3.2) The first rates approved or fixed by the Board under subsection (3.1) shall remain in effect for not less than 12 months and the Board shall approve or fix separate rates under subsection (3.1) after that time for periods of not more than 12 months each or for such shorter time periods as the Minister may direct. 2004, c. 23, Sched. B, s. 14 (1). Rates to reflect cost of electricity (3.3) In approving or fixing rates under subsection (3.1), (a)  the Board shall forecast the cost of electricity to be consumed by the consumers to whom the rates apply, taking into consideration the adjustments required under section 25.33 of the Electricity Act, 1998 and shall ensure that the rates reflect these costs; and (b)  the Board shall take into account balances in the IESO’s variance accounts established under section 25.33 of the Electricity Act, 1998 and shall make adjustments with a view to eliminating those balances within 12 months or such shorter time periods as the Minister may direct. 2004, c. 23, Sched. B, s. 14 (1); 2014, c. 7, Sched. 23, s. 6 (2). Forecasting cost of electricity (3.4) In forecasting the cost of electricity for the purposes of subsection (3.3), the Board shall have regard to such matters as may be prescribed by the regulations. 2004, c. 23, Sched. B, s. 14 (1). Imposition of conditions on consumer who enters into retail contract (3.5) A consumer who enters into or renews a retail contract for electricity after the day he or she becomes subject to a rate approved or fixed under subsection (3.1) is subject to such conditions as may be determined by the Board. 2004, c. 23, Sched. B, 14 (1). Rates (4) The Board may make an order under subsection (3) with respect to the retailing of electricity in order to meet a distributor’s obligations under section 29 of the Electricity Act, 1998 even if the distributor is meeting its obligations through an affiliate or through another person with whom the distributor or an affiliate of the distributor has a contract. 1998, c. 15, Sched. B, s. 78 (4). Same, certain payments of transmitters and distributors (5) In approving or fixing just and reasonable rates for the transmission or distribution of electricity, the Board shall not include any of the following amounts: 1.  Any penalties or fines a transmitter or distributor is required to pay under an Act, except as otherwise provided by the regulations. 2.  Any other amounts or classes of amounts a transmitter or distributor is required to pay that are prescribed by the regulations made by the Minister under subsection 88 (2.3). 2023, c. 9, Sched. 24, s. 5. (5.0.0.1) Repealed: 2023, c. 9, Sched. 24, s. 5. Same, obligations under s. 29 of Electricity Act, 1998 (5.0.1) In approving or fixing just and reasonable rates for the retailing of electricity in order to meet a distributor’s obligations under section 29 of the Electricity Act, 1998, the Board shall comply with the regulations made under clause 88 (1) (g.5). 2003, c. 8, s. 1. Same, Hydro One executive compensation (5.0.2) In approving or fixing just and reasonable rates for Hydro One Limited or any of its subsidiaries, the Board shall not include any amount in respect of compensation paid to the Chief Executive Officer and executives, within the meaning of the Hydro One Accountability Act, 2018, of Hydro One Limited. 2018, c. 10, Sched. 1, s. 10. Same, Hydro One Inc. and subsidiaries (5.1) In approving or fixing just and reasonable rates for Hydro One Inc. or a subsidiary of Hydro One Inc., the Board shall apply a method or technique prescribed by regulation for the calculation and treatment of transfers made by Hydro One Inc. or its subsidiary, as the case may be, that are authorized by section 50.1 of the Electricity Act, 1998. 2002, c. 1, Sched. B, s. 8; 2003, c. 3, s. 52 (2). Same, statutory right to use corridor land (5.2) In approving or fixing just and reasonable rates for a transmitter who has a statutory right to use corridor land (as defined in section 114.1 of the Electricity Act, 1998), the Board shall apply a method or technique prescribed by regulation for the treatment of the statutory right. 2002, c. 1, Sched. B, s. 8; 2003, c. 3, s. 52 (3). Same, amounts payable to transmitters under procurement contracts (5.3) In approving or fixing just and reasonable rates for the transmitting of electricity for a transmitter who is a party to a procurement contract entered into under clause 25.32 (2) (d) of the Electricity Act, 1998, the Board shall apply a method that provides for the recovery of amounts paid or to be paid to the transmitter under the procurement contract. 2019, c. 6, Sched. 1, s. 6. Same, transmission procurement contract costs (5.4) In approving or fixing just and reasonable rates for the transmitting of electricity for a period, the Board shall include the amounts referred to in subsection (5.3) that apply with respect to that period. 2019, c. 6, Sched. 1, s. 6. Information (5.5) The IESO shall, for the purposes of subsections (5.3) and (5.4), provide to the Board such information respecting amounts paid or to be paid to transmitters who are a party to a procurement contract entered into under clause 25.32 (2) (d) of the Electricity Act, 1998
as the Board may require. 2019, c. 6, Sched. 1, s. 6. Conditions, etc. (6) An order under this section may include conditions, classifications or practices, including rules respecting the calculation of rates, applicable, (a)  to the Smart Metering Entity in respect of meeting its obligations; (b)  to an activity prescribed for the purposes of subsection (3); and (c)  to the transmission, distribution or retailing of electricity or unit smart metering. 2009, c. 12, Sched. D, s. 12 (3); 2010, c. 8, s. 38 (16); 2019, c. 4, Sched. 4, s. 1 (4). Deferral or variance accounts (6.1) If a distributor has a deferral or variance account that relates to the commodity of electricity, the Board shall, from time to time, or as prescribed by the regulations, make an order under this section that determines whether and how amounts recorded in the account shall be reflected in rates.  2017, c. 2, Sched. 10, s. 2 (4). Same (6.2) If a distributor has a deferral or variance account that does not relate to the commodity of electricity, the Board shall, from time to time, or as prescribed by the regulations, make an order under this section that determines whether and how amounts recorded in the account shall be reflected in rates.  2017, c. 2, Sched. 10, s. 2 (4). Same (6.3) An order that determines whether and how amounts recorded in a deferral or variance account shall be reflected in rates shall be made in accordance with the regulations. 2003, c. 3, s. 52 (4). Same (6.4) If an order that determines whether and how amounts recorded in a deferral or variance account shall be reflected in rates is made after the time required by subsection (6.1) or (6.2) and the delay is due in whole or in part to the conduct of a distributor, the Board may reduce the amount that is reflected in rates. 2003, c. 3, s. 52 (4). Same (6.5) If an amount recorded in a deferral or variance account of a distributor is reflected in rates, the Board shall consider the appropriate number of billing periods over which the amount shall be divided in order to mitigate the impact on consumers. 2003, c. 3, s. 52 (4). (6.6) Repealed: 2021, c. 2, Sched. 2, s. 5 (2). Fixing other rates (7) Upon an application for an order approving or fixing rates, the Board may, if it is not satisfied that the rates applied for are just and reasonable, fix such other rates as it finds to be just and reasonable. 1998, c. 15, Sched. B, s. 78 (7). Burden of proof (8) Subject to subsection (9), in an application made under this section, the burden of proof is on the applicant. 1998, c. 15, Sched. B, s. 78 (8). Order (9) If the Board of its own motion, or upon the request of the Minister, commences a proceeding to determine whether any of the rates that the Board may approve or fix under this section are just and reasonable, the Board shall make an order under subsection (3) and the burden of establishing that the rates are just and reasonable is on the transmitter or distributor, as the case may be. 2010, c. 8, s. 38 (17); 2019, c. 4, Sched. 4, s. 1 (5). Note: On the day subsection 38 (15) of the Energy Consumer Protection Act, 2010 comes into force, subsection 78 (9) of the Act is amended by striking out “the transmitter or distributor” and substituting “the transmitter, distributor or unit smart meter provider”. (See: 2019, c. 4, Sched. 4, s. 1 (6)) Section Amendments with date in force (d/m/y) 2000, c. 26, Sched. D, s. 2 (7) - 06/12/2000 2002, c. 1, Sched. B, s. 8 - 27/06/2002 2003, c. 3, s. 52 (1-4) - 01/08/2003; 2003, c. 8, s. 1 - 01/04/2004 2004, c. 23, Sched. B, s. 14 (1, 2) - 01/01/2005 2006, c. 3, Sched. C, s. 5 (1) - 03/05/2006 2009, c. 12, Sched. D, s. 12 (1-3) - 09/09/2009 2010, c. 8, s. 38 (13, 14, 16, 17) - 01/04/2018; 2010, c. 8, s. 38 (12, 15) - no effect - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2020 2014, c. 7, Sched. 23, s. 6 (1, 2) - 01/01/2015 2017, c. 2, Sched. 10, s. 2 (4) - 22/03/2017 2018, c. 10, Sched. 1, s. 10 - 15/08/2018 2019, c. 4, Sched. 4, s. 1 (1, 2, 4, 5) - 03/04/2019; 2019, c. 4, Sched. 4, s. 1 (3) - no effect - see 2010, c. 8, s. 38 (15) - 31/12/2020; 2019, c. 4, Sched. 4, s. 1 (6) - not in force; 2019, c. 6, Sched. 1, s. 6 - 09/05/2019 2020, c. 12, s. 85 (2) - 08/07/2020 2021, c. 2, Sched. 2, s. 5 (1, 2) - 12/04/2021 2023, c. 9, Sched. 24, s. 5 - 08/06/2023