This consultation was open from:
November 2, 2023
to December 17, 2023
Decision summary
Proposed regulatory amendments related to the treatment of corporate power purchase agreements (PPAs) were approved and will allow Industrial Conservation Initiative (ICI) participants to reduce their GA charges based on the electricity purchased under the eligible PPA.
Decision details
Regulatory amendments to Ontario Regulation 429/04, made under the Electricity Act, 1998 have been made via an amending regulation that impact the treatment of corporate power purchase agreements (PPAs). The amendments are effective July 1, 2025.
The regulatory amendments will allow Industrial Conservation Initiative (ICI) participants that have an eligible PPA with an eligible non-emitting electricity generator (i.e., defined as a facility generating electricity from wind, solar, hydro, geothermal, biomass, biofuel or biogas) to reduce their Global Adjustment charges based on the electricity purchased under the eligible PPA during the five hours of the year when electricity demand is highest.
The proposal was posted on the Regulatory Registry of Ontario (RRO) and Environmental Registry of Ontario (ERO) for 45 days, from November 2, 2023, to December 17, 2023. Comments received on the proposal were generally supportive. Some stakeholders, via their comments, requested more details regarding the mechanics of the proposal.
Following the initial consultation, the proposal was posted again on the RRO and ERO, for 45 days, from May 7, 2024 to June 21, 2024. The second posting was made for two reasons: First, it included a consultation draft of the proposed regulatory amendments as supporting material, to address the requests for more proposal details. Second, it added a proposed requirement that any new generation projects entering a corporate PPA must obtain a municipal support resolution (MSR) and not be located on prime agricultural land.
Stakeholder comments received from the second posting were generally supportive, and as a result, the final regulatory amendments include both the MSR and prime agricultural land requirements.
Effects of consultation
Stakeholders were generally supportive of the proposal, citing its potential to help consumers manage their electricity costs.
Stakeholders provided input regarding eligible generation technology type (e.g., battery storage), eligible consumer type (e.g., Class B) and the proposed approach for determining the amount of electricity purchased under the PPA.
Stakeholder feedback on specific design considerations helped inform the proposal, including the types of customers and generators that would be eligible.
Supporting materials
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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.
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Contact
Mark Bergman
77 Grenville Street, 7th Floor
Toronto,
ON
M7A 2C1
Canada
Original proposal
Proposal details
The proposed change would require amendments to O. Reg. 429/04, Adjustments Under Section 25.33 of the Act, made under the Electricity Act, 1998, the regulation that prescribes the allocation of Global Adjustment (GA) costs to electricity customers and sets out the rules for the Industrial Conservation Initiative (ICI).
Following the release of the Powering Ontario’s Growth plan released earlier this year, the province is preparing to procure new clean electricity resources to meet the province’s growing energy needs. Earlier this year the province launched its electricity capacity resource procurement.
These proposed amendments aim to support the growth of new clean generation in the province by allowing ICI participants to offset their facility’s demand in the top five peak hours of a base period through power purchase agreements (PPAs) with renewable generation facilities that are not connected behind the facility’s meter. The types of technologies that could be eligible under the proposal may include wind, solar, small hydroelectric (i.e., less than 10 megawatts), biofuel and battery storage.
The proposal would allow qualifying ICI participants to reduce their peak demand factors by offsetting their demand in the five highest demand hours of a base period with certain eligible renewable generation contracted under a PPA. The proposal would be similar to “virtual” net metering arrangements for qualifying ICI participants, whereby the contracted generation would be treated as if it is supplied to the ICI participant behind-the-meter for the purpose of determining GA charges and could, in addition to providing system benefits, enhance industrial competitiveness in the province and support new clean generation. The proposed effective date for the amendments is May 1, 2024.
The proposed regulatory amendments may be subject to change after considering feedback from the Regulatory Registry (RR) posting and stakeholder consultations.
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.
Comment
Commenting is now closed.
This consultation was open from November 2, 2023
to December 17, 2023
Connect with us
Contact
Mathew Peltier
7th floor, 77 Grenville Street
Toronto,
ON
M7A 2C1
Canada
Comments received
Through the registry
34By email
0By mail
0