Bill 35, Energy Competition Act, 1998

Wilson, Hon. Jim Minister of Energy, Science and Technology

Versions

[36] Bill 35 As Amended by Standing Committee (PDF)

B035_E

Bill 35 1998

An Act to create jobs and protect consumers by promoting low-cost energy through competition, to protect the environment, to provide for pensions and to make related amendments to certain Acts

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Electricity Act, 1998

1. (1) The Electricity Act, 1998, as set out in Schedule A, is hereby enacted.

Ontario Energy Board Act, 1998

(2) The Ontario Energy Board Act, 1998, as set out in Schedule B, is hereby enacted.

Toronto District Heating Corporation Act, 1998

(2.1) The Toronto District Heating Corporation Act, 1998, as set out in Schedule B.1, is hereby enacted.

Schedules C and D

(3) Schedules C and D are hereby enacted.

Commencement

2. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2) Each Schedule to this Act comes into force as provided in the commencement section at or near the end of the Schedule.

Short title

3. The short title of this Act is the Energy Competition Act, 1998.

SCHEDULE A

ELECTRICITY ACT, 1998

CONTENTS

Part

III

VII

VIII

XII

General

Independent Electricity Market Operator

The Electricity Markets

Access to Transmission and Distribution Systems

Market Rules

Investigations

Abuse of Market Power

Emergency Plans

Powers of Entry

Property Interests

The Generation Corporation and the Services Corporation

The Financial Corporation

Special Payments

Pension Plans

Electrical Safety Code

Regulations

Transition-Ontario Hydro

Transition-Municipal Electricity Utilities

Commencement and Short Title

Sections

1-2.1

3-24

25-44

25-29

30-34

38, 38.1

39-44

45-50

51-81

82-90

91-104

105

106

107-128

129-148

149, 150

Partie

III

VII

VIII

XII

Dispositions générales

Société indépendante de gestion du marché de l'électricité

Les marchés de l'électricité

Accès aux réseaux de transport et de distribution

Règles du marché

Enquêtes

Abus du pouvoir sur le marché

Plans d'urgence

Pouvoirs d'entrée

Intérêts de propriété

Société de production et Société des services

Société financière

Paiements spéciaux

Régimes de retraite

Code de l'électricité

Règlements

Dispositions transitoires - Ontario Hydro

Dispositions transitoires - services municipaux d'électricité

Entrée en vigueur et titre abrégé

Articles

1-2.1

3-24

25-44

25-29

30-34

38, 38.1

39-44

45-50

51-81

82-90

91-104

105

106

107-128

129-148

149, 150

______________

PART I

GENERAL

Purposes

1. The purposes of this Act are,

(a) to facilitate competition in the generation and sale of electricity and to facilitate a smooth transition to competition;

(b) to provide generators, retailers and consumers with non-discriminatory access to transmission and distribution systems in Ontario;

(d) to promote economic efficiency in the generation, transmission and distribution of electricity;

(e) to ensure that Ontario Hydro's debt is repaid in a prudent manner and that the burden of debt repayment is fairly distributed;

(f) to facilitate the maintenance of a financially viable electricity industry; and

(g) to facilitate energy efficiency and the use of cleaner, more environmentally benign energy sources in a manner consistent with the policies of the Government of Ontario.

Definitions

2. (1) In this Act,

affiliate", with respect to a corporation, has the same meaning as in the Business Corporations Act\; ("membre du même groupe")

ancillary services" means services necessary to maintain the reliability of the IMO-controlled grid, including frequency control, voltage control, reactive power and operating reserve services; ("services accessoires")

Board" means the Ontario Energy Board; ("Commission")

consumer" means a person who uses, for the person's own consumption, electricity that the person did not generate; ("consommateur")

distribute", with respect to electricity, means to convey electricity at voltages of 50 kilovolts or less; ("distribuer")

distribution system" means a system for distributing electricity, and includes any structures, equipment or other things used for that purpose; ("réseau de distribution")

distributor" means a person who owns or operates a distribution system; ("distributeur")

Electrical Safety Authority" means the person or body designated by the regulations as the Electrical Safety Authority; ("Office de la sécurité des installations électriques")

Financial Corporation" means Ontario Hydro Financial Corporation, as continued under Part V; ("Société financière")

generate", with respect to electricity, means to produce electricity or provide ancillary services, other than ancillary services provided by a transmitter or distributor through the operation of a transmission or distribution system; ("produire")

Generation Corporation" means the corporation designated as the Ontario Electricity Generation Corporation under Part IV; ("Société de production")

generation facility" means a facility for generating electricity or providing ancillary services, other than ancillary services provided by a transmitter or distributor through the operation of a transmission or distribution system, and includes any structures, equipment or other things used for that purpose; ("installation de production")

generator" means a person who owns or operates a generation facility; ("producteur")

Governance and Structure By-law" means the by-law made under subsection 15 (2); ("règlement de régie")

IMO" means the Independent Electricity Market Operator established under Part II; ("SIGMÉ")

IMO-administered markets" means the markets established by the market rules; ("marchés administrés par la SIGMÉ")

IMO-controlled grid" means the transmission systems with respect to which, pursuant to agreements, the IMO has authority to direct operations; ("réseau dirigé par la SIGMÉ")

integrated power system" means the IMO-controlled grid and the structures, equipment and other things that connect the IMO-controlled grid with transmission systems and distribution systems in Ontario and transmission systems outside Ontario; ("réseau d'électricité intégré")

licence" means a licence issued under Part V of the Ontario Energy Board Act, 1998\; ("permis")

market participant" means a person who is authorized by the market rules to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid; ("intervenant du marché")

market participant" means a person who is authorized by the market rules to participate in the IMO-administered markets; ("intervenant du marché")

market rules" means the rules made under section 30; ("règles du marché")

Minister" means the Minister of Energy, Science and Technology; ("ministre")

regulations" means the regulations made under this Act; ("règlements")

retail", with respect to electricity, means,

(a) to sell or offer to sell electricity to a consumer,

(b) to act as agent or broker for a retailer with respect to the sale or offering for sale of electricity, or

(c) to act or offer to act as an agent or broker for a consumer with respect to the sale or offering for sale of electricity; ("vendre au détail") "

retailer" means a person who retails electricity; ("détaillant")

service area", with respect to a distributor, means the area in which the distributor is authorized by its licence to distribute electricity; ("secteur de service")

Services Corporation" means the corporation designated as the Ontario Electric Services Corporation under Part IV; ("Société des services")

standards authority" means the North American Electric Reliability Council, any successor thereof, or any other agency or body that recommends standards or criteria relating to the reliability of transmission systems; ("organisme de normalisation")

subsidiary", with respect to a corporation, has the same meaning as in the Business Corporations Act\; ("filiale")

transmission system" means a system for transmitting electricity, and includes any structures, equipment or other things used for that purpose; ("réseau de transport")

transmit", with respect to electricity, means to convey electricity at voltages of more than 50 kilovolts; ("transporter")

transmitter" means a person who owns or operates a transmission system; ("transporteur")

voting security" has the same meaning as in the Business Corporations Act. ("valeur mobilière avec droit de vote")

Determinations of Board

(2) The definitions of "distribute", "distribution system", "distributor", "transmission system", "transmit" and "transmitter" in subsection (1) are subject to any determination made under section 83 of the Ontario Energy Board Act, 1998.

References to Ontario Hydro

(3) Subject to the regulations, a reference in this or any other Act or in the regulations made under this or any other Act to Ontario Hydro shall be deemed, after section 51 comes into force, to be a reference to the Financial Corporation, unless the context requires otherwise.

References to Financial Corporation

(4) A reference in this or any other Act or in the regulations made under this or any other Act to the Financial Corporation shall be deemed, before section 51 comes into force, to be a reference to Ontario Hydro, unless the context requires otherwise.

Public Utilities Act

2.1 This Act applies despite the Public Utilities Act.

PART II

INDEPENDENT ELECTRICITY MARKET OPERATOR

Establishment

3. (1) A corporation without share capital to be known in English as the Independent Electricity Market Operator and in French as Société indépendante de gestion du marché de l'électricité is hereby established.

Composition

(2) The IMO is composed of those persons who, from time to time, comprise its board of directors.

Objects

4. (1) The objects of the IMO are,

(a) to exercise and perform the powers and duties assigned to the IMO under this Act, the market rules and its licence;

(b) to enter into agreements with transmitters giving the IMO authority to direct the operations of their transmission systems;

(c) to direct the operations and maintain the reliability of the IMO-controlled grid to promote the purposes of this Act;

(d) to establish and operate the IMO-administered markets to promote the purposes of this Act;

(e) to collect and provide to the public information relating to the current and future electricity needs of Ontario and the capacity of the integrated power system to meet those needs;

(f) to participate in the development by any standards authority of standards and criteria relating to the reliability of transmission systems;

(g) to work with the responsible authorities outside Ontario to co-ordinate the IMO's activities with their activities.

Not for profit

(2) The business and affairs of the IMO shall be carried on without the purpose of gain and any profits shall be used by the IMO for the purpose of carrying out its objects.

Capacity

(3) The IMO has the capacity and the rights, powers and privileges of a natural person for the purpose of carrying out its objects.

Not Crown agent

5. The IMO is not an agent of Her Majesty for any purpose, despite the Crown Agency Act.

Board of directors

6. (1) The IMO's board of directors shall manage or supervise the management of the IMO's business and affairs.

Composition

(2) The board of directors shall be composed of,

(a) the chief executive officer of the IMO; and

(b) at least 10 and not more than 20 other directors appointed by the Minister in accordance with the regulations.

Term of office

(3) A director appointed under clause (2) (b) shall hold office for a term not exceeding three years.

Reappointment

(4) A director appointed under clause (2) (b) may be reappointed in accordance with the regulations.

Chair

(5) The board of directors shall appoint one of the directors as chair of the board.

Removal from office

(6) The Minister or the board of directors may remove a director from office for cause.

Ceasing to hold office

(7) A director ceases to hold office in the circumstances specified by the Governance and Structure By-law.

Chief executive officer

7. The board of directors of the IMO shall appoint a chief executive officer of the IMO.

Director duties

8. Every director of the IMO shall, in exercising and performing his or her powers and duties,

(a) act honestly and in good faith in the best interests of the IMO; and

(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.

Conflict of interest

9. The directors and officers of the IMO shall comply with the provisions of the Governance and Structure By-law relating to conflict of interest.

Codes of conduct

10. (1) The board of directors of the IMO may establish codes of conduct applicable to the directors, officers, employees and agents of the IMO and to members of panels established by the IMO.

Conflict

(2) Any provision of a code of conduct that conflicts with this Act or the IMO's by-laws is void.

Delegation

11. Subject to the Governance and Structure By-law, the board of directors of the IMO may delegate any of the IMO's powers or duties to a committee of the board, to a panel established by the IMO or to any other person or body, subject to such conditions and restrictions as may be specified by the board of directors.

Panels

12. (1) The board of directors of the IMO shall establish a Market Surveillance Panel and may establish other panels for the purposes of this Act.

Membership: Market Surveillance Panel

(2) The Market Surveillance Panel shall be composed of persons who do not have any material interest in a market participant and who are not directors, officers or employees of the IMO or of a market participant.

Testimony

(3) A member of the Market Surveillance Panel shall not be required in any civil proceeding to give testimony with respect to information obtained in the course of his or her duties as a member of the Panel.

Same

(4) A member of a panel established by the IMO for the purpose of resolving or attempting to resolve a dispute between market participants, or a dispute between one or more market participants and the IMO, shall not be required in any civil proceeding to give testimony with respect to information obtained in the course of resolving or attempting to resolve the dispute.

Staff and assistance

(5) Subject to the by-laws of the IMO, a panel established by the IMO may use the services of the IMO's employees and of other persons who have technical or professional expertise that the panel considers necessary.

Liability

13. (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the IMO, or a member of a panel established by the IMO, for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under this Act, the regulations, the IMO's licence, the IMO's by-laws or the market rules, or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Same

(2) Subsection (1) does not relieve the IMO of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default referred to in subsection (1).

Liability of directors under the Employment Standards Act

14. Part XIV.2 of the Employment Standards Act does not apply to a director of the IMO.

By-laws

15. (1) The board of directors of the IMO may make by-laws regulating the business and affairs of the IMO.

Governance and Structure By-Law

(2) The board of directors shall make a by-law under subsection (1) dealing with matters of corporate governance and structure, including,

(a) the appointment of the chair of the board of directors;

(b) the appointment of the chief executive officer of the IMO;

(c) the filling of vacancies in the board, the removal of directors from office by the board and, for the purpose of subsection 6 (7), circumstances in which a director ceases to hold office;

(d) conflict of interest;

(e) the delegation of the IMO's powers and duties;

(f) the establishment, composition and functions of panels.

Same

(3) The Governance and Structure By-law may be made only with the approval in writing of the Minister.

Amendment or repeal of Governance and Structure By-Law

(4) A by-law that amends or repeals the Governance and Structure By-law shall be filed with the Minister by the board of directors.

Disallowance

(5) The Minister may disallow a by-law to which subsection (4) applies by written notice to the board of directors given within 60 days after the by-law is filed with the Minister.

Effective date

(6) A by-law to which subsection (4) does not apply comes into force on the day it is made or on such later date as may be specified in the by-law.

Same

(7) Subject to subsections (5) and (8), a by-law to which subsection (4) applies comes into force on the earlier of the following dates:

1. The expiry of the 60-day period referred to in subsection (5).

2. The date on which the Minister notifies the board of directors in writing that he or she will not disallow the by-law.

Same

(8) Subject to subsection (5), a by-law to which subsection (4) applies may specify that it comes into force on a date later than the date determined under subsection (7).

Conflict between by-laws

(9) In the event of a conflict between the Governance and Structure By-law and another by-law, the Governance and Structure By-law prevails.

Regulations Act

(10) The Regulations Act does not apply to by-laws made under this section.

Province may purchase securities, etc.

16. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the IMO at such times and on such terms and conditions as the Minister may determine subject to the maximum principal amount and to any other terms and conditions that are specified by the Lieutenant Governor in Council.

Payment from C.R.F.

(2) The Minister of Finance may pay out of the Consolidated Revenue Fund any amount required for the purposes of subsection (1).

Delegation

(3) In an order under subsection (1), the Lieutenant Governor in Council may delegate to an officer or employee of the Crown or an agency of the Crown or to a solicitor engaged to act for the Minister of Finance, any or all of the powers of the Minister of Finance under this section.

Fees payable to Minister of Finance

(4) The IMO shall pay to the Minister of Finance such fees as are prescribed by the regulations in respect of securities purchased and sums loaned under this section.

Fees

17. The IMO may establish and charge fees for anything done in connection with the IMO-controlled grid or the IMO-administered markets.

Review of requirements and fees

18. (1) At least 60 days before the beginning of each fiscal year, the IMO shall submit its proposed expenditure and revenue requirements for the year and the fees it proposes to charge during the year to the Board for review.

Board's powers

(2) The Board may approve the proposed requirements and the proposed fees or may refer them back to the IMO for further consideration with the Board's recommendations.

Changes in fees

(3) The IMO shall not establish, eliminate or change any fees without the approval of the Board.

Hearing

(4) The Board may hold a hearing before exercising its powers under this section, but it is not required to do so.

Auditor

19. The board of directors of the IMO shall appoint one or more auditors licensed under the Public Accountancy Act to audit annually the accounts and transactions of the IMO.

Annual report

20. (1) The IMO shall, within 90 days after the end of every fiscal year, submit to the Minister an annual report on its affairs during that fiscal year, signed by the chair of its board of directors.

Financial statements

(2) The audited financial statements of the IMO shall be included in the annual report.

Tabling

(3) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Other persons

(4) The IMO may give its annual report to other persons before the Minister complies with subsection (3).

Other reports

21. The IMO shall submit such other reports and information to the Minister as he or she may require from time to time.

Information to Board

22. The IMO shall provide the Board with such information as the Board may require from time to time.

Application of other Acts

23. Except as otherwise provided by the regulations, the Corporations Act and the Corporations Information Act do not apply to the IMO.

Statutory Powers Procedure Act

24. The Statutory Powers Procedure Act does not apply to a proceeding before the IMO, its board of directors or any committee, panel, person or body to which a power or duty has been delegated under this Part.

PART III

THE ELECTRICITY MARKETS

Access to Transmission and Distribution Systems

Non-discriminatory access

25. (1) A transmitter or distributor shall provide generators, retailers and consumers with non-discriminatory access to its transmission or distribution systems in Ontario in accordance with its licence.

Same

(2) Until subsection (1) comes into force, a transmitter or distributor prescribed by the regulations shall provide a generator, retailer or consumer prescribed by the regulations with non-discriminatory access to its transmission or distribution systems in Ontario in accordance with its licence.

Previous contracts with Ontario Hydro

(3) Any contract entered into between Ontario Hydro and a municipal corporation or any other person before a regulation is made under section 45 for the supply of electricity to the municipal corporation or other person ceases to have effect on the day subsection (1) comes into force.

Previous contracts with municipal corporation

(4) Any contract entered into between a municipal corporation and any person before a regulation is made under section 45 for the supply of electricity to the person ceases to have effect on the day subsection (1) comes into force.

Low-volume consumers

(5) Subsections (3) and (4) do not apply to a contract for the supply of electricity to a low-volume consumer.

Same

(6) A contract for the sale of electricity between a low-volume consumer and a person who, at the time the contract was entered into, was not authorized under the Ontario Energy Board Act, 1998 to retail electricity ceases to have effect on the date subsection (1) comes into force unless, after the person becomes authorized under the Ontario Energy Board Act, 1998 to retail electricity and before the date subsection (1) comes into force, the low-volume consumer re-affirms the contract in writing.

No cause of action

(7) No cause of action arises as a result of a contract ceasing to have effect under subsection (3), (4) or (6).

Return of prepayment

(8) Despite subsection (7), a person to whom electricity was to be supplied under a contract referred to in subsection (3) or (4), or a low-volume consumer to whom electricity was to be sold under a contract referred to in subsection (6), may recover any amount paid under the contract before the day the contract ceased to have effect in respect of electricity that was to be supplied on or after that day.

Application of subss. (3), (4) and (6)

(9) Subsections (3), (4) and (6) do not apply to contracts prescribed by the regulations.

Definition

(10) In this section, "

low-volume consumer" means a person who annually uses less than the amount of electricity prescribed by the regulations.

Use of IMO-controlled grid

26. A person shall not cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid except in accordance with the market rules.

Distributor's obligation to connect

27. A distributor shall connect a building to its distribution system if,

(a) the building lies along any of the lines of the distributor's distribution system; and

(b) the owner, occupant or other person in charge of the building requests the connection in writing.

Distributor's obligation to sell electricity

28. (1) A distributor shall sell electricity to every person connected to the distributor's distribution system, except a person who advises the distributor in writing that the person does not wish to purchase electricity from the distributor.

Same

(2) If, under subsection (1), a person has advised a distributor that the person does not wish to purchase electricity from the distributor, the person may at any time thereafter request the distributor in writing to sell electricity to the person and the distributor shall comply with the request in accordance with its licence.

Same

(3) If a person connected to a distributor's distribution system purchases electricity from a retailer other than the distributor and the retailer is unable for any reason to sell electricity to the person, the distributor shall sell electricity to the person.

Exemptions

(4) The Board may exempt a distributor from any provision of this section if, after holding a hearing, the Board is satisfied that there is sufficient competition among retailers in the distributor's service area.

Same

(5) An exemption under subsection (4) may be subject to such conditions and restrictions as may be specified by the Board.

Same

(6) The Board shall not exempt a distributor entirely from all the provisions of this section unless, after holding a hearing, the Board is satisfied that consumers in the distributor's service area will continue to have access to electricity.

Allocation during emergencies, etc.

28.1 (1) If the supply of electricity to a distributor is interrupted or reduced as a result of an emergency or a breakdown, repair or extension of a transmission or distribution system, the distributor may allocate the available electricity among the consumers in its service area.

No breach of contract

(2) An allocation of electricity under subsection (1) shall be deemed not to be a breach of any contract.

Termination of service

29. (1) A distributor may shut off the distribution of electricity to a property if any amount payable by a person for the distribution or retail of electricity to the property pursuant to section 28 is overdue.

Notice

(2) A distributor shall provide reasonable notice of the proposed shut off to the person who is responsible for the overdue amount by personal service or prepaid mail or by posting the notice on the property in a conspicuous place.

Recovery of amount

(3) A distributor may recover all amounts payable despite shutting off the distribution of electricity.

Market Rules

Market rules

30. (1) The IMO may make rules,

(a) governing the IMO-controlled grid;

(b) establishing and governing markets related to electricity and ancillary services.

Examples

(2) Without limiting the generality of subsection (1), the market rules may include provisions,

(a) governing the making and publication of market rules;

(a.1) governing the conveying of electricity into, through or out of the IMO-controlled grid and the provision of ancillary services;

(b) governing standards and procedures to be observed in system emergencies; and

(b.1) authorizing and governing the giving of directions by the IMO, including,

(i) for the purpose of maintaining the reliability of electricity service or the IMO-controlled grid, directions requiring persons, within such time as may be specified in the direction, to synchronize, desynchronize, increase, decrease or maintain electrical output, to take such other action as may be specified in the direction or to refrain from such action as may be specified in the direction, and

(ii) other directions requiring market participants, within such time as may be specified in the direction, to take such action or refrain from such action as may be specified in the direction, including action related to a system emergency;

(ii) imposing financial penalties on market participants,

(iii) authorizing a person to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid, or

(iv) terminating, suspending or restricting a person's rights to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid.

General or particular

(3) A market rule may be general or particular in its application.

Regulations Act

(4) The Regulations Act does not apply to the market rules or to any directions or orders made under the market rules.

Publication and inspection of market rules

(5) The IMO shall publish the market rules in accordance with the market rules and shall make the market rules available for public inspection during normal business hours at the offices of the IMO.

Transition

(6) Despite subsections (1) and (5), until a date prescribed by the regulations,

(a) the Minister, instead of the IMO, may make the rules referred to in subsection (1);

(b) the Minister, instead of the IMO, shall publish the market rules; and

Same

(7) A rule made under clause (6) (a) that includes a provision referred to in subclause (2) (c) (ii) or (iv) shall not come into force before the date prescribed for the purposes of subsection (6).

Same

(8) After the date prescribed for the purposes of subsection (6), the IMO may, under subsection (1), amend the rules made under clause (6) (a).

Amendment of market rules

31. (1) The IMO shall, in accordance with the market rules, publish any amendment to the market rules at least 22 days before the amendment comes into force.

Review by Board

(2) On application by any person, the Board shall review any amendment to the market rules.

Time for application

(3) The application must be filed within 21 days after the amendment is published under subsection (1).

Stay of amendment

(4) An application under this section does not stay the operation of the amendment pending the completion of the review unless the Board orders otherwise.

Same

(5) In determining whether to stay the operation of an amendment, the Board shall consider,

(a) the public interest;

(b) the merits of the application;

(d) the balance of convenience.

Order

(6) If, on completion of its review, the Board finds that the amendment is inconsistent with the purposes of this Act or unjustly discriminates against or in favour of a market participant or class of market participants, the Board shall make an order,

(a) revoking the amendment on a date specified by the Board; and

(b) referring the amendment back to the IMO for further consideration.

Urgent amendments

32. (1) Section 31 does not apply if the IMO files a statement with the Board indicating that, in its opinion, an amendment to the market rules is urgently required for one or more of the following reasons:

1. To avoid, reduce the risk of or mitigate the effects of conditions that affect the ability of the integrated power system to function normally.

2. To avoid, reduce the risk of or mitigate the effects of the abuse of market power.

3. To implement standards or criteria of a standards authority.

4. To avoid, reduce the risk of or mitigate the effects of an unintended adverse effect of a market rule.

Publication of urgent amendment

(2) The IMO shall publish the amendment in accordance with the market rules at the same time or as soon as reasonably possible after the statement referred to in subsection (1) is filed.

Review by Board

(3) On application by any person, the Board shall review the amendment.

Time for application

(4) The application must be filed within 21 days after the amendment is published under subsection (2).

Stay of amendment

(5) An application under this section does not stay the operation of the amendment pending the completion of the review.

Referral back to IMO

(a) shall make an order referring the amendment back to the IMO for further consideration; and

(b) may make an order revoking the amendment on a date specified by the Board.

Other reviews of market rules

33. (1) On application by any person, the Board may review any provision of the market rules.

Exception

(2) Subsection (1) does not apply to a provision of the market rules that was reviewed by the Board under section 31 or 32 within the 24 months before the application.

Same

(3) Subsection (1) does not apply to a provision of the market rules that was made under clause 30 (6) (a) if the application is made more than three years after the date prescribed for the purposes of subsection 30 (6).

Restriction

(4) An application shall not be made under this section by a market participant unless the applicant has made use of the provisions of the market rules relating to the review of market rules.

Stay of provision

(5) An application under this section does not stay the operation of the provision pending the completion of the review.

Referral back to IMO

(6) If, on completion of a review under this section, the Board finds that the provision is inconsistent with the purposes of this Act or unjustly discriminates against or in favour of a market participant or class of market participants, the Board shall make an order directing the IMO to amend the market rules in a manner and within the time specified by the Board.

Publication

(7) The IMO shall, in accordance with the market rules, publish any amendment made pursuant to an order under subsection (6).

Further reviews

(8) Sections 31 and 32 do not apply to an amendment made in accordance with an order under subsection (6).

Appeals from orders

34. (1) A person who is subject to an order made under the market rules may appeal the order to the Board if the order,

(a) requires the person to pay a financial penalty or other amount of money that exceeds the amount prescribed by the regulations;

(b) denies the person authorization to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid; or

(c) terminates, suspends or restricts the person's rights to participate in the IMO-administered markets or to cause or permit electricity to be conveyed into, through or out of the IMO-controlled grid.

Other methods of resolution

(2) An appeal shall not be commenced under subsection (1) unless the appellant has made use of the provisions of the market rules relating to dispute resolution.

Time for appeal

(3) The appeal must be filed within the time prescribed by the rules of the Board.

Stay of order

(4) An appeal does not stay the operation of the order pending the determination of the appeal unless the Board orders otherwise.

Same

(5) In determining whether to stay the operation of an order, the Board shall consider,

(a) the public interest;

(b) the merits of the appeal;

(d) the balance of convenience.

Powers of Board

(6) After considering the appeal, the Board may make an order,

(a) dismissing the appeal;

(b) revoking or amending the order appealed from; or

Same

(7) In addition to its powers under subsection (6), the Board may also make an order revoking, suspending or adding or amending a condition of the appellant's licence.

Written hearings

(8) Subsection 21 (3) of the Ontario Energy Board Act, 1998 does not apply to an appeal under this section.

Investigations

Investigations by Market Surveillance Panel

35. (1) The Market Surveillance Panel may investigate any activity related to the IMO-administered markets or the conduct of a market participant.

Request for information

(2) For the purposes of an investigation, the Panel may request any person to provide information relating to the investigation.

Orders of Board

(3) If a market participant or an affiliate of a market participant refuses a request under subsection (2), the Board, on application by the Panel, may order the market participant or affiliate to provide information to the Panel, to permit the Panel to enter the business premises of the market participant or affiliate, and to produce documents for examination by the Panel.

Hearing

(4) The Board may hold a hearing before making an order under subsection (3), but it is not required to do so.

Report and recommendations

(5) On completion of an investigation, the Panel shall prepare a report that may include recommendations for amendments to the market rules or other recommendations.

Same

(6) The Panel shall submit the report to the IMO, the Board and any other person that the Panel considers appropriate.

Information confidential

(7) All information and material furnished to or received or obtained by the Panel or anyone acting on behalf of the Panel in the course of an investigation under this section is confidential.

Same

(8) No person shall otherwise than in the ordinary course of his or her duties communicate any such information or allow access to or inspection of any such material.

Not evidence in proceedings

(9) No document, record or photocopy thereof or any return made in the course of an investigation under this section is admissible in evidence in any proceeding, except a review by the Board under section 36.

Abuse of Market Power

Abuse of market power

36. (1) If the Market Surveillance Panel submits a report to the IMO and the Board under section 35 that contains recommendations relating to the abuse or possible abuse of market power, the IMO shall, within 30 days after receiving the report, inform the Board what action the IMO has taken or intends to take in response to the report.

Review by Board

(2) After receiving the report of the Market Surveillance Panel and after receiving any information provided by the IMO under subsection (1), the Board may conduct a review to determine whether the market rules or the licence of any market participant should be amended.

Minister's directive

(3) If directed to do so by the Minister under section 27 of the Ontario Energy Board Act, 1998, the Board shall, in accordance with the directive, conduct a review to determine whether the market rules or the licence of any market participant should be amended.

Powers of Board

(4) On the completion of a review under subsection (2) or (3), the Board may, for the purpose of avoiding, reducing the risk of or mitigating the effects of an abuse of market power,

(a) amend the licence of any market participant; or

(b) make an order directing the IMO to amend the market rules in a manner and within the time specified by the Board.

Publication

(5) The IMO shall, in accordance with the market rules, publish any amendment made pursuant to an order under clause (4) (b).

Further reviews

(6) Sections 31 and 32 do not apply to an amendment made in accordance with an order under clause (4) (b).

Emergency Plans

Emergency plans

37. (1) The Minister shall require the IMO to prepare and file with the Minister such emergency plans as the Minister considers necessary.

Same

(2) The Minister may require a market participant to prepare and file with the Minister such emergency plans as the Minister considers necessary.

Co-ordination of plans

(3) The IMO shall assist in co-ordinating the preparation of plans under subsections (1) and (2).

Implementation

(4) The Minister may direct the IMO or a market participant to implement an emergency plan filed under subsection (1) or (2), with such changes as the Minister considers necessary.

Nuclear generation facilities

(5) Every generator that owns or operates a nuclear generation facility shall file with the Minister a copy of any emergency plans relating to the facility that are filed with the Canadian Nuclear Safety Commission.

Same

(6) Until section 74 of the Nuclear Safety and Control Act (Canada) comes into force, the reference in subsection (5) to the Canadian Nuclear Safety Commission shall be deemed to be a reference to the Atomic Energy Control Board.

Powers of Entry

Powers of entry

38. (1) A transmitter or distributor may, at reasonable times, enter land on which its transmission or distribution system is located,

(a) to inspect, maintain, repair, alter, remove, replace or disconnect wires or other facilities used to transmit or distribute electricity; or

(b) to install, inspect, read, calibrate, maintain, repair, alter, remove or replace a meter.

Same: multi-unit buildings

(2) If a transmitter or distributor has the necessary consent of an owner or occupant to connect a line of its transmission or distribution system to part of a building and other parts of the building are owned by different owners or are in the possession of different occupants, the transmitter or distributor may, at reasonable times, enter on the other parts of the building to install, construct or maintain its transmission or distribution system, including anything necessary to make the connection.

Same: common passages

(3) If a transmitter or distributor has the necessary consent of an owner or occupant to connect a line of its transmission or distribution system to land and the owner or occupant shares a mutual driveway or other common passage with the owners or occupants of neighbouring land, the transmitter or distributor may, at reasonable times, enter the common passage to install, construct or maintain its transmission or distribution system, including anything necessary to make the connection.

Same: removal of obstructions

(4) A transmitter or distributor may enter any land for the purpose of cutting down or removing trees, branches or other obstructions if, in the opinion of the transmitter or distributor, it is necessary to do so to maintain the safe and reliable operation of its transmission or distribution system.

Shutting off electricity

(5) For the purposes of this section, the transmitter or distributor may shut off or reduce the supply of electricity to the property or connect or disconnect equipment or open or close circuits.

Employees, etc.

(6) If a person has a power of entry under this section, the power may be exercised by an employee or agent of the person who may be accompanied by any other person under the direction of the employee or agent.

Identification

(7) A person exercising a power of entry under this section must on request display or produce proper identification.

Notice, compensation, etc.

(8) If a person exercises a power of entry under this section, the person shall,

(a) provide reasonable notice of the entry to the occupier of the property;

(b) in so far as is practicable, restore the property to its original condition; and

Public streets and highways

38.1 (1) A transmitter or distributor may, over, under or on any public street or highway, construct or install such structures, equipment and other facilities as it considers necessary for the purpose of its transmission or distribution system, including poles and lines.

Inspection, etc.

(2) The transmitter or distributor may inspect, maintain, repair, alter, remove or replace any structure, equipment or facilities constructed or installed under subsection (1) or a predecessor of subsection (1).

Entry

(3) The transmitter or distributor may enter the street or highway at any reasonable time to exercise the powers referred to in subsections (1) and (2).

Employees, etc.

(4) The powers of a transmitter or distributor under subsections (1), (2) and (3) may be exercised by an employee or agent of the transmitter or distributor, who may be accompanied by any other person under the direction of the employee or agent.

No consent required

(5) The exercise of powers under subsections (1), (2) and (3) does not require the consent of the owner of or any other person having an interest in the street or highway.

Identification

(6) A person exercising a power of entry under this section must on request display or produce proper identification.

Notice, compensation, etc.

(7) If a transmitter or distributor exercises a power of entry under this section, it shall,

(a) provide reasonable notice of the entry to the owner or other person having authority over the street or highway;

(b) in so far as is practicable, restore the street or highway to its original condition; and

No compensation

(8) Subject to clause (7) (c), the transmitter or distributor is not required to pay any compensation in order to exercise its powers under subsections (1), (2) and (3), and the Expropriations Act does not apply in respect of anything done pursuant to those powers.

Location

(9) The location of any structures, equipment or facilities constructed or installed under subsection (1) shall be agreed on by the transmitter or distributor and the owner of the street or highway, and in case of disagreement shall be determined by the Board.

Application of subs. (9)

(10) Subsection (9) does not apply if section 91 of the Ontario Energy Board Act, 1998 applies.

Property Interests

Telecommunications services

39. (1) If part of a transmission or distribution system is located on land with respect to which the transmitter or distributor has an easement or other right to use the land, the transmitter or distributor may,

(a) use the land that is subject to the easement or other right for the purpose of providing telecommunications service; or

(b) enter into agreements with other persons, including affiliates of the transmitter or distributor, authorizing them to use the land that is subject to the easement or other right for the purpose of providing telecommunications service.

Same

(2) Subject to subsection (2.1), subsection (1) applies despite any other Act and despite any agreement or instrument to the contrary.

Same

(2.1) Clause (1) (a) is subject to section 70 of the Ontario Energy Board Act, 1998.

No compensation

(2.2) The transmitter or distributor is not required to pay any compensation for attaching wires or other telecommunications facilities to a transmission or distribution pole pursuant to clause (1) (a).

Same

(2.3) A person who is authorized to use land pursuant to an agreement entered into under clause (1) (b) is not required to pay any compensation, other than compensation provided for in the agreement, for attaching wires or other telecommunications facilities to a transmission or distribution pole pursuant to the agreement.

Definition

(3) In this section, "

telecommunications service" has the same meaning as in the Telecommunications Act (Canada).

Easement over lands sold for taxes: transmitters and distributors

40. (1) Despite any other Act, if land that was or is subject to easements, ways, rights of way or entry, licences or rights to maintain property thereon, owned by or belonging to a transmitter or distributor, has been or is sold for taxes, or in respect of which a tax arrears certificate has been or is registered, such easements, ways, rights of way or entry, licences, or rights to maintain property shall be deemed not to have been or be affected by the sale or registration.

Same: generators

(2) Despite any other Act, if land that was or is subject to flooding rights owned by or belonging to a generator has been or is sold for taxes, or in respect of which a tax arrears certificate has been or is registered, such flooding rights shall be deemed not to have been or be affected by the sale or registration.

Ownership of fixtures

41. Despite any other Act, if property of a transmitter or distributor has been affixed to realty, the property remains subject to the rights of the transmitter or distributor as fully as it was before being so affixed and does not become part of the realty unless otherwise agreed by the transmitter or distributor in writing.

Exemption from seizure

42. Personal property of a transmitter or distributor that is used for or in connection with transmitting or distributing electricity to land is exempt from seizure,

(a) against the owner or occupant of the land under the Execution Act\; and

(b) against a person with a leasehold interest in the land for overdue rent.

Unregistered rights

43. (1) If, immediately before the repeal of section 48 of the Power Corporation Act under the Energy Competition Act, 1998, land was subject to a right referred to in subsection 48 (2) or (3) of the Power Corporation Act, the land continues to be subject to the right until the right expires or until it is released by the holder of the right.

Transfer of right

(2) A right referred to in subsection (1) may be transferred to,

(a) the Generation Corporation;

(b) the Services Corporation;

(d) a corporation established pursuant to section 130 that is authorized to transmit or distribute electricity; or

(e) a subsidiary of a corporation established pursuant to section 130, if the subsidiary is authorized to transmit or distribute electricity.

Information

(3) On the request of the owner of land or a person intending to acquire an interest in land, the holder of a right referred to in subsection (1) shall make a search of its records and, within 21 days after receiving the request, shall inform the owner or person whether or not it has a right affecting the land that is not registered under the Land Titles Act or the Registry Act and, if it has such a right, shall also inform the owner or person of the term and extent of the right.

Compensation

(4) A person who suffers loss or damage due to the failure of the holder of a right to comply with subsection (3) is entitled to compensation for the loss or damage from the holder of the right.

Application of Expropriations Act

(5) The Expropriations Act applies with necessary modifications to a claim for compensation under subsection (4) as if it constituted injurious affection and, for the purpose,

(a) a reference to the statutory authority shall be deemed to be a reference to the holder of the right; and

(b) a reference to the owner shall be deemed to be a reference to the person mentioned in subsection (4).

Affixing signs, etc.

44. Every person who, without the consent of a transmitter or distributor, nails or otherwise attaches anything, or causes anything to be nailed or otherwise attached to or upon any wooden transmission or distribution pole of the transmitter or distributor is guilty of an offence and on conviction is liable to a fine of not more than $200.

PART IV

THE GENERATION CORPORATION AND THE SERVICES CORPORATION

Incorporation

45. (1) The Lieutenant Governor in Council may cause two corporations to be incorporated under the Business Corporations Act and shares in those corporations may be acquired and held in the name of Her Majesty in right of Ontario by a member of the Executive Council designated by the Lieutenant Governor in Council.

Regulations: designation of corporations

(2) The Lieutenant Governor in Council may make regulations,

(a) designating one of the corporations incorporated pursuant to subsection (1) as the Ontario Electricity Generation Corporation for the purposes of this Act;

(b) designating the other corporation incorporated pursuant to subsection (1) as the Ontario Electric Services Corporation for the purposes of this Act.

Restriction on designation

(3) No corporation shall be designated under subsection (2) unless, at the time of the designation, all voting securities of the corporation are held by or on behalf of Her Majesty in right of Ontario or an agent of Her Majesty in right of Ontario.

Objects of Generation Corporation

46. The objects of the Generation Corporation include, in addition to any other objects, owning and operating generation facilities.

Objects of Services Corporation

47. (1) The objects of the Services Corporation include, in addition to any other objects, owning and operating transmission systems and distribution systems through one or more subsidiaries of the Corporation.

Subsidiaries

(2) The Services Corporation shall not own or operate transmission systems or distribution systems in Ontario except through one or more subsidiaries of the Corporation.

Same

(3) A subsidiary of the Services Corporation shall not transmit or distribute electricity in Ontario if it transmits or distributes electricity outside Ontario.

Same

(4) A subsidiary of the Services Corporation that owns or operates a transmission system or distribution system in Ontario shall not engage in any activities other than transmitting or distributing electricity.

Not Crown agents

48. The Generation Corporation, the Services Corporation and their subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.

Annual reports

49. (1) The Generation Corporation and the Services Corporation shall each, within 90 days after the end of every fiscal year, submit to the Minister an annual report on the Corporation's affairs during that fiscal year, signed by the chair of the Corporation's board of directors.

Tabling

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Other persons

(3) The Generation Corporation and the Services Corporation may give their annual reports to other persons before the Minister complies with subsection (2).

Other reports

50. The Generation Corporation and the Services Corporation shall submit such other reports and information to the Minister of Energy, Science and Technology or the Minister of Finance as each of those ministers may require from time to time.

PART V

THE FINANCIAL CORPORATION

Continuation

51. (1) Ontario Hydro is continued as a corporation without share capital under the name Ontario Hydro Financial Corporation in English and Société financière Ontario Hydro in French.

Regulations

(2) The Lieutenant Governor in Council may make regulations changing the name of the Financial Corporation.

Same

(3) Despite subsection 2 (3) but subject to the regulations if a regulation is made changing the name of the Financial Corporation, a reference in this or any other Act or in the regulations made under this or any other Act to Ontario Hydro or to the Financial Corporation shall be deemed to be a reference to the new name, unless the context requires otherwise.

Rights to Ontario Hydro name

(4) Despite subsections (1) and (2) but subject to any transfer order made under Part X, the Financial Corporation retains all rights to the name Ontario Hydro.

Composition

(5) The Financial Corporation is composed of those persons who, from time to time, comprise its board of directors.

Objects

52. (1) The objects of the Financial Corporation include, in addition to any other objects,

(a) managing its debt;

(b) receiving payments made to the Financial Corporation under this Act or pursuant to any other authority;

(c) administering assets, liabilities, rights and obligations of the Financial Corporation that are not transferred to another person under Part X and disposing of any of those remaining assets, liabilities, rights and obligations as it considers appropriate or as the Minister of Finance directs under section 68;

(c.1) exercising and performing powers and duties under Part VII;

(c.2) effecting financings, including establishing trusts, corporations, partnerships or other entities for that purpose; and

(d) such other objects as may be specified by the Lieutenant Governor in Council.

Managing debt

(2) For the purpose of this section, managing the Financial Corporation's debt includes,

(a) servicing and retiring debt;

(b) borrowing, including refinancing, renewing or replacing debt;

(d) managing financial assets, financial liabilities and financial risks.

Capacity

(3) The Financial Corporation has the capacity and the rights, powers and privileges of a natural person, subject to the limitations set out in this Act.

Crown agent

53. The Financial Corporation is an agent of Her Majesty for all purposes.

Property interests belonging to the Crown

53.1 (1) Any interest of the Financial Corporation in real property that is not transferred under Part X belongs to Her Majesty in right of Ontario.

Financial Corporation may administer and dispose

(2) The Financial Corporation may administer, deal with and dispose of any interest referred to in subsection (1) as the agent of Her Majesty in right of Ontario and section 58 applies to any revenues received by the Financial Corporation in that capacity.

Rights under s. 43

(3) For the purpose of this section, an interest in real property includes a right referred to in subsection 43 (1).

Board of directors

54. (1) The Financial Corporation's board of directors shall manage or supervise the management of the Corporation's business and affairs.

Composition

(2) The board of directors shall be composed of at least two and not more than 12 directors appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance.

Term of office

(3) A director shall hold office at pleasure for a term not exceeding three years and may be reappointed for successive terms not exceeding three years each.

Chair

(4) The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, shall designate one of the directors as the chair of the board of directors.

Vice-chairs

(5) The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may designate one or more of the directors as a vice-chair of the board of directors.

Powers and duties of vice-chair

(6) If the office of chair is vacant or if the chair is absent or unable to act, a vice-chair shall exercise the powers and perform the duties of the chair.

Former directors cease to hold office

(7) A person who was a member of the board of directors immediately before subsection (2) comes into force ceases to be a member of the board of directors when subsection (2) comes into force, but nothing in this subsection prevents the person from being reappointed.

Chief executive officer

55. The Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may appoint a chief executive officer of the Financial Corporation.

Delegation

56. (1) Subject to its by-laws, the board of directors of the Financial Corporation may delegate any of its powers or duties to a committee of the board or to any one or more of the directors, subject to such conditions and restrictions as may be specified by the board of directors.

Exceptions

(2) Subsection (1) does not permit the board of directors to delegate its power to make by-laws or to approve the financial statements or annual report of the Financial Corporation.

By-laws

57. (1) The board of directors of the Financial Corporation may make by-laws regulating the business and affairs of the Corporation.

Approval

(2) A by-law is not effective unless it has been approved in writing by the Minister of Finance.

Investment powers

(3) The power of the Financial Corporation to borrow, invest funds and manage financial risks may only be exercised under the authority of a by-law.

Regulations Act

(4) The Regulations Act does not apply to by-laws made under this section.

Use of revenues

58. Despite the Financial Administration Act, the revenues received by the Financial Corporation do not form part of the Consolidated Revenue Fund and shall be used by the Corporation for the purpose of carrying out its objects.

Special purpose account

59. (1) If the Lieutenant Governor in Council authorizes Her Majesty in right of Ontario to assume obligations under clause 112 (1) (a), the Minister of Finance shall establish a special purpose account in the Consolidated Revenue Fund for the purposes of this section.

Dividends

(2) Dividends paid to Her Majesty in right of Ontario in respect of shares of the Generation Corporation and the Services Corporation shall be paid into the account, less any amount that the Minister of Finance considers is required to pay obligations assumed by Her Majesty under clause 112 (1) (a).

Payment to Financial Corporation

(3) Money paid into the account shall be paid out, at such times as the Minister of Finance may direct, to the Financial Corporation.

Closure of account

(4) Before this Part is repealed under section 81, the special purpose account shall be closed and any money remaining in the special purpose account shall be paid out to the Financial Corporation.

Corporations to hold shares

59.1 (1) The Lieutenant Governor in Council may cause corporations to be incorporated under the Business Corporations Act for the purpose of acquiring and holding shares in the Generation Corporation and the Services Corporation.

Same

(2) Shares in a corporation incorporated pursuant to subsection (1) may be acquired and held in the name of Her Majesty in right of Ontario by a member of the Executive Council designated by the Lieutenant Governor in Council.

Crown agent

(3) A corporation incorporated pursuant to subsection (1) is an agent of Her Majesty for all purposes.

Dividends paid to Crown agent

(4) If an agent of Her Majesty in right of Ontario is paid dividends in respect of shares of the Generation Corporation or the Services Corporation, the agent shall pay the dividends to the Financial Corporation, less any amount that it considers is required to pay obligations it has assumed under clause 112 (1) (a).

Limitation on borrowing

60. The Financial Corporation shall not borrow money except as authorized under this or any other Act.

Authorization to borrow

61. (1) The Lieutenant Governor in Council may by order authorize the Financial Corporation to borrow such sums of money as the Corporation considers necessary for the purpose of carrying out its objects.

Methods of borrowing

(2) The Financial Corporation may exercise the authority referred to in subsection (1) by the issuance of notes, bonds, debentures, deposit receipts, securities or other evidences of indebtedness, by giving short term security, by loan agreement or in any other manner approved by the Lieutenant Governor in Council.

Approval by Minister of Finance

(3) The Lieutenant Governor in Council may authorize the Minister of Finance to approve the terms and conditions of the exercise by the Financial Corporation of the authority referred to in subsection (1), subject to the maximum principal amount and to any other terms and conditions that are specified by the Lieutenant Governor in Council.

Short term securities

(4) If an order of the Lieutenant Governor in Council under subsection (1) expressly refers to this subsection and authorizes the Financial Corporation to borrow a maximum principal amount of money by the issue and sale of short term securities during a specified period not exceeding 25 years, the following terms and conditions apply:

1. Throughout the specified period, the Financial Corporation may issue, reissue, renew or replace securities issued under the order during the period if the maximum aggregate principal amount of the securities issued under the order and outstanding from time to time does not at any time exceed the maximum principal amount specified in the order.

2. Every security issued under the authority of the order shall bear a date of maturity not later than five years from its date of issue.

Loans

(5) If an order of the Lieutenant Governor in Council under subsection (1) expressly refers to this subsection and authorizes the Financial Corporation to borrow a maximum principal amount of money for a period not exceeding five years from any bank, corporation, government, person or authority, the Financial Corporation may borrow from time to time such sums not exceeding at any one time the maximum principal amount specified by the Lieutenant Governor in Council.

Application

(6) This section does not apply to money borrowed by the Financial Corporation pursuant to section 62 or 63.

Province may purchase securities, etc.

62. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the Financial Corporation at such times and on such terms and conditions as the Minister may determine, subject to,

(a) the maximum principal amount specified by the Lieutenant Governor in Council that may be purchased or advanced or that may be outstanding at any time; and

(b) any other terms and conditions that are specified by the Lieutenant Governor in Council.

Payment from C.R.F.

(2) The Minister of Finance may pay out of the Consolidated Revenue Fund any amount required for the purposes of subsection (1).

Province may raise funds

63. The Lieutenant Governor in Council may raise by way of loan in the manner provided by the Financial Administration Act such sums as the Lieutenant Governor in Council considers necessary for the purposes of the Financial Corporation, and the sums so raised shall be used to make advances to the Corporation by way of loan or to purchase securities issued by the Corporation on such terms and conditions as the Minister of Finance may determine.

Guarantee and indemnity

64. (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance, on behalf of Ontario, to agree to guarantee or indemnify,

(a) any debts, obligations, securities or undertakings of the Financial Corporation or a subsidiary of the Financial Corporation; or

(b) any debts, obligations, costs or undertakings of any other person arising in connection with a guarantee or indemnity given under clause (a).

Terms and conditions

(2) In respect of a guarantee or indemnity authorized under subsection (1), the Lieutenant Governor in Council may fix such terms and conditions as are considered advisable or may authorize the Minister of Finance, subject to any maximum liability specified for the guarantee or indemnity by the Lieutenant Governor in Council, to determine the terms, conditions and amount on which the guarantee or indemnity will be given.

Delegation

65. In an order under section 61, 62, 63 or 64, the Lieutenant Governor in Council may delegate to an officer or employee of the Crown or an agency of the Crown or to a solicitor engaged to act for the Minister of Finance, any or all of the powers of the Minister of Finance under that section.

Fees payable to Minister of Finance

66. (1) The Financial Corporation shall pay to the Minister of Finance such fees as are prescribed by the regulations,

(a) in respect of securities purchased and sums loaned under section 62;

(b) in respect of sums advanced or securities purchased under section 63; and

Application

(2) Subsection (1) applies in respect of sums advanced or applied and guarantees and indemnities given before or after the coming into force of this section.

Subsidiaries

67. (1) The Financial Corporation may establish a subsidiary in Ontario or elsewhere only with the approval of the Minister of Finance.

Subsidiary may act otherwise than as agent of Crown

(2) A subsidiary of the Financial Corporation may declare in writing in any of its contracts, securities or instruments that it is not acting as an agent of Her Majesty for the purposes of the contract, security or instrument.

Same

(3) If a subsidiary makes a declaration in accordance with subsection (2), it shall be deemed not to be an agent of Her Majesty for the purposes of the contract, security or instrument and Her Majesty is not liable for any liability or obligation of the subsidiary under the contract, security or instrument.

Entities established for effecting financing

67.1 In addition to the restriction in subsection 67 (1) on establishing subsidiaries, the Financial Corporation may establish a trust, partnership or other entity in Ontario or elsewhere for the purpose of effecting a financing only with the approval of the Minister of Finance.

Directives

68. (1) The Minister of Finance may issue directives in writing to the Financial Corporation or any subsidiary of the Financial Corporation on matters relating to its exercise of powers and duties.

Implementation

(2) The board of directors of the Financial Corporation or subsidiary shall ensure that directives under this section are implemented promptly and efficiently.

Supervision

(3) A directive may, without limiting the generality of subsection (1), provide for the supervision, management and operation of the whole or any part of the business and affairs of the Financial Corporation or subsidiary by the Ontario Financing Authority or such other agency of the Crown as may be specified in the directive and may restrict, in whole or in part, the powers of the directors of the Financial Corporation or subsidiary to manage or supervise the management of the business and affairs of the Financial Corporation or subsidiary.

Same

(4) An agency of the Crown specified in a directive referred to in subsection (3) has all the rights, powers, duties and liabilities of the board of directors of the Financial Corporation or subsidiary to the extent that the directive restricts the powers of the board of directors to manage or supervise the management of the business and affairs of the Financial Corporation or subsidiary and the directors of the Financial Corporation or subsidiary are relieved of their duties and liabilities to the same extent.

Same

(5) Without limiting the powers and capacities of the Ontario Financing Authority, its objects shall include any activities described in a directive applicable to it under subsection (3).

Subsidiaries

(6) Subsection (1) does not apply in respect of a contract, security or instrument with respect to which a subsidiary of the Financial Corporation has made a declaration in accordance with subsection 67 (2).

Evidence of authority

69. A recital or declaration in any resolution of the Financial Corporation that a transaction is for the purpose of carrying out the Corporation's objects is conclusive evidence to that effect.

Employees

70. (1) Without limiting the power of the Financial Corporation to hire employees, employees may be appointed or transferred to the Corporation under the Public Service Act.

Same

(2) The chief executive officer of the Financial Corporation has the powers of a deputy minister and the chair of the board of directors has the powers of a minister under the Public Service Act with respect to the employees of the Corporation to whom that Act applies.

Agreements to provide services

(3) Any minister of the Crown may enter into agreements with the Financial Corporation for the provision by employees of the Crown or any agency of the Crown of any service required by the Corporation.

Liability

71. (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Financial Corporation or a subsidiary of the Financial Corporation, or of an agency of the Crown specified in a directive referred to in subsection 68 (3), for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under this Act, the regulations or the by-laws of the Corporation or subsidiary, or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Declaration under subs. 67 (2)

(1.1) Subsection (1) does not apply to any act, neglect or default in respect of a contract, security or instrument with respect to which a subsidiary of the Financial Corporation has made a declaration in accordance with subsection 67 (2).

Actions against Crown

(2) No action or other civil proceeding shall be commenced against the Crown for any act, neglect or default by a person referred to in subsection (1) or for any act, neglect or default of the Financial Corporation, a subsidiary of the Financial Corporation or an agency of the Crown specified in a directive referred to in subsection 68 (3).

Same

(3) Subsections (1) and (2) do not relieve the Financial Corporation, a subsidiary of the Financial Corporation or an agency of the Crown specified in a directive referred to in subsection 68 (3) of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default referred to in subsection (1).

Same

(4) Subsection (2) does not relieve the Crown of any liability pursuant to a guarantee or indemnity under section 64 or a guarantee referred to in clause 119 (a).

Definition

(5) In this section, "

employee" includes an employee employed under the Public Service Act.

Waiver of immunity

72. The Financial Corporation or any of its subsidiaries may waive any immunity to which it may be entitled outside Ontario as an agent of Her Majesty and may submit to the jurisdiction of a court outside Ontario.

Judgments against Financial Corporation

73. (1) The Minister of Finance shall pay from the Consolidated Revenue Fund the amount of any judgment against the Financial Corporation or a subsidiary of the Corporation that remains unpaid after it has made reasonable efforts, including liquidating its assets, to pay the amount of the judgment.

Application

(2) Subsection (1) does not apply to a judgment in respect of a matter that arose before this section comes into force.

Subsidiaries

(3) Subsection (1) does not apply to a judgment arising from a contract, security or instrument in respect of which a subsidiary has made a declaration in accordance with subsection 67 (2).

Audits

74. The accounts and financial transactions of the Financial Corporation shall be audited annually by the Provincial Auditor.

Annual report

75. (1) The Financial Corporation shall, within 90 days after the end of every fiscal year, submit to the Minister of Finance an annual report on its affairs during that fiscal year, signed by the chair of its board of directors.

Financial statements

(2) The audited financial statements of the Financial Corporation shall be included in the annual report.

Tabling

(3) The Minister of Finance shall submit the annual report to the Lieutenant Governor in Council and shall then table the report in the Assembly.

Other persons

(4) The Financial Corporation may give its annual report to other persons before the Minister of Finance complies with subsection (3).

Other reports

76. The Financial Corporation shall submit such other reports and information to the Minister of Finance as he or she may require from time to time.

Application of other Acts

77. Except as otherwise provided by the regulations, the Corporations Act and the Corporations Information Act do not apply to the Financial Corporation.

Tax exemption

78. (1) Despite the Assessment Act or any other general or special Act, the Financial Corporation and its property are not subject to taxation for municipal or school purposes, except for local improvements.

Annual payments to municipalities

(2) The Financial Corporation shall pay in each year to any municipality in which are situated lands owned by the Financial Corporation or buildings used exclusively for executive, administrative or commercial purposes and owned by the Financial Corporation or buildings owned by the Financial Corporation and rented by it to other persons, an amount equal to the taxes for municipal and school purposes that would be payable if the lands and buildings were taxable.

Same

(3) In addition to the amounts payable under subsection (2), the Financial Corporation shall pay in each year to any municipality in which are situated generating station buildings or structures or transformer station buildings or structures owned by the Financial Corporation, an amount equal to the taxes for municipal and school purposes that would be payable if the buildings or structures were taxable and the assessed value were determined on the basis of $86.11 for each square metre of inside ground floor area of the actual building or structure housing the generating, transforming and auxiliary equipment and machinery.

Same

(4) In addition to the amounts payable under subsections (2) and (3), the Financial Corporation shall pay in each year, to any municipality in which land owned by it and described in paragraph 2 of subsection 368.3 (1) of the Municipal Act is situated, an amount equal to the tax that would be imposed under section 368.3 of the Municipal Act on that land if the land were taxable.

Same

(5) The Financial Corporation shall pay in each year to any municipality in which is situated land owned by it and used as a transmission or distribution corridor and leased to another person for rent or other valuable consideration, an amount equal to the taxes for municipal and school purposes that would be payable if the land were taxable and subsection (2) does not apply with respect to the land.

Limitation

(6) Despite subsections (2) and (3), the total amount payable thereunder by the Financial Corporation to any municipality in any year shall not exceed 50 per cent of the total of the amounts required for the purposes of the municipality and of all of its local boards being raised by the imposition, rating and levying of all rates, assessments and taxation, except local improvement rates, upon rateable property in the municipality in that year.

Use of valuations for computing rates

(7) The valuations made under this section shall be used for the purpose of computing county rates, school rates and legislative grants in all respects as though the properties valued were not exempt from taxation for such purposes.

Valuation

(8) The assessments and assessed values referred to in this section are valuations made in each year for the purposes of this section by the Ontario Property Assessment Corporation, and subject to subsections (2), (3) and (14), the valuation shall be made on the same basis as real property liable to municipal taxation in the municipality.

Minister of Finance's decision

(9) The decision of the Minister of Finance as to whether this section applies to any property of the Financial Corporation is final.

Valuation notice

(10) The Ontario Property Assessment Corporation shall, on completion of the valuation of the Financial Corporation's property in a municipality, deliver or mail to the clerk of the municipality and to the Financial Corporation a notice setting out the valuations referred to in subsection (8).

Appeals

(11) The municipality or the Financial Corporation may appeal to the Assessment Review Board against the valuation and a notice of appeal to the Board under this subsection shall be sent by the party appealing, by registered mail, to the secretary of the Board within 90 days after the notice of the valuation has been delivered or mailed under subsection (10).

Hearing

(12) Upon receipt of a notice of appeal under this section, the secretary of the Assessment Review Board shall arrange a time and place for hearing the appeal and shall send notice thereof to all parties concerned in the appeal at least 14 days before the hearing.

Jurisdiction on appeal

(13) The Assessment Review Board upon appeal shall determine the amount at which the property in question shall be valued and its decision is final and binding and there is no appeal therefrom.

Exemptions

(14) In making the valuations referred to in subsection (8), there shall be no value included for machinery whether fixed or not nor for the foundation on which it rests, works, structures other than buildings or structures referred to in subsection (2) or (3), substructures, superstructures, rails, ties, poles, towers, lines nor any of the things excepted from exemption from taxation by paragraph 17 of section 3 of the Assessment Act, nor for other property, works or improvements not referred to in subsection (2) or (3), nor for an easement or the right or use of occupation or other interest in land not owned by the Financial Corporation.

Ontario Property Assessment Corporation

(15) Until section 9 of the Ontario Property Assessment Corporation Act, 1997 comes into force, the references to the Ontario Property Assessment Corporation in subsections (8) and (10) shall be deemed to be references to the Ministry of Finance.

Definitions

79. (1) In this section,

residual stranded debt" means the stranded debt, reduced by,

(a) the amounts that, in the opinion of the Minister of Finance, will be paid under sections 83, 84, 85, 86, 87 and 88, and

(b) other amounts prescribed by the regulations; ("reliquat de la dette insurmontable") "

stranded debt" means the amount of the debts and other liabilities of the Financial Corporation that, in the opinion of the Minister of Finance, cannot reasonably be serviced and retired in a competitive electricity market. ("dette insurmontable")

Determinations

(2) The Minister of Finance shall determine the stranded debt and shall from time to time determine the residual stranded debt in accordance with the regulations.

Reporting

(3) The determinations made by the Minister under subsection (2) shall be subject to such reporting requirements as are prescribed by the regulations.

Competition transition charge: generators

(4) After a date prescribed by the regulations, every generator shall pay a charge to the Financial Corporation in respect of the electricity generated in Ontario by the generator.

Competition transition charge: consumers

(5) After a date prescribed by the regulations, every consumer shall pay a charge to the Financial Corporation in respect of the electricity used in Ontario by the consumer.

Retirement of residual stranded debt

(6) When the Minister of Finance determines that the residual stranded debt has been retired, the Minister of Finance shall publish notice of that fact in The Ontario Gazette.

Determination final

(7) The determination of the Minister of Finance that the residual stranded debt has been retired is final and conclusive and shall not be stayed, varied or set aside by any court.

Application

(8) Subsections (2) to (6) do not apply after the Minister of Finance publishes notice under subsection (6) that the residual stranded debt has been retired.

Regulations

80. (1) The Lieutenant Governor in Council may make regulations,

(a) respecting the calculation of the fees referred to in subsection 66 (1) and respecting the manner in which, and the time at which, they are to be paid;

(b) prescribing provisions of the Business Corporations Act, the Corporations Act or the Corporations Information Act that apply, with necessary modifications, to the Financial Corporation;

(c) prescribing other amounts for the purpose of clause (b) of the definition of "residual stranded debt" in subsection 79 (1);

(d) governing determinations of the stranded debt and the residual stranded debt for the purpose of section 79, including the time period over which the residual stranded debt should be retired, and prescribing reporting requirements applicable to the determinations;

(e) prescribing dates for the purpose of subsections 79 (4) and (5);

(f) prescribing methods for determining the amount of a charge under subsection 79 (4) or (5);

(g) governing the collection of charges under subsections 79 (4) and (5);

(h) requiring charges under subsections 79 (4) and (5) to be paid in instalments, prescribing the times when the charges or instalments are required to be paid and requiring the payment of interest or penalties on late payments;

(i) prescribing procedures that must be followed in connection with charges under subsections 79 (4) and (5);

(j) prescribing methods of ensuring that charges under subsections 79 (4) and (5) cannot be bypassed;

(k) exempting persons or classes of persons from subsection 79 (4) or (5), subject to such conditions or restrictions as may be specified in the regulations, including exempting a generator from subsection 79 (4) in respect of electricity sold by the generator to a retailer or consumer;

(l) respecting any other matter that the Minister of Finance considers necessary or advisable in connection with section 79.

General or particular

(2) A regulation made under this section may be general or particular in its application.

Repeal

81. (1) This Part is repealed on a day to be named by proclamation of the Lieutenant Governor.

Dissolution of Financial Corporation

(2) On the day this Part is repealed, the Financial Corporation is dissolved and its assets and liabilities are transferred to Her Majesty in right of Ontario.

Restriction on proclamation

(3) No proclamation shall be issued under this section unless, in the opinion of the Minister of Finance, substantially all the debts and other liabilities of the Financial Corporation have been retired or defeased.

Determination final

(4) The determination of the Minister of Finance that substantially all the debts and other liabilities of the Financial Corporation have been retired or defeased is final and conclusive and shall not be stayed, varied or set aside by any court.

PART VI

SPECIAL PAYMENTS

Definitions

82. In this Part,

' "

municipal electricity utility" means,

(a) a municipal corporation that generates, transmits, distributes or retails electricity directly,

(b) a commission established under the Public Utilities Act or any other general or special Act through which a municipal corporation generates, transmits, distributes or retails electricity,

(c) any other body, however established, through which a municipal corporation generates, transmits, distributes or retails electricity, or

(d) a corporation established pursuant to section 130 or a subsidiary of such a corporation; ("service municipal d'électricité") "

taxation year" has the same meaning as in the Corporations Tax Act. ("année d'imposition")

Payments in lieu of federal corporate tax

83. (1) If the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.

Payments to Minister of Finance

(2) After Part V is repealed under section 81, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.

Commencement of new taxation year

(3) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.

Payments in lieu of provincial corporate tax

84. (1) If the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation is exempt under subsection 57 (1), section 57.11 or subsection 71 (1) of the Corporations Tax Act from the payment of a tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.

Payments to Minister of Finance

(2) After Part V is repealed under section 81, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.

Commencement of new taxation year

(3) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.

Other payments

85. (1) If the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, the Lieutenant Governor in Council may from time to time order it to pay to the Financial Corporation an amount specified by the Lieutenant Governor in Council.

Restriction

(1.1) No payment may be required under subsection (1) if the payment would impair the ability of the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation to meet its financial liabilities or obligations as they come due or to fulfil its contractual commitments.

Payments to Minister of Finance

(2) After Part V is repealed under section 81, any order made under this section shall require payments to the Minister of Finance, instead of to the Financial Corporation.

Payments in lieu of additional municipal and school taxes

86. (1) The Generation Corporation, the Services Corporation, every subsidiary of the Generation Corporation or the Services Corporation and every municipal electricity utility shall pay to the Financial Corporation in each year the difference between,

(a) the amount of taxes that it would be liable to pay in the year for municipal and school purposes if the assessed value of land owned by it on which are situated generating station buildings or structures or transformer station buildings or structures were determined on the basis of the amount prescribed by the regulations for each square metre of inside ground floor area of the actual building or structure housing the generating, transforming and auxiliary equipment and machinery; and

(b) the amount of taxes that it is liable to pay in the year for municipal and school purposes in respect of land owned by it on which are situated generating station buildings or structures or transformer station buildings or structures.

Notice to Financial Corporation

(2) When a notice of assessment is delivered under section 31 of the Assessment Act in respect of land described in subsection (1), the Ontario Property Assessment Corporation shall send a copy of the notice to the Financial Corporation.

Payments to Minister of Finance

(3) After Part V is repealed under section 81, all payments that the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation is required to make under this section shall be paid to one or more municipalities in the manner specified by the Minister of Finance, instead of to the Financial Corporation.

Payments after retirement of residual stranded debt

(4) After the Minister of Finance publishes notice under subsection 79 (6) that the residual stranded debt has been retired, all payments that a municipal electricity utility is required to make under this section shall be paid to one or more municipalities in the manner specified by the Minister of Finance, instead of to the Financial Corporation.

Payments for partial year

(5) If this section comes into force after January 1 in any year, the amount of the payment required for the remainder of the year shall be pro rated, based on the number of days remaining in the year.

Payments under Assessment Act, s. 27

(6) The references in subsection (1) to taxes for municipal and school purposes shall be deemed to include payments under section 27 of the Assessment Act.

Ontario Property Assessment Corporation

(7) Until section 9 of the Ontario Property Assessment Corporation Act, 1997 comes into force, the reference to the Ontario Property Assessment Corporation in subsection (2) shall be deemed to be a reference to the assessment commissioner.

Municipal electricity utilities: payments in lieu of federal corporate tax

87. (1) If a municipal electricity utility is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.

Same: payments in lieu of provincial corporate tax

(2) If a municipal electricity utility is exempt under subsection 57 (1), section 57.11 or subsection 71 (1) of the Corporations Tax Act from the payment of a tax under that Act, it shall pay to the Financial Corporation in respect of each taxation year an amount equal to the amount of the tax that it would be liable to pay under that Act if it were not exempt.

Payments to Minister of Finance

(3) After Part V is repealed under section 81, all payments required by this section shall be paid to the Minister of Finance, instead of to the Financial Corporation.

Commencement of new taxation year

(4) A corporation that is required to make payments under this section shall be deemed, for the purposes of this section, to commence a new taxation year on the day this section comes into force.

Municipal electricity property: transfer tax

88. (1) A municipal corporation or municipal electricity utility shall not transfer to any person any interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity unless, before the transfer takes effect, it pays to the Financial Corporation the amount determined by multiplying the fair market value of the interest by the percentage prescribed by the regulations.

Same

(1.1) For the purpose of subsection (1), an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity shall be deemed to include any interest in a corporation, partnership or other entity that derives its value in whole or in part from real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity.

Deductions from amount payable

(1.2) Subject to subsection (1.4), the amount payable under subsection (1) in a taxation year by a municipal electricity utility may be reduced by the following amounts:

1. Any amount that the municipal electricity utility has paid under section 87 in respect of the taxation year or a previous taxation year.

2. Any amount that the municipal electricity utility has paid as tax under Part II, II.1 or III of the Corporations Tax Act in respect of the taxation year or a previous taxation year.

3. Any amount that the municipal electricity utility would be liable to pay as tax under Part I of the Income Tax Act (Canada) in respect of the taxation year if that tax were computed on the basis that the municipal electricity utility had no income during the taxation year other than the capital gain realized on the transfer of its interest in the property.

Same

(1.3) Subject to subsection (1.4), the amount payable under subsection (1) in a taxation year by a municipal corporation may be reduced by the following amounts:

1. Any amount that a municipal electricity utility that is related to the municipal corporation immediately before the transfer has paid under section 87 in respect of the taxation year or a previous taxation year.

2. Any amount that a municipal electricity utility that is related to the municipal corporation immediately before the transfer has paid as tax under Part II, II.1 or III of the Corporations Tax Act in respect of the taxation year or a previous taxation year.

Same

(1.4) An amount referred to in paragraph 1, 2 or 3 of subsection (1.2) or paragraph 1 or 2 of subsection (1.3) may be applied under those subsections to reduce the amount payable by a municipal corporation or municipal electricity utility under subsection (1) only to the extent that it has not previously been applied to reduce an amount payable by a municipal corporation or municipal electricity utility under subsection (1).

Same

(1.5) A municipal electricity utility shall be deemed to be related to a municipal corporation for the purpose of subsection (1.3) if they are related persons within the meaning of section 251 of the Income Tax Act (Canada).

Application

(2) Subsection (1) does not apply to a transfer to,

(a) a municipal electricity utility that is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act; or

(b) the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation, if the Generation Corporation, Services Corporation or subsidiary, as the case may be, is exempt under subsection 149 (1) of the Income Tax Act (Canada) from the payment of tax under that Act.

Same

(3) Subsection (1) does not apply to transfers prescribed by the regulations.

Effect of non-compliance

(4) A transfer that does not comply with subsection (1) is void.

Payments to Minister of Finance

(5) After Part V is repealed under section 81, payments referred to in subsection (1) must be paid to the Minister of Finance, instead of to the Financial Corporation.

Repeal

(6) Subsection (2) is repealed on the second anniversary of the day section 130 comes into force or on such later date as is prescribed by the regulations.

Application of Corporations Tax Act

89. The Minister of Finance is responsible for enforcing sections 83, 84, 87 and 88 and, for that purpose,

(a) the provisions of the Corporations Tax Act relating to returns, assessments, refunds of overpayments, objections to assessments, appeals, and administration and enforcement apply, with necessary modifications; and

(b) any amount payable under section 83, 84, 87 or 88 that remains unpaid after it becomes due may be collected as if it were a tax under the Corporations Tax Act.

Regulations

90. (1) The Minister of Finance may make regulations,

(a) prescribing modifications to the method of calculating the amount of any payment required by section 83, 84 or 87;

(b) prescribing amounts for the purpose of clause 86 (1) (a);

(c) prescribing percentages for the purpose of subsection 88 (1) and prescribing modifications to the method of calculating the amount of the payment required by section 88;

(d) deeming a transaction or series of transactions, for the purpose of section 88, to be a transfer to a person of an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity;

(e) prescribing transfers to which subsection 88 (1) does not apply, subject to such conditions or restrictions as may be specified in the regulations;

(i) requiring payments under this Part to be paid in instalments, prescribing the times when the payments or instalments are required to be paid and requiring the payment of interest or penalties on late payments;

(j) prescribing procedures that must be followed in connection with any payment required by this Part;

(k) respecting any other matter that the Minister of Finance considers necessary or advisable in connection with this Part.

General or particular

(2) A regulation made under this section may be general or particular in its application.

PART VII

PENSION PLANS

Definitions

91. (1) In this Part,

changeover date" means the date prescribed under subsection (3); ("date du changement")

commencement date" means, in relation to a successor pension plan, the date prescribed under subsection 96 (5); ("date d'effet")

former member" means a person who is a former member of a pension plan within the meaning of the Pension Benefits Act and includes any other person who is entitled to receive or is receiving a payment from the pension fund by virtue of the person's relationship to the former member; ("ancien participant")

FCPP" means the Ontario Hydro Financial Corporation Pension Plan; ("RRSF")

successor employer" means a person who is required to establish a pension plan under subsection 96 (1); ("employeur subséquent")

successor pension plan" means a pension plan established in accordance with section 96. ("régime de retraite subséquent")

Interpretation

(2) Expressions in this Part relating to pension plans have the same meaning as under the Pension Benefits Act unless the context requires otherwise.

Changeover date

(3) The Lieutenant Governor in Council may, by regulation, prescribe the changeover date for the purposes of this Part and may do so after the date has passed.

Financial Corporation Pension Plan

92. (1) The Ontario Hydro Pension and Insurance Plan is continued under the name Ontario Hydro Financial Corporation Pension Plan in English and Régime de retraite de la Société financière Ontario Hydro in French.

Fund continued

(2) The Pension and Insurance Fund of Ontario Hydro is continued as the pension fund for the FCPP under the name Ontario Hydro Financial Corporation Pension Fund in English and Caisse de retraite de la Société financière Ontario Hydro in French.

Change of name

(3) The Lieutenant Governor in Council may, by regulation, change the name of the FCPP and the name of the pension fund for the FCPP.

Status of plan

(4) The FCPP shall be deemed not to be a multi-employer pension plan for the purposes of the Pension Benefits Act.

Administrator

(5) The Financial Corporation is the administrator of the FCPP.

Trustee

(6) The Financial Corporation is the trustee of the pension fund for the FCPP, despite subsection 22 (6) of the Pension Benefits Act.

Certain benefits

(7) On the day this section comes into force, the FCPP ceases to provide,

(a) disability benefits that are being provided under a contract between the Financial Corporation and an insurer or a subsidiary of an insurer immediately before this section comes into force; and

(b) life insurance that is being provided under an insurance contract between the Financial Corporation and an insurer or a subsidiary of an insurer immediately before this section comes into force.

Same

(8) The amount held by the Pension and Insurance Fund of Ontario Hydro immediately before this section comes into force that was allocated for the provision of the benefits and insurance described in subsection (7) is payable to the Financial Corporation in trust for the provision of those benefits and that insurance.

Repeal

(9) Subsection (6) is repealed on a day to be named by proclamation of the Lieutenant Governor.

Employer contributions to FCPP

93. (1) The Financial Corporation shall contribute to the pension fund for the FCPP for a year the amount by which the normal cost of the FCPP exceeds the contributions to the pension fund made by the members, as determined by the FCPP actuary.

Same

(2) If the FCPP has a surplus or a prior year credit balance or both, the Financial Corporation, in its sole discretion acting in its capacity as employer, may reduce or suspend the Corporation's contributions to the pension fund to the extent permitted under the Pension Benefits Act.

Refund of contributions

(3) Despite subsection 78 (1) of the Pension Benefits Act, the administrator of the FCPP shall refund to the Financial Corporation, without interest, the contributions made by Ontario Hydro that were required to pay the normal cost of the pension plan in respect of service after March 31, 1998 and before the day that subsection (2) comes into force.

Unfunded liability or solvency deficiency

(4) If a report on the FCPP filed with the Superintendent reveals a going concern unfunded liability or solvency deficiency or both, each successor employer shall pay to the pension fund for the FCPP, as its share of the total amount of each monthly special payment required as a result of the report, the amount determined by the plan actuary in accordance with the following formula:

(A / B) x C

in which, "

A" is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members and former members of the FCPP who will become members or former members of the successor plan established by the successor employer; "

B" is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members and former members of the FCPP; and "

C" is the total amount of the monthly special payment required as a result of the report.

Definition

(5) In subsection (4), "

actuarial liabilities" means,

(a) in the case of a going concern valuation, the going concern liabilities; and

(b) in the case of a solvency valuation, the solvency liabilities.

Administrative costs of FCPP

94. The costs of administering the FCPP (including the costs of administering and investing the pension fund) are payable out of the pension fund.

Additional pension plans of Financial Corporation

95. (1) This section applies if the Financial Corporation establishes another pension plan in the circumstances described in section 80 or 81 of the Pension Benefits Act.

Transfer of assets

(2) The Financial Corporation, in its sole discretion acting in its capacity as employer, may decide whether to transfer assets from the FCPP to the other pension plan and may decide upon all matters relating to the transfer, subject to the consent of the Superintendent of Financial Services as required under the Pension Benefits Act.

Requirements continued

(3) Subsections 92 (5) and 93 (2) and section 94 apply with respect to the other pension plan.

Successor pension plans

96. (1) The IMO, the Generation Corporation, the Services Corporation and the Electrical Safety Authority shall each establish a pension plan to provide pension benefits and ancillary benefits for the following persons:

1. Its employees whose employment is transferred to it by or pursuant to an order made under section 108 and who are, or are entitled to be, members of the FCPP before their employment is transferred.

2. Such other employees as it considers appropriate.

3. Such former members of the FCPP as the Financial Corporation, in its sole discretion acting in its capacity as employer, designates for transfer to the pension plan.

4. Such other persons as this Part may require.

Selection of former members

(2) In determining which former members of the FCPP are to be transferred to a successor pension plan, the Financial Corporation shall comply with the following rules:

1. All former members of the FCPP must be transferred to the successor pension plans.

2. The Financial Corporation shall consider which successor employer, if any, would most likely have become the employer of each former employee of Ontario Hydro (assuming, only for the purposes of this rule, that the former employee had been employed by Ontario Hydro immediately before the date on which employees of Ontario Hydro are transferred to the successor employers by or pursuant to orders made under section 108).

3. If the Financial Corporation concludes that a former employee would most likely have remained an employee of the Financial Corporation or a subsidiary of the Financial Corporation, the Financial Corporation shall transfer the former member to the successor pension plan established by the Generation Corporation.

Status of plan

(2.1) During the period that employees of the subsidiary of the Financial Corporation established under section 102.1 are members of the pension plan established under subsection (1) by the Generation Corporation, that plan shall be deemed not to be a multi-employer pension plan for the purposes of the Pension Benefits Act.

Administrator

(3) The successor employer is the administrator of the applicable successor pension plan.

Commencement date

(4) Each successor pension plan comes into effect as of the prescribed commencement date for the plan.

Regulation

(5) The Lieutenant Governor in Council may, by regulation, prescribe a commencement date for each successor pension plan.

Members of successor plans

97. (1) An employee of a successor employer who has established a successor pension plan becomes a member of the successor pension plan on the following date:

1. If the employee was a member of the FCPP immediately before becoming employed by the successor employer, the later of the following dates:

i. The date on which he or she becomes employed by the successor employer.

ii. The commencement date for the plan.

2. If, under the terms of the successor pension plan, the employee is required to be a member of the plan, the latest of the following dates:

i. The date on which he or she becomes employed by the successor employer.

ii. The date on which, under the terms of the successor pension plan, he or she is required to become a member of the plan.

iii. The commencement date for the plan.

3. If, under the terms of the successor pension plan, the employee is required to become a member of the plan after meeting certain conditions, the later of the following dates:

i. The date on which he or she meets those conditions.

ii. The commencement date for the plan.

4. If, under the terms of the successor pension plan, the employee is entitled, but not required, to become a member of the plan after meeting certain conditions, the later of the following dates:

i. The date on which he or she becomes a member of the plan.

ii. The commencement date for the plan.

Former members

(3) The former members described in paragraph 3 of subsection 96 (1) become former members of the successor pension plan on the changeover date.

Employer contributions to successor plans

98. (1) A successor employer shall contribute to the pension fund for the applicable successor pension plan for a year the amount by which the normal cost of the plan exceeds the contributions to the pension fund made by the members, as determined by the plan actuary.

Same

(2) If the plan has a surplus or a prior year credit balance or both, the successor employer, in its sole discretion acting in its capacity as employer, may reduce or suspend the employer's contributions to the pension fund to the extent permitted under the Pension Benefits Act.

Administrative costs of successor plans

99. The costs of administering a successor pension plan (including the costs of administering and investing the pension fund) are payable out of the pension fund.

Additional pension plans of successor employers

100. (1) This section applies if a successor employer establishes another pension plan in the circumstances described in section 80 or 81 of the Pension Benefits Act.

Transfer of assets

(2) The successor employer, in its sole discretion acting in its capacity as employer, may decide whether to transfer assets from the successor pension plan to the other pension plan and may decide upon all matters relating to the transfer, subject to the consent of the Superintendent of Financial Services as required under the Pension Benefits Act.

Requirements continued

(3) Subsections 96 (3) and 98 (2) and section 99 apply with respect to the other pension plan.

Reciprocal transfer agreements

100.1 (1) This section applies with respect to the pension plans referred to in subsections 95 (1), 96 (1) and 100 (1).

Same

(2) The administrators shall ensure that reciprocal transfer agreements between each of the pension plans are entered into and filed under the Pension Benefits Act.

Same

(3) The reciprocal transfer agreements may be bilateral or multilateral.

Dispute resolution

(4) If the administrator of a pension plan fails to enter into a reciprocal transfer agreement with the administrator of another pension plan before the prescribed date, the matters remaining in dispute between them shall be resolved in accordance with such requirements as may be prescribed.

Regulations

(5) The Lieutenant Governor in Council may make regulations,

(a) prescribing, for the purpose of subsection (4), dates applicable to pension plans that are specified by the regulations;

(b) governing the resolution of matters remaining in dispute between the administrators of specified pension plans after the prescribed date.

Costs

(6) The costs of dispute resolution after the prescribed date shall be borne equally by the applicable pension plans and are payable out of the pension funds of those plans.

FCPP membership temporarily extended

101. (1) In any of the following circumstances, an employee of a successor employer is a member of the FCPP until the commencement date for the applicable successor plan:

1. The employee was a member of the FCPP immediately before becoming employed by the successor employer.

2. The employee would be required to be a member of the FCPP, if the employee were employed by the Financial Corporation.

3. The employee would be required to be a member of the FCPP after meeting certain conditions, if the employee were employed by the Financial Corporation. The employee meets those conditions before the commencement date.

4. The employee would be entitled, but not required, to become a member of the FCPP after meeting certain conditions, if the employee were employed by the Financial Corporation. The employee becomes a member of the FCPP before the commencement date.

Employee contributions

(2) An employee who is a member of the FCPP shall make employee contributions to the pension fund for the FCPP until the commencement date.

Employer contributions re temporary members

102. (1) This section applies with respect to each year or part thereof in which employees of any successor employer are members of the FCPP under section 101.

Obligation, successor employers

(2) Each successor employer shall contribute to the pension fund for the FCPP for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the FCPP who are its employees, other than their pensionable earnings, if any, as employees of the Financial Corporation.

Same, Financial Corporation

(3) Despite subsection 93 (1), the Financial Corporation shall contribute to the pension fund for the FCPP for a year the amount determined by multiplying the rate described in subsection (4) by the pensionable earnings of the members of the FCPP who are its employees, other than their pensionable earnings, if any, as employees of a successor employer.

Rate

(4) The rate for a year is determined by calculating the amount by which the normal cost in respect of all members of the FCPP exceeds the contributions made to the pension fund for the FCPP by all members for the year and dividing this amount by the pensionable earnings of all members of the FCPP for the year, as determined by the FCPP actuary.

Reductions

(5) Subsection 93 (2) applies, with necessary modifications, to the Financial Corporation and to each successor employer.

Administrator

(6) Despite subsection 8 (1) of the Pension Benefits Act, the Financial Corporation is the sole administrator of the FCPP while the successor employers are required to make contributions under this section.

Subsidiary to act as agent of Financial Corporation

102.1 (1) The Financial Corporation shall establish a subsidiary and shall retain the subsidiary to act as the agent of the Financial Corporation in its capacity as administrator of the FCPP.

Application of s. 67

(2) Section 67 does not apply to the subsidiary established under subsection (1).

Employees

(3) The employees of the subsidiary shall be deemed not to be civil servants, Crown employees or public servants for the purpose of the Public Service Act or any other Act.

Application of subss. (5) and (6)

(4) Subsections (5) and (6) cease to apply when the subsidiary is no longer retained for the purpose referred to in subsection (1).

Participation in FCPP

(5) The following rules apply until the commencement date for the successor pension plan established by the Generation Corporation:

1. The employees of the subsidiary are, or are entitled to be, members of the FCPP on the same basis as employees of the Financial Corporation.

2. The subsidiary is an employer who is required to make contributions to the pension fund for the FCPP.

3. Section 102 applies, with necessary modifications, with respect to the rights and duties of the Financial Corporation and the subsidiary.

Participation in successor pension plan

(6) The following rules apply on and after the commencement date for the successor pension plan established by the Generation Corporation:

1. The employees of the subsidiary are, or are entitled to be, members of the successor pension plan established by the Generation Corporation.

2. Section 97 applies, with necessary modifications, with respect to the employees of the subsidiary.

3. The subsidiary is an employer who is required to make contributions to the pension fund for the successor pension plan.

4. Section 102 applies, with necessary modifications, with respect to the rights and duties of the Generation Corporation and the subsidiary.

Transfer agreements for successor plans

103. (1) The administrator of the FCPP and the administrator of each successor pension plan shall enter into an agreement governing the division and transfer of assets and liabilities from the FCPP to the successor pension plan.

Transfer of assets

(2) The administrator of the FCPP shall transfer assets and liabilities from the FCPP to a successor pension plan in accordance with the transfer agreement relating to the successor pension plan.

Value of assets

(3) Subject to subsection (4), the value of the assets to be transferred to a successor pension plan is calculated as of the changeover date using the formula,

[ ( A + B ) / C ] x D

in which, "

A" is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of members of the FCPP who, on or after the commencement date and before the changeover date, become members of the successor pension plan and who, on the changeover date, become entitled to accrued pension benefits under the successor pension plan in respect of their employment before becoming members of the successor pension plan; "

B" is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of former members of the FCPP who, on the changeover date, become former members of the successor pension plan; "

C" is the total of the actuarial liabilities of the FCPP for the pension benefits and ancillary benefits of persons who, immediately before the changeover date, are members and former members of the FCPP; and "

D" is the value of the assets held in the pension fund of the FCPP.

Same

(4) The amount calculated under subsection (3) is subject to such adjustments as the transfer agreement may permit.

Same

(5) Subsections 80 (5) to (7) of the Pension Benefits Act apply with respect to the transfer of assets.

Dispute resolution

(6) If the administrators do not enter into a transfer agreement before the prescribed date, the matters remaining in dispute between them shall be resolved in accordance with such requirements as may be prescribed.

Regulations

(7) The Lieutenant Governor in Council may make regulations,

(a) prescribing, for the purpose of subsection (6), dates applicable to pension plans that are specified by the regulations;

(b) governing the resolution of matters remaining in dispute after the prescribed date.

Costs

(8) The costs of dispute resolution after the prescribed date are payable out of the pension fund for the FCPP.

Transfer of benefits to successor plans

104. (1) This section applies if the Superintendent of Financial Services consents to the transfer of assets described in section 103 from the FCPP to a successor pension plan.

Same

(2) The following changes occur as of the changeover date:

1. Members of the FCPP who become members of the successor pension plan on or after the commencement date and before the changeover date become entitled to pension benefits under the successor pension plan in respect of their employment before becoming members of the successor pension plan and they cease to be entitled to those benefits under the FCPP.

3. Former members of the FCPP who become former members of the successor pension plan on the changeover date become entitled to pension benefits under the successor pension plan in respect of the applicable person's employment before the changeover date.

4. Those former members cease to be former members of the FCPP.

5. Those members and former members become entitled to credit in the successor pension plan for the period of membership of the member or the applicable former member in the FCPP, for the purpose of determining entitlement to ancillary benefits under the successor pension plan.

Transfer of responsibility

(3) As of the changeover date, the successor employer assumes responsibility for the accrued pension benefits under the FCPP of the members and former members described in subsection (2), and the Financial Corporation ceases to be responsible for those accrued pension benefits.

PART VIII

ELECTRICAL SAFETY CODE

Electrical safety code

105. (1) The Electrical Safety Authority, subject to the approval of the Lieutenant Governor in Council, may make regulations,

(a) prescribing the design, construction, installation, protection, use, maintenance, repair, extension, alteration, connection and disconnection of all works and matters used or to be used in the generation, transmission, distribution, retail or use of electricity in Ontario;

(b) prohibiting the use in Ontario of any such works or matters until they have been inspected and approved;

(c) prohibiting the advertising, display, offering for sale, or other disposal, and the sale or other disposal, publicly or privately, in Ontario, of any such works or matters unless and until they have been inspected and approved, and prescribing the precautions to be taken in the sale or other disposal of such works or matters and the warnings and instructions to be given to purchasers and others in advertisements and by circular or otherwise to prevent their use in such manner or under such conditions as may be likely to result in undue hazard to persons or property;

(d) providing for the inspection, test and approval of all such works and matters before being used for any such purposes;

(e) adopting by reference, in whole or in part, with such changes as the Authority considers necessary or advisable, any code or standard and requiring compliance with any code or standard that is so adopted;

(f) requiring compliance with any code or standard under a rule of a person retailing electricity to such works.

Issuing of plans and specifications

(2) The Authority may prepare and issue plans and specifications governing the design, construction and test of any of the works or matters mentioned in subsection (1), and may alter such plans and specifications.

Appointment of persons or associations to inspect and test

(3) The Authority may appoint persons or associations having, in the opinion of the Authority, special knowledge and facilities to inspect, test and report upon any of the works or matters mentioned in subsection (1).

Approval by adoption of report

(4) The Authority may approve of any of the works or matters mentioned in subsection (1) by adopting the report made under subsection (3) or otherwise as the Authority considers advisable.

Orders relating to installations, alterations, etc.

(5) The Authority may issue such orders relating to work to be done in the installation, removal, alteration, repair, protection, connection or disconnection of any of the works or matters mentioned in subsection (1) as the Authority considers necessary or advisable for the safety of persons or the protection of property.

Appointment of inspectors

(6) The Authority may appoint such inspectors and other officers as are considered necessary or advisable for the purposes of this section.

Fees for permits, inspection, test and approval

(7) The Authority, subject to the approval of the Minister, may establish the fees to be paid for permits and for inspection, test and approval of all such works and matters mentioned in subsection (1) and of plans and specifications relating thereto, and may direct the time and manner of payment of the fees.

Collection and disposition of fees and fines

(8) The Authority shall collect the fees established by it under the authority of subsection (7), and shall provide for the remuneration, travelling and other expenses of the inspectors and other qualified persons, together with all other expenses incurred in carrying out this section.

Agreement to exercise Authority's powers

(9) The Authority may enter into agreements with any person or body prescribed by the regulations authorizing the person or body to exercise and perform any of the powers and duties of the Authority under subsections (5) to (8) and, for that purpose, a reference in subsection (11), (12) or (13) to the Authority shall be deemed to be a reference to the person or body.

Powers of inspectors

(10) Every inspector appointed under this section may enter any land, building or premises at any reasonable hour for the purpose of performing the duties assigned to him or her under this section.

Liability

(11) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the Authority, or an inspector or officer appointed under this section, for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under this Act or the regulations, or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Same

(12) Subsection (11) does not relieve the Authority of any liability to which it would otherwise be subject in respect of a cause of action arising from any act, neglect or default referred to in subsection (11).

Offences

(13) Every person or entity,

(a) disturbing or interfering with an inspector or other officer in the performance of the inspector's or officer's duty under this section is guilty of an offence and on conviction is liable to a fine of not more than $500 for each offence;

(b) refusing or neglecting to comply with this section, or with any regulation, plan or specification made under its authority is guilty of an offence and on conviction is liable to a fine of not more than $5,000 for each offence;

(c) refusing or neglecting to comply with an order issued by the Authority under subsection (5) is guilty of an offence and on conviction is liable to a fine of not more than $5,000 and a further fine of not more than $500 for each day upon which such refusal or neglect is repeated or continued.

Section not to apply to mines

(14) This section does not apply to a mine as defined in the Mining Act, save only as regards any dwelling house or other building not connected with or required for mining operations or purposes or used for the treatment of ore or mineral.

PART IX

REGULATIONS

Regulations

106. (1) The Lieutenant Governor in Council may make regulations,

(a) governing the appointment and reappointment of directors of the IMO;

(b) respecting the calculation of the fees referred to in subsection 16 (4) and respecting the manner in which, and the time at which, they are to be paid;

(c) prescribing provisions of the Business Corporations Act, the Corporations Act or the Corporations Information Act that apply, with necessary modifications, to the IMO;

(d) prescribing transmitters, distributors, generators, retailers and consumers or classes of transmitters, distributors, generators, retailers and consumers for the purpose of subsection 25 (2);

(e) prescribing contracts or classes of contracts to which subsection 25 (3), (4) or (6) does not apply, subject to such conditions or restrictions as may be specified in the regulations;

(e.1) prescribing the amount of electricity referred to in the definition of "low-volume consumer" in subsection 25 (9);

(f) prescribing a date for the purpose of subsection 30 (6);

(g) prescribing an amount for the purpose of clause 34 (1) (a);

(h) designating a person or body as the Electrical Safety Authority for the purposes of this Act;

(i) prescribing persons or bodies or classes of persons or bodies with which the Electrical Safety Authority may enter into agreements under subsection 105 (9);

(j) prescribing consumer protection requirements that apply to market participants;

(k) governing standards for and the use of electricity meters;

(l) exempting any person or class of persons from any provision of this Act, subject to such conditions or restrictions as may be prescribed by the regulations;

(m) defining any word or expression used in this Act that is not defined in this Act;

(m.1) deeming a reference in any Act to Ontario Hydro to be a reference to a person or other entity specified in the regulations, subject to such conditions as may be prescribed by the regulations;

(n) providing for such transitional matters as the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of this Act;

(o) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the purposes of this Act.

General or particular

(2) A regulation made under subsection (1) may be general or particular in its application.

Appointment of IMO directors

(3) A regulation made under clause (1) (a) may authorize the board of directors of the IMO to make by-laws governing the appointment or reappointment of directors of the IMO, subject to such conditions or restrictions as may be prescribed by the regulations.

Transitional regulations

(4) A regulation made under clause (1) (n),

(a) may provide that it has retroactive application to a date not earlier than the day this section comes into force; and

(b) may provide that it applies despite this or any other general or special Act.

PART X

TRANSITION-ONTARIO HYDRO

Definitions

107. In this Part,

transfer order" means an order made under section 108; ("décret de transfert ou de mutation")

transferee" means a person to whom officers, employees, assets, liabilities, rights or obligations are transferred by a transfer order. ("destinataire")

Transfer orders

108. (1) The Lieutenant Governor in Council may make orders transferring officers, employees, assets, liabilities, rights and obligations of Ontario Hydro to the Generation Corporation, the Services Corporation, the IMO, the Board, the Electrical Safety Authority, the subsidiary of the Financial Corporation established under section 102.1, Her Majesty in right of Ontario or any other person.

Binding on all persons

(2) A transfer order is binding on Ontario Hydro, the transferee and all other persons.

Same

(3) Subsection (2) applies despite any general or special Act or any rule of law, including an Act or rule of law that requires notice or registration of transfers.

No consent required

(4) A transfer order does not require the consent of Ontario Hydro, the transferee or any other person.

Same

(5) Despite subsection (4), the consent of the transferee is required if the transferee is a person other than,

(a) the Generation Corporation or a subsidiary of the Generation Corporation;

(b) the Services Corporation or a subsidiary of the Services Corporation;

(d) the Board;

(e) the Electrical Safety Authority;

(f) the subsidiary of the Financial Corporation established under section 102.1; or

(g) Her Majesty in right of Ontario.

Regulations Act

(6) The Regulations Act does not apply to a transfer order.

Notice of date

108.1 (1) The Minister shall, within 90 days after the date that a transfer order is made or amended, publish notice of the date in The Ontario Gazette.

Amendments

(2) Notice of the date that a transfer order was amended shall identify the transfer order that was amended.

Non-compliance

(3) Non-compliance with this section does not affect the validity of a transfer order or any amendment to a transfer order.

Description of things transferred

109. A transfer order may describe officers, employees, assets, liabilities, rights or obligations to be transferred,

(a) by reference to specific officers, employees, assets, liabilities, rights or obligations;

(b) by reference to any class of officers, employees, assets, liabilities, rights or obligations; or

Approvals under the Power Corporation Act

109.1 If the approval of the Lieutenant Governor in Council was at any time required under the Power Corporation Act or a predecessor of that Act with respect to an asset, liability, right or obligation that is to be transferred by or pursuant to a transfer order, the approval shall be deemed to have been given.

Officers and employees

110. (1) The office or employment of an officer or employee who is transferred by or pursuant to a transfer order is not terminated by the transfer and shall be deemed to have been transferred to the transferee without interruption in service.

Service

(2) Service with Ontario Hydro of an officer or employee who is transferred by or pursuant to a transfer order shall be deemed to be service with the transferee for the purpose of determining probationary periods, benefits or any other employment-related entitlements under the Employment Standards Act or any other Act or under any employment contract or collective agreement.

No constructive dismissal

(3) An officer or employee who is transferred by or pursuant to a transfer order shall be deemed not to have been constructively dismissed.

Future changes

(4) If an officer or employee is transferred by or pursuant to a transfer order, nothing in this Act,

(a) prevents the office or employment from being lawfully terminated after the transfer; or

(b) prevents any term or condition of the office or employment from being lawfully changed after the transfer.

Payment for transfer

111. (1) A transfer order may require Ontario Hydro or the transferee to pay for anything transferred by or pursuant to the order and may specify to whom the payment shall be made.

Amount of payment

(2) The transfer order may,

(a) fix the amount of the payment;

(b) specify a method for determining the amount of the payment; or

(c) provide that the amount of the payment be determined by the Minister of Finance or a person designated by the Minister of Finance.

Form of payment

(3) The transfer order may require that the payment be made in cash, by set off, through the issuance of securities or in any other form specified by the order.

Securities

(4) If the transfer order requires that the payment be made through the issuance of securities, it may specify the terms and conditions of the securities or may authorize the Minister of Finance or a person designated by the Minister of Finance to specify the terms and conditions.

Valuations

(5) A transfer order may,

(a) fix the value of anything transferred by or pursuant to the order;

(b) specify a method for determining the value of anything transferred by or pursuant to the order; or

(c) provide that the value of anything transferred by or pursuant to the order be determined by the Minister of Finance or a person designated by the Minister of Finance.

Province may assume obligations in return for securities

112. (1) If, pursuant to a transfer order, the Generation Corporation or the Services Corporation issues securities to Ontario Hydro, the Lieutenant Governor in Council, by order,

(a) may authorize Her Majesty in right of Ontario or an agent of Her Majesty in right of Ontario to assume obligations of the Generation Corporation or the Services Corporation under the securities; and

(b) may require the Generation Corporation or the Services Corporation to issue, and may authorize Her Majesty in right of Ontario or an agent of Her Majesty in right of Ontario to acquire, additional securities in such amount as the Lieutenant Governor in Council may specify.

Exchange of securities

(2) The Lieutenant Governor in Council may by order require the Generation Corporation or the Services Corporation to issue securities to Ontario Hydro in exchange for securities it previously issued to Ontario Hydro pursuant to a transfer order.

Application of s. 28 of the Financial Administration Act

(2.1) Section 28 of the Financial Administration Act does not apply to anything done pursuant to an order under subsection (1) or (2).

Terms and conditions of securities

(3) An order under subsection (1) or (2) may specify the terms and conditions of the securities issued under clause (1) (b) or subsection (2) or may authorize the Minister of Finance or a person designated by the Minister of Finance to specify the terms and conditions.

Money required

(4) Money required for the purpose of meeting obligations assumed by Her Majesty under clause (1) (a) may be paid out of the Consolidated Revenue Fund.

Effective date of transfer

113. (1) A transfer order may specify the date that a transfer takes effect and any interest in property that is transferred by the order vests in the transferee on that date.

Effective on payment

(2) A transfer order may provide that a transfer not take effect until payment has been made for anything transferred by or pursuant to the order.

Retroactive transfer

(3) A transfer order may provide that a transfer shall be deemed to have taken effect on a date earlier than the date the transfer order is made, but the effective date shall not be earlier than the day this section comes into force.

Sequence of events

(4) A transfer order may provide that transfers specified in the order and other transactions associated with the transfers shall be deemed to have occurred in a sequence and at times specified in the order.

Statements in registered documents

113.1 (1) A statement, in a registered document to which a person referred to in subsection (2) is a party, that land described in the document was transferred to the person from Ontario Hydro by or pursuant to a transfer order, and any other statement in the document relating to the transfer order, shall be deemed to be conclusive evidence of the facts stated.

Persons referred to in subs. (1)

(2) The persons referred to in subsection (1) are:

1. The Generation Corporation or a subsidiary of the Generation Corporation.

2. The Services Corporation or a subsidiary of the Services Corporation.

3. The IMO.

4. The Board.

5. The subsidiary of the Financial Corporation established under section 102.1.

6. Her Majesty in right of Ontario.

7. The Electrical Safety Authority.

8. Any other person prescribed by the regulations.

No new interest

(3) Subsection (1) does not give any person an interest in land that Ontario Hydro did not have.

References to unregistered transfer orders

(4) A document that is otherwise capable of being registered or deposited under the Registry Act or registered under the Land Titles Act and that refers to an unregistered transfer order may be registered or deposited under the Registry Act or registered under the Land Titles Act despite any provision of those Acts.

Definitions

(5) In this section, "

land" means land, tenements, hereditaments and appurtenances, or any estate or interest therein; ("bien-fonds")

registered document" means a document registered or deposited under the Registry Act or registered under the Land Titles Act. ("document enregistré")

Execution of agreements

114. (1) A transfer order may require Ontario Hydro or a transferee,

(a) to enter into any written agreement or execute any instrument specified in the order; and

(b) to register in accordance with the order any agreement or instrument entered into or executed under clause (a).

Exception

(2) Subsection (1) does not apply to a transfer agreement referred to in subsection 103 (1).

Enforcement of things transferred

115. (1) A transfer order may provide,

(a) that any liability or obligation that is transferred by the order may be enforced against Ontario Hydro, the transferee, or both of them; and

(b) that any right that is transferred by the order may be enforced by Ontario Hydro, the transferee, or both of them.

Release of Ontario Hydro

(2) Subject to subsection (1), the transfer of a liability or obligation under this Part releases Ontario Hydro from the liability or obligation.

Actions and other proceedings

116. Subject to section 115, any action or other proceeding that was commenced by or against Ontario Hydro before a transfer order takes effect and that relates to an officer, employee, asset, liability, right or obligation that is transferred by the order shall be continued by or against the transferee.

Limitation periods

117. An action or other proceeding shall not be commenced against a transferee in respect of any officer, employee, asset, liability, right or obligation that has been transferred to the transferee if, had there been no transfer, the time for commencing the action or other proceeding would have expired.

Certain rights not affected by transfer

118. (1) A transfer by or pursuant to a transfer order,

(a) shall be deemed not to constitute,

(i) a breach, termination, repudiation or frustration of any contract, including a contract of employment or insurance,

(ii) a breach of any Act, regulation or municipal by-law, or

(iii) an event of default or force majeure;

(b) shall be deemed not to give rise to a breach, termination, repudiation or frustration of any licence, permit or other right;

(c) shall be deemed not to give rise to any right to terminate or repudiate a contract, licence, permit or other right; and

(d) shall be deemed not to give rise to any estoppel.

Exemptions

(2) Subsection (1) does not apply to the contracts prescribed by the regulations.

No cause of action

119. Subject to subsection 118 (2), nothing in this Act and nothing done by or pursuant to a transfer order creates any new cause of action in favour of,

(a) a holder of a debt instrument that was issued by Ontario Hydro and guaranteed by the Province of Ontario before this section comes into force; or

(b) a party to a contract with Ontario Hydro that was entered into before this section comes into force.

Conditions on exercise of powers

120. A transfer order may impose conditions on the exercise of powers by the transferee that are related to officers, employees, assets, liabilities, rights or obligations transferred by the transfer order, including a condition that the powers be exercised only with the approval of the Board.

Information

121. Ontario Hydro shall provide a transferee with records or copies of records, and other information, that are in its custody or control and that relate to an officer, employee, asset, liability, right or obligation that is transferred by or pursuant to a transfer order, including personal information.

Other matters

122. A transfer order may contain provisions dealing with other matters not specifically referred to in this Part that the Lieutenant Governor in Council considers necessary or advisable in connection with a transfer.

Amendment of transfer order

123. The Lieutenant Governor in Council may, at any time within 24 months after making a transfer order, make a further order amending the transfer order in any way that the Lieutenant Governor in Council considers necessary or advisable, and this Part applies, with necessary modifications, to the amendment.

Exemptions from other Acts

124. The Bulk Sales Act, the Land Transfer Tax Act, the Retail Sales Tax Act and such other Acts or provisions as are prescribed by the regulations do not apply to any transfer of officers, employees, assets, liabilities, rights or obligations by or pursuant to a transfer order.

Limitations

125. (1) If possession of land transferred by or pursuant to a transfer order has been taken by another person, the right of Ontario Hydro or the transferee, or anyone claiming under them, to recover it, is not barred by reason of the lapse of time, despite the Limitations Act or any other Act, or by reason of any claim based on possession adverse to it for any period of time that might otherwise be made lawfully at common law, unless it is shown that it had actual notice in writing of the adverse possession, and such notice was had by it 10 years before it or the person claiming under it commenced action to recover the land.

Same

(2) No claim under subsection (1) shall be acquired by possession, prescription, custom, user or implied grant to any way, easement, watercourse or use of water or water right or privilege or flooding privilege of Ontario Hydro or the transferee, or to any way, easement, watercourse, or use of water, or right of drainage along, over, upon, on or from any land, or water, or water right, or privilege of Ontario Hydro or the transferee, despite the Limitations Act or any other Act or any claim at common law based on lapse of time, or length of enjoyment or use.

Pensions

126. (1) A transfer order shall not include any provision relating to,

(a) the Ontario Hydro Pension and Insurance Plan or the Pension and Insurance Fund of Ontario Hydro, referred to in section 24 of the Power Corporation Act, as continued by Part VII of this Act; or

(b) the pension benefits and ancillary benefits within the meaning of the Pension Benefits Act that are provided under a pension plan with respect to officers or employees transferred by or pursuant to a transfer order.

Exception

(2) Despite clause (1) (a), a transfer order may include provisions relating to the following matters:

1. The disability benefits and life insurance described in subsection 92 (7) and the amount referred to in subsection 92 (8).

2. Any liability or obligation associated with a proceeding or potential proceeding relating to the Ontario Hydro Pension and Insurance Plan and the Pension and Insurance Fund of Ontario Hydro or relating to the Ontario Hydro Financial Corporation Pension Plan and the pension fund for it.

Pension subsidiary of Financial Corporation

126.1 (1) The Lieutenant Governor in Council may make orders transferring officers, employees, assets, liabilities, rights and obligations of the subsidiary of the Financial Corporation established under section 102.1 to the Generation Corporation, the Services Corporation, the IMO, the Board, the Electrical Safety Authority or any other person.

Application of this Part

(2) This Part, except section 126, applies with necessary modifications to an order made under subsection (1) and, for that purpose,

(a) a reference in this Part to a transfer order shall be deemed to be a reference to an order made under subsection (1); and

(b) a reference in this Part to Ontario Hydro shall be deemed to be a reference to the subsidiary of the Financial Corporation established under section 102.1.

Provincial liability not limited

127. The liability of the Province of Ontario as guarantor of a security or other liability of Ontario Hydro pursuant to a written guarantee given by the Province before this section comes into force is not limited by anything in this Act or by any transfer by or pursuant to a transfer order.

Regulations

128. (1) The Lieutenant Governor in Council may make regulations,

(a) supplementing the provisions of this Part and governing the transfer of officers, employees, assets, liabilities, rights and obligations under this Part;

(a.1) prescribing persons for the purpose of paragraph 8 of subsection 113.1 (2);

(b) prescribing contracts or classes of contracts to which subsection 118 (1) does not apply, subject to such conditions or restrictions as may be prescribed by the regulations;

(c) prescribing Acts or provisions of Acts that do not apply to a transfer for the purpose of section 124, subject to such conditions or restrictions as may be prescribed by the regulations.

General or particular

(2) A regulation made under this section may be general or particular in its application.

PART XI

TRANSITION-MUNICIPAL ELECTRICITY UTILITIES

Definitions

129. (1) In this Part,

transfer by-law" means a by-law made under section 133; ("règlement municipal de transfert ou de mutation")

transferee" means the corporation incorporated under the Business Corporations Act pursuant to section 130; ("destinataire")

transferor" means the municipal corporation, commission or other body whose employees, assets, liabilities, rights or obligations are transferred pursuant to a transfer by-law. ("auteur")

Interpretation

(2) For the purposes of this Part, a municipal corporation generates, transmits, distributes or retails electricity indirectly if it carries on any of those activities through,

(a) a commission established under the Public Utilities Act or any other general or special Act; or

(b) any other body, however established.

Municipalities may incorporate electricity businesses

130. (0.1) One or more municipal corporations may cause a corporation to be incorporated under the Business Corporations Act for the purpose of generating, transmitting, distributing or retailing electricity.

Conversion of existing electricity businesses

(1) Not later than the second anniversary of the day this section comes into force, every municipal corporation that generates, transmits, distributes or retails electricity, directly or indirectly, shall cause a corporation to be incorporated under subsection (0.1) for the purpose of carrying on those activities.

Two or more municipal corporations

(2) Two or more municipal corporations may incorporate a single corporation for the purpose of complying with subsection (1).

Ownership

(3) The municipal corporation or corporations that incorporate a corporation pursuant to this section shall subscribe for all the initial shares issued by the corporation that are voting securities.

Power to hold shares

(4) A municipal corporation may acquire and hold shares in a corporation incorporated pursuant to this section that carries on business in the municipality.

Not a local board, etc.

(5) A corporation incorporated pursuant to this section shall be deemed not to be a local board, public utilities commission or hydro-electric commission for the purposes of any Act.

No new commissions

131. Except as provided by section 130, a municipal corporation shall not, after section 130 comes into force,

(a) establish a commission or other body to generate, transmit, distribute or retail electricity; or

(b) authorize a commission or other body that was established before section 130 came into force to generate, transmit, distribute or retail electricity, if the commission or other body was not authorized to carry on that activity immediately before section 130 came into force.

Restriction on municipal electricity activity

132. After the second anniversary of the day section 130 comes into force, a municipal corporation shall not generate, transmit, distribute or retail electricity, directly or indirectly, except through a corporation incorporated under the Business Corporations Act pursuant to section 130.

Transfer by-laws

133. (1) The council of a municipality may make by-laws transferring employees, assets, liabilities, rights and obligations of the municipal corporation, or of a commission or other body through which the municipal corporation generates, transmits, distributes or retails electricity, to a corporation incorporated under the Business Corporations Act pursuant to section 130 for a purpose associated with the generation, transmission, distribution or retailing of electricity by the corporation incorporated pursuant to section 130.

Debentures

(1.1) Despite subsection (1), a transfer by-law may not transfer any liabilities, rights or obligations arising under a debenture issued or authorized to be issued by a municipal corporation.

Binding on all persons

(2) A transfer by-law is binding on the transferee, the transferor and all other persons.

Same

(3) Subsection (2) applies despite any general or special Act or any rule of law, including an Act or rule of law that requires notice or registration of transfers.

No consent required

(4) A transfer by-law does not require the consent of the transferor, the transferee or any other person.

Description of things transferred

134. A transfer by-law may describe employees, assets, liabilities, rights or obligations to be transferred,

(a) by reference to specific employees, assets, liabilities, rights or obligations;

(b) by reference to any class of employees, assets, liabilities, rights or obligations; or

Employees

135. (1) The employment of an employee who is transferred by or pursuant to a transfer by-law is not terminated by the transfer and shall be deemed to have been transferred to the transferee without interruption in service.

Service

(2) Service with the transferor of an employee who is transferred by or pursuant to a transfer by-law shall be deemed to be service with the transferee for the purpose of determining probationary periods, benefits or any other employment-related entitlements under the Employment Standards Act or any other Act or under any employment contract or collective agreement.

No constructive dismissal

(3) An employee who is transferred by or pursuant to a transfer by-law shall be deemed not to have been constructively dismissed.

Future changes

(4) If an employee is transferred by or pursuant to a transfer by-law, nothing in this Act,

(a) prevents the employment from being lawfully terminated after the transfer; or

(b) prevents any term or condition of the employment from being lawfully changed after the transfer.

Reserve funds

136. (1) If employees or assets are transferred by or pursuant to a transfer by-law, the by-law or another transfer by-law shall transfer to the transferee,

(a) the portion of any reserve fund established under section 33 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services; and

(b) the portion of any reserve fund referred to in section 63 of the Development Charges Act, 1997 that relates to development charges collected in respect of electrical power services.

Use of amount transferred

(2) Any amount transferred under subsection (1) shall be used by the transferee only to pay for capital costs in respect of electrical power services for which the amount transferred was collected.

Effect on municipal by-law

(3) A municipal by-law that relates to development charges in respect of which an amount is transferred under subsection (1) ceases to apply in respect of electrical power services on the date of the transfer but otherwise continues to have effect, with necessary modifications.

Payment for transfer

137. (1) A transfer by-law may require the transferor or the transferee to pay for anything transferred by or pursuant to the by-law and may specify to whom the payment shall be made.

Amount of payment

(2) The transfer by-law may,

(a) fix the amount of the payment;

(b) specify a method for determining the amount of the payment; or

Form of payment

(3) The transfer by-law may require that the payment be made in cash, by set off, through the issuance of securities or in any other form specified by the by-law.

Securities

(4) If the transfer by-law requires that the payment be made through the issuance of securities, it may specify the terms and conditions of the securities or may authorize a person designated by the by-law to specify the terms and conditions.

Valuations

(5) A transfer by-law may,

(a) fix the value of anything transferred by or pursuant to the by-law;

(b) specify a method for determining the value of anything transferred by or pursuant to the by-law; or

(c) provide that the value of anything transferred by or pursuant to the by-law be determined by a person designated by the by-law.

Effective date of transfer

138. (1) A transfer by-law may specify a date not later than the second anniversary of the day section 130 comes into force as the date that a transfer takes effect and any interest in property that is transferred by the by-law vests in the transferee on that date.

Effective on payment

(2) A transfer by-law may provide that a transfer not take effect until payment has been made for anything transferred by or pursuant to the by-law.

Retroactive transfer

(3) A transfer by-law may provide that a transfer shall be deemed to have taken effect on a date earlier than the date the transfer by-law is made, but the effective date shall not be earlier than the day this section comes into force.

Sequence of events

(4) A transfer by-law may provide that transfers specified in the by-law and other transactions associated with the transfers shall be deemed to have occurred in a sequence and at times specified in the by-law.

Statements in registered documents

138.1 (1) A statement, in a registered document to which a corporation incorporated under the Business Corporations Act pursuant to section 130 is a party, that land described in the document was transferred to the corporation, by or pursuant to a transfer by-law, from a municipal corporation or from a commission or other body through which a municipal corporation generated, transmitted, distributed or retailed electricity, and any other statement in the document relating to the transfer by-law, shall be deemed to be conclusive evidence of the facts stated.

No new interest

(2) Subsection (1) does not give any person an interest in land that the municipal corporation or the commission or other body did not have.

References to unregistered transfer by-laws

(3) A document that is otherwise capable of being registered or deposited under the Registry Act or registered under the Land Titles Act and that refers to an unregistered transfer by-law may be registered or deposited under the Registry Act or registered under the Land Titles Act despite any provision of those Acts.

Definitions

(4) In this section, "

land" means land, tenements, hereditaments and appurtenances, or any estate or interest therein; ("bien-fonds")

registered document" means a document registered or deposited under the Registry Act or registered under the Land Titles Act. ("document enregistré")

Execution of agreements

139. A transfer by-law may require the transferor or the transferee,

(a) to enter into any written agreement or execute any instrument specified in the by-law; and

(b) to register in accordance with the by-law any agreement or instrument entered into or executed under clause (a).

Enforcement of things transferred

140. (1) A transfer by-law may provide,

(a) that any liability or obligation that is transferred by the by-law may be enforced against the transferor, the transferee, or both of them; and

(b) that any right that is transferred by the by-law may be enforced by the transferor, the transferee, or both of them.

Release of transferor

(2) Subject to subsection (1), the transfer of a liability or obligation under this Part releases the transferor from the liability or obligation.

Actions and other proceedings

141. Subject to section 140, any action or other proceeding that was commenced by or against the transferor before a transfer by-law takes effect and that relates to an employee, asset, liability, right or obligation that is transferred by the by-law shall be continued by or against the transferee.

Limitation periods

142. An action or other proceeding shall not be commenced against a transferee in respect of any employee, asset, liability, right or obligation that has been transferred to the transferee if, had there been no transfer, the time for commencing the action or other proceeding would have expired.

Certain rights not affected by transfer

143. (1) A transfer by or pursuant to a transfer by-law,

(a) shall be deemed not to constitute,

(i) a breach, termination, repudiation or frustration of any contract, including a contract of employment or insurance,

(ii) a breach of any Act, regulation or municipal by-law, or

(iii) an event of default or force majeure;

(b) shall be deemed not to give rise to a breach, termination, repudiation or frustration of any licence, permit or other right;

(c) shall be deemed not to give rise to any right to terminate or repudiate a contract, licence, permit or other right; and

(d) shall be deemed not to give rise to any estoppel.

Exemptions

(2) Subsection (1) does not apply to the contracts prescribed by the regulations.

Information

144. A transferor shall provide a transferee with records or copies of records, and other information, that are in its custody or control and that relate to an employee, asset, liability, right or obligation that is transferred by or pursuant to a transfer by-law, including personal information.

Other matters

145. A transfer by-law may contain provisions dealing with other matters not specifically referred to in this Part that the municipal council considers necessary or advisable in connection with a transfer.

Exemptions from other Acts

146. The Bulk Sales Act, the Land Transfer Tax Act, the Retail Sales Tax Act and such other Acts or provisions as are prescribed by the regulations do not apply to any transfer of employees, assets, liabilities, rights or obligations by or pursuant to a transfer by-law.

Regulations

147. (1) The Lieutenant Governor in Council may make regulations,

(a) supplementing the provisions of this Part and governing the transfer of employees, assets, liabilities, rights and obligations under this Part;

(b) prescribing contracts or classes of contracts to which subsection 143 (1) does not apply, subject to such conditions or restrictions as may be prescribed by the regulations;

(c) prescribing Acts or provisions of Acts that do not apply to a transfer for the purpose of section 146, subject to such conditions or restrictions as may be prescribed by the regulations.

General or particular

(2) A regulation made under this section may be general or particular in its application.

Conflict with other Acts

148. This Part applies despite the Public Utilities Act and despite any other general or special Act.

PART XII

COMMENCEMENT AND SHORT TITLE

Commencement

149. (1) This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(2) Any proclamation under subsection (1) may apply to the whole or any part, section, subsection or other provision of this Schedule, and proclamations may be issued at different times with respect to any part, section, subsection or other provision of this Schedule.

Short title

150. The short title of the Act set out in this Schedule is the Electricity Act, 1998.

SCHEDULE B

ONTARIO ENERGY BOARD ACT, 1998

CONTENTS

Part

III

VII

VIII

General

The Board

Gas Regulation

Gas Marketing

Regulation of electricity

Transmission and distribution lines

Powers and duties of energy returns officer

Gas priorities and allocation

Miscellaneous

Sections

1-3

4-34

35-45

46-54

55-87

88-104

105-111

112-119

120-132

Partie

III

VII

VIII

Dispositions générales

La Commission

Réglementation du gaz

Commercialisation du gaz

Réglementation de l'électricité

Lignes de transport et de distribution

Pouvoirs et fonctions du directeur des enquêtes en matière d'énergie

Gaz : priorités et répartition

Dispositions diverses

Articles

1-3

4-34

35-45

46-54

55-87

88-104

105-111

112-119

120-132

______________

PART I

GENERAL

Board objectives, electricity

1. The Board, in carrying out its responsibilities under this or any other Act in relation to electricity, shall be guided by the following objectives:

1. To facilitate competition in the generation and sale of electricity and to facilitate a smooth transition to competition.

2. To provide generators, retailers and consumers with non-discriminatory access to transmission and distribution systems in Ontario.

3. To protect the interests of consumers with respect to prices and the reliability and quality of electricity service.

4. To promote economic efficiency in the generation, transmission and distribution of electricity.

5. To facilitate the maintenance of a financially viable electricity industry.

6. To facilitate energy efficiency and the use of cleaner, more environmentally benign energy sources in a manner consistent with the policies of the Government of Ontario.

Board objectives, gas

2. The Board, in carrying out its responsibilities under this or any other Act in relation to gas, shall be guided by the following objectives:

1. To facilitate competition in the sale of gas to users.

2. To maintain just and reasonable rates for the transmission, distribution and storage of gas.

3. To facilitate rational expansion of transmission and distribution systems.

4. To facilitate rational development and safe operation of gas storage.

5. To facilitate opportunities for energy efficiency consistent with the policies of the Ontario government.

Definitions

3. In this Act,

affiliate", with respect to a corporation, has the same meaning as in the Business Corporations Act\; ("membre du même groupe")

associate", where used to indicate a relationship with any person, means,

(a) any body corporate of which the person owns, directly or indirectly, voting securities carrying more than 50 per cent of the voting rights attached to all voting securities of the body corporate for the time being outstanding,

(b) any partner of that person,

(c) any trust or estate in which the person has a substantial beneficial interest or as to which the person serves as trustee or in a similar capacity,

(d) any relative of the person, including the person's spouse as defined in the Business Corporations Act, where the relative has the same home as the person, or

(e) any relative of the spouse, as defined in the Business Corporations Act, of the person where the relative has the same home as the person; ("personne qui a un lien") "

Board" means the Ontario Energy Board; ("Commission")

construct" means construct, reconstruct, relocate, enlarge or extend; ("construire")

director" means the director of licensing appointed under section 5; ("directeur")

fuel oil" means any liquid hydrocarbon within the meaning from time to time of the Canadian General Standards Board specification CAN/CGSB-3.2-M89 entitled FUEL OIL HEATING, CAN/CGSB-3.3-M89 entitled KEROSENE, CAN/CGSB-3.6-M90 entitled AUTOMOTIVE DIESEL FUEL or, when used for heating, cooking or lighting, within the meaning from time to time of CAN/CGSB-3.27-M89 entitled NAPHTHA FUEL; ("mazout")

gas" means natural gas, substitute natural gas, synthetic gas, manufactured gas, propane-air gas or any mixture of any of them; ("gaz")

gas distributor" means a person who delivers gas to a consumer and "distribute" and "distribution" have corresponding meanings; ("distributeur de gaz", "distribuer", "distribution")

gas transmitter" means a person who carries gas by hydrocarbon transmission line, as defined in Part VI, and "transmit" and "transmission" have corresponding meanings; ("transporteur de gaz", "transporter", "transport")

land" includes any interest in land; ("bien-fonds")

manufactured gas" means any artificially produced fuel gas, except acetylene and any other gas used principally in welding or cutting metals; ("gaz manufacturé")

Minister" means the Minister of Energy, Science and Technology; ("ministre")

oil" means crude oil, and includes any hydrocarbon that can be recovered in liquid form from a pool through a well; ("pétrole")

pipe line" means a pipe that carries a hydrocarbon and includes every part of the pipe and adjunct thereto; ("pipeline")

pool" means an underground accumulation of oil or natural gas or both, separated or appearing to be separated from any other such underground accumulation; ("gisement")

producer" means a person who has the right to remove gas or oil from a well, and "produce" and "production" have corresponding meanings except when referring to documents or records; ("producteur", "produire", "production")

propane" means a hydrocarbon consisting of 95 per cent or more of propane, propylene, butane or butylene, or any blend thereof; ("propane")

rate" means a rate, charge or other consideration and includes a penalty for late payment; ("tarif")

regulations" means the regulations made under this Act; ("règlements")

station" means a compressor station, a metering station, an odorizing station or a regulating station; ("station")

storage company" means a person engaged in the business of storing gas; ("compagnie de stockage")

utility line" means a pipe line, a telephone, telegraph, electric power or water line, or any other line that supplies a service or commodity to the public; ("ligne de service public")

voting security" has the same meaning as in the Business Corporations Act\; ("valeur mobilière avec droit de vote")

well" means a hole drilled into a geological formation of Cambrian or more recent age, except a hole where no gas or oil is encountered that is drilled for the production of fresh water or salt. ("puits")

PART II

THE BOARD

Board, composition

4. (1) The Ontario Energy Board is continued under the name Ontario Energy Board in English and Commission de l'énergie de l'Ontario in French and shall consist of as many members, not fewer than five, as the Lieutenant Governor in Council may from time to time determine.

Appointment

(2) The members of the Board shall be appointed by the Lieutenant Governor in Council and one of them shall be designated chair and one or more of them may be designated vice-chair.

Vacancies

(3) Vacancies in the membership of the Board caused by death, resignation or otherwise may be filled by the Lieutenant Governor in Council.

Quorum

(4) Two members of the Board form a quorum.

One member panels

(5) The chair or vice-chair may in writing authorize one member of the Board to hear and determine any matter and, for that purpose, the member has all the jurisdiction and powers of the Board.

Director of licensing

5. (1) The Board shall appoint a director of licensing who shall carry out the duties and exercise the powers given to him or her under this or any other Act.

Substitute

(2) If the director is absent or unable to act, the Board may designate another person to act as director of licensing in his or her place.

Employee

(3) The director shall be an employee of the Board and be appointed under the Public Service Act.

Secretary

6. (1) A secretary of the Board and such assistant secretaries as are considered necessary may be appointed under the Public Service Act and are employees of the Board.

Acting secretary

(2) If the office of secretary is vacant or if the secretary is absent or unable to act, the Board may designate a member of the Board or an assistant secretary to act as temporary secretary.

Energy returns officer

7. The Board may appoint under the Public Service Act an officer known as the energy returns officer and such deputy energy returns officers as the Board considers necessary, all of whom shall be employees of the Board.

Other employees

8. The Board may appoint such other employees as it considers necessary.

Power to administer oaths

9. Every member of the Board and its secretary and every energy returns officer and deputy returns officer have, in carrying out their duties under this or any other Act, the same powers as a commissioner for taking affidavits in Ontario.

Not required to testify

10. Members of the Board and employees of the Board are not required to give testimony in any civil proceeding with regard to information obtained in the discharge of their official duties.

Liability

11. (1) No action or other civil proceeding shall be commenced against a member of the Board or an officer, employee or agent of the Board for any act done in good faith in the exercise or performance or the intended exercise or performance of a power or duty under any Act or for any neglect or default in the exercise or performance in good faith of such a power or duty.

Crown liability

(2) Despite subsections 5 (2) and (4) of the Proceedings Against the Crown Act, subsection (1) does not relieve the Crown of any liability to which it would otherwise be subject in respect of a tort committed by any person referred to in subsection (1).

Fees for photocopies, etc.

12. (1) The Board may, with the approval of the Minister, set and charge fees for copies of orders, decisions, reasons, reports, recordings or other documents or things, including documents certified by a member of the Board or the secretary of the Board.

Application and other fees

(2) Subject to the approval of the Minister, the Board may set and charge licence fees, application fees and other fees relating to an application or appeal to the Board.

Classes

(3) The Board may establish different fees for different classes of persons and for different types of proceedings and types of licences.

Inspection

(4) The Board shall make all licences available for public inspection during normal business hours.

Forms

13. The Board may,

(a) establish forms and require their use; or

(b) approve forms or the content of the forms and require that any application, appeal or information submitted to it be in the approved form.

Assistance

14. The Board may appoint persons having technical or special knowledge to assist the Board.

Annual reports

15. (1) The Board shall make a report annually to the Minister containing such information as the Minister may require.

Tabling

(2) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then lay the report before the Assembly if it is in session or, if not, at its next session.

Seal

16. The Board shall adopt an official seal.

Judicial notice

17. (1) All orders made and licences issued by the Board shall be signed by the chair, a vice-chair, the secretary, an assistant secretary or the director and sealed with the seal of the Board and when purporting to be so signed and sealed, shall be judicially noticed without further proof.

Non-application

(2) The Regulations Act does not apply to the orders or licences of the Board.

Transfer of authority

18. (1) No authority given by the Board under this or any other Act shall be transferred or assigned without leave of the Board.

Licences

(2) A licence issued under this Act is not transferable or assignable without leave of the Board.

Power to determine law and fact

19. (1) The Board has in all matters within its jurisdiction authority to hear and determine all questions of law and of fact.

Order

(2) Subject to subsection 126 (2), the Board shall make any determination in a proceeding by order.

Reference

(3) If a proceeding before the Board is commenced by a reference to the Board by the Minister of Natural Resources, the Board shall proceed in accordance with the reference.

Additional powers and duties

(4) The Board of its own motion may, and if so directed by the Minister under section 27 or otherwise shall, determine any matter that under this Act or the regulations it may upon an application determine and in so doing the Board has and may exercise the same powers as upon an application.

Exception

(5) Unless specifically provided otherwise, subsection (4) does not apply to any application under the Electricity Act, 1998 or any other Act.

Jurisdiction exclusive

(6) The Board has exclusive jurisdiction in all cases and in respect of all matters in which jurisdiction is conferred on it by this or any other Act.

Powers, procedures applicable to all matters

20. Subject to any provision to the contrary in this or any other Act, the powers and procedures of the Board set out in this Part apply to all matters before the Board under this or any other Act.

Board's powers, miscellaneous

21. (1) The Board may at any time on its own motion and without a hearing give directions or require the preparation of evidence incidental to the exercise of the powers conferred upon the Board by this or any other Act.

Hearing upon notice

(2) Subject to any provision to the contrary in this or any other Act, the Board shall not make an order under this or any other Act until it has held a hearing after giving notice in such manner and to such persons as the Board may direct.

Written hearing

(3) Despite subsection 5.1 (2) of the Statutory Powers Procedure Act, the Board may hold a written hearing in a proceeding even if a party objects to a written hearing.

No hearing

(4) Despite section 4.1 of the Statutory Powers Procedure Act, the Board may, in addition to its power under that section, dispose of a proceeding without a hearing if,

(a) no person requests a hearing within a reasonable time set by the Board after the Board gives notice of the right to request a hearing;

(b) the Board determines that no person, other than the applicant, appellant or licence holder will be materially affected by the outcome of the proceeding and the applicant, appellant or licence holder has consented to disposing of a proceeding without a hearing; or

Consolidation

(5) Despite subsection 9.1 (1) of the Statutory Powers Procedure Act, the Board does not need the consent of the parties to combine two or more proceedings or any part of them or hear two or more proceedings at the same time.

Non-application

(6) Subsection 9.1 (3) of the Statutory Powers Procedure Act does not apply to proceedings before the Board.

Interim orders

(7) The Board may make interim orders pending the final disposition of a matter before it.

Hearings under Consolidated Hearings Act

21.1 (1) Despite subsection 4 (4) of the Consolidated Hearings Act, the establishing authority under that Act may appoint one or more members of the Board to be members of a joint board holding a hearing under that Act with respect to an undertaking for which, but for the application of the Consolidated Hearings Act, a hearing before the Board is or may be required.

Where term of member ends

(2) If a joint board commences to hold a hearing under the Consolidated Hearings Act and the term of office on the Ontario Energy Board of a member sitting for the joint hearing expires or is terminated before the proceeding is disposed of, the member shall remain a member of the joint board for the purpose of completing the disposition of the proceeding in the same manner as if his or her term of office had not expired or been terminated.

Conditions of orders

22. The Board in making an order may impose such conditions as it considers proper, and an order may be general or particular in its application.

Written reasons to be made available

23. All written reasons of the Board shall be kept by the secretary or an assistant secretary and be made available to any person upon payment of the required fee.

Obedience to orders of Board a good defence

24. An order of the Board is a good and sufficient defence to any proceeding brought or taken against any person in so far as the act or omission that is the subject of the proceeding is in accordance with the order.

Assessment

25. (1) Subject to the regulations, the Board may assess those persons or classes of persons prescribed by regulation with respect to all expenses incurred and expenditures made by the Board in the exercise of any powers or duties under this or any other Act.

Obligation to pay assessment

(2) Every person assessed under subsection (1) shall pay the amount assessed.

Order to pay assessment

(3) If a person fails to pay an assessment made under subsection (1), the Board may, without a hearing, order that person to pay the assessment.

Failure to pay

(4) If a licensee fails to pay an assessment in accordance with the order, the Board, without a hearing, may suspend or cancel that person's licence.

Payment of full amount

(5) The Board may reinstate the licence of a person whose licence was suspended or cancelled under subsection (4) if the person pays all amounts owing under this section.

Regulations

(6) The Lieutenant Governor in Council may make regulations,

(a) prescribing persons or classes of persons liable to pay an assessment under subsection (1);

(b) prescribing the frequency of the assessments;

(d) prescribing the amount of the assessment or the method of calculating the amount;

(e) prescribing the proportion of the assessment for which each person or class of persons is liable or a method of determining the proportion;

(f) prescribing such other matters relating to the carrying out of an assessment as the Lieutenant Governor in Council considers appropriate.

Scope

(7) A regulation under this section may be general or particular in its application.

Policy directives

26. (1) The Minister may issue, and the Board shall implement, policy directives that have been approved by the Lieutenant Governor in Council concerning general policy and the objectives to be pursued by the Board.

Publication

(2) A policy directive issued under this section shall be published in The Ontario Gazette.

Directives re: market rules, conditions

27. (1) In order to address the abuse or possible abuse of market power in the electricity sector, the Minister may issue, and the Board shall implement, directives that have been approved by the Lieutenant Governor in Council concerning market rules made under section 30 of the Electricity Act, 1998 and existing or proposed licence conditions.

Hearing

(2) A directive issued under subsection (1) may require the Board to hold a hearing or not to hold a hearing.

Refrain from exercising power

28. (1) On an application or in a proceeding, the Board shall make a determination to refrain, in whole or part, from exercising any power or performing any duty under this Act if it finds as a question of fact that a licensee, person, product, class of products, service or class of services is or will be subject to competition sufficient to protect the public interest.

Scope

(2) Subsection (1) applies to the exercise of any power or the performance of any duty of the Board in relation to,

(a) any matter before the Board;

(b) any licensee;

(d) any person selling, transmitting, distributing or storing gas; or

(e) any product or class of products supplied or service or class of services rendered within the province by a licensee or a person who is subject to this Act.

Where determination made

(3) For greater certainty, where the Board makes a determination to refrain in whole or in part from the exercise of any power or the performance of any duty under this Act, and does so refrain, nothing in this Act limits the application of the Competition Act (Canada) to those matters with respect to which the Board refrains.

Notice

(4) Where the Board makes a determination under this section, it shall promptly give notice of that fact to the Minister.

Costs

29. (1) The costs of and incidental to any proceeding before the Board are in its discretion and may be fixed in any case at a sum certain or may be assessed.

Same

(2) The Board may order by whom and to whom any costs are to be paid and by whom they are to be assessed and allowed.

Scale

(3) The Board may prescribe a scale under which such costs shall be assessed.

Inclusion of Board costs

(4) The costs may include the costs of the Board, regard being had to the time and expenses of the Board.

Considerations not limited

(5) In awarding costs, the Board is not limited to the considerations that govern awards of costs in any court.

Power to review, etc.

30. (1) In addition to its powers under section 21.2 of the Statutory Powers Procedure Act, the Board may at any time rehear or review any matter before deciding it.

Review by director

(2) Despite subsection 49 (4) and section 63, the director may review all or part of his or her decision and section 21.2 of the Statutory Powers Procedure Act applies, with necessary modifications, to the review.

Stated case

31. (1) The Board may, at the request of the Lieutenant Governor in Council or of its own motion or upon the motion of any party to proceedings before the Board and upon such security being given as it directs, state a case in writing for the opinion of the Divisional Court upon any question that, in the opinion of the Board, is a question of law.

Same

(2) The Divisional Court shall hear and determine the stated case and remit it to the Board with its opinion.

Appeal to Divisional Court

32. (1) An appeal lies to the Divisional Court from any rule made under Part III or any order of the Board.

Nature of appeal, timing

(2) An appeal may be made only upon a question of law or jurisdiction and must be commenced not later than 30 days after the making of the rule or order.

Board may be heard

(3) The Board is entitled to be heard by counsel upon the argument of an appeal.

Board to act on court's opinion

(4) The Divisional Court shall certify its opinion to the Board and the Board shall make an order in accordance with the opinion, but the order shall not be retroactive in its effect.

Board not liable for costs

(5) The Board, or any member of the Board, is not liable for costs in connection with any appeal under this section.

Order to take effect despite appeal

(6) Every order made under section 35 and section 77 takes effect at the time prescribed in the order, and its operation is not suspended by an appeal.

Petition to L.G.in C.

33. (1) Upon the petition of any party or person interested, filed with the Clerk of the Executive Council within 28 days after the date the Board makes a rule under Part III or an order, the Lieutenant Governor in Council may,

(a) confirm the Board's rule or order; or

(b) require the Board to review all or any part of the Board's rule or order.

Hearing

(2) The Lieutenant Governor in Council may require the Board to hold a hearing with respect to all or any part of the subject-matter of the rule or order.

No further petition

(3) If the Board has acted in accordance with the direction of the Lieutenant Governor in Council under clause (1) (b), the decision of the Board is not subject to petition under this section.

Limitation

(4) This section does not apply to orders of the Board under Part IV or in respect of a licence for the retailing of electricity under Part V.

Question referred to Board

34. The Minister may require the Board to examine, report and advise on any question respecting energy.

PART III

GAS REGULATION

Order of Board required

35. (1) No gas transmitter, gas distributor or storage company shall sell gas or charge for the transmission, distribution or storage of gas except in accordance with an order of the Board, which is not bound by the terms of any contract.

Order re: rates

(2) The Board may make orders approving or fixing just and reasonable rates for the sale of gas by gas transmitters, gas distributors and storage companies, and for the transmission, distribution and storage of gas.

Power of Board

(3) In approving or fixing just and reasonable rates, the Board may adopt any method or technique that it considers appropriate.

Contents of order

(4) An order under this section may include conditions, classifications or practices applicable to the sale, transmission, distribution or storage of gas, including rules respecting the calculation of rates.

Fixing other rates

(5) Upon an application for an order approving or fixing rates, the Board may, if it is not satisfied that the rates applied for are just and reasonable, fix such other rates as it finds to be just and reasonable.

Burden of proof

(6) Subject to subsection (7), in an application with respect to rates for the sale, transmission, distribution or storage of gas, the burden of proof is on the applicant.

Order

(7) If the Board of its own motion, or upon the request of the Minister, commences a proceeding to determine whether any of the rates for the sale, transmission, distribution or storage of gas by any gas transmitter, gas distributor or storage company are just and reasonable, the Board shall make an order under subsection (2) and the burden of establishing that the rates are just and reasonable is on the gas transmitter, gas distributor or storage company, as the case may be.

Exception

(8) This section does not apply to a municipality or municipal public utility commission transmitting or distributing gas under the Public Utilities Act on the day before this section comes into force.

Prohibition

36. No person shall inject gas for storage into a geological formation unless the geological formation is within a gas storage area designated by regulation and unless, in the case of gas storage areas designated after January 31, 1962, authorization to do so has been obtained under section 37 or its predecessor.

Authority to store

37. (1) The Board by order may authorize a person to inject gas into, store gas in and remove gas from a designated gas storage area, and to enter into and upon the land in the area and use the land for that purpose.

Right to compensation

(2) Subject to any agreement with respect thereto, the person authorized by an order under subsection (1),

(a) shall make to the owners of any gas or oil rights or of any right to store gas in the area just and equitable compensation in respect of the gas or oil rights or the right to store gas; and

(b) shall make to the owner of any land in the area just and equitable compensation for any damage necessarily resulting from the exercise of the authority given by the order.

Determination of amount of compensation

(3) No action or other proceeding lies in respect of compensation payable under this section and, failing agreement, the amount shall be determined by the Board.

Appeal

(4) An appeal within the meaning of section 31 of the Expropriations Act lies from a determination of the Board under subsection (3) to the Divisional Court, in which case that section applies and section 32 of this Act does not apply.

Allocation of surplus storage facilities

38. (1) Upon the application of a gas transmitter or gas distributor, the Board by order may direct a storage company having storage capacity and facilities that are not in full use to provide all or part of the storage capacity and facilities for the applicant upon such conditions as may be determined by the Board.

Gas storage agreements to be approved

(2) No storage company shall enter into an agreement or renew an agreement with any person for the storage of gas unless the Board, with or without a hearing has approved,

(a) the parties to the agreement or renewal;

(b) the period for which the agreement or renewal is to be in operation; and

Referral to Board of application for well licence

39. (1) The Minister of Natural Resources shall refer to the Board every application for the granting of a licence relating to a well in a designated gas storage area, and the Board shall report to the Minister of Natural Resources on it.

Hearing

(2) The Board may hold a hearing before reporting to the Minister if the applicant does not have authority to store gas in the area or, in the Board's opinion, the special circumstances of the case require a hearing.

Copy of report to be sent to parties

(3) The Board shall send to each of the parties a copy of its report to the Minister made under subsection (1) within 10 days after submitting it to the Minister and such report shall be deemed to be an order of the Board within the meaning of section 33.

Minister's decision

(4) The Minister of Natural Resources shall grant or refuse to grant the licence in accordance with the report.

Allocation of market demand

40. The Board by order may allocate a just and equitable share of the market demands for gas or oil to the several sources from which the gas or oil is produced and to the several interests within a field or pool.

Discontinuance of transmission or distribution

41. (1) Subject to the Public Utilities Act and to the Energy Act, and in the absence of an agreement to the contrary between the parties affected, no gas transmitter shall voluntarily discontinue transmitting gas to a gas distributor without leave of the Board.

Duty of gas distributor

(2) Subject to the Public Utilities Act and to the Energy Act, a gas distributor shall provide gas distribution services to any building along the line of any of the gas distributor's distribution pipe lines upon the request in writing of the owner, occupant or other person in charge of the building.

Order

(3) Upon application, the Board may order a gas transmitter, gas distributor or storage company to provide any gas sale, transmission, distribution or storage service or cease to provide any gas sale service.

Restriction

(4) Despite subsection 19 (4), the Board may not commence a proceeding under subsection (3) on its own motion.

Disposition of gas systems and acquisition of share control

42. (1) No gas transmitter, gas distributor or storage company, without first obtaining from the Board an order granting leave, shall,

(a) sell, lease or otherwise dispose of its gas transmission, gas distribution or gas storage system as an entirety or substantially as an entirety;

(b) sell, lease or otherwise dispose of that part of a system described in paragraph (a) that is necessary in serving the public; or

Acquisition of share control

(2) No person, without first obtaining an order from the Board granting leave, shall,

(a) acquire such number of voting securities of a gas transmitter, gas distributor or storage company that together with voting securities already held by such person and one or more affiliates or associates of that person, will in the aggregate exceed 20 per cent of the voting securities of a gas transmitter, gas distributor or storage company; or

(b) acquire control of any corporation that holds, directly or indirectly, more than 20 per cent of the voting securities of a gas transmitter, gas distributor or storage company if such voting securities constitute a significant asset of that corporation.

Significant asset

(2.1) For the purpose of subsection (2),

(a) an asset is a significant asset if its value is 20 per cent or more of the aggregate book value of the total assets of a person, determined on a consolidated basis in accordance with generally accepted accounting principles; and

(b) "control", with respect to a corporation, has the same meaning as in the Business Corporations Act.

Valuation of voting securities

(2.2) For the purpose of determining whether voting securities constitute a significant asset, the value of the voting securities shall be deemed to be,

(a) the market value of the securities if more than 20 per cent of the voting securities are publicly traded; and

(b) 115 per cent of the book value of the voting securities, as determined by the equity method of accounting, in all other cases.

Mortgages

(3) This section does not apply to a mortgage or charge to secure any loan or indebtedness or to secure any bond, debenture or other evidence of indebtedness.

Leave

(4) An application for leave under this section shall be made to the Board, which shall grant or refuse leave.

Void agreement

(5) An amalgamation agreement between the corporations that propose to amalgamate is void if the Board refuses to grant leave under this section, even if the amalgamation agreement has been adopted in accordance with subsection 176 (4) of the Business Corporations Act.

Void certificate

(6) A certificate of amalgamation endorsed by the director appointed under section 278 of the Business Corporations Act is void if it is endorsed before leave of the Board for the amalgamation is granted.

Rules

43. (1) The Board may make rules,

(a) governing the conduct of a gas transmitter, gas distributor or storage company as such conduct relates to its affiliates;

(b) governing the conduct of a gas distributor as such conduct relates to any person,

(i) selling or offering to sell gas to a consumer,

(ii) acting as agent or broker for a seller of gas to a consumer, or

(iii) acting or offering to act as the agent or broker of a consumer in the purchase of gas;

(d) establishing conditions of access to transmission, distribution and storage services provided by a gas transmitter, gas distributor or storage company;

(e) establishing classes of gas transmitters, gas distributors and storage companies;

(f) requiring and providing for the making of returns, statements or reports by any class of gas transmitters, gas distributors or storage companies relating to the transmission, distribution, storage or sale of gas, in such form and containing such matters and verified in such manner as the rule may provide;

(f.1) requiring and providing for an affiliate of a gas transmitter, gas distributor or storage company to make returns, statements or reports relating to the transmission, distribution, storage or sale of gas by the gas transmitter, gas distributor or storage company of which it is the affiliate, in such form and containing such matters and verified in such manner as the rule may provide;

(g) establishing a uniform system of accounts applicable to any class of gas transmitters, gas distributors or storage companies;

(h) respecting any other matter prescribed by regulation.

Uniform system of account

(2) Any uniform system of account established under clause (1) (g) may require the approval, consent or determination of the Board, with or without a hearing, for any of the matters provided for in the system.

Incorporation by reference

(3) A rule authorized by this section may incorporate by reference, in whole or in part, any standard, procedure or guideline and may require compliance with any standard, procedure or guideline adopted.

Scope

(4) A rule may be general or particular in its application and may be limited as to time or place or both.

Exemption

(5) A rule may provide for an exemption to it.

Same

(6) An exemption may be made in whole or in part and may be made subject to conditions or restrictions.

Non-application

(7) The Regulations Act does not apply to the rules made by the Board.

Notice and comment

44. (1) The Board shall ensure that notice of every rule that it proposes to make under section 43 is given in such manner and to such persons as the Board may direct.

Content of notice

(2) The notice must include,

(a) the proposed rule or a summary of the proposed rule;

(b) a concise statement of the purpose of the proposed rule;

(d) the time limit for making written representations;

(e) if a summary is provided, information about how the entire text of the proposed rule may be obtained; and

(f) a description of the anticipated costs and benefits of the proposed rule.

Opportunity for comment

(3) Upon giving notice under subsection (1), the Board shall give a reasonable opportunity to interested persons to make written representations with respect to the proposed rule within such reasonable period as the Board considers appropriate.

Exceptions to notice requirement

(4) Notice under subsection (1) is not required if what is proposed is an amendment that does not materially change an existing rule.

Notice of changes

(5) If, after considering the submissions, the Board proposes material changes to the proposed rule, the Board shall ensure notice of the proposed changes is given in such manner and to such persons as the Board may direct.

Content of notice

(6) The notice must include,

(a) the proposed rule with the changes incorporated or a summary of the proposed changes;

(b) a concise statement of the purpose of the changes;

(d) the time limit for making written representations;

(e) if a summary is provided, information about how the entire text of the proposed rule may be obtained; and

(f) a description of the anticipated costs and benefits of the proposed rule.

Representations re: changes

(7) Upon giving notice of changes, the Board shall give a reasonable opportunity to interested persons to make written representations with respect to the changes within such reasonable period as the Board considers appropriate.

Making the rule

(8) If notice under this section is required, the Board may make the rule only at the end of this process and after considering all representations made as a result of that process.

Public inspection

(9) The Board must make the proposed rule and the written representations made under this section available for public inspection during normal business hours at the offices of the Board.

Consultation

(10) If the Board proposes to make a rule under clause 43 (1) (a), notice shall not be given under subsection (1) until after the Board has consulted with gas transmitters, gas distributors or storage companies, as appropriate.

Amendment

(11) In this section, a rule includes an amendment to a rule and a revocation of a rule.

When rules effective

45. (1) A rule comes into force on the day specified in the rule.

Publication

(2) The Board shall publish every rule that comes into force in The Ontario Gazette as soon after the rule is made as practicable.

Effect of non-publication

(3) A rule that is not published is not effective against a person who has not had actual notice of it.

Effect of publication

(4) Publication of a rule in The Ontario Gazette,

(a) is, in the absence of evidence to the contrary, proof of its text and of its making; and

(b) shall be deemed to be notice of its contents to every person subject to it or affected by it.

Judicial notice

(5) If a rule is published in The Ontario Gazette, judicial notice shall be taken of it, of its content and of its publication.

PART IV

GAS MARKETING

Definitions

46. In this Part,

gas marketer" means a person who,

(a) sells or offers to sell gas to a low-volume consumer,

(b) acts as the agent or broker for a seller of gas to a low-volume consumer, or

and "gas marketing" has a corresponding meaning; ("agent de commercialisation de gaz", "commercialisation de gaz") "

low-volume consumer" means a person who annually uses less than the amount of gas prescribed by regulation. ("petit consommateur")

Requirement to hold licence

47. (1) No person shall carry on business as a gas marketer unless the person holds a gas marketer's licence.

Restriction on name use

(2) A gas marketer shall not carry on business in a name other than the name in which it is licensed unless authorized to do so in the licence.

Exclusion

(3) This section does not apply to a gas distributor acting in accordance with an order of the Board.

Where not in compliance

48. A gas marketing contract between a low-volume consumer and a person who is not in compliance with section 47 may not be enforced against that consumer.

Issue of license

49. (1) The director may issue gas marketing licences.

Conditions

(2) Subject to subsection (3), a licence is subject to the conditions imposed by the director or consented to by the applicant.

Limitation

(3) The director may not impose any condition that is not authorized by regulation and shall impose any condition required by regulation.

Non-application

(4) The Statutory Powers Procedure Act does not apply to decisions made by the director under this Part.

Grounds for refusal

50. An applicant for a licence under this Part is entitled to a licence or renewal of a licence unless,

(a) having regard to the financial position of the applicant, the applicant cannot reasonably be expected to be financially responsible in the conduct of business;

(b) the past conduct of the applicant affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty;

(c) the applicant is a corporation and the past conduct of its officers or directors affords reasonable grounds for belief that its business will not be carried on in accordance with law and with integrity and honesty;

(d) the applicant is carrying on activities that are, or will be, if the applicant is licensed, in contravention of this Act or the regulations or the rules made under Part III; or

(e) the applicant does not satisfy such other requirements as may be prescribed by regulation.

Refusal to issue licence

51. (1) Subject to section 52, the director may refuse to issue a gas marketer's licence to an applicant if, in the director's opinion, the applicant is not entitled to a licence under section 50.

Suspension or revocation

(2) Subject to section 52, the director may refuse to renew or may suspend or revoke a gas marketer's licence for any reason that would disentitle an applicant to a licence under section 50 or if the licence holder is in breach of a condition of the licence.

Notice

52. (1) If the director proposes to refuse to issue or renew a gas marketer's licence or proposes to suspend or revoke a gas marketer's licence, the director shall serve notice of the proposal, together with written reasons, on the applicant or licence holder.

Contents

(2) The notice shall state that the applicant or licence holder is entitled to a hearing by the Board if the applicant or licence holder mails or delivers, within 15 days after service of the notice under subsection (1), notice in writing requiring a hearing to the director and to the Board and if it does, the Board shall hold a hearing.

No hearing

(3) If an applicant or licence holder does not require a hearing by the Board in accordance with subsection (2), the director may carry out the proposal stated in the notice under subsection (1).

Hearing

(4) If an applicant or licence holder requires a hearing by the Board in accordance with subsection (2), the Board shall hold the hearing and,

(a) in the case of a proposal to refuse to issue or renew a licence, issue or refuse the licence; and

(b) in the case of a proposal to suspend or revoke a licence, suspend or revoke or not suspend or revoke the licence.

Conditions

(5) Subject to subsection (6), the Board may attach such conditions to its order or to the licence as it considers proper.

Limitation

(6) The Board may not impose any condition that is not authorized by regulation and shall impose any condition that is required by regulation.

Parties

(7) The director, applicant or licence holder who has required the hearing and such other persons as the Board may specify are parties to the proceedings before the Board under this section.

Cancellation upon request

(8) Despite subsection (1), the director may cancel a licence upon the request in writing of the licence holder.

Exception

(9) Subsection 21 (3) does not apply to a hearing under this section in respect of a proposal to suspend or revoke the gas marketer's licence.

Changed circumstances

53. A further application for a gas marketer's licence may be made upon new or other evidence or where it is clear that material circumstances have changed.

Regulations, licensing

54. (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing the types of conditions that the Board or director may impose;

(b) prescribing the specific conditions that the Board or director must impose;

(d) prescribing the amount of gas referred to in the definition of "low-volume consumer" in section 46;

(e) prescribing further requirements for a licence which, if not met, remove an applicant's entitlement to issuance or renewal of a licence;

(f) prescribing the form of security which the director may require an applicant for a licence to file with the director.

Inclusions

(2) Without limiting its generality, the prescribed requirements under clause (1) (e) may include requirements relating to the training, past conduct, qualifications and supervision of the employees of an applicant for a licence or a licence holder.

General or particular

(3) A regulation under this section may be general or particular in its application.

PART V

REGULATION OF ELECTRICITY

Definitions

55. In this Part,

consumer" means a person who uses, for the person's own consumption, electricity that the person did not generate; ("consommateur")

distribute", with respect to electricity, means to convey electricity at voltages of 50 kilovolts or less; ("distribuer")

distribution system" means a system for distributing electricity, and includes any structures, equipment or other things used for that purpose; ("réseau de distribution")

distributor" means a person who owns or operates a distribution system; ("distributeur")

generator" means a person who owns or operates a generation facility; ("producteur")

IMO" means the Independent Electricity Market Operator established under the Electricity Act, 1998\; ("SIGMÉ")

IMO-administered markets" means the markets established by the market rules under the Electricity Act, 1998\; ("marchés administrés par la SIGMÉ")

IMO-controlled grid" means the transmission systems with respect to which, pursuant to agreements, the IMO has authority to direct operations; ("réseau dirigé par la SIGMÉ")

market rules" means the rules made under section 30 of the Electricity Act, 1998\; ("règles du marché")

retail", with respect to electricity, means,

(a) to sell or offer to sell electricity to a consumer,

(b) to act as agent or broker for a retailer with respect to the sale or offering for sale of electricity, or

(c) to act or offer to act as an agent or broker for a consumer with respect to the sale or offering for sale of electricity; ("vendre au détail") "

retailer" means a person who retails electricity; ("détaillant")

transmission system" means a system for transmitting electricity, and includes any structures, equipment or other things used for that purpose; ("réseau de transport")

transmit", with respect to electricity, means to convey electricity at voltages of more than 50 kilovolts; ("transporter")

transmitter" means a person who owns or operates a transmission system. ("transporteur")

Prohibitions

56. No person shall, unless licensed to do so under this Part,

(a) own or operate a distribution system;

(b) own or operate a transmission system;

(c) generate electricity or provide ancillary services for sale through the IMO-administered markets or directly to another person;

(d) retail electricity;

(e) purchase electricity or ancillary services in the IMO-administered markets or directly from a generator;

(e.1) sell electricity or ancillary services through the IMO-administered markets or directly to another person, other than a consumer;

(f) direct the operation of transmission systems in Ontario; or

(g) operate the market established by the market rules.

Order restricting activities

57. (1) The Board may order a person who, without a licence, has engaged in or is about to engage in any of the activities described in section 56 to,

(a) not engage in the activity in question;

(b) cease operating; or

Notice

(2) The Board shall give written notice to a person against whom it intends to make an order under subsection (1).

Content of notice

(3) The notice shall set out the reasons for the proposed order and advise the person that within 15 days after the day that notice was given, the person may request the Board to hold a hearing.

Where no hearing requested

(4) If no request for a hearing is made within the time permitted by subsection (3), the Board may make an order.

When order may take effect

(5) An interim order of the Board made under this section, with or without a hearing, may take effect before the time for requesting a hearing under subsection (3) has expired.

Emergency

58. (1) Despite this Act, the Board may issue an interim licence authorizing a person to undertake any of the activities described in section 56 if the Board considers it necessary to do so to ensure the reliable supply of electricity to consumers.

Powers of Board

(2) If the Board has determined that a distributor has failed to meet its obligations under section 28 of the Electricity Act, 1998, it may,

(a) require the licensee, as a condition of an interim licence, to take possession and control of the business of the distributor;

(b) order the distributor to surrender possession and control of its business to the person licensed under subsection (1); and

Conduct under interim licence

(3) A person who is issued an interim licence to undertake an activity for which another person has previously been licensed may carry on, manage and conduct the operations of the business and in the name of the business preserve, maintain and add to the property of the business and receive the income and revenue of the business, subject to such conditions as the Board may determine.

Disposal of assets

(3.1) A person described in subsection (3) may dispose of such assets as are ordinarily disposed of in the normal course of carrying on the business of a distributor.

No notice

(4) The Board may act under this section without notice and without a hearing.

Review

(5) The Board shall, upon the request of a distributor against whom an order is made under clause (2) (b), hold a hearing to review the order.

Order not stayed

(6) A request for a hearing does not stay the order made under clause (2) (b).

Action on review

(7) After the hearing, the Board may confirm or amend its order and may extend the order.

Term of licence

(8) An order made or licence issued under this section expires three months after it is made or issued unless the Board orders that it be extended.

Retain ownership

(9) Despite subsection (2) or (3), and subject to subsection (3.1) a distributor to whom an order is issued under clause (2) (b) retains ownership of any assets of the business that the distributor owned before the order was issued, subject to any encumbrances.

No compensation

(10) A distributor to whom an order is issued under clause (2) (b) is not entitled to any compensation from the Crown, the Board or any person for being required to surrender possession and control of its business.

Application

59. (1) A person may apply to the director for the issuance or renewal of a licence authorizing one or more of the activities referred to in section 56 as specified in the application.

Notice

(2) The applicant shall publish a notice of the application in the manner and within such time as the Board may direct.

Refer to Board

60. The director may in his or her sole discretion refer the application to the Board for decision.

Notice re: issuing or refusal to issue licence

61. (1) If an application is not referred to the Board, the director shall issue a notice of proposal to issue or renew a licence or a notice of proposal to refuse a licence in such manner and to such persons as the Board may direct.

Submissions

(2) The notice referred to in subsection (1) shall invite written submissions to the director within such time period as the director may direct.

Action by director

62. After considering the written submissions, the director shall,

(a) issue or renew the licence;

(b) deny the application with written reasons; or

Non-application

63. The Statutory Powers Procedure Act does not apply to decisions made by the director under this Part.

Where matter referred to Board

64. (1) If the director refers an application to the Board under section 60 or clause 62 (c), the Board shall issue a notice of proposal to issue or renew a licence or notice of a proposal to refuse a licence.

If no hearing

(2) If the Board disposes of the proceeding without a hearing under subsection 21 (4) of this Act or section 4.1 of the Statutory Powers Procedure Act, the Board may,

(a) in the case of a notice of proposal to issue or renew a licence, issue or renew the licence; or

(b) in the case of a notice of proposal to refuse a licence, refuse the licence.

Board may issue or refuse licence after hearing

(3) After a hearing the Board shall issue or renew or refuse to issue or renew a licence to the applicant.

Mutual access

65. If an application for a licence relates to electricity generated from facilities located in a jurisdiction outside of Ontario, the director or Board may, in determining whether or not to issue a licence, have regard to whether that jurisdiction allows for equivalent access to its electricity markets for electricity generated from facilities located in Ontario.

Appeal

66. (1) Any applicant or any person who made written submissions to the director may, by written notice served upon the director and the Board within 15 days after service upon the person of a copy of the decision, appeal the decision of the director to the Board.

Notice of appeal

(2) The notice of appeal shall set out,

(a) the portions of the decision or licence in respect of which the appeal is made; and

(b) the grounds on which the person intends to rely at the hearing.

Effect

(3) Except with leave of the Board, an appellant is not entitled to appeal a portion of the decision or licence or to rely on a ground that is not stated in the appellant's notice of appeal.

Leave by Board

(4) In granting leave under subsection (3), the Board may give such directions and impose such conditions as it considers appropriate.

Submissions

(5) The director is entitled to make submissions in an appeal under this section.

Board may grant stay

67. The Board may, on the application of a party to an appeal under section 66, stay the operation of the decision, order, licence or condition of the licence.

Powers of Board on appeal

68. If a person appeals to the Board under section 66, the Board shall hear the appeal and may, after the hearing,

(a) confirm the licence issued or renewed by the director on behalf of the Board;

(b) vary or remove any condition in the licence issued or renewed by the director;

(d) refuse to issue or renew a licence to the applicant; or

(e) issue or renew a licence to the applicant.

Conditions

69. (1) A licence under this Part may prescribe the conditions under which a person may engage in an activity set out in section 56 and a licence may also contain such other conditions as are appropriate having regard to the objectives of the Board and the purposes of the Electricity Act, 1998.

Examples of conditions

(2) The conditions of a licence may include provisions,

(a) specifying the period of time during which the licence will be in effect;

(b) requiring the licensee to provide, in the manner and form determined by the Board, such information as the Board may require;

(c) requiring the licensee to enter into agreements with other persons on specified terms (including terms for a specified duration) approved by the Board relating to its trading or operations or for the connection to or use of any lines or plant owned or operated by the licensee or the other party to the agreement;

(d) requiring the licensee to observe, with such modifications or exemptions as may be approved by the Board, specified technical rules, operating procedures and codes, including codes governing the conduct of,

(i) a transmitter or distributor as that conduct relates to its affiliates;

(ii) a distributor as that conduct relates to a retailer;

(iii) a retailer; and

(iv) a generator, retailer or person licensed to engage in an activity described in clause 56 (e.1) or an affiliate of that person as that conduct relates to the abuse or possible abuse of market power;

(e) specifying methods or techniques to be applied in determining the licensee's rates;

(f) requiring the licensee to maintain specified accounting records, prepare accounts according to specified principles and maintain organizational units or separate accounts for separate businesses in order to prohibit subsidies between separate businesses;

(g) specifying performance standards, targets and criteria;

(h) specifying connection or retailing obligations to enable reasonable demands for electricity to be met;

(i) specifying information reporting requirements relating to the source of electricity and emissions caused by the generation of electricity;

(j) requiring the licensee to expand or reinforce its transmission or distribution system in accordance with market rules in such a manner as the IMO or the Board may determine;

(k) requiring the licensee to enter into an agreement with the IMO that gives the IMO the authority to direct operations of the licensee's transmission system.

Where no agreement

(2.1) If the parties to an agreement under clause (2) (k) cannot agree on a proposed amendment to the agreement, the parties may jointly apply to the Board for a resolution of the matter.

Market rules

(3) Every licence shall be deemed to contain a condition that the licensee comply with the market rules that apply to that licensee.

Abuse of market power

(4) Without limiting the generality of subsection (1), a licence to engage in an activity described in clause 56 (c), (d) or (e.1) may contain conditions to address the abuse or possible abuse of market power, including conditions,

(b) establishing minimum and maximum prices or a range of prices at which electricity may be offered for sale or sold through the IMO-administered markets or directly to another person or class of persons;

(d) restricting significant investment in or acquisition of generation facilities located in Ontario.

Non-exclusive

(5) Unless it provides otherwise, a licence under this Part shall not hinder or restrict the grant of a licence to another person within the same area and the licensee shall not claim any right of exclusivity.

Transfer by certain distributors

(6) Despite subsection 18 (2), a licence issued to a distributor which is a public utility commission or a municipal corporation may provide that it is transferable by a transfer by-law under section 133 of the Electricity Act, 1998 to a corporation incorporated pursuant to section 130 of the Electricity Act, 1998.

Additional conditions

(7) A licence issued to a distributor which is a public utility commission or a municipal corporation may, in addition to the conditions which apply to that commission or municipal corporation, set out conditions which will apply to a corporation incorporated pursuant to section 130 of the Electricity Act, 1998 once a transfer to that corporation under section 133 of the Electricity Act, 1998 takes effect or is deemed to take effect.

Affiliates

(8) Subject to subsection 47 (4) of the Electricity Act, 1998, the licence of a distributor shall specify whether the distributor will comply with section 28 of the Electricity Act, 1998,

(a) directly;

(b) through an affiliate;

(d) through a combination of methods described in clauses (a), (b) and (c), as specified.

Exception

(9) Despite clause (8) (a) and any licence, a distributor shall not comply with section 28 of the Electricity Act, 1998 directly after the date prescribed by regulation.

Service area of distributor

(10) The licence of a distributor shall specify the area in which the distributor is authorized to distribute electricity.

Non-discriminatory access

(11) If a transmitter or distributor is exempt from the requirement to provide non-discriminatory access to its transmission or distribution system in Ontario by regulation made under the Electricity Act, 1998, a licence under this Part shall not include a condition requiring the provision of non-discriminatory access unless the licensee has consented to the condition.

Limitation

(12) A licence under this Part shall not require a person to dispose of assets or to undertake a significant corporate reorganization.

Exclusion

(13) Despite subsection (12), a licence under this Part may require a distributor to establish an affiliate through which it shall comply with subsection (8) or section 72.

Scope

(14) This section applies to the exercise of any power under this Act or the Electricity Act, 1998 in relation to a licence referred to in section 56.

Restriction on business activity

70. Subject to subsection 69 (8), a transmitter or distributor, other than a public utility commission or a municipal corporation, shall not, except through an affiliate or affiliates, carry on any business activity other than transmitting or distributing electricity.

Separate accounts

71. Every distributor shall keep its financial records associated with distributing electricity separate from its financial records associated with other activities.

Municipally-owned distributors

72. (1) If one or more municipal corporations own, directly or indirectly, voting securities carrying more than 50 per cent of the voting rights attached to all voting securities of a corporation that is a distributor, the distributor's affiliates shall not carry on any business activity other than the following:

1. Transmitting or distributing electricity.

2. Owning or operating a generation facility that was transferred to the distributor pursuant to Part XI of the Electricity Act, 1998 or for which the approval of the Board was obtained under section 81 or for which the Board did not issue a notice of review in accordance with section 79.

3. Retailing electricity.

4. Distributing or retailing gas or any other energy product which is carried through pipes or wires to the user.

5. Business activities that develop or enhance the ability of the distributor or any of its affiliates to carry on any of the activities described in paragraph 1, 3 or 4.

6. Business activities the principal purpose of which is to use more effectively the assets of the distributor or an affiliate of the distributor, including providing meter installation and reading services, providing billing services and carrying on activities authorized under section 39 of the Electricity Act, 1998.

7. Managing or operating, on behalf of a municipal corporation which owns shares in the distributor, the provision of a public utility as defined in section 1 of the Public Utilities Act or sewage services.

8. Renting or selling hot water heaters.

9. Providing services related to improving energy efficiency.

Limitation

(1.1) In acting under paragraph 7 of subsection (1), the distributor's affiliate shall not own or lease any works, pipes or other machinery or equipment used in the manufacture, processing or distribution of a public utility or in the provision of sewage services.

Municipal corporation

(2) Subsection (1) does not restrict the activities of a municipal corporation.

Amendment of licence

73. (1) Subject to subsections (2) and (3), the Board may, on the application of any person, amend a licence if it considers the amendment to be,

(a) necessary to implement a directive issued under section 26 or 27; or

(b) in the public interest, having regard to the objectives of the Board and the purposes of the Electricity Act, 1998.

Same

(2) Despite subsection 19 (4), the Board may not commence a proceeding of its own motion under this section to address an abuse or possible abuse of market power unless it considers the proceeding necessary to implement a directive under section 27.

Further power to amend

(3) In addition to its power to amend a licence under this section, the Board may, after receiving a report of the Market Surveillance Panel, established under the Electricity Act, 1998, and information provided by the IMO, amend a licence under section 36 of that Act.

Orders for securing compliance

74. (1) If the Board is satisfied that a licensee is contravening or is likely to contravene any licence, the Board may order the licensee to comply with its licence.

Notice

(2) The Board shall give written notice to the licensee that it intends to make an order under subsection (1).

Contents of notice

(3) Notice under subsection (2) shall set out the reasons for the proposed order and advise the licensee that, within 15 days after the day that notice was given, the licensee may request the Board to hold a hearing.

Where no request for hearing

(4) If no request for hearing is made within the time permitted by subsection (3), the Board may make an order.

When order may take effect

(5) An interim order of the Board made under this section, with or without a hearing, may take effect before the time for requesting a hearing under subsection (3) has expired.

Suspension or revocation of licences

75. The Board may suspend or revoke a licence if, in the opinion of the Board, the licensee,

(a) is in contravention of this Act or the Electricity Act, 1998 or a regulation under those Acts;

(b) is in breach of any condition of the licence;

(c) is no longer in a position to operate in conformity with this Act and the Electricity Act, 1998 and the terms of the licence;

(d) has been negligent in carrying on the activity authorised by the licence; or

(e) has made fraudulent misrepresentations in carrying on its business.

Notice of proposed revocation, suspension

76. (1) If the Board proposes to revoke or suspend a licence under section 75, it shall serve notice on the licensee of the proposed action, inviting the licensee to show cause why the licence should not be revoked or suspended.

Hearing

(2) If the Board disposes of the proceeding without a hearing under subsection 21 (4) of this Act or section 4.1 of the Statutory Powers Procedure Act, the Board may carry out the proposed actions stated in the notice under subsection (1).

Powers

(3) If a hearing is held, after the hearing the Board shall decide whether to revoke or suspend the licence.

Amendments

(4) If the Board decides not to revoke or suspend the licence, the Board may make such amendments to the licence as it considers proper to give effect to the purposes of this Act.

Cancellation of licence

(5) Despite subsection (1), the director may cancel a licence upon the request in writing of the licence holder.

Oral hearing required

(6) Subsection 21 (3) does not apply to a hearing under this section.

Order re: transmission of electricity

77. (1) No transmitter shall charge for the transmission of electricity except in accordance with an order of the Board.

Order re: distribution of electricity

(2) No distributor shall distribute electricity or meet its obligations under section 28 of the Electricity Act, 1998 except in accordance with an order of the Board.

Rates

(3) The Board may make orders approving or fixing just and reasonable rates for the transmitting or distributing of electricity and for the retailing of electricity in order to meet a distributor's obligations under section 28 of the Electricity Act, 1998.

Same

(4) The Board may make an order under subsection (3) with respect to the retailing of electricity in order to meet a distributor's obligations under section 28 of the Electricity Act, 1998 even if the distributor is meeting its obligations through an affiliate or through another person with whom the distributor or an affiliate of the distributor has a contract.

Duty of Board

(5) In approving or fixing just and reasonable rates, the Board shall, unless the applicant consents otherwise, apply the method or technique for fixing the applicant's rates set out in the applicant's licence, if such a method or technique is set out.

Conditions, etc.

(6) An order under this section may include conditions, classifications or practices applicable to the transmission, distribution or retailing of electricity, including rules respecting the calculation of rates.

Fixing other rates

(7) Upon an application for an order approving or fixing rates, the Board may, if it is not satisfied that the rates applied for are just and reasonable, fix such other rates as it finds to be just and reasonable.

Burden of proof

(8) Subject to subsection (9), in an application made under this section, the burden of proof is on the applicant.

Order

(9) If the Board of its own motion, or upon the request of the Minister, commences a proceeding to determine whether any of the rates that the Board may approve or fix under this section are just and reasonable, the Board shall make an order under subsection (3) and the burden of establishing that the rates are just and reasonable is on the transmitter or distributor, as the case may be.

Rural or remote consumers

78. (1) The Board, in approving just and reasonable rates for a distributor who delivers electricity to rural or remote consumers, shall provide rate protection for those consumers or prescribed classes of those consumers by reducing the rates that would otherwise apply in accordance with the prescribed rules.

Special case

(2) In setting rates under subsection (1), the Board shall ensure that the class of rural or remote consumers receiving assistance under section 108 of the Power Corporation Act on the day before this section comes into force shall receive rate protection while they continue to,

(a) occupy the same rural residential premises, as defined in section 108 of the Power Corporation Act, as they were occupying on that day; and

(b) live in a part of Ontario designated by regulation as a rural or remote area.

Compensation

(3) A distributor is entitled to be compensated for lost revenue resulting from the rate reduction provided under subsection (1).

Liability for compensation

(4) All consumers are required to contribute towards the amount of any compensation required under subsection (3) in accordance with the regulations.

Regulations

(5) The Lieutenant Governor in Council may make regulations,

(a) prescribing the consumers or classes of consumers eligible for rate protection under this section in addition to those described under subsection (2);

(b) designating areas in Ontario as rural or remote areas;

(d) prescribing maximum amounts of the total annual value of rate protection that may be provided under this section;

(e) prescribing rules respecting the amounts that must be collected to compensate distributors, including rules,

(i) respecting the calculation of those amounts,

(ii) establishing the time and manner of collection,

(iii) requiring the amounts to be paid in instalments and requiring the payment of interest or penalties on late payments,

(iv) prescribing methods of ensuring that the amounts required cannot be bypassed, and

(v) respecting the distribution of the amounts collected;

(f) respecting the use of money collected in excess of the amount required to compensate distributors;

(g) prescribing the powers and duties of the Board in relation to the calculation of amounts to be collected and the time and manner of collection and distribution;

(h) respecting any other matter that the Lieutenant Governor in Council considers necessary in relation to the rate protection.

General or particular

(6) A regulation under this section may be general or particular in application and may prescribe different rules for different persons or classes of persons.

Prohibition

79. No transmitter or distributor or affiliate of a transmitter or distributor shall acquire an interest in a generation facility in Ontario, construct a generation facility in Ontario or purchase shares of a corporation that owns a generation facility in Ontario unless it has first given notice of its proposal to do so to the Board and the Board,

(a) has not issued a notice of review of the proposal within 60 days of the filing of the notice; or

(b) has approved the proposal under section 81.

Prohibition, generator

80. No generator or affiliate of a generator shall acquire an interest in a transmission or distribution system in Ontario, construct a transmission or distribution system in Ontario or purchase shares of a corporation that owns a transmission or distribution system in Ontario unless it has first given notice of its proposal to do so to the Board and the Board,

(a) has not issued a notice of review of the proposal within 60 days of the filing of the notice; or

(b) has approved the proposal under section 81.

Review of acquisition

81. (1) If the Board has issued a notice of review under section 79 or 80, it shall expeditiously proceed to review the proposal.

Order

(2) The Board shall make an order approving a proposal described in section 79 if it determines that,

(a) the impact of the proposal would not adversely affect the development and maintenance of a competitive market; or

(b) the proposal is required to maintain the reliability of the transmission or distribution system of the relevant transmitter or distributor.

Same

(3) The Board shall make an order approving a proposal described in section 80 if it determines that the impact of the proposal would not adversely affect the development and maintenance of a competitive market.

Condition for making order

(4) Unless the Board makes the determination described in subsection (2) or (3), it shall not make an order approving a proposal described in section 79 or 80, respectively.

Standards, targets and criteria

82. (1) The Board may establish standards, targets and criteria for evaluation of performance by transmitters, distributors and retailers.

Regard for standards, targets

(2) The Board may have regard to the standards, targets and criteria referred to in subsection (1) in exercising its powers and performing its duties under this or any other Act in relation to transmitters, distributors and retailers, including establishing the conditions of a licence.

Scope

83. In making a decision in any proceeding under this Part or under the Electricity Act, 1998, the director or Board may determine that,

(a) a system or part of a system that forms part of a transmission system is a distribution system or part of a distribution system; and

(b) a system or part of a system that forms part of a distribution system is a transmission system or part of a transmission system.

Amalgamation

84. (1) Despite clause 179 (b) of the Business Corporations Act, if a distributor proposes to amalgamate with another corporation, a new licence is required for the amalgamated corporation to carry on any of the activities described in section 56.

Joint application

(2) The corporations that propose to amalgamate may apply jointly for a licence under subsection 59 (1) and the director or the Board may issue the licence in the name of the newly amalgamated corporation before the amalgamation and to come into effect on the date of the amalgamation.

Factors to be considered

(3) In determining whether to issue a licence to the proposed amalgamated corporation, the director or the Board shall consider,

(a) the costs and benefits of the proposed amalgamation to the consumers of the distributor;

(b) the financial viability of the proposed amalgamated corporation;

(c) the likely extent to which the proposed amalgamated corporation will meet the performance standards, targets and criteria established under subsection 82 (1); and

(d) any other matters which the Board would normally consider in issuing a licence.

Deemed provision

(4) An amalgamation agreement between the corporations that propose to amalgamate is void if the Board refuses to issue a licence to the proposed amalgamated corporation, even if the amalgamation agreement has been adopted in accordance with subsection 176 (4) of the Business Corporations Act.

Void certificate

(5) A certificate of amalgamation that is endorsed by the director appointed under section 278 of the Business Corporations Act is void if it is endorsed before a licence to own or operate a distribution system is issued to the proposed amalgamated corporation under this Act.

Restriction, disposal of system

85. (1) No transmitter or distributor, without first obtaining from the Board an order granting leave, shall sell, lease or otherwise dispose of,

(a) a transmission or distribution system as an entirety or substantially as an entirety; or

(b) that part of a transmission or distribution system that is necessary in serving the public.

Acquisition of share control

(2) No person, without first obtaining an order from the Board granting leave, shall,

(a) acquire such number of voting securities of a transmitter or distributor that together with voting securities already held by such person and one or more affiliates or associates of that person, will in the aggregate exceed 20 per cent of the voting securities of the transmitter or distributor; or

(b) acquire control of any corporation that holds, directly or indirectly, more than 20 per cent of the voting securities of a transmitter or distributor if such voting securities constitute a significant asset of that corporation.

Significant asset

(2.1) For the purposes of subsection (2),

(b) "control", with respect to a corporation, has the same meaning as in the Business Corporations Act.

Valuation of voting securities

(2.2) For the purpose of determining whether voting securities constitute a significant asset, the value of the voting securities shall be deemed to be,

(a) the market value of the securities if more than 20 per cent of the voting securities are publicly traded; and

(b) 115 per cent of the book value of the voting securities, as determined by the equity method of accounting, in all other cases.

Mortgages

(3) This section does not apply to a mortgage or charge to secure any loan or indebtedness or to secure any bond, debenture or other evidence of indebtedness.

Leave

(4) An application for leave under this section shall be made to the Board, which shall grant or refuse leave.

Monitor markets

86. (1) The Board shall monitor markets in the electricity sector and may report to the Minister on the efficiency, fairness, transparency and competitiveness of those markets.

Advise Minister

(2) If requested by the Minister, the Board shall advise the Minister on,

(a) any abuse or potential abuse of market power in the electricity sector; and

(b) circumstances giving rise to or capable of giving rise to unintended outcomes or effects that operate contrary to the interests of competition.

Regulations

87. (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing requirements for a licence which allows for the retailing of electricity to residential or small business consumers, as defined in the regulations, which, if not met, will result in the refusal to issue or renew a licence;

(b) requiring retailers or generators or persons engaged in an activity described in clause 56 (e.1) to make timely disclosure to the Minister of the Environment, or the IMO in the manner and at the times prescribed, of the nature and quantity of the prescribed contaminants emitted by the generation facility from which the electricity being sold or offered for sale is produced or deemed to be produced, the nature of the fuel and the process of generation used at the facility;

(c) authorizing the Minister of the Environment to determine from which generation facility or facilities electricity is deemed to be produced in accordance with such rules as may be prescribed in the regulation;

(d) requiring retailers or generators or persons engaged in an activity described in clause 56 (e.1) to file with the Board, in such form and at such times as the Board may determine, evidence that the generation facility from which the electricity is produced or is deemed to be produced meets standards for emission of prescribed contaminants from a source or class of sources set out under the Environmental Protection Act\;

(e) respecting the manner in which reductions, credits or allowances acquired by a retailer, generator or a person engaged in an activity described in clause 56 (e.1) under the Environmental Protection Act may be used in determining whether there has been compliance with the standards referred to in clause (d);

(f) requiring retailers to make timely disclosure to consumers, in the manner and at the times prescribed, of the nature and quantity of the prescribed contaminants emitted by the generation facility from which the electricity being sold or offered for sale is produced or is deemed to be produced, the nature of the fuel and the process of generation used at the facility and such other information as is prescribed\;

(g) delegating to a body the power to establish the manner and time requirements described in clause (f) and requiring retailers to disclose the information described in that clause in that manner and within those time periods.

Limitation

(2) A regulation under clause (1) (a) may only prescribe requirements which, if not met, would make a person ineligible for a licence under section 50 or under a regulation made under clause 54 (1) (e).

General or particular

(3) A regulation under this section may be general or particular in its application.

PART VI

TRANSMISSION AND DISTRIBUTION LINES

Definitions

88. In this Part,

electricity distribution line" means a line, transformers, plant or equipment used for conveying electricity at voltages of 50 kilovolts or less; ("ligne de distribution d'électricité")

electricity transmission line" means a line, transformers, plant or equipment used for conveying electricity at voltages higher than 50 kilovolts; ("ligne de transport d'électricité")

hydrocarbon distribution line" means a pipe line used to deliver gas, fuel oil or propane to a consumer; ("ligne de distribution d'hydrocarbures")

hydrocarbon transmission line" means a pipe line carrying any hydrocarbon, other than a production line, hydrocarbon distribution line, pipe line within an oil refinery, oil or petroleum storage depot, chemical processing plant or pipe line terminal or station; ("ligne de transport d'hydrocarbures")

interconnection" means the plant, equipment and apparatus linking adjacent transmission or distribution systems as defined in Part V; ("interconnexion")

work" means a hydrocarbon transmission line, hydrocarbon distribution line, electricity distribution line, electricity transmission line, interconnection or station. ("ouvrage")

Leave to construct, hydrocarbon transmission line

89. (1) No person shall construct a hydrocarbon transmission line without first obtaining from the Board an order granting leave to construct the hydrocarbon transmission line.

Exception

(2) Subsection (1) does not apply to the relocation or reconstruction of a hydrocarbon transmission line unless the size of the line is changed or unless the acquisition of additional land or authority to use additional land is necessary.

Leave to construct in other cases

90. Any person may, before constructing a production line, hydrocarbon distribution line or station, apply to the Board for an order granting leave to construct the production line, hydrocarbon distribution line or station.

Leave to construct

91. (1) No person shall construct, expand or reinforce an electricity transmission line or an electricity distribution line or make an interconnection without first obtaining from the Board an order granting leave to construct, expand or reinforce such line or interconnection.

Exception

(2) Subsection (1) does not apply to the relocation or reconstruction of an existing electricity transmission line or electricity distribution line or interconnection where no expansion or reinforcement is involved unless the acquisition of additional land or authority to use additional land is necessary.

Notice

92. Notice of an application under section 89, 90 or 91 shall be given by the applicant in such manner and to such persons as the Board may direct.

Route map

93. An applicant for an order granting leave under this Part shall file with the application a map showing the general location of the proposed work and the municipalities, highways, railways, utility lines and navigable waters through, under, over, upon or across which the proposed work is to pass.

Exemption

94. The Board may, if in its opinion special circumstances of a particular case so require, exempt any person from the requirements of section 89 or 91 without a hearing.

Order allowing work to be carried out

95. If, after considering an application under section 89, 90 or 91 the Board is of the opinion that the construction, expansion or reinforcement of the proposed work is in the public interest, it shall make an order granting leave to carry out the work.

Condition

96. In an application under section 89, 90 or 91, leave to construct shall not be granted until the applicant satisfies the Board that it has offered or will offer to each owner of land affected by the approved route or location an agreement in a form approved by the Board.

Right to enter land

97. (1) Any person to whom the Board has granted leave under this Part or a predecessor of this Part and the officers, employees and agents of that person may enter on land at the intended location of any part of the proposed work and may make such surveys and examinations as are necessary for fixing the site of the work.

Damages

(2) Any damages resulting from an entry onto land carried out under subsection (1) shall by determined by agreement or, failing agreement, in the manner set out in section 99.

Expropriation

98. (1) The following persons may apply to the Board for authority to expropriate land for a work:

1. Any person who has leave under this Part or a predecessor of this Part.

2. Any person who intends to construct, expand or reinforce an electricity transmission line or an electricity distribution line or make an interconnection and who is exempted from the requirement to obtain leave by the Board under section 94 or a regulation made under clause 126 (1) (f).

Hearing

(1.1) The Board shall set a date for the hearing of the application, but the date shall not be earlier than 14 days after the date of the application.

Information to be filed

(2) The applicant shall file with the Board a plan and description of the land required, together with the names of all persons having an apparent interest in the land.

Procedure

(3) The applicant shall serve notice of the application and notice of the hearing on such persons and in such manner as the Board may direct.

Power to make order

(4) If after the hearing the Board is of the opinion that the expropriation of the land is in the public interest, it may make an order authorizing the applicant to expropriate the land.

Determination of compensation

99. If compensation for damages is provided for in this Part and is not agreed upon, the procedures set out in clauses 26 (a) and (b) of the Expropriations Act apply to the determination of the compensation, and the compensation shall be determined under section 27 of that Act or by the Ontario Municipal Board.

Crossings with leave

100. (1) Any person who has leave to construct a work under this Part may apply to the Board for authority to construct it upon, under or over a highway, utility line or ditch.

Procedure

(2) The procedure set out in subsections 98 (1) to (3) applies with necessary modifications to an application under this section.

Order

(3) Without any other leave and despite any other Act, if after the hearing the Board is of the opinion that the construction of the work upon, under or over a highway, utility line or ditch is in the public interest, it may make an order authorizing the construction upon such conditions as it considers appropriate.

Right to compensation for damages

101. Any person who has acquired land for a work under this Part by agreement with the owner of the land shall pay to the owner due compensation for any damages resulting from the exercise of the person's rights under the agreement and, if the compensation is not agreed upon, it shall be determined in the manner set out in section 99.

Entry upon land

102. (1) Any person may at any time enter upon land, without the consent of the owner of the land, for the purpose of inspecting, altering, maintaining, repairing, renewing, disconnecting, replacing or removing a work or part of a work where leave for the construction, expansion or reinforcement of the work or the making of an interconnection was granted under this Part or a predecessor of this Part.

Compensation

(2) Compensation for any damages resulting from the exercise of a right under subsection (1), if not agreed upon by the person and the owner of the land, shall be determined in the manner set out in section 99.

Non-application

103. If leave to construct a work has been granted under this Part, section 58 of the Public Utilities Act does not apply to that work.

Inspectors

104. (1) One or more inspectors may be appointed under the Public Service Act for the purposes of this Part.

Regulations

(2) The Minister may, with the approval of the Lieutenant Governor in Council, make regulations prescribing the duties of the inspectors.

PART VII

POWERS AND DUTIES OF ENERGY RETURNS OFFICER

Information re: gas

105. For the purposes of this Act and the regulations, the energy returns officer may require from any gas transmitter, gas distributor, storage company or affiliate of that person within such reasonable time as is required by the Board,

(a) any information relating to the business of transmitting, distributing or storing gas;

(b) any information relating to transactions with gas transmitters, gas distributors or storage companies;

(d) the production, or the production on oath, of any document or record connected with the business of transmitting, distributing or storing gas.

Information re: electricity

106. For the purposes of this Act, the Electricity Act, 1998 and the regulations made under those Acts, the energy returns officer may require from any transmitter or distributor, as defined in Part V, or affiliate of that person, within such reasonable time as is required by the Board,

(a) any information relating to the business of transmitting or distributing electricity or to the business of retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998\;

(b) any information relating to transactions with transmitters or distributors or relating to transactions with distributors or their affiliates with respect to retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998\;

(d) the production, or the production on oath, of any document or record connected with the business of transmitting or distributing electricity or connected with the business of retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998.

Power to enter

107. (1) When authorized in writing by the chair of the Board, the energy returns officer and every other person so authorized may, for the purposes of this Act, the Electricity Act, 1998 and the regulations made under those Acts, as applicable, at all reasonable times, enter into the premises or places described in subsection (2) and may conduct an audit, investigation or review and may examine,

(a) any document or record connected with the business of transmitting, distributing or storing gas or connected with any transaction with a gas transmitter, gas distributor or storage company;

(b) any document or record connected with the business of transmitting or distributing electricity or connected with any transaction with a transmitter or distributor, as defined in Part V; or

(c) any document or record connected with the business of retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998 or connected with any transaction with a distributor or its affiliate relating to retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998.

Premises, places

(2) The premises or places in respect of which a power of entry under subsection (1) may be exercised are as follows:

1. Premises or places where any gas transmitter, gas distributor, storage company or affiliate of that person is carrying on business or keeps any document or record described in clause (1) (a) or does or has done anything to any such document or record.

2. Premises or places where any transmitter or distributor, as defined in Part V, or affiliate of that person is carrying on business or keeps any document or record described in clause (1) (b) or does or has done anything to any such document or record.

3. Premises or places where any distributor, as defined in Part V, or affiliate of that person is carrying on the business of retailing electricity for the purpose of meeting the distributor's obligation to sell electricity under section 28 of the Electricity Act, 1998 or keeps any document or record described in clause (1) (c) or does or has done anything to such document or record.

Identification

(3) In exercising a power of entry under this section, the energy returns officer and a person authorized to exercise the powers under subsection (1) shall, upon request, produce proper identification.

Duty to assist

(4) In exercising the powers under this section, the energy returns officer and every other person authorized to exercise those powers may require a person described in subsection (2) or its affiliate or its officers and directors to give all reasonable assistance with such examination, audit, investigation or review and to answer all reasonable questions relating to the examination, audit, investigation or review, either orally or in writing, on oath or by statutory declaration.

Copying

(5) The energy returns officer or a person exercising the powers under this section may, upon giving a receipt therefor, remove any document or record described in subsection (1) from the premises or place described in subsection (2) for the purpose of making copies or extracts and shall promptly return the document or record and obtain a written acknowledgment of its return.

Documents in electronic form

(6) If a document or record is kept in electronic form, the energy returns officer or a person exercising the powers under this section may require that a copy of it be provided to him or her on paper or in a machine-readable medium or both.

Evidence

(7) Copies or extracts from documents or records removed under this section and certified as being true copies or extracts from the originals by the person who made them are admissible in evidence to the same extent as and have the same evidentiary value as the originals.

Dwellings

(8) This section does not authorize a person to enter a room or place actually used as a dwelling without the consent of the occupier except under the authority of a warrant issued under subsection (9).

Warrant

(9) A justice of the peace may issue a warrant authorizing a person named in the warrant to enter premises or a place named in the warrant and exercise the powers given under this section if the justice of the peace is satisfied by information on oath that,

(a) there is reasonable ground to believe that there are documents or records located in the premises or place that are relevant to the carrying out of an audit, investigation or review; and

(b) entry to the premises or place has been or will be denied.

Same

(10) A warrant issued under this section shall,

(a) specify the hours and days during which it may be executed; and

(b) name a date on which it expires, which date shall not be later than 15 days after its issue.

Extension

(11) Upon application without notice by the person named in a warrant, a justice of the peace may, before or after the warrant expires, extend the date on which the warrant expires for an additional period of not more than 15 days.

Notifying Board

108. The energy returns officer shall notify the Board of all matters he or she thinks relevant to Board proceedings or possible future Board proceedings.

Witnesses

109. (1) The energy returns officer, any deputy officer, any person authorized by the chair of the Board in writing under section 107 and any inspector may be called as a witness by the Board in any Board proceeding.

No privilege

(2) No document, record or photocopy thereof in the hands of the energy returns officer shall be excluded as evidence on the ground of privilege in any Board proceeding.

Notice

(3) No document, record or photocopy thereof or any return made under this Part in the hands of the energy returns officer shall be introduced in evidence in any Board proceeding unless,

(a) the Board gives the owner of the document or record or the maker of the return notice that the energy returns officer intends to introduce the evidence; and

(b) the Board gives that person an opportunity to make representations with respect to the intended introduction of that evidence.

Working papers

(4) The audit working papers of the energy returns officer are confidential and are not admissible in any Board proceeding.

Information confidential

110. (1) All information and material furnished to or received or obtained by the energy returns officer, deputy energy returns officers or any person authorized by the chair of the Board in writing under section 107 is confidential.

Same

(2) No person shall otherwise than in the ordinary course of his or her duties communicate any such information or allow access to or inspection of any such material.

Not evidence in certain proceedings

111. No document, record or photocopy thereof or any return made under this Part is admissible in evidence in any proceeding except proceedings respecting an order of the Board or in proceedings with respect to offences under section 125.

PART VIII

GAS PRIORITIES AND ALLOCATION

Purpose

112. The purpose of this Part is to provide for the fair allocation of gas where there is an existing or impending shortage of gas.

Definitions

113. In this Part,

consumer" includes a distributor who purchases all or part of the distributor's supply of gas from another distributor; ("consommateur")

distributor" means a person who supplies gas to a consumer. ("distributeur")

Distributor to comply with approved allocation plan

114. (1) If an allocation plan governing a distributor is approved by the Board, the distributor shall supply gas only in accordance with the allocation plan.

Filing by distributor

(2) Every distributor, at such times as may be prescribed by regulation, shall file with the Board,

(a) an estimate of the quantity of gas that will be available to the distributor to supply the requirements of its consumers for gas for such periods of time as may be prescribed by regulation; and

(b) the distributor's proposed plan for the allocation of the gas referred to in clause (a).

Approval of allocation plan

(3) The Board shall consider the proposed allocation plan filed by a distributor together with any objections or submissions filed and shall by order approve the plan with or without modifications or additions as determined by the Board.

Amendment of approved allocation plan

(4) The Board, subject to the same procedures as nearly as possible as apply to the approval of proposed allocation plans, may by order amend an approved allocation plan on its own motion upon notice to the distributor governed by the approved allocation plan or on the application of the distributor governed by the approved allocation plan.

Board may order assistance to distributor

115. Upon application, the Board may, after a hearing, direct a distributor to make available to another distributor such amount of gas, or any class thereof, and by such means, including sale, loan or otherwise, and on such conditions, including compensation, and to be used by the receiving distributor in such manner, as may be determined by the Board.

Compliance with regulation, etc.

116. Despite section 41 of this Act and section 55 of the Public Utilities Act,

(a) every distributor affected by a regulation, an order of the Board or an allocation plan approved under this Part, and every consumer affected by an order of the Board, shall comply with it in accordance with its terms despite anything in any contract between a distributor and a consumer; and

(b) no action shall be brought against a distributor and a distributor shall not be liable for an act or omission in respect of the supply of gas or the failure to supply gas in so far as the act or omission is authorized, permitted or required by this Part, the regulations, an order of the Board or an allocation plan approved by the Board under this Part.

Prohibition

117. (1) Subject to subsection (2) and the regulations, no person, except a distributor, shall use gas in Ontario that has not been acquired from a distributor.

Exception

(2) Subsection (1) does not apply to the operator of a pipe line as defined in the National Energy Board Act (Canada).

Order to take effect despite appeal

118. Every order made under this Part takes effect at the time prescribed in the order and the operation of the order is not suspended by an appeal or an application under the Judicial Review Procedure Act.

Regulations

119. (1) The Lieutenant Governor in Council may make regulations,

(a) prescribing a system or systems of priorities that, subject to any order of the Board and any allocation plan approved by the Board, shall be complied with by distributors in the supply of gas to consumers;

(b) prescribing times and periods of time for the purposes of subsection 114 (2);

(c) specifying principles, criteria or factors that shall be followed by distributors in formulating and implementing allocation plans;

(d) prescribing additional information and material to be contained in an allocation plan, or to be supplied in support of the plan;

(e) prescribing the form in which an allocation plan shall be prepared and filed;

(f) prescribing the procedures for notification to consumers and classes of consumers affected by a proposed plan and for inspection of the plan;

(g) prescribing the procedures for the filing of objections or submissions in respect of any allocation plan with the Board and for the inspection of such objections or submissions;

(h) prescribing the procedures for the implementation of approved allocation plans by distributors;

(i) respecting the manner in which notice of allocation plans, proposed or approved, shall be given to the public;

(j) respecting any other matter necessary or advisable to provide for situations in which the supply of gas available for use in Ontario is not sufficient to supply all of the requirements of consumers of gas in Ontario so as to carry out effectively the intent and purpose of this Part.

Same

(2) A regulation made under this Part may be general or particular in its application and may apply to any class of distributors, to any class of gas and to any class of consumers.

PART IX

MISCELLANEOUS

Rules of practice

120. The Board may, in its rules of practice and procedure made under the Statutory Powers Procedure Act, establish rules applicable to the practices of the director and for the making of rules under Part III.

Investigators

121. The director may appoint persons to carry out investigations for the purpose of investigating alleged contraventions of this Act, the regulations, the rules made under Part III, a condition of a licence or an order of the Board.

Investigation

122. (1) Where a warrant has been issued under subsection (4), an investigator may, upon producing proper identification if so requested, enter any building or place and may,

(a) require the production for inspection of documents or things that may be relevant to the investigation;

(b) inspect and remove documents or things relevant to the investigation for the purpose of making copies or extracts;

(d) be accompanied by a person who has special or expert knowledge in relation to the subject matter of the investigation.

Receipt

(2) An investigator shall provide a receipt for any documents or things removed under this section and shall promptly return them after the copies or extracts are made.

Evidence

(3) Copies of or extracts from documents or things removed under this section and certified as being true copies or extracts from the originals by the person who made them are admissible in evidence to the same extent as and have the same evidentiary value as the originals.

Warrant

(4) If a justice of the peace is satisfied by information upon oath that there are reasonable grounds for believing that an offence under this Act has been committed and that there are in any building or place any documents or things that will afford evidence as to the commission of the offence, the justice of the peace may, at any time, issue a warrant authorizing the investigator named in the warrant, together with such police officers as are called upon for assistance, to enter and search, by force if necessary, the building or place for the documents and things and to exercise the powers given under this section.

Timing

(5) The warrant shall be executed between 6 a.m. and 9 p.m. unless it provides otherwise.

Expiry

(6) A warrant issued under this section shall name a date on which it expires, which date shall not be later than 15 days after its issue.

Extension

(7) Upon application without notice by a person named in the warrant, a justice of the peace may, before or after the warrant expires, extend the date on which the warrant expires for an additional period of not more than 15 days.

Confidential

123. (1) Every person making an investigation or accompanying a person making an investigation under section 122 shall preserve secrecy in respect of all matters that come to his or her knowledge in the course of an investigation and shall not communicate those matters to any person except,

(a) if required to do so in connection with the administration of this Act and the regulations or any proceedings under this Act or the regulations;

(b) if it is to his or her counsel; or

Testimony

(2) No person to whom subsection (1) applies shall be required to give testimony in any civil proceeding with regard to information obtained by him or her in the course of his or her investigation.

Obstruction

124. (1) No person shall obstruct the energy returns officer or any other person authorized to exercise the powers under Part VII in the performance of an audit, investigation or review or knowingly conceal or destroy any documents or records relevant to the subject-matter of the audit, investigation or review.

Same

(2) No person shall obstruct a person authorized to carry out an investigation under section 122 or knowingly withhold or conceal from that person or destroy any documents or things relevant to the subject-matter of the investigation.

Offences

125. (1) A person is guilty of an offence who,

(a) undertakes an activity without a licence for which a licence is required under this Act and for which a person has not been granted an exemption from the requirement to hold a licence;

(b) knowingly furnishes false or misleading information in any application, statement or return made under this Act;

(d) contravenes this Act, the regulations or a rule made under Part III.

Officers, etc.

(2) It is an offence for any officer or director of a corporation to cause, authorize, permit or acquiesce in the commission by the corporation of an offence mentioned in subsection (1).

Penalty

(3) An individual who is convicted of an offence under subsection (1) or (2) is liable to a fine of not more than $25,000 for a first offence and to a fine of not more than $75,000 for a subsequent offence.

Corporations

(4) A corporation that is convicted of an offence under subsection (1) is liable to a fine of not more than $100,000 for a first offence and to a fine of not more than $250,000 for a subsequent offence.

Limitation

(5) No proceeding under this section shall be commenced more than one year after the facts upon which the proceeding is based first came to the knowledge of the Board.

Regulations, general

126. (1) The Lieutenant Governor in Council may make regulations,

(a) limiting, restricting or taking away any rights to use or consume gas without charge or at a reduced rate;

(b) requiring the Board to approve or fix rates or other charges under section 35;

(c) providing for compensation procedure for the owners of gas or oil rights and the rights to store gas and for the owners of land who are referred to in subsection 37 (2);

(d) prescribing the duties of the secretary, assistant secretary and officers of the Board;

(e) upon the recommendation of the Board, designating any area as a gas storage area;

(f) exempting any person from any provision of this Act, subject to such conditions or restrictions as may be prescribed by the regulations;

(g) defining any word or expression used in this Act that is not defined in this Act;

(h) delegating all or part of the powers or duties of the director under Part IV or V or this Part to a self-regulatory organization on such conditions as the Lieutenant Governor in Council considers appropriate;

(i) delegating all or part of the powers or duties of the Board under Part IV or V to a tribunal on such conditions as the Lieutenant Governor in Council considers appropriate;

(j) prescribing a date or dates for the purposes of subsection 69 (9), which dates may be different for different classes of distributors;

(k) prescribing anything in this Act that is referred to as being prescribed by regulation;

(l) providing for such transitional matters as the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of this Act;

(m) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the purposes of this Act.

Gas storage areas

(2) An application for a regulation designating a gas storage area shall be made to the Board, which shall hold a hearing and make its recommendation to the Lieutenant Governor in Council.

General or particular

(3) A regulation under this section may be general or particular in its application.

Conflict

127. (1) In the event of conflict between this Act and any other general or special Act, this Act prevails.

Same

(2) This Act and the regulations prevail over any by-law passed by a municipality.

Transition, interim licences, orders

128. (1) Despite this Act, for a period of one year from the date this section comes into force, the Board may, without a hearing,

(a) issue a licence to any person to undertake an activity described in section 56; and

(b) issue an order approving or fixing just and reasonable rates under subsection 77 (3).

Prior approval

(2) No licence or rate order may be issued under this section without the prior approval of the Minister.

Term

(3) A licence or rate order issued under this section shall not have a term exceeding 24 months unless its duration is extended by the Board.

Conditions

(4) Section 69 applies to a licence issued under this section.

Deemed application

(5) A licence issued under this section shall be deemed to be an application for a licence under section 59 upon that section coming into force.

Power of Board

(6) Sections 77 and 78 apply to a rate order under this section.

Deemed application

(7) A rate order issued under this section shall be deemed to be an application for a rate order under section 77 upon that section coming into force.

Cease to be valid

(8) A licence or rate order issued under this section ceases to be valid on the earlier of,

(a) the expiry date set out in it or extended under subsection (3); and

(b) the date on which the Board first issues a licence or rate order, as the case may be, in response to the deemed application under subsection (5) or (7), respectively.

No appeal

(9) There is no appeal in respect of a licence issued or refused or an order made under this section.

No petition

(10) Section 33 does not apply to a licence or order under this section.

No right to hearing

(11) There is no right to a hearing under this section.

Transition, uniform system of accounts

129. On the coming into force of section 43, Ontario Regulation 504/97 shall be deemed to be a rule of the Board made under that section and the Board may change or amend the rule in accordance with Part III.

Transition, undertakings

130. Despite the repeal of the Ontario Energy Board Act under the Energy Competition Act, 1998, any undertaking made to the Lieutenant Governor in Council under the repealed Act, if valid immediately before this section comes into force, continues to be valid and binding.

Commencement

131. (1) This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

Short title

132. The short title of the Act set out in this Schedule is the Ontario Energy Board Act, 1998.

SCHEDULE B.1

TORONTO DISTRICT HEATING CORPORATION ACT, 1998

Definitions

1. In this Act,

Corporation" means the corporation continued under subsection 2 (1); ("société")

Hospitals" means Mount Sinai Hospital, Sunnybrook and Women's College Health Sciences Centre, The Hospital for Sick Children and The Toronto Hospital; ("hôpitaux")

regulations" means the regulations made under this Act; ("règlements")

steam" means steam or hot water. ("vapeur")

Corporation continued

2. (1) Toronto District Heating Corporation is continued as a body corporate with share capital.

Business Corporations Act

(2) The Corporation shall be deemed to have been incorporated under the Business Corporations Act.

Articles of incorporation

3. The following provisions shall be deemed to be the Corporation's articles of incorporation and may be amended or restated in accordance with the Business Corporations Act:

1. The name of the Corporation shall be Toronto District Heating Corporation.

2. The address of the registered office of the Corporation shall be P.O. Box 310, Royal Trust Tower, Suite 4018, Toronto-Dominion Centre, Toronto, Ontario M5K 1K2.

3. The number of directors of the Corporation shall be a minimum of one and a maximum of ten.

4. The Corporation is authorized to issue an unlimited number of common shares. The rights, privileges, restrictions and conditions attaching to the common shares are as follows:

i. Payments of Dividends: The holders of the common shares shall be entitled to receive dividends if, as and when declared by the board of directors of the Corporation out of the assets of the Corporation properly applicable to the payment of dividends in such amounts and payable in such manner as the board of directors may from time to time determine. Subject to the rights of the holders of any other class of shares of the Corporation entitled to receive dividends in priority to or concurrently with the holders of the common shares, the board of directors may in its sole discretion declare dividends on the common shares to the exclusion of any other class of shares of the Corporation.

ii. Participation upon Liquidation, Dissolution or Winding Up: In the event of the liquidation, dissolution or winding up of the Corporation or other distribution of assets of the Corporation among its shareholders for the purpose of winding up its affairs, the holders of the common shares shall, subject to the rights of the holders of any other class of shares of the Corporation entitled to receive assets of the Corporation upon such a distribution in priority to or concurrently with the holders of the common shares, be entitled to participate in the distribution. Such distribution shall be made in equal amounts per share on all the common shares at the time outstanding without preference or distinction.

iii. Voting Rights: The holders of the common shares shall be entitled to receive notice of and to attend all annual and special meetings of the shareholders of the Corporation and to one vote in respect of each common share held at all such meetings.

5. No share in the capital of the Corporation shall be issued or transferred without the consent of the directors expressed by the votes of two-thirds of the directors at a meeting of the directors or by an instrument in writing signed by two-thirds of the directors.

6. The number of shareholders of the Corporation, exclusive of persons who are in its employment and exclusive of persons who, having been formerly in the employment of the Corporation, were, while in that employment and have continued after the termination of that employment to be, shareholders of the Corporation, is limited to not more than fifty, two or more persons who are the joint registered owners of one or more shares being counted as one shareholder.

7. Any invitation to the public to subscribe for securities of the Corporation is prohibited.

Shareholders

4. (1) Common shares of the Corporation shall be deemed to have been issued on the day this section comes into force to the following persons:

1. Her Majesty in right of Ontario.

2. The City of Toronto.

3. The Governing Council of the University of Toronto.

4. The Hospitals.

Number of common shares

(2) The number of common shares of the Corporation that are deemed to have been issued under subsection (1) is as follows:

1. To Her Majesty in right of Ontario, 2,000 common shares.

2. To the City of Toronto, 4,000 common shares.

3. To The Governing Council of the University of Toronto, 2,000 common shares.

4. To each of the Hospitals, the number of common shares prescribed by the regulations, so that, in total, 2,000 common shares are deemed to have been issued to the Hospitals.

Directors

5. The directors of the Corporation who hold office on the day this section comes into force shall continue to hold office in accordance with the terms of their existing appointments.

Supply of steam to Hospitals

6. (1) Despite section 55 of the Public Utilities Act, the board of directors of the Corporation shall conduct the business of the Corporation so that the requirements of the Hospitals for steam throughout the year for their facilities that were supplied by the Corporation on the day this section comes into force, and for any new expansion of or modification to those facilities, will be given priority over any other users of steam supplied by the Corporation.

No breach of contract

(2) Nothing done under subsection (1) shall be deemed a breach of contract by the Corporation or entitle any person to rescind any contract or release any guarantor from the performance of the guarantor's obligation, or render the Corporation, its officers, directors, employees or agents liable in any action-at-law or other legal proceedings for damages or otherwise.

Rates for steam

7. (1) Subject to subsections (3) and (4), the rates for steam supplied by the Corporation to its customers shall be set by the Corporation in such amounts and for such periods of time as the Corporation considers appropriate and in setting such rates the Corporation may use its discretion as to the rates to be charged to the various classes of its customers.

Charges for work, etc.

(2) The Corporation may fix the charges for the cost of any work or service done or furnished for the purpose of a supply of steam, and the rent of or charges for fittings, apparatus, meters or other things leased or furnished to its customers.

Collection of accounts

(3) The Corporation may provide for the collection of the rates, charges and rents referred to in subsections (1) and (2) and the times and places when and where they shall be payable, and for allowing for prepayment or punctual payment such discounts as may be considered expedient.

Appeal to Ontario Energy Board

(4) Where the rates referred to in subsection (1) are increased by the Corporation, a customer affected thereby may appeal to the Ontario Energy Board, which may fix just and reasonable rates, and the decision of the Ontario Energy Board is final and binding.

Same

(5) A decision of the Ontario Energy Board under subsection (4) remains in effect for the period of time for which the rate was originally fixed by the Corporation, and thereafter until such time as the Corporation changes the rates under subsection (1).

Purpose of Corporation

8. (1) For the purpose of the Public Utilities Act, the Corporation shall be deemed to have been incorporated for the purpose of supplying a public utility.

Municipal Franchises Act\; Public Utilities Act, s. 58

(2) The Municipal Franchises Act and section 58 of the Public Utilities Act do not apply to the Corporation.

Work on highways, etc.

9. (1) The Corporation shall notify in writing the municipality or other authority having jurisdiction over any highway, public lane or public communication on, over, under or across which the Corporation proposes to put down, place, install and maintain conduits, pipes, wires, poles, rods, cables, transformers, machinery, apparatus, devices, appliances, equipment, materials, structures or works, and shall submit to the municipality or authority the Corporation's plans therefor.

Location

(2) The conduits, pipes, wires, poles, rods, cables, transformers, machinery, apparatus, devices, appliances, equipment, materials, structures or works shall be put down, placed and installed in such manner, and in such location on, over, under or across the highway, public lane or public communication, as the municipality or authority may direct, and the Corporation shall restore the highway, public lane or public communication to its former state and any dispute between the Corporation and the municipality or authority as to the manner and location of putting down, placing and installing shall be referred to the Ontario Municipal Board, and the decision of the Ontario Municipal Board shall be final.

Indemnity

(3) The Corporation shall indemnify and save harmless the municipality or authority against, from and for any and all damages, claims, losses, costs and expenses sustained or incurred by reason of the negligent use, operation, maintenance, installation, placing and putting down of the conduits, pipes, wires, poles, rods, cables, transformers, machinery, apparatus, devices, appliances, equipment, materials, structures or works by the Corporation, its agents, employees, contractors and subcontractors.

Agreements

(4) The Corporation and any municipality or other authority referred to in subsection (1) shall enter into agreements which incorporate the provisions of subsections (1), (2) and (3) and further provide for the continuing and future use by the Corporation of any highway, public lane or public communication, the compensation to be paid to the municipality or other authority therefor and such other terms and conditions as may be agreed to by the parties.

Public Utilities Act

(5) This section applies despite the Public Utilities Act.

City may provide funds

10. (1) The City of Toronto is authorized and empowered to provide funds to the Corporation to enable it to carry out its activities and the funds advanced to the Corporation by the City shall be on such terms as the City may from time to time determine.

Subs. 111 (1) of the Municipal Act

(2) The operations of the Corporation shall be deemed not to be a manufacturing business or other industrial or commercial enterprise for the purposes of subsection 111 (1) of the Municipal Act.

City may own shares

11. The City of Toronto may acquire, hold and sell shares in the capital of the Corporation and of any corporation into which it may be amalgamated.

Hospital Labour Disputes Arbitration Act

12. The steam plant of the Corporation located on the steam plant site described in the trust deed dated as of the 15th day of December, 1972 between the Toronto Hospitals Steam Corporation and the Canada Permanent Trust Corporation and all related equipment and facilities and any other site used to generate the supply of steam are deemed to be a hospital and persons employed thereat are deemed to be hospital employees for the purposes of the Hospital Labour Disputes Arbitration Act as long as the steam generated therefrom is being supplied to the Hospitals or any of them.

Regulations

13. (1) The Lieutenant Governor in Council may make regulations,

(a) fixing, for the purpose of subsection 4 (2), the number of common shares of the Corporation that are deemed under subsection 4 (1) to have been issued to each of the Hospitals;

(b) limiting the business activities in which the Corporation may engage;

(c) providing for such transitional matters as the Lieutenant Governor in Council considers necessary or advisable in connection with the implementation of this Act;

(d) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out effectively the purposes of this Act.

Regulations under cl. (1) (b)

(2) A regulation under clause (1) (b) shall not restrict the Corporation's ability to engage in any business activities related to the production, generation, transmission, distribution or sale of steam, chilled water, electricity or anything ancillary to steam, chilled water or electricity.

Toronto District Heating Corporation Act, 1980

14. (1) Sections 2 to 14, 17 to 22 and 26 to 31 of the Toronto District Heating Corporation Act, 1980 are repealed.

Same

(2) References in the Toronto District Heating Corporation Act, 1980 to provisions that are repealed by subsection (1) shall be deemed to be references to those provisions as they read immediately before subsection (1) came into force.

Commencement

15. This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

16. The short title of the Act set out in this Schedule is the Toronto District Heating Corporation Act, 1998.

SCHEDULE C

AMENDMENTS TO THE ONTARIO MUNICIPAL

EMPLOYEES RETIREMENT SYSTEM ACT

1. (1) Section 1 of the Ontario Municipal Employees Retirement System Act, as amended by the Statutes of Ontario, 1991, chapter 54, section 1 and 1997, chapter 26, Schedule, is further amended by adding the following definition:

associated employer" means,

(a) a person who, under an agreement with a municipality or local board or under an Act, provides a service, program or thing to a person that the municipality or local board is authorized to provide to the person,

(b) a corporation incorporated in accordance with section 130 of the Electricity Act, 1998 for the purpose of generating, transmitting, distributing or retailing electricity, or

(c) a person or association of persons that is designated by the Lieutenant Governor in Council as an associated employer under this Act. ("employeur associé")

(2) The definitions of "employee", "employer", "local board" and "municipality" in section 1 of the Act are repealed and the following substituted:

employee" means a person who is employed by an employer but does not include,

(a) a person who contributes to a pension plan under the Ontario Public Service Employees' Union Pension Act, 1994, the Public Service Pension Act or the Teachers' Pension Act, or

(b) an employee of an associated employer who is not eligible under this Act to be a member of the System; ("employé") "

employer" means,

(a) a municipality or local board,

(b) an associated employer,

(c) an association of municipalities or local boards or of their officials or employees that is designated by the Lieutenant Governor in Council as an employer,

(d) the Province of Ontario in respect of a member who is not eligible to contribute to a pension plan under the Ontario Public Service Employees' Union Pension Act, 1994, the Public Service Pension Act or the Teachers' Pension Act\; ("employeur") "

local board" means,

(a) a local board as defined in the Municipal Affairs Act but not,

(i) an associated employer, or

(ii) a hospital board that operates a public hospital (within the meaning of the Public Hospitals Act) on behalf of a municipality,

(b) an agency of the Crown designated by the Lieutenant Governor in Council as a local board under this Act, and

municipality" includes a regional municipality and a district municipality. ("municipalité")

(3) The definition of "optional service" in section 1 of the Act, as amended by the Statutes of Ontario, 1991, chapter 54, section 1, is further amended by striking out "or" at the end of clause (d) and by adding the following clause:

(d.1) service with an associated employer, or

. . . . .

(4) Section 1 of the Act is amended by adding the following subsections:

Deemed employer

(2) Cornwall Street Railway Light and Power Company Limited shall be deemed to be an employer for the purposes of this Act,

(a) beginning on the day on which the City of Cornwall sells its shares in the Company to Consumers Gas Energy Inc.; and

(b) ending on the day on which subsection 1 (4) of Schedule C to the Energy Competition Act, 1998 comes into force.

Deemed designation

(3) Cornwall Street Railway Light and Power Company Limited shall be deemed to have been designated as an associated employer on the day on which subsection 1 (4) of Schedule C to the Energy Competition Act, 1998 comes into force.

2. (1) Subsection 9 (1) of the Act is amended by striking out the portion preceding clause (a) and substituting the following:

Prohibition, employers

(1) An employer shall not make a contribution for the provision of a pension to an employee unless the contribution is made,

. . . . .

(2) Section 9 of the Act is amended by adding the following subsections:

Exception

(1.1) Subsection (1) does not apply to associated employers.

Conflict

(1.2) Subsection (1) applies despite any general or special Act.

. . . . .

Payment to associated employer

(3) A payment by a municipality or local board to an associated employer with respect to the service, program or thing provided on its behalf by the associated employer does not constitute a contribution for the provision of a pension to an employee of the associated employer.

3. The Act is amended by adding the following section:

Eligibility for membership

9.1 (1) An employee of an associated employer described in clause (a) of the definition of "associated employer" in section 1 is eligible to be a member of the System only if the employee's duties relate primarily to the provision of the service, program or thing provided by the associated employer on behalf of the municipality or local board.

Same

(2) An employee of an associated employer described in clause (b) of the definition of "associated employer" in section 1 is eligible to be a member of the System only if the employee's duties relate primarily to the activities referred to in clause (b) of that definition.

Same

(3) An employee of an associated employer described in clause (c) of the definition of "associated employer" in section 1 is eligible to be a member of the System only if the employee's duties relate primarily to such services, programs or things as may be prescribed.

Administrative activities

(4) For the purposes of this section, the employee's duties may include administrative activities relating to the provision of the service, program or thing or the performance of the corporation's duties, as the case may be.

4. Section 14 of the Act, as amended by the Statutes of Ontario, 1991, chapter 54, section 6, is further amended by adding the following clauses:

(f.1) authorizing associated employers to specify that only designated classes of their eligible employees described in section 9.1 are to be members of the System;

(f.2) prescribing services, programs and things for the purposes of subsection 9.1 (3);

. . . . .

(m.1) prescribing rules that apply with respect to associated employers who are participating employers.

5. Section 15 of the Act, as amended by the Statutes of Ontario, 1991, chapter 54, section 7, is further amended by adding the following subsection:

Restriction

(2.1) An associated employer may participate in the System upon such conditions as the Board and the employer agree.

Commencement

6. This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE D

OTHER AMENDMENTS AND REPEALS

Assessment Act

1. (1) The Assessment Act is amended by adding the following section:

Electricity generating and transformer stations

19.0.1 (1) For the purposes of this Act, the assessed value of land owned by a designated electricity utility or municipal electricity utility on which are situated generating station buildings or structures or transformer station buildings or structures shall be determined on the basis of $86.11 for each square metre of inside ground floor area of the actual building or structure housing the generating, transforming and auxiliary equipment and machinery.

No reduction in taxes

(2) Subsection (1) does not apply to the extent that it would reduce the amount of taxes payable for municipal and school purposes below the amount that was payable in respect of the land in the year before subsection 1 (1) of Schedule D to the Energy Competition Act, 1998 came into force.

Payments under s. 27

(3) The reference in subsection (2) to taxes payable for municipal and school purposes shall be deemed to include payments under subsection 27 (3), payments under section 52 of the Power Corporation Act and payments under section 78 of the Electricity Act, 1998.

Former generating stations

(3.1) Subsection (1) does not apply to land on which are situated generating station buildings if,

(a) the buildings are no longer used to generate electricity;

(b) the buildings are not capable, in their present form, of being used to generate electricity; and

Definitions

(4) In this section, "

designated electricity utility" means,

(a) the Generation Corporation, as defined in the Electricity Act, 1998 or a subsidiary, within the meaning of that Act, of the Generation Corporation, or

(b) the Services Corporation, as defined in the Electricity Act, 1998 or a subsidiary, within the meaning of that Act, of the Services Corporation; ("service public d'électricité désigné") "

municipal electricity utility" has the same meaning as in Part VI of the Electricity Act, 1998. ("service municipal d'électricité")

(2) Section 27 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 17 and 1997, chapter 29, section 11, is further amended by adding the following subsection:

Electricity generating and transformer stations

(3.1) Despite subsection (3), every commission shall pay in each year, to any municipality in which lands or buildings owned by the commission and referred to in section 19.0.1 are situated, an amount equal to the taxes for municipal and school purposes that would be payable if the land and buildings were taxable and were classified in accordance with this Act and the regulations.

City of Toronto Act, 1997

2. Subsection 9 (2) of the City of Toronto Act, 1997 is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

Conservation Authorities Act

3. (1) Clause 28 (2) (c) of the Conservation Authorities Act is amended by striking out "of Ontario Hydro or" in the second line.

(2) Clause 28 (2) (d) of the Act is repealed and the following substituted:

(d) shall interfere with any rights or powers under the Electricity Act, 1998 or the Public Utilities Act.

(3) Subsection 32 (2) of the Act is amended,

(a) by striking out "or of Ontario Hydro" in the second and third lines;

(b) by striking out "or with Ontario Hydro, as the case may be," in the fourth and fifth lines; and

(c) by striking out "or of Ontario Hydro, as the case may be" in the fourteenth and fifteenth lines.

(4) Subsection 32 (4) of the Act is amended,

(a) by striking out "or work of Ontario Hydro" in the second and third lines;

(b) by striking out "or Ontario Hydro" in the fifth line; and

(c) by striking out "or Ontario Hydro, as the case may be" in the tenth and eleventh lines.

(5) Subsections 35 (1), (2) and (3) of the Act are repealed and the following substituted:

Right to use water power

(1) The authority has the right to use any water power created upon lands vested in it for its own uses.

Restriction on sale

(2) Despite subsection (1), the authority shall not market or sell water power created upon lands vested in it.

Obligation to pay

(3) Any person using water power created upon authority lands shall pay to the authority an annual reasonable compensation for the use of the water power.

Arbitration

(3.1) Where the authority and a person described in subsection (3) are unable to agree on the amount of the annual compensation, the matter shall be arbitrated under the Arbitration Act, 1991.

(6) Subsection 35 (4) of the Act is amended by striking out "Ontario Hydro" in the first line and substituting "the Minister of Natural Resources".

(7) Subsection (8) only applies if Bill 25 (An Act to reduce red tape by amending or repealing certain Acts and by enacting two new Acts, introduced on May 25, 1998) receives Royal Assent.

(8) On the later of the day this section comes into force and the day section 12 of Schedule I to Bill 25 comes into force, subsection 28 (10) of the Conservation Authorities Act, as enacted by Bill 25, is amended,

(a) by striking out "of Ontario Hydro or" in clause (c); and

(b) by repealing clause (d) and substituting the following:

(d) shall interfere with any rights or powers under the Electricity Act, 1998 or the Public Utilities Act.

Consumer Protection Act

4. (1) Section 2 of the Consumer Protection Act is amended by inserting "1998" after "Ontario Energy Board Act" in the fifth line.

(2) Section 2 of the Act is amended by adding the following subsections:

Marketers of gas, retailers of electricity

(2) Despite subsection (1), this Act applies to a sale by,

(a) a gas marketer who is a seller and who sells to a buyer; and

(b) a retailer of electricity who is a seller and who sells to a buyer.

Definitions

(3) In this section, "

gas marketer" means a gas marketer as defined in Part IV of the Ontario Energy Board Act, 1998\; ("agent de commercialisation de gaz")

retailer of electricity" means a retailer as defined in the Electricity Act, 1998. ("détaillant en électricité")

Corporations Tax Act

5. (1) Subsection 112 (1) of the Corporations Tax Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 52, 1996, chapter 18, section 23, 1996, chapter 24, section 31 and 1997, chapter 43, Schedule A, section 51, is further amended by adding the following clause:

(l) prescribing, for corporations whose business includes generating electricity within the meaning of the Electricity Act, 1998, rules authorizing and governing the deduction from income, for the purpose of calculations under this Act, of amounts related to,

(i) the capital cost of all or part of a nuclear generation facility,

(ii) the decommissioning of all or part of a nuclear generation facility, or

(iii) the management of nuclear waste or used fuel from a nuclear generation facility.

(2) Section 112 of the Act, as amended by the Statutes of Ontario, 1994, chapter 14, section 52, 1996, chapter 18, section 23, 1996, chapter 24, section 31 and 1997, chapter 43, Schedule A, section 51, is further amended by adding the following subsection:

Rules for electricity corporations

(3) In the event of a conflict, the rules made under clause (1) (l) prevail over the provisions of this Act.

County of Oxford Act

6. (0.1) Subsection 54 (1) of the County of Oxford Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the twelfth, thirteenth and fourteenth lines.

(1) Subsection 55 (2) of the Act is repealed and the following substituted:

Sole rights

(2) Subject to subsections (3), (5) and (5.1) and to any subsisting contracts for the supply of power made under section 85 of the Power Corporation Act, as it read immediately before it was repealed, each commission has the sole right to distribute and supply power within the area municipality in respect of which it is established, and may contract without electoral assent or other approval or authorization for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

Subsidiaries included

(2.1) For the purposes of subsection (2), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(2.2) Subsections (2) and (2.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(2) Subsection 55 (3) of the Act is repealed and the following substituted:

Continuation re certain areas

(3) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the townships of Blandford-Blenheim, East Zorra-Tavistock, Norwich, South-West Oxford and Zorra that Ontario Hydro served immediately before the coming into force of subsection 6 (2) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(3.1) For the purposes of subsection (3), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3.2) Subsections (3) and (3.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(3) Subsection 55 (4) of the Act is repealed.

(4) Subsection 55 (5) of the Act is repealed and the following substituted:

Direct customers: retail

(5) With the consent of a commission, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may retail electricity directly to customers in the area municipality in respect of which the commission is continued.

Direct customers: distribution

(5.1) With the consent of a commission, the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may distribute electricity directly to customers in the area municipality in respect of which the commission is continued.

Repeal

(5.2) Subsections (5) and (5.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Subsection 55 (6) of the Act is repealed.

(6) Section 56 of the Act is repealed.

(7) Paragraph 1 of subsection 57 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the twelfth and thirteenth lines.

County of Simcoe Act, 1993

7. (0.1) Subsection 10 (2) of the Act, 1993 is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the fourth, fifth and sixth lines.

(1) Section 14 of the County of Simcoe Act, 1993 is repealed and the following substituted:

Continuation re certain areas

14. (1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of each local municipality that Ontario Hydro served immediately before the coming into force of subsection 7 (1) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(2) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3) This section is repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(2) Sections 15, 16, 17 and 18 of the Act are repealed.

Crown Agency Act

8. Section 3 of the Crown Agency Act is repealed.

District Municipality of Muskoka Act

9. (1) Subsection 130 (1) of the District Municipality of Muskoka Act is repealed.

(2) Subsection 130 (3) of the Act is repealed and the following substituted:

Distribution of electrical power

(3) Where, immediately before subsection 9 (2) of Schedule D to the Energy Competition Act, 1998 came into force, a public utilities commission or a hydro-electric commission was supplying electrical power and energy in any area within the District Area, the commission shall continue, until such date as the Minister may by order designate, to distribute and sell power within the area.

Same

(3.1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, electrical power and energy in those areas of the District Area that Ontario Hydro served immediately before subsection 9 (2) of Schedule D to the Energy Competition Act, 1998 came into force, until such date as the Minister may by order designate.

Subsidiaries included

(3.2) For the purposes of subsection (3.1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3.3) Subsections (3), (3.1) and (3.2) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

Environmental Protection Act

10. Part XVII of the Environmental Protection Act is amended by adding the following section:

Regulations

176.1 The Lieutenant Governor in Council may make regulations,

(a) establishing programs and other measures for the use of economic and financial instruments and market-based approaches, including without being limited to emissions trading, for the purposes of maintaining or improving existing environmental standards, protecting the environment and achieving environmental quality goals in a cost effective manner; and

(b) providing for or designating a body to administer the programs and other measures referred to in clause (a).

Expropriations Act

11. (1) Subsection 4 (2) of the Expropriations Act is amended,

(a) by inserting "1998" after "Ontario Energy Board Act" in the third line; and

(b) by striking out "49" in the sixth line and substituting "98".

(2) Subsection 5 (5) of the Act is repealed and the following substituted:

Same, OEB

(5) Where an expropriation is made under the Ontario Energy Board Act, 1998, the approving authority is the Ontario Energy Board.

(3) Subsection 9 (1) of the Act is amended by inserting "1998" after "Ontario Energy Board Act".

(4) Subsection 9 (5) of the Act is amended,

(a) by striking out "Power Corporation Act" in the second and third lines and substituting "Ontario Energy Board Act, 1998"\; and

(b) by striking out "Ontario Hydro" in the fifth line and substituting "a transmitter or distributor within the meaning of Part V of that Act".

(5) Section 12 of the Act is amended by striking out "Section 21 of the Ontario Energy Board Act" and substituting "Section 37 of the Ontario Energy Board Act, 1998".

Fire Protection and Prevention Act, 1997

12. Subsection 21 (3) of the Fire Protection and Prevention Act, 1997 is amended by striking out "Ontario Hydro" in the eighth line and substituting "the Electrical Safety Authority referred to in Part VIII of the Electricity Act, 1998".

Forestry Act

13. (1) This section only applies if Bill 25 (An Act to reduce red tape by amending or repealing certain Acts and by enacting two new Acts, introduced on May 25, 1998) receives Royal Assent.

(2) On the later of the day this section comes into force and the day section 21 of Schedule I to Bill 25 comes into force, subsection 11 (4) of the Forestry Act, as enacted by Bill 25, is amended,

(a) by striking out "of Ontario Hydro or" in clause (c); and

(b) by adding the following clause:

(c.1) interfere with any rights or powers of a transmitter or distributor as defined in the Electricity Act, 1998.

Homes for the Aged and Rest Homes Act

14. Subsection 15 (2) of the Homes for the Aged and Rest Homes Act is repealed and the following substituted:

Agreement for supplying water

(2) The council of a municipality having a home, the councils of the municipalities participating in a joint home or the board of management of a home may enter into an agreement with the council of any municipality or person owning or operating a waterworks system for the supply of water for domestic purposes and for fire protection at the home or joint home.

Agreement for supplying electricity

(2.1) The council of a municipality having a home, the councils of the municipalities participating in a joint home or the board of management of a home may enter into an agreement with any person for the supply of electricity for light, heat or power purposes at the home or joint home.

Local Services Boards Act

15. Clauses (a) and (b) of paragraph 5 of the Schedule to the Local Services Boards Act are amended by striking out "Ontario Hydro or".

London-Middlesex Act, 1992

16. (1) Subsection 22 (2) of the London-Middlesex Act, 1992 is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the fourth, fifth and sixth lines.

(2) Section 27 of the Act is repealed and the following substituted:

Continuation re certain parts

27. (1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those parts of the City of London that Ontario Hydro served immediately before the coming into force of subsection 16 (2) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(2) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3) This section is repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(3) Sections 28 and 29 of the Act are repealed.

Mining Tax Act

17. Section 4 of the Mining Tax Act is repealed.

Ministry of Energy Act

18. Section 4 of the Ministry of Energy Act is amended by striking out "the Ontario Energy Board Act and the Power Corporation Act" in the fifth and sixth lines and substituting "the Electricity Act, 1998 and the Ontario Energy Board Act, 1998".

Municipal Act

19. (1) Clause 24 (6) (g) of the Municipal Act is amended by inserting "as it read on the day before it was repealed" after "Power Corporation Act" in the sixth line.

(2) Section 194 of the Act is amended by adding the following subsection:

Application to OBCA corporation

(1.1) This section applies to a corporation established under the Business Corporations Act pursuant to section 130 of the Electricity Act, 1998 as if it were a municipal public utility.

(3) Paragraph 115 of section 210 of the Act is amended by striking out "Power Corporation Act" in the first and second lines and substituting "Ontario Energy Board Act, 1998".

(4) Paragraph 115 of section 210 of the Act, as amended by subsection (3), is repealed on the second anniversary of the day section 130 of the Electricity Act, 1998 comes into force.

(5) Paragraph 117 of section 210 of the Act is amended,

(a) by striking out "Power Corporation Act" in the second and third lines and substituting "Ontario Energy Board Act, 1998"\; and

(b) by striking out "Ontario Hydro" in clause (a) of the definition of "body" and substituting "a transmitter or distributor as defined in the Electricity Act, 1998".

(6) Paragraph 158 of section 210 of the Act, as amended by the Statutes of Ontario, 1996, chapter 1, Schedule M, section 7, is further amended by inserting "1998" after "Ontario Energy Board Act" in the last line.

(7) Subsection 220.1 (5) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule M, section 10, is amended,

(a) by striking out "supplying" in the third line and substituting "distributing or retailing"\; and

(b) by striking out "for the supply permitted by Ontario Hydro" at the end and substituting "permitted by the Ontario Energy Board".

(8) Clause 223.1 (18) (a) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 23, section 56, is amended by striking out "Ontario Hydro" in the last line and substituting "a transmitter or distributor as defined in the Electricity Act, 1998".

(9) Clause 223.2 (13) (a) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 23, section 56, is amended by striking out "Ontario Hydro" in the last line and substituting "a transmitter or distributor as defined in the Electricity Act, 1998".

(10) Clause (e) of the definition of "payment in lieu of taxes" in section 361.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 29, section 32, is repealed and the following substituted:

(e) section 78 of the Electricity Act, 1998.

Municipal Affairs Act

20. (1) Section 16 of the Municipal Affairs Act is amended by striking out "the exclusive jurisdiction over which is by statute conferred upon Ontario Hydro" in the fourth and fifth lines and substituting "licensed under the Ontario Energy Board Act, 1998, which is only engaged in the distribution, generation or retailing of electricity".

(2) Clause 27 (i) of the Act is amended by striking out "the Power Corporation Act" in the first line and substituting "the Ontario Energy Board Act, 1998".

Municipal Franchises Act

21. (1) The definition of "public utility" in section 1 of the Municipal Franchises Act is repealed and the following substituted:

public utility" includes waterworks, natural and other gas works, steam heating works, and distributing works of every kind except electricity distribution systems. ("services publics")

(2) Subsection 3 (1) of the Act is amended by striking out "gas, steam or electric light, heat or power" in the ninth and tenth lines and substituting "steam".

(3) Subsection 3 (2) of the Act is repealed.

(4) Subsection 8 (1) of the Act is amended by striking out "or supply" in the third and fourth lines.

(5) Clause 9 (1) (b) of the Act is repealed.

(6) Clause 9 (1) (c) of the Act is amended by striking out "or the services mentioned in clause (b)" at the end.

(7) Clause 9 (1) (d) of the Act is amended by striking out "or (b)" in the last line.

(8) Subsection 10 (1) of the Act is amended by striking out "or to supply gas to a municipal corporation or to the inhabitants of a municipality" in the fourth, fifth and sixth lines.

Municipal Tax Assistance Act

22. (1) The definition of "Crown Agency" in section 1 of the Municipal Tax Assistance Act is amended by inserting "Financial Corporation" after "Ontario Hydro".

(2) The definition of "provincial property" in section 1 of the Act is amended by inserting "Financial Corporation" after "Ontario Hydro".

Niagara Parks Act

23. Subsection 13 (3) of the Niagara Parks Act is repealed and the following substituted:

Policy directives

(3) The Minister may issue policy directives that have been approved by the Lieutenant Governor in Council on matters relating to the Commission's exercise of its powers and duties under this section.

Members

(4) The members of the Commission shall ensure that policy directives are implemented promptly and efficiently.

Oil, Gas and Salt Resources Act

24. (1) Subsection 11 (2) of the Oil, Gas and Salt Resources Act, as re-enacted by the Statutes of Ontario, 1996, chapter 30, section 65, is amended by inserting "1998" after "Ontario Energy Board Act" in the fourth and fifth lines.

(2) Subsection 11 (4) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 30, section 65, is amended by inserting "1998" after "Ontario Energy Board Act" in the last line.

(3) Subsection 13 (1) of the Act, as amended by the Statutes of Ontario, 1996, chapter 30, section 66, is further amended by striking out "section 23 of the Ontario Energy Board Act" in the first and second lines and substituting "section 39 of the Ontario Energy Board Act, 1998".

(4) Subsection 18 (1) of the Act is amended by inserting "1998" after "Ontario Energy Board Act" in the last line.

Ontario Energy Board Act

25. (1) The following are repealed:

1. The Ontario Energy Board Act.

2. Section 72 of the Aggregate and Petroleum Resources Statute Law Amendment Act, 1996.

3. Section 3 of the Government Process Simplification Act (Ministry of Environment and Energy), 1997.

(2) Subsection (3) only applies if Bill 25 (An Act to reduce red tape by amending or repealing certain Acts and by enacting two new Acts, introduced on May 25, 1998) receives Royal Assent.

(3) On the later of the day section 1 of Schedule F to Bill 25 comes into force and the day this subsection comes into force, section 1 of Schedule F to Bill 25 is repealed.

Ontario Municipal Board Act

26. (1) Subsection 75 (3) of the Ontario Municipal Board Act is repealed.

(2) Section 103 of the Act is repealed and the following substituted:

Power of Ontario Energy Board

103. Nothing in this Act confers upon the Board any jurisdiction with respect to matters that are within the jurisdiction of the Ontario Energy Board.

Planning Act

27. (1) Subsection 3 (5) of the Planning Act, as re-enacted by the Statutes of Ontario, 1996, chapter 4, section 3, is amended by striking out "and Ontario Hydro" in the sixth line.

(2) Subsection 3 (6) of the Act, as re-enacted by the Statutes of Ontario, 1996, chapter 4, section 3, is amended by striking out "including Ontario Hydro" in the fourth line.

(3) The definition of "ministry" in subsection 6 (1) of the Act is amended by striking out "and Ontario Hydro" at the end.

(4) Clause 50 (3) (c) of the Act is amended by striking out "Ontario Hydro" in the fourth and fifth lines.

(5) Clause 50 (3) (d) of the Act is amended by striking out "a transmission line as defined in the Ontario Energy Board Act" in the second, third and fourth lines and substituting "an electricity distribution line, electricity transmission line, hydrocarbon distribution line or hydrocarbon transmission line within the meaning of Part VI the Ontario Energy Board Act, 1998".

(6) Subsection 50 (3) of the Act is amended by striking out "or" at the end of clause (e), by adding "or" at the end of clause (f) and by adding the following clause:

(g) the land or any use of or right therein was acquired for the purpose of an electricity distribution line, electricity transmission line, hydrocarbon distribution line or hydrocarbon transmission line within the meaning of Part VI of the Ontario Energy Board Act, 1998 and is being disposed of to the person from whom it was acquired.

(7) Clause 50 (5) (b) of the Act is amended by striking out "Ontario Hydro" in the fourth and fifth lines.

(8) Clause 50 (5) (c) of the Act is amended by striking out "a transmission line or utility line, both as defined in the Ontario Energy Board Act" in the second, third, fourth and fifth lines and substituting "a utility line within the meaning of the Ontario Energy Board Act, 1998".

(9) Subsection 50 (5) of the Act is amended by striking out "or" at the end of clause (e), by adding "or" at the end of clause (f) and by adding the following clause:

(g) the land or any use of or right therein was acquired for the purpose of a utility line within the meaning of the Ontario Energy Board Act, 1998 and is being disposed of to the person from whom it was acquired.

(10) Subsection 50 (17) of the Act is amended by striking out "or" at the end of clause (b) and by repealing clause (c) and substituting the following:

(d) is land to which clause (3) (g) or (5) (g) applies.

(11) Section 62 of the Act, as amended by the Statutes of Ontario, 1996, chapter 4, section 31, is repealed and the following substituted:

Not subject to Act

62. (1) An undertaking of the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act that has been approved under the Environmental Assessment Act is not subject to this Act.

Subsidiaries included

(2) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

(12) Subsection 75 (4) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 4, section 41, is amended by striking out "or Ontario Hydro" in the fifth and sixth lines.

Power Corporation Act

28. (1) The following are repealed:

1. The Power Corporation Act.

2. The Power Corporation Amendment Act, 1992.

3. Section 391 of the Credit Unions and Caisses Populaires Act, 1994.

4. The Power Corporation Amendment Act, 1994.

5. Section 68 of the Fair Municipal Finance Act, 1997 (No. 1).

6. Section 13 of the Workers' Compensation Reform Act, 1997.

7. Section 66 of the Fair Municipal Finance Act, 1997 (No. 2).

8. Section 165 of the Education Quality Improvement Act, 1997.

9. Section 24 of Schedule G to the Tax Credits to Create Jobs Act, 1997.

(2) The following rules apply concerning the repeal of sections 83.1 to 83.7 of the Power Corporation Act:

1. By-laws passed by a municipal corporation under section 83.2 of the Power Corporation Act on or after the day the Energy Competition Act, 1998 receives first reading in the Assembly are deemed to be void as of the day section 83.2 of the Power Corporation Act is repealed.

2. By-laws passed by a municipal corporation under section 83.2 of the Power Corporation Act before the day the Energy Competition Act, 1998 receives first reading in the Assembly are deemed to be void unless a transfer agreement is entered into by the municipal corporation and Ontario Hydro pursuant to subsection 83.3 (7) of the Power Corporation Act on or before the day section 83.2 of that Act is repealed.

3. Where a by-law is not deemed to be void under paragraph 1 or 2, sections 83.3 to 83.7 of the Power Corporation Act continue to apply for the purposes of completing the transfer of assets and employees, except that no further by-law shall be passed under section 83.2.

4. No further payment is required to be made by Ontario Hydro to the municipal commission after the day on which a rate order comes into effect that is issued under the Ontario Energy Board Act, 1998 to the distributor whose service area includes the area served by the commission under the by-law.

Power Corporation Insurance Act

29. The Power Corporation Insurance Act is repealed.

Public Service Works on Highways Act

30. The definition of "operating corporation" in section 1 of the Public Service Works on Highways Act is amended by striking out "and includes Ontario Hydro" at the end.

Public Transportation and Highway Improvement Act

31. Subsection 26 (2) of the Public Transportation and Highway Improvement Act is amended by striking out "an agency of the Crown or Ontario Hydro" in the third and fourth lines and substituting "or an agency of the Crown".

Public Utilities Act

32. (1) The definition of "public utility" in section 1 of the Public Utilities Act is amended by striking out "electrical power or energy".

(2) The definition of "public utility" in section 17 of the Act is amended by striking out "electrical power or energy".

(3) Subsection 19 (1) of the Act is repealed and the following substituted:

Definition

(1) In this section,

energy conservation program" means a program to encourage the safe and efficient use and conservation of all forms of energy, that may include, but is not limited to, the following:

1. The safe use of energy.

2. The improvement of an energy system in a building.

3. The substitution of other forms of energy for electrical energy.

4. The improvement of the capacity of a building to retain heat.

5. The reduction of electrical energy use through more efficient use of energy.

6. The shifting of electrical loads from times of high demand to times of low demand.

Services

(1.1) An energy conservation program may provide any service related to the purposes of the program that is considered necessary or advisable from time to time.

(4) Subsection 19 (2) of the Act is amended by striking out "as principal or as agent for Ontario Hydro" in the first and second lines.

(5) Subsection 20 (1) of the Act is amended,

(a) by striking out "supplied to it by Ontario Hydro" in the seventh and eighth lines and substituting "sold to it by the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary or delivered to it by the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary"\; and

(b) by striking out "Ontario Hydro pursuant to the Power Corporation Act" in the fourteenth and fifteenth lines and substituting "the corporation designated as the Ontario Electricity Generation Corporation, the corporation designated as the Ontario Electric Services Corporation or a subsidiary of one of those corporations".

(6) Section 20 of the Act, as amended by subsection (5), is repealed on a day to be named by proclamation of the Lieutenant Governor.

(7) Section 28 of the Act is amended by adding the following subsections:

OEB approval for electricity

(2.1) Despite subsections (1) and (2), any rents, rates or prices set for electricity are subject to any terms set out in a licence issued by the Ontario Energy Board under the Ontario Energy Board Act, 1998.

Repeal

(2.2) Subsection (2.1) is repealed on a day to be named by proclamation of the Lieutenant Governor.

(8) Subsection 28 (6) of the Act is amended by striking out "or to Ontario Hydro" in the third and fourth lines.

(9) Section 30 of the Act is repealed.

(10) Subsection 31 (1) of the Act is amended by striking out "or hydro-electric" in the second and third lines.

(11) Subsection 31 (3) of the Act is amended by striking out "or hydro-electric" in the second line.

(12) Subsection 35 (4) of the Act is repealed.

(13) Section 36 of the Act is repealed.

(14) Subsection 37 (3) of the Act, as amended by the Statutes of Ontario, 1996, chapter 32, section 84, is further amended by striking out "provided that where a portion only of the property of an undertaking for the supply of electrical power or energy obtained from Ontario Hydro is sold or disposed of the proceeds shall be applied only as Ontario Hydro may approve" in the ninth, tenth, eleventh, twelfth, thirteenth, fourteenth and fifteenth lines.

(15) Subsection 37 (6) of the Act is repealed.

(16) Subsection 38 (1) of the Act is amended,

(a) by striking out "and the council of a township corporation that has entered into a contract with Ontario Hydro for a supply of electrical power or energy in the township" in the fifth, sixth, seventh, eighth and ninth lines; and

(b) by striking out "or in the case of such township, The Hydro-Electric Commission of the Township of (naming the township), in English, and La Commission hydro-électrique du canton de (naming the township), in French" in the seventeenth, eighteenth, nineteenth, twentieth, twenty-first and twenty-second lines.

(17) Subsections 38 (2), (3) and (4) of the Act are repealed.

(18) Subsections 40 (3), (4) and (5) of the Act are repealed.

(19) Subsections 44 (2) and (3) of the Act are repealed.

(20) Section 55 of the Act is amended by adding the following subsection:

Gas

(2) Subsection (1) does not apply with respect to natural gas.

(20.1) Section 57 of the Act is amended by adding the following subsection:

Same

(2) This Part does not apply to electrical power or energy.

(21) Section 58 of the Act is amended by adding the following subsection:

Application re gas

(4) Subsection (1) applies to a gas distributor as defined in the Ontario Energy Board Act, 1998 but does not apply to other companies supplying natural gas.

(22) Section 60 of the Act is repealed.

Regional Municipality of Durham Act

33. (1) Subsection 9 (2) of the Regional Municipality of Durham Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 10 (2) of the Act is amended by striking out "sections 11 and 12" in the first line and substituting "section 11".

(3) Subsection 10 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

(4) A commission may without electoral assent or other approval or authorization contract for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(4) Subsections 10 (5) and (6) of the Act are repealed.

(5) Subsection 10 (7) of the Act is repealed and the following substituted:

Direct customers: retail

(7) With the consent of a commission, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may retail electricity directly to customers in the area municipality in respect of which the commission is continued.

Direct customers: distribution

(8) With the consent of a commission, the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may distribute electricity directly to customers in the area municipality in respect of which the commission is continued.

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(6) Subsection 11 (1) of the Act, as amended by the Statutes of Ontario, 1993, chapter 3, section 2, is repealed and the following substituted:

Continuation re certain areas

(1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the Municipality of Clarington and the townships of Brock, Scugog and Uxbridge that Ontario Hydro served immediately before the coming into force of subsection 33 (6) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(1.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(1.2) Subsections (1) and (1.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(7) Subsections 11 (2) and (3) of the Act are repealed.

(8) Section 12 of the Act, as amended by the Statutes of Ontario, 1993, chapter 3, section 2, is repealed.

(9) Paragraph 1 of subsection 13 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth last line.

Regional Municipality of Haldimand-Norfolk Act

34. (1) Subsection 10 (2) of the Regional Municipality of Haldimand-Norfolk Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 11 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(3) Subsections 11 (5) and (6) of the Act are repealed.

(4) Subsection 11 (7) of the Act is repealed and the following substituted:

Direct customers: retail

(7) With the consent of a new commission, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may retail electricity directly to customers in the area municipality in respect of which the new commission is continued.

Direct customers: distribution

(8) With the consent of a new commission, the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may distribute electricity directly to customers in the area municipality in respect of which the new commission is continued.

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Section 12 of the Act is repealed.

(6) Subsection 13 (1) of the Act is repealed and the following substituted:

Continuation re certain areas

(1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of each area municipality, other that the Town of Simcoe, that Ontario Hydro served immediately before the coming into force of subsection 34 (6) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(1.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(1.2) Subsections (1) and (1.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(7) Subsections 13 (2) and (3) of the Act are repealed.

(8) Paragraph 1 of subsection 14 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

Regional Municipality of Halton Act

35. (1) Subsection 9 (2) of the Regional Municipality of Halton Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 10 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(3) Subsections 10 (5) and (6) of the Act are repealed.

(4) Subsection 10 (7) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Paragraph 1 of subsection 11 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth last line.

Regional Municipality of Hamilton-Wentworth Act

36. (1) Subsection 10 (2) of the Regional Municipality of Hamilton-Wentworth Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 11 (2) of the Act is amended by striking out "sections 13 and 14" in the first line and substituting "section 14".

(3) Subsection 11 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(4) Subsections 11 (5) and (6) of the Act are repealed.

(5) Subsection 11 (7) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(6) Section 12 of the Act is repealed.

(7) Despite the repeal of section 12 of the Act, subsections 12 (2) to (6) of the Act, as they read immediately before their repeal, continue to apply to a commission established under subsection 12 (1) before it was repealed, except that the commission is not deemed to be a municipal commission within the meaning of the Power Corporation Act.

(8) Section 13 of the Act is repealed.

(9) Subsection 14 (1) of the Act is repealed and the following substituted:

Continuation re certain areas

(1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the towns of Ancaster and Flamborough and the Township of Glanbrook that Ontario Hydro served immediately before the coming into force of subsection 36 (9) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(1.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(1.2) Subsections (1) and (1.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(10) Subsections 14 (2) and (3) of the Act are repealed.

(11) Paragraph 1 of subsection 15 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth last line.

Regional Municipality of Niagara Act

37. (1) Subsection 9 (2) of the Regional Municipality of Niagara Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Section 10 of the Act is repealed.

(2.1) Despite the repeal of section 10 of the Act, subsections 10 (2) to (4) of the Act, as they read immediately before their repeal, continue to apply to a commission established under subsection 10 (1) before it was repealed, except that the commission is not deemed to be a municipal commission within the meaning of the Power Corporation Act.

(3) Subsection 11 (2) of the Act is repealed and the following substituted:

Sole rights

(2) Subject to subsections (3), (6) and (6.1) and to any subsisting contracts for the supply of power made under section 70 of The Power Corporation Act, being chapter 354 of the Revised Statutes of Ontario, 1970, or for the supply of power at 25 hertz, each commission has the sole right to distribute and supply power within the area municipality in respect of which it is continued, and may contract without electoral assent or other approval or authorization for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

(4) Subsection 11 (3) of the Act is repealed and the following substituted:

Continuation re certain areas

(3) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the towns of Grimsby, Lincoln, Niagara-on-the-Lake and Pelham and the Township of West Lincoln that Ontario Hydro served immediately before the coming into force of subsection 37 (4) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(3.1) For the purposes of subsections (2) and (3), a reference to a corporation is deemed to include a subsidiary of that corporation.

(4.1) Subsection 11 (5) of the Act is repealed.

(5) Subsection 11 (6) of the Act is repealed and the following substituted:

Direct customers: retail

(6) With the consent of a commission, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may retail electricity directly to customers in the area municipality in respect of which the commission is continued.

Direct customers: distribution

(6.1) With the consent of a commission, the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may distribute electricity directly to customers in the area municipality in respect of which the commission is continued.

Repeal

(6.2) Subsections (2), (3), (3.1), (4), (6) and (6.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(6) Subsections 11 (7) and (8) of the Act are repealed.

(7) Paragraph 1 of subsection 12 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

Regional Municipality of Ottawa-Carleton Act

38. (1) Subsection 17 (2) of the Regional Municipality of Ottawa-Carleton Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 18 (2) of the Act is amended by striking out "sections 20 and 21" in the first line and substituting "section 21".

(3) Subsection 18 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(4) Subsections 18 (5) and (6) of the Act are repealed.

(5) Subsection 18 (7) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5.1) Section 19 of the Act is repealed.

(5.2) Despite the repeal of section 19 of the Act, subsections 19 (2) to (6) of the Act, as they read immediately before their repeal, continue to apply to a commission established under subsection 19 (1) before it was repealed, except that the commission is not deemed to be a municipal commission within the meaning of the Power Corporation Act.

(6) Section 20 of the Act is repealed.

(7) Subsection 21 (1) of the Act is repealed and the following substituted:

Continuation re certain areas

(1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the townships of Cumberland and Goulbourn that Ontario Hydro served immediately before the coming into force of subsection 38 (7) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(1.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(1.2) Subsections (1) and (1.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(8) Subsections 21 (2) and (3) of the Act are repealed.

(9) Paragraph 1 of subsection 22 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth last line.

Regional Municipality of Peel Act

39. (1) Subsection 9 (1) of the Regional Municipality of Peel Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the last three lines.

(2) Subsection 10 (2) of the Act is repealed and the following substituted:

Sole rights

(2) Subject to subsections (5) and (5.1) and to any subsisting contracts for the supply of power under section 85 of the Power Corporation Act, as it read immediately before it was repealed, or for the supply of power at 25 hertz, each commission has the sole right to distribute and supply power within the area municipality in respect of which it is continued, and may contract without electoral assent or other approval or authorization for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

Subsidiaries included

(2.1) For the purposes of subsection (2), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(2.2) Subsections (2) and (2.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(2.1) Subsection 10 (3) of the Act is repealed and the following substituted:

Continuation re certain areas

(3) Despite subsection (2) and subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the Town of Caledon that Ontario Hydro served immediately before the coming into force of subsection 39 (2.1) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(3.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3.2) Subsections (3) and (3.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(3) Subsection 10 (4) of the Act is repealed.

(4) Subsection 10 (5) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(5.2) Subsections (5) and (5.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Subsections 10 (6), (7) and (8) of the Act are repealed.

(6) Paragraph 1 of subsection 11 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

Regional Municipality of Sudbury Act

40. (1) Subsection 8 (2) of the Regional Municipality of Sudbury Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the third, fourth and fifth lines.

(2) Subsection 9 (5) of the Act is repealed.

(2.1) Subsection 10 (3) of the Act is amended by striking out "and" at the end of clause (a) and by repealing clause (b) and substituting the following:

(b) is subject to the rights of the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 to supply power and the rights of the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 to distribute power in those areas served by the new commission that were served by Ontario Hydro on December 31, 1984; and

(c) is subject to the rights of any other person or body, other than a municipal corporation, that was supplying power on December 31, 1984 in the area served by the new commission.

(3) Subsection 10 (4) of the Act is repealed and the following substituted:

Contract for purchase or transmission

(4) A new commission may without electoral assent or other approval or authorization contract for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

Subsidiaries included

(4.1) For the purposes of subsection (4), a reference to a corporation is deemed to include a subsidiary of that corporation.

(4) Subsections 10 (5) and (6) of the Act are repealed.

(5) Subsection 10 (7) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(9) Subsections (2), (3), (4), (4.1), (7) and (8) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(6) Section 11 of the Act is repealed.

(7) Despite the repeal of section 11 of the Act, subsections 11 (2) to (7) of the Act, as they read immediately before their repeal, continue to apply to a commission established under subsection 11 (1) before it was repealed, except that the commission is not deemed to be a municipal commission within the meaning of the Power Corporation Act.

(8) Section 12 of the Act is repealed.

(9) Subsection 13 (1) of the Act is repealed and the following substituted:

Continuation re certain areas

(1) Subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the Town of Capreol, the Town of Nickel Centre, the Town of Onaping Falls, the Town of Rayside-Balfour, the Town of Valley East and the Town of Walden that Ontario Hydro served immediately before the coming into force of subsection 40 (9) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(1.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(1.2) Subsections (1) and (1.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(10) Subsections 13 (2) and (3) of the Act is repealed.

(11) Paragraph 1 of subsection 14 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

Regional Municipality of Waterloo Act

41. (1) Subsection 8 (4) of the Regional Municipality of Waterloo Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the fourth and third last lines.

(2) Subsection 8 (14) of the Act is amended by striking out "Subject to the approval of Ontario Hydro" in the first and second lines.

(2.1) Subsection 9 (2) of the Act is repealed and the following substituted:

Sole rights

(2) Subject to subsections (4) and (5) and to any subsisting contracts for the supply of power under section 85 of the Power Corporation Act, as it read immediately before it was repealed, or for the supply of power at 25 hertz, each commission has the sole right to distribute and supply power within the area municipality in respect of which it is continued, and may contract without electoral assent or other approval or authorization for the purchase of electricity with the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or for the transmission of electricity with the corporation designated as the Ontario Electric Services Corporation for the purposes of that Act.

Subsidiaries included

(2.1) For the purposes of subsection (2), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(2.2) Subsections (2) and (2.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(3) Subsection 9 (3) of the Act is repealed.

(4) Subsection 9 (4) of the Act is repealed and the following substituted:

Direct customers: retail

(4) With the consent of a commission, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may retail electricity directly to customers in the area municipality in respect of which the commission is continued.

Direct customers: distribution

(5) With the consent of a commission, the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 or its subsidiary may distribute electricity directly to customers in the area municipality in respect of which the commission is continued.

Repeal

(6) Subsections (4) and (5) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Paragraph 1 of subsection 10 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

(6) Subsection 11 (2) of the Act is amended by striking out "With the approval of Ontario Hydro" in the first line.

Regional Municipality of York Act

42. (1) Subsection 8 (1) of the Regional Municipality of York Act is amended by striking out "and a municipal commission within the meaning of the Power Corporation Act" in the last two lines.

(2) Section 9 of the Act is repealed.

(3) Despite the repeal of section 9 of the Act, subsections 9 (2) to (7) of the Act, as they read immediately before their repeal, continue to apply to a commission established under subsection 9 (1) before it was repealed, except that the commission is not deemed to be a municipal commission within the meaning of the Power Corporation Act.

(4) Subsection 10 (2) of the Act is repealed and the following substituted:

Sole rights

Subsidiaries included

(2.1) For the purposes of subsection (2), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(2.2) Subsections (2) and (2.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(4.1) Subsection 10 (3) of the Act is repealed and the following substituted:

Continuation re certain areas

(3) Despite subsection (2) and subject to the conditions of their licences issued under the Ontario Energy Board Act, 1998, the corporation designated as the Ontario Electricity Generation Corporation for the purposes of the Electricity Act, 1998 shall supply, and the corporation designated as the Ontario Electric Services Corporation for the purposes of the Electricity Act, 1998 shall distribute, power in those areas of the Town of Whitchurch-Stouffville, the Town of East Gwillimbury, the Town of Georgina and the Township of King that Ontario Hydro served immediately before the coming into force of subsection 42 (4.1) of Schedule D to the Energy Competition Act, 1998.

Subsidiaries included

(3.1) For the purposes of subsection (1), a reference to a corporation is deemed to include a subsidiary of that corporation.

Repeal

(3.2) Subsections (3) and (3.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(5) Subsection 10 (4) of the Act is repealed.

(6) Subsection 10 (5) of the Act is repealed and the following substituted:

Direct customers: retail

Direct customers: distribution

Repeal

(5.2) Subsections (5) and (5.1) are repealed on the day that subsection 25 (1) of the Electricity Act, 1998 comes into force.

(7) Subsections 10 (6) and (7) of the Act are repealed.

(8) Paragraph 1 of subsection 11 (2) of the Act is amended by striking out "without the assent of Ontario Hydro" in the fourth and third last lines.

Registry Act

43. Section 114 of the Registry Act is amended by adding the following subsection:

OBCA corporation

(2.1) For the purposes of subsection (2), a public utility easement of a municipality includes a public utility easement transferred by a municipality under a transfer by-law to a corporation established under the Business Corporations Act pursuant to section 130 of the Electricity Act, 1998.

Rural Hydro-Electric Distribution Act

44. The Rural Hydro-Electric Distribution Act is repealed.

Rural Power District Loans Act

45. The Rural Power District Loans Act is repealed.

Safety And Consumer Statutes Administration Act, 1996

46. The Schedule to the Safety and Consumer Statutes Administration Act, 1996 is amended by adding the following:

Electricity Act, 1998

Telephone Act

47. Section 25 of the Telephone Act is repealed and the following substituted:

Electricity

25. Nothing in this Act confers upon the Commission any jurisdiction as to matters that are under the Electricity Act, 1998 or the Ontario Energy Board Act, 1998.

Topsoil Preservation Act

48. (1) Clause 2 (2) (e) of the Topsoil Preservation Act is amended by striking out "or Ontario Hydro".

(2) Clause 2 (2) (g) of the Act is amended by inserting "1998" after "Ontario Energy Board Act".

Tourism Act

49. Clause 13 (2) (a) of the Tourism Act is amended by striking out "the Power Corporation Act" at the end and substituting "Part VIII of the Electricity Act, 1998".

Trees Act

50. Clause 5 (1) (c) of the Trees Act is amended by striking out "Ontario Hydro" and substituting "transmitters and distributors as defined in the Electricity Act, 1998".

Unclaimed Intangible Property Act

51. The definition of "public utility" in section 1 of the Unclaimed Intangible Property Act is amended by inserting "a transmitter, distributor or retailer as defined in the Electricity Act, 1998" after "similar works or service" in the sixth line.

Commencement

52. (1) This Schedule comes into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(2) Any proclamation under subsection (1) may apply to the whole or any part, section or subsection of this Schedule, and proclamations may be issued at different times with respect to any part, section or subsection of this Schedule.

Same

(3) Any proclamation relating to the repeal of the Ontario Energy Board Act or the Power Corporation Act may apply to the whole or any part, section or subsection of that Act, and proclamations may be issued at different times with respect to any part, section or subsection of that Act.

EXPLANATORY NOTE

The Bill enacts four Schedules. Schedule A contains the proposed Electricity Act, 1998. Schedule B revises the Ontario Energy Board Act. Schedule C contains amendments to the Ontario Municipal Employees Retirement System Act. Schedule D contains other amendments and repeals.

Schedule A - Electricity Act, 1998

Part I of the Electricity Act, 1998 states the purposes of the Act and contains definitions of words and expressions used in the Act.

Part II establishes the Independent Electricity Market Operator (the IMO). Its functions include exercising and performing powers and duties assigned to it (see, in particular, Part III of the Act), entering into agreements with electricity transmitters that give the IMO authority to direct the operations of transmission systems, and establishing and operating markets in electricity and ancillary services. The IMO is not an agent of the Crown.

Part III deals with the electricity markets. It includes provisions requiring electricity transmitters and distributors to provide electricity generators, retailers and consumers with non-discriminatory access to their transmission and distribution systems. Distributors will be required to connect buildings to their distribution systems and to sell electricity to people who are connected. The IMO will have power to make and enforce market rules governing the transmission systems over which it has authority to direct operations and establishing and governing markets in electricity and ancillary services. Provision is made for reviews of the market rules by the Ontario Energy Board. The Market Surveillance Panel established by the IMO may investigate activities related to the IMO-administered markets. The Ontario Energy Board can require amendments to the market rules or amend the licences of market participants in order to avoid, reduce the risk of or mitigate the effects of an abuse of market power.

Part IV contains provisions relating to two corporations that will be incorporated by the Province under the Business Corporations Act. The Ontario Electricity Generation Corporation's objects include owning and operating generation facilities. The Ontario Electric Services Corporation's objects include owning and operating transmission systems and distribution systems through one or more subsidiaries. Assets and liabilities of Ontario Hydro may be transferred to the Generation Corporation and the Services Corporation under Part X. The new corporations will not be agents of the Crown.

Part V provides for the continuation of Ontario Hydro as the Ontario Hydro Financial Corporation. The Financial Corporation will be an agent of the Crown. Its objects will include managing its debt and administering assets and liabilities that are not transferred under Part X. Charges may be levied on electricity generators and consumers to assist in paying off a specified portion of the Financial Corporation's debt.

Part VI provides for a number of special payments. The Generation Corporation, the Services Corporation and subsidiaries of the Generation Corporation and the Services Corporation are required to make payments in lieu of federal and provincial corporate taxes if they would otherwise be exempt from those taxes. They could also be required to pay additional amounts. Municipal electricity utilities are also required to make payments in lieu of federal and provincial corporate taxes if they would otherwise be exempt from those taxes and, if they transfer electricity assets, they must pay a transfer tax. All these corporations are also required to pay the difference between the municipal and school taxes they actually pay, based on special provisions that govern the assessed value of their generating station and transformer station buildings, and the amount of taxes that would be payable if the assessed value were determined in a different manner.

Part VII continues the Ontario Hydro Pension and Insurance Plan and the related pension fund, and makes some amendments relating to it. It provides for the establishment of successor pension plans and for the transfer of assets and liabilities to those plans.

Part VIII provides for the making of regulations by a person or body designated as the Electrical Safety Authority to govern the installation and inspection of electrical equipment. The Authority will be exercising powers similar to powers now exercised by Ontario Hydro under section 111 of the Power Corporation Act.

Part IX contains regulation-making powers.

Part X contains transitional provisions governing the transfer of Ontario Hydro's assets and liabilities to the Generation Corporation, the Services Corporation and others.

Part XI contains transitional provisions dealing with municipal electricity utilities. Every municipality that now generates, transmits, distributes or retails electricity, either directly or through a public utilities commission or other body, will be required to incorporate a corporation under the Business Corporations Act for the purpose of carrying on those activities. Two or more municipalities may jointly incorporate a corporation for that purpose. The municipalities may make by-laws transferring assets and liabilities to the new corporations.

Part XII provides that the Act comes into force on proclamation and contains the short title of the Act.

Schedule B - Ontario Energy Board Act, 1998

Schedule B revises the Ontario Energy Board Act.

The Ontario Energy Board will have increased powers and responsibilities in relation to gas transmitters and gas distributors. The power of the Board to make rules in this regard is set out in section 43. The Board must give notice when it proposes to make, amend or revoke a rule and must give interested persons the right to make representations in respect of the proposed rule or amendment or revocation of a rule.

A licence will now be required to carry on business as a gas marketer. (Section 47)

The Board will have new powers and responsibilities in relation to the regulation of electricity under this Act and under the Electricity Act, 1998. A licence will be required for the activities described in section 56.

A director of licensing will be appointed by the Board (section 5) who will exercise the powers relating to licensing set out in the Act. A decision of the director in relation to licensing may be appealed to the Board. (Sections 52 and 66)

The Board may make orders approving or fixing just and reasonable rates for the sale of gas by gas transmitters, gas distributors and gas storage companies and for the transmission, distribution and storage of gas. (Section 35) Similarly, it may make orders approving or fixing just and reasonable rates for the transmitting or distributing of electricity and for the retailing of electricity in order to meet a distributor's obligations under section 28 of the Electricity Act, 1998. (Section 77)

Schedule B.1 - Toronto District Heating Corporation Act, 1998

Schedule B.1 continues the Toronto District Heating Corporation as a corporation with share capital that is deemed to have been incorporated under the Business Corporations Act.

It is an offence to undertake an activity without a licence if a licence is required under the Act. (Section 125)

Schedule C - Amendments to the Ontario Municipal Employees Retirement System Act

Amendments to the Ontario Municipal Employees Retirement System Act create a new category of employers who are eligible to participate in OMERS. Criteria are set out governing the eligibility of their employees to become members of OMERS.

Schedule D - Other Amendments and Repeals

Schedule D contains amendments and repeals that are complementary to the provisions of Schedules A and B. For example, the Power Corporation Act and the existing Ontario Energy Board Act are repealed. The Consumer Protection Act is amended to make the Act applicable to certain sales by gas marketers and electricity retailers. The Corporations Tax Act is amended to authorize regulations prescribing special tax calculations applicable to nuclear generation facilities. The Environmental Protection Act is amended to authorize regulations providing for the use of economic and financial instruments and market-based approaches, including emissions trading, for environmental protection. Copyright © 1998

Office of the Legislative Assembly of Ontario

Toronto, Ontario, Canada.