Ontario Regulation 116/23, enacted under the Electricity Act, 1998, introduces several amendments to Ontario Regulation 429/04 concerning adjustments related to electricity distribution. This regulation clarifies and updates definitions pertinent to electricity transactions, particularly in relation to “contracted non-Ontario electricity.” This term refers to electricity supplied to a licensed distributor through power purchase agreements from generation facilities located outside Ontario, without relying on the Independent Electricity System Operator (IESO)-controlled grid or any host distributor’s distribution system. The regulation removes certain subsections and clarifies that the volume of electricity supplied by embedded generators to licensed distributors excludes contracted non-Ontario electricity.

The regulation further revises how the volume of contracted non-Ontario electricity is treated for licensed distributors. Specifically, it mandates adjustments regarding global adjustments related to this type of electricity, ensuring that consumers either directly or indirectly receiving contracted non-Ontario electricity are not negatively impacted financially. For Class B consumers—those who do not have a contract with a retailer utilizing retailer-consolidated billing—distributors must make necessary adjustments to prevent any global adjustment payments or receipts concerning contracted non-Ontario electricity. In cases where consumers are engaged with retailers that use this consolidated billing system, both the distributor and the retailer are responsible for ensuring that global adjustments are managed appropriately.

Additionally, the regulation adds a new section that outlines specific responsibilities for purchasing licensed distributors, particularly concerning the sharing of information necessary for retailers to make adjustments related to contracted non-Ontario electricity. This ensures transparency and accountability in the adjustments made, facilitating the correct billing practices for consumers.

The amendments are Ontario’s ongoing efforts to clarify regulatory frameworks surrounding electricity transactions, especially as the energy landscape evolves with more cross-border electricity exchanges.

Ontario (116/23) June 17, 2023