Regulation - LGIC
Proposed Amendment to O. Reg. 53/05 (Payments under Section 78.1 of the Act), made under the Ontario Energy Board Act, 1998
Regulation Number(s):
53/05
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Decision:
The Ontario Energy Board (OEB) sets the rates that Ontario Power Generation (OPG) receives for the electricity generated from its regulated facilities, which includes the Pickering Nuclear Generating Station. Such 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 OEB sets rates that allow OPG to recover certain approved costs over a given rate-setting period. OPG's regulated nuclear rates for the 2022-2026 period, as determined by the OEB in January 2022, contemplated operating the Pickering Nuclear Generating Station up to December 2025.
In September 2022, the Government of Ontario announced it was supporting OPG's continued safe operation of the four "B" units at the Pickering Nuclear Generating Station until the end of September 2026 (i.e., instead of December 2025). At the Ontario government's request, OPG reviewed their operational plans and concluded that the facility could continue to safely generate electricity. This revised shutdown schedule is subject to approval by the Canadian Nuclear Safety Commission (CNSC).
Effective January 1, 2023, Ontario Regulation 53/05 was amended to establish a variance account to track the additional revenues and costs associated with operating Pickering Nuclear Generating Station for the additional period, subject to the approval of CNSC. The OEB will conduct a prudency review of the account balance and determine its disposition in a future rate-setting period.
The amendment ensures that any net benefit (i.e., revenues in excess of costs) from the additional operation of Pickering Nuclear Generating Station to 2026 will be recorded in the variance account. As part of the OEB's account disposition process, any net benefit recorded in the variance account is expected to be returned to ratepayers.
Ontario Regulation 53/05 applies solely to OPG. The amendment will not create any additional regulatory burden for OPG or any other businesses.
The OEB sets rates that allow OPG to recover certain approved costs over a given rate-setting period. OPG's regulated nuclear rates for the 2022-2026 period, as determined by the OEB in January 2022, contemplated operating the Pickering Nuclear Generating Station up to December 2025.
In September 2022, the Government of Ontario announced it was supporting OPG's continued safe operation of the four "B" units at the Pickering Nuclear Generating Station until the end of September 2026 (i.e., instead of December 2025). At the Ontario government's request, OPG reviewed their operational plans and concluded that the facility could continue to safely generate electricity. This revised shutdown schedule is subject to approval by the Canadian Nuclear Safety Commission (CNSC).
Effective January 1, 2023, Ontario Regulation 53/05 was amended to establish a variance account to track the additional revenues and costs associated with operating Pickering Nuclear Generating Station for the additional period, subject to the approval of CNSC. The OEB will conduct a prudency review of the account balance and determine its disposition in a future rate-setting period.
The amendment ensures that any net benefit (i.e., revenues in excess of costs) from the additional operation of Pickering Nuclear Generating Station to 2026 will be recorded in the variance account. As part of the OEB's account disposition process, any net benefit recorded in the variance account is expected to be returned to ratepayers.
Ontario Regulation 53/05 applies solely to OPG. The amendment will not create any additional regulatory burden for OPG or any other businesses.
Analysis of Regulatory Impact:
The proposed amendment would ensure that any net benefit (i.e., revenues in excess of costs) from the additional operation of Pickering Nuclear Generating Station to 2026 would be recorded in the variance account. As part of the account disposition by the OEB, OPG is expected to return any net benefit recorded in the variance account to ratepayers.
Ontario Regulation 53/05 applies solely to OPG and the proposed amendment would apply solely to the proposed additional period of Pickering operations. The proposed amendment would not create any additional regulatory burden for OPG or any other businesses.
Ontario Regulation 53/05 applies solely to OPG and the proposed amendment would apply solely to the proposed additional period of Pickering operations. The proposed amendment would not create any additional regulatory burden for OPG or any other businesses.
Further Information:
Ontario Energy Board
Ontario Energy Board Act, 1998
Ontario Regulation 53/05
Pickering Nuclear Generating Station
Proposal Number:
22-ENDM016
Posting Date:
October 13, 2022
Summary of Proposal:
The Ontario Energy Board (OEB) sets the rates that Ontario Power Generation (OPG) receives for the electricity generated from its regulated facilities, which includes the Pickering Nuclear Generating Station. Such 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 OEB sets rates that allow OPG to recover OEB-approved costs over a given rate-setting period. OPG's regulated nuclear rates for the 2022-2026 period include planned Pickering operation up to December 2025.
In September 2022, the Government of Ontario asked that OPG operate Pickering "B" units at the Nuclear Generating Station until the end of September 2026 (i.e., instead of December 2025), to support Ontario's projected electricity capacity requirements in the summer of 2026. This revised shutdown schedule is subject to approval by the Canadian Nuclear Safety Commission (CNSC).
The Ministry of Energy is proposing to amend Ontario Regulation 53/05 to establish a variance account to track the additional revenues and costs associated with operating Pickering Nuclear Generating Station for the additional period, subject to the approval of CNSC. The OEB would conduct a prudency review of the account balance and determine its disposition in a future rate-setting period.
The OEB sets rates that allow OPG to recover OEB-approved costs over a given rate-setting period. OPG's regulated nuclear rates for the 2022-2026 period include planned Pickering operation up to December 2025.
In September 2022, the Government of Ontario asked that OPG operate Pickering "B" units at the Nuclear Generating Station until the end of September 2026 (i.e., instead of December 2025), to support Ontario's projected electricity capacity requirements in the summer of 2026. This revised shutdown schedule is subject to approval by the Canadian Nuclear Safety Commission (CNSC).
The Ministry of Energy is proposing to amend Ontario Regulation 53/05 to establish a variance account to track the additional revenues and costs associated with operating Pickering Nuclear Generating Station for the additional period, subject to the approval of CNSC. The OEB would conduct a prudency review of the account balance and determine its disposition in a future rate-setting period.
Contact Address:
77 Grenville Street, 7th Floor
Toronto, ON M7A 2C1
Toronto, ON M7A 2C1
Effective Date:
January 1, 2023
Decision:
Approved