Public Hearings

Under provincial law, regulated companies are required to make an application to the OEB if they want to change their rates, construct transmission lines and undertake a variety of activities. Refer to the chart below for a complete list.

The OEB acts as an adjudicator and undertakes a public process, which can involve oral and/or written hearings, to review and approve applications. Public processes provide an opportunity for regulated companies (“applicants”) to outline their needs (i.e., make their case) and for individuals or groups of individuals with concerns to express their “voice”. The law gives the OEB responsibility for balancing the interests of all stakeholders – business proprietors, energy consumers, and the public as a whole – and public processes ensure the OEB is well-informed before decisions are made.

We assess applications based on various factors. For example, when reviewing applications for natural gas pipeline construction projects, the OEB considers whether the proposed construction is in the public interest by considering need, safety, economic feasibility, community benefits, security of supply and environmental impact. On an electricity transmission project, the OEB reviews the effect on consumers with respect to prices, reliability and quality of electricity service. The OEB does not have authority to review or approve environmental issues related to electricity transmission. That is the responsibility of the Ontario Ministry of the Environment.

What Requires OEB Approval?

	Electricity Sector	Natural Gas Sector
Licences	A licence from the OEB is required to operate.	Gas marketers selling to low-volume consumers need a licence from the OEB to operate.
Delivery Rates	The law requires that the OEB review rates to be charged for the distribution and transmission (the “delivery”) of electricity and rates that natural gas utilities propose to charge consumers.
Facilities Construction	OEB approval is required to construct or reinforce transmission lines that are to be more than 2 km in length or to expand a transmission line by more than 2 km.	OEB approval is required to construct a major hydrocarbon (including gas) line. OEB approval, in the form of a Certificate of Public Convenience and Necessity, is also required to construct any works to supply gas in a municipality that is not currently served by the utility. Approval is granted where public convenience and necessity support extension of the service.
Storage Facilities	Not applicable.	Natural gas may be injected into a geological formation in Ontario only where the area is designated by the OEB. The OEB decides on areas suitable for designation, with the goal of facilitating rational development and safe operation of gas storage facilities, and authorizes a storage area’s use. The OEB also determines the compensation payable to land owners where storage pools are situated if the parties cannot agree among themselves.
Franchise Agreements	Not applicable.	Each municipality may grant a gas utility the right to deliver gas and use road allowances for utility easements within its border. The specific terms and conditions of the Municipal Franchise Agreement require OEB approval.
Ownership Changes	OEB approval is required: For amalgamations between an electricity distributor and another company; When any person wishes to acquire or hold more than 20% of the voting securities of an electrical utility or where a person wishes to obtain control of any corporation that owns more than 20% of the voting securities of an electrical utility if such voting securities are a significant asset of that corporation; For disposal of electricity transmission and distribution assets; For acquisition of electricity transmission or distribution assets by an electricity generation company or affiliate (notice is required, then the OEB decides whether or not a review is necessary); and For acquisition of electricity generation facilities by an electricity transmission or distribution company or affiliate (notice is required, then the OEB decides whether or not a review is necessary).	A natural gas utility must obtain approval from the OEB: To sell, lease or dispose of its system; To amalgamate with another company; and When any person wishes to acquire or hold more than 20% of the voting securities of a natural gas utility or where a person wishes to obtain control of any corporation that owns more than 20% of the voting securities of a gas utility if such voting securities are a significant asset of that corporation.