Bill 225 2002

An Act to amend the
Electricity Act, 1998

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

1. The Electricity Act, 1998 is amended by adding the following section:

Right to purchase: Hydro One

144.1 (1) A municipal electricity utility has the right to purchase or otherwise acquire from Hydro One some or all of Hydro One's distribution and retail operations that occur within the municipal boundaries of the municipal corporation that incorporated the municipal electricity utility.

Right to purchase: other municipal electrical utilities

(2) If a municipal corporation decides to sell or otherwise dispose of its municipal electricity utility, any municipal corporation has the right of first refusal to acquire the municipal electricity utility.

Same

(3) A municipal corporation may exercise its right to acquire a municipal electricity utility under subsection (2) in addition to its authority under subsection 142 (5) and despite section 19 of the Municipal Act, 2001.

Disputes

(4) If a dispute arises as to a purchase or acquisition under subsection (1) or (2), the dispute shall be resolved through binding arbitration.

Application of the Arbitration Act, 1991

(5) The Arbitration Act, 1991 applies to an arbitration conducted under subsection (4).

Definition

(6) In this section,

"municipal electricity utility" means a corporation incorporated by one or more municipalities under the Business Corporations Act pursuant to section 142.

Commencement

2. This Act comes into force on the day it receives Royal Assent.

Short title

3. The short title of this Act is the Electricity Amendment Act, 2002.

EXPLANATORY NOTE

The Bill amends the Electricity Act, 1998 to give municipal electricity utilities the right to purchase the distribution and retail operations of Hydro One within their municipal boundaries. Municipal corporations are also given the right of first refusal to purchase another municipality's electricity utility if the other municipality decides to dispose of its electricity utility.