Proposed Revocation of O. Reg. 326/09: Mandatory Information Re Connections under the Electricity Act, 1998
Regulation - LGIC
Bill or Act:
Electricity Act, 1998
Summary of Decision:
We decided to revoke O. Reg. 326/09. As of July 1, 2021, timelines for all generation types seeking grid connection assessments will be the same. Related reporting requirements for Local Distribution Companies and the Independent Electricity System Operator will be removed.
O. Reg. 326/09 (Mandatory Information Re Connections) prescribed timelines for completing grid connection assessments for renewable energy projects seeking a connection to the distribution or transmission system as well as reporting requirements that apply to Local Distribution Companies (LDCs) and the Independent Electricity System Operator (IESO).
To ensure the safe and reliable operation of the province's transmission and distribution systems, a proposed renewable energy project may be subject to one or more grid connection assessments required by the IESO, a transmitter or an LDC. The assessments may provide details of the impacts the project would have on the existing electrical system if connected and the technical specifications needed for the project to connect.
Revoking this regulation would remove timelines for LDCs, transmitters and the IESO to complete grid connection assessments for renewable energy projects and ensure consistency for all generation types seeking these types of assessments. This revocation also removes the requirement for LDCs and the IESO to report quarterly on the number of assessments they complete and the system capacity to accommodate more projects.
This action would help make Ontario more competitive by cutting red tape and reducing regulatory burdens for LDCs and the IESO. It also intersects with initiatives led by the Ontario Energy Board (OEB) and the IESO.
Analysis of Regulatory Impact:
By cutting red tape and reducing regulatory reporting burdens for LDCs and the IESO, there will be a nominal direct compliance cost savings for these business as a result of this regulatory revocation.
This initiative introduces consistency for all generators seeking grid connection assessments, putting renewable energy generation firms on an equal footing with their competitors.
December 15, 2020
Summary of Proposal:
Reg. 326/09 - Mandatory Information Re Connections, was developed as part of a suite of legislation and regulations that promoted and prioritized the development of renewable energy. O. Reg. 326/09 promotes and prioritizes renewable energy projects by prescribing:
• Timelines for completing complex grid connection assessments for renewable energy generation facilities and other requirements that apply to Local Distribution Companies (LDCs) and the Independent Electricity System Operator (IESO); and
• The information LDCs and the IESO must provide to meet the quarterly reporting requirements in the Act:
- the number of assessments they have completed and the time it took to complete them, and
- technical information about the ability of the distribution system to accommodate more facilities.
We are proposing to revoke this regulation, meaning that the timelines for renewable energy generators seeking complex grid connection assessments would be the same as the timelines for other generation types seeking similar connection assessments. This proposed revocation would help make Ontario more competitive by cutting red tape and reducing regulatory burdens and aligns with initiatives led by the Ontario Energy Board (OEB) and the IESO.
Through the Distributed Energy Resources (DER) Connections Review initiative, the OEB is reviewing the requirements for the connection of DERs by licensed electricity distributors. The OEB is consulting with customers, DER providers, industry associations and distributors to identify barriers to the connection of DERs, and where appropriate, standardize and improve the connection process. As part of the Responding to DERs consultation, the OEB is working with stakeholders to identify and consider regulatory reforms that would facilitate investment in DERs on the basis of the value to consumers which may include exploring new and innovative ways to make system information available.
Revoking the regulation would also align with the IESO's efforts to plan for future electricity supply in a manner that offers value to ratepayers by allowing any resource that can meet system needs to compete.
June 10, 2021