Regulation - LGIC
Advancing Hydroelectric 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 April 2025, the Ontario government announced that it is working in partnership with Taykwa Tagamou Nation (TTN) and Moose Cree First Nation (MCFN) to expand hydroelectric generation. TTN and MCFN will lead co-planning, working alongside the government and Ontario Power Generation (OPG).
To advance this work the Ministry of Energy and Mines (MEM) 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 for the creation of a new variance account to record pre-development expenses for proposed new hydroelectric projects by OPG.
New hydroelectric assets are complex, long-lived projects and significant pre-development work is required to take these projects from origination of the concept to the initiation of design. If approved, the proposed amendments would allow for the recovery of these expenses from electricity consumers, subject to a review and approval of the prudency of the expenses by the Ontario Energy Board (OEB).
MEM believes that rate regulation could be a cost-effective and transparent mechanism for dealing with the costs associated with advancing pre-development work on new hydroelectric facilities.
The OEB's oversight would provide accountability and transparency because recovery of project costs would require OEB approval and intervenors would be able to participate through a public process.
To advance this work the Ministry of Energy and Mines (MEM) 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 for the creation of a new variance account to record pre-development expenses for proposed new hydroelectric projects by OPG.
New hydroelectric assets are complex, long-lived projects and significant pre-development work is required to take these projects from origination of the concept to the initiation of design. If approved, the proposed amendments would allow for the recovery of these expenses from electricity consumers, subject to a review and approval of the prudency of the expenses by the Ontario Energy Board (OEB).
MEM believes that rate regulation could be a cost-effective and transparent mechanism for dealing with the costs associated with advancing pre-development work on new hydroelectric facilities.
The OEB's oversight would provide accountability and transparency because recovery of project costs would require OEB approval and intervenors would be able to participate through a public process.
Analysis of Regulatory Impact:
The proposal is not expected to have a direct impact on compliance costs or benefits. The OEB already has resources allocated to overseeing OPG's expenses. Similarly, OPG already has resources allocated to pre-development activities for new hydroelectric sites.
The primary change for regulated entities, (i.e., OPG), would be the creation of a new variance account to record costs associated with pre-development activities for new hydroelectric facilities. If the amendments were approved and the changes to O. Reg. 53/05 were implemented, recovering these costs would be subject to further approval by the OEB.
The primary change for regulated entities, (i.e., OPG), would be the creation of a new variance account to record costs associated with pre-development activities for new hydroelectric facilities. If the amendments were approved and the changes to O. Reg. 53/05 were implemented, recovering these costs would be subject to further approval by the OEB.
Further Information:
Link to Environmental Registry
Proposal Number:
25-ENDM008
Posting Date:
April 29, 2025
Comments Due Date:
June 13, 2025