Regulation - LGIC

Proposed Amendment to Ontario Regulation 53/05 (Payments under Section 78.1 of the Act), to be made under the Ontario Energy Board Act, 1998

Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Proposal:
The Ontario Energy Board (OEB) approves the rates that Ontario Power Generation Inc. (OPG) receives for the electricity generated from its regulated facilities, which include the Pickering and Darlington Nuclear Generating Stations.

The rates are established in accordance with s.78.1 of the Ontario Energy Board Act, 1998 and Ontario Regulation 53/05 (Payments Under Section 78.1 of the Act). The rates allow OPG to recover OEB-approved costs from electricity ratepayers over a given rate-setting period.

In November 2020, OPG announced that it had resumed planning activities for new nuclear generation at the Darlington site to host a Small Modular Reactor (SMR) project. The proposed Darlington SMR project would provide about 300 megawatts of clean reliable power to Ontario's electricity grid. OPG is planning to select an SMR technology for the project by the end of 2021 and proceed with seeking the necessary provincial and federal approvals for construction and operation.

The Ministry of Energy is proposing to amend Ontario Regulation 53/05 to include the Darlington SMR project as a regulated facility prescribed within the Ontario Energy Board Act, 1998. This would allow OPG to recover prudently incurred costs of the Darlington SMR project from electricity ratepayers under the oversight of the OEB in a manner consistent with how OPG recovers the costs of its existing nuclear operations.
Analysis of Regulatory Impact:
Ontario Regulation 53/05 applies solely to OPG and its regulated electricity generation facilities. There are expected to be no new administrative costs for business under the proposal to include the Darlington SMR project as a prescribed facility under Ontario Regulation 53/05.

Rate-regulating the Darlington SMR project would allow OPG to manage its overall nuclear operations, supports and costs in a streamlined and cost-effective manner.
Further Information:
Proposal Number:
Posting Date:
September 14, 2021
Comments Due Date:
October 14, 2021
Contact Address:
77 Grenville St. Toronto, Ontario, M7A 2C1