Ontario Charts Its Energy Planning Future With Bill 214

On October 23, 2024, the Ontario government introduced amendments in Bill 214: Affordable Energy Act, 2024 to support its updated electricity resource development and investment policy. The Ministry of Energy and Electrification (Ministry) published the latest version of this policy — Ontario’s Affordable Energy Future: The Pressing Case for More Power — on October 29.

Consistent with its July 2023 Powering Ontario’s Growth plan, the government continues to take an “all-of-the-above” approach to energy planning to meet significant increases in forecasted electricity demand in the coming decades. Focus areas include large-scale nuclear refurbishments and new builds, small modular reactor development, hydroelectricity, storage, energy efficiency programs, transmission expansions and continued use of natural gas in the near term.

Proposed Amendments

The legislative changes proposed in Bill 214 target provisions of Ontario’s Electricity Act, 1998 and the Ontario Energy Board Act, 1998. These amendments mainly seek to hasten regulatory processes for the development of new housing and electrical vehicle charging infrastructure, particularly in anticipated high-growth areas of the province. The proposals include:

• Replacing the former long-term energy plan (LTEP) with a new integrated energy resource plan (IERP). This change is largely the result of the Ministry’s 2022 consultation in reviewing the LTEP framework and the report of the Energy and Electrification Panel released earlier this year. Unlike the LTEP, the IERP will not be submitted to the Ministry by the Ontario Energy Board (and/or the Independent Electricity System Operator). Rather, the Ministry may unilaterally develop an IERP every five years, albeit with mandatory stakeholder consultation and subject to Lieutenant Governor in Council (LGIC) approval. (Electricity Act, sections 1 and 6(1))
• Introducing the authority for the LGIC to make binding regulations specifying changes to the Ontario Energy Board (OEB)’s Transmission System Code (TSC) and Distribution System Code (DSC) relating to cost allocation and cost recovery for the construction, expansion or reinforcement of transmission systems and distribution systems, including connections to those systems. (OEB Act, new section 70.4)
• Introducing the authority for the LGIC to make regulations exempting persons or things from provisions of the TSC and DSC relating to cost allocation or cost recovery, subject to conditions or restrictions the regulations may specify, including other regulations that may apply to the exempted persons or things. (OEB Act, new section 70.5)

Potential Impact

The scope and breadth of these amendments’ impact remain to be seen. The proposed changes effectively give the Ministry unilateral authority to overturn long-standing system codes, rules and requirements established by the OEB often following broader public stakeholder consultation and/or adjudication.

The government’s approach to Bill 214 is consistent with its introduction of Bill 165 earlier this year. Now in force, Bill 165 amended the OEB Act to effectively reverse the OEB’s decision in Enbridge Gas last December.

As its front-end review and decision-making authorities are increasingly displaced, the OEB could increase its compliance and enforcement activities to maintain its status as an independent regulator protecting consumers and delivering value to the people of Ontario.

Comment Period

The province is seeking comments on the proposed amendments (ERO Posting #019-9284, ERO Posting #019-9300) with submissions due November 22, 2024, and December 7, 2024, respectively.

For further information, please contact the author or any other member of our Power or Energy Regulatory groups.