Act
Ontario Energy Board (OEB) Modernization - facilitating implementation of OEB Modernization
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Supporting Businesses and People Act, 2021
Summary of Proposal:
As part of the government's commitment to modernize the OEB, legislative amendments to the Ontario Energy Board Act, 1998 (OEBA) that reformed the governance structure of the OEB were proclaimed into force on October 1, 2020. A key component of OEB modernization was the creation of a complement of independent commissioners to hear and determine matters falling under the OEB's jurisdiction (for example, utility rate applications). The OEBA provides for a two-year transition period after proclamation for the establishment of the new governance structure. Over the past year the government has been closely monitoring the progress of OEB modernization. To ensure the OEB is in a strong position to continue delivering on its core mandates and the objectives of OEB modernization post transition period, the government is proposing several refinements to the status of commissioners.
The government will be proposing to amend section 4.3 of the OEBA to remove the upper limit on the number of OEB commissioners that may be appointed (currently set at ten), and to provide that the Labour Relations Act, 1995 does not apply to commissioners.
These changes, if passed, would ensure that the OEB can recruit commissioners in a way that is flexible and responds to the organization's needs, with respect to caseload, specific technical competencies that may be required, succession planning, etc. The proposed introduction of a new subsection 4.3 (6.1) also clarifies the status of commissioners as being excluded from unionized representation under the Labour Relations Act, 1995, thereby maintaining the status quo where commissioners are not unionized, and avoiding operational and conflict of interest risks that might otherwise have arisen once commissioners transition from being appointed by the Lieutenant Governor in Council to being appointed by the OEB's board of directors post transition period on October 1, 2022.
The government is also proposing amendments to section 4.10 of the OEBA by removing the requirement that commissioner remuneration and benefits must align with the directive of the Management Board of Cabinet with respect to individuals appointed to comparable positions in adjudicative tribunals and regulatory agencies. This proposal would enable the OEB to set a remuneration framework that is responsive to the highly specialised competency requirements and robust workload at the OEB. The amendment would allow the board of directors of the OEB to set the by-law governing remuneration and benefits of commissioners and would provide for a single process for the Minister of Energy to approve this by-law and other by-laws made by the OEB board of directors regarding the appointment and reappointment of the chief executive officer, the chief commissioner and other commissioners of the OEB.
The government will be proposing to amend section 4.3 of the OEBA to remove the upper limit on the number of OEB commissioners that may be appointed (currently set at ten), and to provide that the Labour Relations Act, 1995 does not apply to commissioners.
These changes, if passed, would ensure that the OEB can recruit commissioners in a way that is flexible and responds to the organization's needs, with respect to caseload, specific technical competencies that may be required, succession planning, etc. The proposed introduction of a new subsection 4.3 (6.1) also clarifies the status of commissioners as being excluded from unionized representation under the Labour Relations Act, 1995, thereby maintaining the status quo where commissioners are not unionized, and avoiding operational and conflict of interest risks that might otherwise have arisen once commissioners transition from being appointed by the Lieutenant Governor in Council to being appointed by the OEB's board of directors post transition period on October 1, 2022.
The government is also proposing amendments to section 4.10 of the OEBA by removing the requirement that commissioner remuneration and benefits must align with the directive of the Management Board of Cabinet with respect to individuals appointed to comparable positions in adjudicative tribunals and regulatory agencies. This proposal would enable the OEB to set a remuneration framework that is responsive to the highly specialised competency requirements and robust workload at the OEB. The amendment would allow the board of directors of the OEB to set the by-law governing remuneration and benefits of commissioners and would provide for a single process for the Minister of Energy to approve this by-law and other by-laws made by the OEB board of directors regarding the appointment and reappointment of the chief executive officer, the chief commissioner and other commissioners of the OEB.
Analysis of Regulatory Impact:
This proposal is expected to enhance the efficiency and effectiveness of the quasi-judicial function of the OEB, a key element in modernizing the OEB.
This proposal impacts only the OEB's internal operations and no material direct or indirect cost to utilities or to ratepayers is expected to arise from these proposed amendments. There are no new administrative or compliance burdens that would be imposed on businesses or on ratepayers.
This proposal impacts only the OEB's internal operations and no material direct or indirect cost to utilities or to ratepayers is expected to arise from these proposed amendments. There are no new administrative or compliance burdens that would be imposed on businesses or on ratepayers.
Further Information:
Proposal Number:
21-ENDM021
Posting Date:
October 7, 2021
Comments Due Date:
November 21, 2021
Contact Address:
77 Grenville St., 6th Floor, Toronto ON M7A 2C1