Regulation - LGIC
Advancing Nuclear Opportunities in Ontario
Regulation Number(s):
O. Reg. 53/05
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Proposal:
In January 2024, the Ontario government announced that it supported OPG's plan to proceed with the Project Initiation Phase of refurbishing Pickering Nuclear Generating Station's "B" units to meet Ontario's growing electricity needs. The Project Initiation Phase was completed at the end of 2024 and subsequently, in January 2025, the government announced its support for OPG to proceed with the Project Definition Phase of the Pickering refurbishment to develop a final cost and schedule for the project.
As this work advances the Ministry of Energy and Electrification (ENERGY) is considering potential amendments to Ontario Regulation 53/05 (Payments under Section 78.1 of the Act) to be made, if approved, under the Ontario Energy Board Act, 1998 to allow the following:
• Clarifying the scope of what can be recorded in the existing Pickering B Extension Variance Account (PEVA) to ensure that OPG can recover prudently incurred Pickering station-level and corporate costs for 2024-2026 which allow it to retain the capacity and readiness to operate the Pickering B units post-refurbishment, pending a final government approval and nuclear regulatory approvals of the refurbishment of Pickering units 5 through 8.
In 2022, following government support for OPG to operate Pickering B units (i.e., Units 5 to 8) to September 2026 instead of shutting down the units at the end of 2025, ENERGY amended O. Reg. 53/05 to create the Pickering B Extension Variance Account (PEVA). The PEVA allows OPG to record prudently incurred capital and non-capital costs and foregone revenues (i.e., lower output due to additional outage work) associated with operating Pickering B for the additional period.
The PEVA also allows OPG to record any additional revenue from the additional electricity generation at Pickering "B" between January 2026 and September 2026 (the "Pickering B extension period"). Any net benefit from the additional Pickering operation to 2026 would be reflected in this account. OPG is expected to return any net benefit (i.e., revenues in excess of costs) to ratepayers.
The proposed amendments to the PEVA would ensure that OPG can recover prudently incurred Pickering station-level and corporate costs for 2024-2026 which allow it to retain the capacity and readiness to operate the Pickering B units post-refurbishment, pending a final government approval and nuclear regulatory approval from the Canadian Nuclear Safety Commission to proceed with refurbishment.
As this work advances the Ministry of Energy and Electrification (ENERGY) is considering potential amendments to Ontario Regulation 53/05 (Payments under Section 78.1 of the Act) to be made, if approved, under the Ontario Energy Board Act, 1998 to allow the following:
• Clarifying the scope of what can be recorded in the existing Pickering B Extension Variance Account (PEVA) to ensure that OPG can recover prudently incurred Pickering station-level and corporate costs for 2024-2026 which allow it to retain the capacity and readiness to operate the Pickering B units post-refurbishment, pending a final government approval and nuclear regulatory approvals of the refurbishment of Pickering units 5 through 8.
In 2022, following government support for OPG to operate Pickering B units (i.e., Units 5 to 8) to September 2026 instead of shutting down the units at the end of 2025, ENERGY amended O. Reg. 53/05 to create the Pickering B Extension Variance Account (PEVA). The PEVA allows OPG to record prudently incurred capital and non-capital costs and foregone revenues (i.e., lower output due to additional outage work) associated with operating Pickering B for the additional period.
The PEVA also allows OPG to record any additional revenue from the additional electricity generation at Pickering "B" between January 2026 and September 2026 (the "Pickering B extension period"). Any net benefit from the additional Pickering operation to 2026 would be reflected in this account. OPG is expected to return any net benefit (i.e., revenues in excess of costs) to ratepayers.
The proposed amendments to the PEVA would ensure that OPG can recover prudently incurred Pickering station-level and corporate costs for 2024-2026 which allow it to retain the capacity and readiness to operate the Pickering B units post-refurbishment, pending a final government approval and nuclear regulatory approval from the Canadian Nuclear Safety Commission to proceed with refurbishment.
Analysis of Regulatory Impact:
The proposal is not expected to have a direct impact on compliance costs or benefits.
The proposed amendments would clarify the scope of the existing PEVA (i.e., what costs can be recorded in the account for disposition by the OEB). This would not add any compliance or administrative costs to the public or the government. The proposed amendments will not result in any increased compliance or administrative costs or benefits for OPG or the OEB. OPG has existing infrastructure, processes and personnel that prepare regulatory filings for its nuclear generating stations. The OEB would be expected to undertake the same type and level of effort in reviewing costs and revenues recorded in the PEVA following the proposed amendment as it would expend in the absence of these amendments.
The proposed amendments would clarify the scope of the existing PEVA (i.e., what costs can be recorded in the account for disposition by the OEB). This would not add any compliance or administrative costs to the public or the government. The proposed amendments will not result in any increased compliance or administrative costs or benefits for OPG or the OEB. OPG has existing infrastructure, processes and personnel that prepare regulatory filings for its nuclear generating stations. The OEB would be expected to undertake the same type and level of effort in reviewing costs and revenues recorded in the PEVA following the proposed amendment as it would expend in the absence of these amendments.
Further Information:
Link to Environmental Registry
Proposal Number:
25-ENDM004
Posting Date:
January 28, 2025
Comments Due Date:
March 14, 2025