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The Green Energy Act, 2009 establishes important responsibilities for the Ontario Energy Board and other entities in achieving the objectives of conservation, promotion of renewable generation, and technological innovation through the smart grid.

The Ontario Energy Board has three new objectives:

  1. The promotion of renewable energy, including the timely connection of renewable energy projects to transmission and distribution systems;

  2. The promotion of conservation and demand management; and

  3. The facilitation of the implementation of a smart grid

The OEB is committed to integrating the objectives in the Green Energy Act with the Board’s traditional mandate around economic efficiency, cost effectiveness, consumer protection, and promotion of public confidence in the sector.

The Board has a number of initiatives underway to facilitate the creation of the clean, green energy supply in Ontario.

 

Green Energy Act Implementation Readiness Program

The OEB has an important role to play in ensuring the government’s objectives in the Green Energy Act are achieved. That includes ensuring that electricity distributors meet the requirements for renewable generation connection, smart grid implementation and conservation and demand management. 

To help distributors prepare for their new obligations, the OEB is planning a number of activities over the coming months. These activities are intended to provide practical information to help electricity distributors prepare and implement their new responsibilities. 

 

 

Infrastructure Development & Planning for Renewable Generation

Setting of a Just and Reasonable Rate to Recover the Costs Associated with Embedded Generators
The Board has commenced a proceeding on its own motion to determine a just and reasonable rate to be charged by an electricity distributor for the recovery of costs associated with an embedded generator having a nameplate capacity of 10kilowatts or less that meets the eligibility requirements of the Ontario Power Authority’s microFIT program.

 

Rate Protection and the Determination of Direct Benefits under Ontario Regulation 330/09 (EB-2009-0349)
The Board has issued a letter to notify all interested parties of the Board’s intent to initiate a consultation process in the coming weeks to address how the Board should, in accordance with the requirements of Ontario Regulation 330/09, determine the direct benefits that accrue to the consumers of a distributor when that distributor has incurred costs to make an eligible investment in its distribution system to accommodate a renewable energy generation facility.

 

The Regulatory Treatment of Infrastructure Investment for Ontario’s Electricity Transmitters and Distributors
The Board is consulting on more innovative approaches to cost recovery for electricity infrastructure projects. Availability of the mechanisms will be associated primarily with investments relating to the accommodation of renewable generation and smart grid development.

 

Completed Initiatives: 

Distribution System Code Amendment (EB-2008-0102)
The Board issued Amendments to the Distribution System Code for simplifying the process for the connection of smaller sized generation facilities.

 

Guidelines for Regulatory and Accounting Treatments for Distributor-Owned Generation Facilities (G-2009-0300)
The Board has issued Guidelines for the regulatory and accounting requirements for electricity distributors that own and operate renewable energy generation.

 

Distribution System Code and Retail Settlement Code Proposed Amendments (EB-2009-0303)
The Board proposes amendments to the Distribution System Code and the Retail Settlement Code. The amendments are being proposed in anticipation of a significant number of renewable generation projects that are anticipated in response to the Ontario Power Authority’s proposed feed-in-tariff program.

 

Distributed Generation Connection Cost Responsibility
The Board is revising its current approach to assigning cost responsibility as between a distributor and a generator in relation to the connection of generation facilities to distribution systems.

 

Distribution Capacity Allocation Reforms
The Board is taking steps to ensure viable generation projects, particularly renewable generation projects, are connected to the distribution system in a timely manner.

 

Transmission System Development: Transmission Connection Cost Responsibility
The Board is taking steps to facilitate the timely connection of clusters of renewable energy projects to the transmission system

 

Distribution Planning & Planning for Smart Grid

Distribution System Planning Guidelines
The Board has issued preliminary guidelines to assist distributors in creating their distribution system plans.

 

 

Conservation & Demand Management

The Board is currently working with the Ministry and the OPA to develop conservation targets and a reporting process for LDCs. More information will be available shortly.

 

 


Related Information

Statement from the Chair: Regulatory Framework for Approval of Investment in Infrastructure by Electricity Transmitters and Distributors (Apr 3-09)

Statement from the Chair: Initiatives to Implement an Integrated Regulatory Framework for Electricity Infrastructure Investment (Jun 1-09)

Speech (Howard I. Wetston, Chair): OEB’s Integrated and Cohesive Regulatory Framework for Electricity Infrastructure Development (Jun 15-09)

Legislation and Regulation:

Bill 150, Green Energy and Green Economy Act, 2009

External Links:

Ministry of Energy and Infrastructure Green Energy Act Information

Ontario Power Authority Feed-in Tariff Program