This consultation was open from:
January 28, 2025
to March 14, 2025
Decision summary
Ontario decided to support Ontario Power Generation (OPG) in retaining readiness to operate the Pickering “B” Nuclear Generating Station post-refurbishment, pending final government and nuclear regulatory approvals.
Decision details
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The decision was made to amend Ontario Regulation 53/05 (O. Reg. 53/05) as of July 1, 2025, to allow OPG to record Pickering station-level and corporate costs that OPG is incurring in the 2024-26 period for retaining the capacity and readiness to operate the Pickering B units 5-8 post-refurbishment. What does this mean? The Ontario Energy Board (OEB) approves the rates that OPG receives for the electricity generated from the Pickering Nuclear Generating Station set by the OEB in accordance with section 78.1 of the Ontario Energy Board Act, 1998 (OEBA) and O. Reg. 53/05 (Payments Under Section 78.1 of the Act) made under that Act. In December 2022, following government support for OPG to operate Pickering “B” units to September 2026 instead of shutting down the units at the end of 2025, O. Reg. 53/05 was amended to create the Pickering “B” Extension Variance Account (PEVA), to allow OPG to record costs and revenues associated with operating Pickering B for the additional period and return any net benefit to ratepayers. Subsequently, in January 2024, the Ontario government announced its support for OPG’s plan to proceed with the Project Initiation Phase of refurbishing Pickering “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. This amendment allows OPG to also record in the PEVA costs that it is incurring for preserving resources and supporting infrastructure to enable potential refurbishment and subsequent operation of the units beyond September 30, 2026 – as these costs were not contemplated when PEVA was originally created. OPG will cease recording such costs in PEVA once the OEB sets new rates for OPG’s nuclear facilities for the next rate period (i.e., 2027-31), through which process the OEB would be able to contemplate recovery of such costs continuing beyond 2026. The OEB will conduct a prudency review of the account balance and determine its disposition in a future rate-setting period. |
Effects of consultation
A total of 11 submissions during the 30-day posting period (i.e., January 28-March 14, 2025).
Three submissions from private individuals expressed concerns over nuclear waste and potential hazards.
Three other submissions from stakeholders expressed concerns about raising costs for ratepayers and the need for more efficiency in future reactor designs.
All feedback received during the consultation period was considered and would note the following in response:
- The amendment is not related to project costs being incurred by OPG for Pickering refurbishment.
- The amendment will preserve OEB’s ability to scrutinize OPG’s costs and ensure that OPG can only recover prudently incurred costs.
- The Pickering refurbishment-related project costs are expected to be recovered once the facility is in operation post-refurbishment.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Grenville Street, 7th Floor
Toronto,
ON
M7A 2C1
Canada
Connect with us
Contact
Constantine Dmitriev
77 Grenville Street, 7th Floor
Toronto,
ON
M7A 2C1
Canada
Original proposal
Proposal details
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 Ontario Regulation 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.
The proposed amendments to the PEVA would have no impact to the environment.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Grenville Street, 7th Floor
Toronto,
ON
M7A 2C1
Canada
Comment
Commenting is now closed.
This consultation was open from January 28, 2025
to March 14, 2025
Connect with us
Contact
Constantine Dmitriev
77 Grenville Street, 7th Floor
Toronto,
ON
M7A 2C1
Canada
Comments received
Through the registry
8By email
0By mail
0