Advancing New Hydroelectric Generation in Ontario

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, and work at other new proposed hydroelectric facilities, the Ministry of Energy and Mines (MEM) is considering potential amendments to Ontario Regulation 53/05 (payments under Section 78.1 of the Act) and under the Ontario Energy Board Act, 1998 to allow for the creation of a new variance account to record pre-development expenses for proposed hydroelectric projects by the Ontario Power Generation Inc (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 ultimate approval of the prudency of the expenses by the OEB.

MEM believes that rate regulation could be a cost-effective and transparent mechanism for dealing with the costs associated with advancing predevelopment work on new hydroelectric facilities.

The OEB’s oversight would provide accountability and transparency since recovery of project costs would require OEB approval and intervenors would be able to participate through a public process.

Environmental Impact 

Action is required to ensure that Ontario can continue to harness its clean energy advantage. The proposal could help bring forward new hydroelectric facilities in the province. 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. Funding these works via rate regulation could be a cost-effective and transparent mechanism enabling this work to take place, which in turn makes the commissioning of new hydroelectric facilities more likely.

The proposal is anticipated to have a positive environmental impact by supporting Ontario in harnessing its clean energy advantage and its commitments to reduce greenhouse gas emissions by bringing forward the potential for more clean energy resources to meet the province’s growing energy needs. The funding of pre-development work that the proposal enables could also provide resources for detailed environmental studies and environmental mitigations in the design of new energy assets. The proposed amendments would not change the existing Environmental Assessment process, which will remain the core mechanism by which the environmental costs and risks of electricity infrastructure expansions are evaluated and environmental protections are planned.