Ontario Fair Hydro Plan Act, 2017

Part i General

1 (1) In this Act, “capital account” means an account established by or on behalf of the Fair Hydro Trust under the governing documents for an existing funding obligation for the purpose of accumulating funds to be used to make repayments in respect of the existing funding obligation; (“compte capital”) “existing funding obligation” means a funding obligation that existed on the final plan date; (“obligation de financement existante”) “fair allocation amount” means, when used in respect of a reference period, the amount calculated by the Minister in respect of the reference period under section 20 of this Act as it read immediately before the final plan date and provided by the Minister to the Financial Services Manager before the final plan date; (“montant de répartition équitable”) “Fair Hydro Trust” means the trust established by the Financial Services Manager under subsection 22 (2) …

1.1 (1) Subject to subsection (2), if a contract or other instrument to which the Fair Hydro Trust is a party includes a reference to a term that was defined in this Act as it read immediately before the final plan date or in the General Regulation as it read immediately before the final plan date, the definition as it read immediately before the final plan date continues to apply for the purposes of interpreting the contract or other instrument. 2019, c. 6, Sched. 3, s. 2. Exceptions (2) In any contract or other instrument entered into before the final plan date in respect of an existing funding obligation, (a) a reference to an investment interest is deemed to be a reference to the investment asset; (b) a reference to an investment interest owner is deemed to be a reference to the investment asset owner; and (c) a reference to a term specified in the regulations is deemed to be a refer…

1.2 To the extent that any amount is deposited by the Crown in the account established for the beneficiaries under the Protection Agreement, the Crown shall be deemed to waive any attendant rights of subrogation and repayment arising under the Protection Agreement and under the governing documents for the existing funding obligations, in each case in respect of the obligations that are satisfied by applying the amount in accordance with the governing documents. 2019, c. 6, Sched. 3, s. 2. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 2 - 01/11/2019

1.3 (1) Nothing in this Act or in any contract or instrument shall be interpreted so as to create, continue or impose liability on any specified consumer in favour of any person for or in respect of any amount determined to be, or to form part of, a clean energy adjustment under this Act as it read immediately before the final plan date, including for or in respect of paying such an amount. 2019, c. 6, Sched. 3, s. 2. Extinguishment of obligation to pay, etc. (2) For greater certainty, any obligation of specified consumers to pay or repay any amounts that form all or any part of a clean energy adjustment referred to in subsection (1) is extinguished, whether such obligation arose or existed before or after the final plan date, and such obligation is superseded and replaced by the payment obligations of the Crown under section 6 and the payment obligations of Ontario Power Generation unde…

1.4 (1) Nothing in this Act or in any contract or instrument shall be interpreted so as to create, continue or impose liability on any electricity vendor or any unit sub-meter provider in favour of any person for or in respect of any amount determined to be, or to form part of, a clean energy adjustment under this Act as it read immediately before the final plan date, including for or in respect of, (a) collecting, receiving, holding, applying, depositing or remitting such an amount; (b) reporting on such an amount; or (c) enforcing any collections or remittances of such an amount. 2019, c. 6, Sched. 3, s. 2. Limitation period (1.1) Any right or obligation of an electricity vendor or a unit sub-meter provider to make or receive a payment, an adjustment or an amount that relates to the rates applicable to a specified consumer, a regulated rate consumer or a consumer who meets the prescrib…

1.5 (1) Nothing in this Act or in any contract or instrument shall be interpreted so as to create, continue or impose liability on the IESO in favour of any person for or in respect of any amount determined to be, or to form part of, a clean energy adjustment under this Act as it read immediately before the final plan date, including for or in respect of, (a) collecting, receiving, holding, applying, depositing or remitting such an amount; (b) reporting on such an amount; or (c) servicing, administering or enforcing any collections or remittances of such an amount. 2019, c. 6, Sched. 3, s. 2. IESO not required to comply (2) The IESO is not required to comply with any requirement under any contract or instrument that provides for the administration or servicing of the investment asset on behalf of the Fair Hydro Trust, including any requirement to, (a) collect, receive, hold, apply, depos…

1.6 Nothing in this Act shall be read as limiting the rights and remedies of any secured party or its trustees or representatives to enforce its rights and interests as a secured party under any governing document for any existing funding obligation at any time after its security interest has become enforceable in accordance with the governing document. 2019, c. 6, Sched. 3, s. 2. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 2 - 01/11/2019

1.7 Nothing in this Act shall be read as changing any of the following as set out in the governing documents for an existing funding obligation: 1. The method of computing the amount of principal of or interest on an existing funding obligation. 2. The date of payment of an amount of principal of or interest on an existing funding obligation. 3. The rights, entitlements or obligations of the payees under an existing funding obligation. 2019, c. 6, Sched. 3, s. 2. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 2 - 01/11/2019

1.8 Without limiting the obligations of the Crown under section 6 and of Ontario Power Generation Inc. under section 8, nothing in this Act shall impose upon Ontario Power Generation Inc. or the Crown any obligation as a principal to pay any existing funding obligation, FHT expense or tax owing and payable by the Fair Hydro Trust. 2019, c. 6, Sched. 3, s. 2. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 2 - 01/11/2019

2 (1) For greater certainty, all of the provisions of this Act remain in full force and effect, even if one or more provisions are held to be invalid, the intention of the Legislature being to give separate and independent effect to the extent of its powers to every provision contained in this Act. Same, funding obligation (2) The fact that any provision of this Act is held to be invalid or ceases to be in effect for any reason does not affect the validity or enforceability of a funding obligation incurred before the day that the provision is held to be invalid or ceases to be in effect, or any rights or obligations associated with the funding obligation.

3 Repealed: 2019, c. 6, Sched. 3, s. 3. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 3 - 01/11/2019

4 This Act binds the Crown.

5 (1) No action or omission by the Minister, the Minister of Finance or the Crown shall be effective to reduce, impair, postpone or terminate the obligation of the Crown to pay amounts in respect of payments under the Protection Agreement or amounts under section 6 or the obligation of Ontario Power Generation Inc. to pay amounts under section 8. 2019, c. 6, Sched. 3, s. 4. Agreements (2) Subject to subsection (1), the Minister and the Minister of Finance may together, with the approval of the Lieutenant Governor in Council, enter into any agreements on behalf of the Province of Ontario with any person in respect of this Act. 2019, c. 6, Sched. 3, s. 4. Guarantee, indemnification re previous agreements (3) Subject to subsection (1), the Lieutenant Governor in Council may by order, (a) authorize the Minister and the Minister of Finance, acting together on behalf of the Province of Ontario…

Part II Payments by the Crown and by ontario power generation inc.

6 (1) The Crown shall, in accordance with this section and the regulations, pay to the Fair Hydro Trust the amounts calculated in accordance with section 7. 2019, c. 6, Sched. 3, s. 5. Timing of payments (2) Subject to subsection (3), the payments by the Crown under subsection (1) shall be paid following the final plan date on each applicable payment date. 2019, c. 6, Sched. 3, s. 5. Same, regulations (3) In order to align the timing of payments to the Fair Hydro Trust by the Crown with the payment obligations of the Fair Hydro Trust with respect to existing funding obligations, FHT expenses or taxes, the Lieutenant Governor in Council may make regulations regarding the timing of payments or prescribing different dates on which the Crown is required to pay to the Fair Hydro Trust an amount calculated in accordance with section 7. 2019, c. 6, Sched. 3, s. 5. Consolidated Revenue Fund (4) …

7 (1) The payment to be made on a payment date by the Crown under section 6 shall be the amount calculated by taking the following steps: 1. After eliminating any duplication in the following amounts, calculate the sum of the following: i. Amounts that would be due and payable by the Fair Hydro Trust in respect of each existing funding obligation on the payment date, determined as the sum of the following, in each case assuming that no FHT acceleration has occurred in respect of any existing funding obligation at any time on or before the payment date: A. Amounts due and payable in respect of repayments. B. Amounts due and payable in respect of funding costs. C. Amounts due and payable in respect of redemption amounts. D. Amounts required under the governing documents for the existing funding obligation to be deposited into capital accounts or finance reserve accounts. ii. Amounts due an…

8 (1) Subject to subsection (3), Ontario Power Generation Inc. shall pay to the Fair Hydro Trust all amounts of or in respect of FHT expenses that become due and payable on or after January 1, 2019. 2019, c. 6, Sched. 3, s. 5. Reimbursement to the Crown (2) If an amount in respect of FHT expenses described under subsection (1) has been paid to the Fair Hydro Trust by the Crown under the Protection Agreement or under section 6, Ontario Power Generation Inc. shall promptly reimburse the Crown for the amount paid. 2019, c. 6, Sched. 3, s. 5. Same (3) Ontario Power Generation Inc. shall not be required to pay to the Fair Hydro Trust amounts in respect of FHT expenses that have been paid to the Fair Hydro Trust by the Crown as described in subsection (2). 2019, c. 6, Sched. 3, s. 5. Timing of payments (4) The amount payable to the Fair Hydro Trust by Ontario Power Generation Inc. in respect o…

9 (1) On each payment date, the Fair Hydro Trust shall, subject to and in compliance with the terms of the governing documents for the existing funding obligations and the terms of each of its other applicable payment obligations, carry out the following steps in the order in which they appear: 1. Apply all sources of money that are or will be available to the Fair Hydro Trust on the payment date, including sources included in the calculation in paragraph 4 of subsection 7 (1), excluding any amounts that would, if applied by the Fair Hydro Trust, directly or indirectly cause a default under any existing funding obligations and excluding amounts paid to it by the Crown under section 6 on the payment date, to pay the amounts that are due and payable by the Fair Hydro Trust on the payment date in respect of existing funding obligations, FHT expenses or any tax. 2. Deposit the amounts paid t…

10 (1) This section applies to any contract to which the Fair Hydro Trust is a party for the purposes of determining the finance amount or the estimated finance amount as those amounts were defined or determined under this Act as it read immediately before the final plan date. 2019, c. 6, Sched. 3, s. 5. Minimum amount (2) If a contract mentioned in subsection (1) includes a reference to the estimated finance amount to be determined in respect of a reference period under subsection 15 (1) of this Act as it read immediately before the final plan date and section 6.1 of the General Regulation as it read immediately before the final plan date, that amount shall be adjusted, if necessary, so that it is at a minimum the amount calculated as follows: 1. Calculate the sum of all amounts in respect of the reference period, each of which is an amount determined under paragraph 1 of subsection 7 (…

Part III Financial Services Manager

11 (1) Ontario Power Generation Inc. shall continue to act as the Financial Services Manager and shall fulfil its obligations in that capacity under this Act. 2019, c. 6, Sched. 3, s. 5. No compensation (2) Except as may be provided for in any contract to which Ontario Power Generation Inc. is a party as of the final plan date, the Financial Services Manager shall not be entitled to be compensated for acting as the Financial Services Manager under this Act. 2019, c. 6, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 5 - 01/11/2019

12 (1) The Financial Services Manager shall do the following until all existing funding obligations and any other obligations and liabilities of the Fair Hydro Trust have been satisfied or otherwise extinguished: 1. Perform the duties assigned to it under this Act. 2. Administer the investment asset on behalf of the Fair Hydro Trust. 3. Take all necessary steps within its power to, i. maintain the Fair Hydro Trust’s legal existence, ii. cause the Fair Hydro Trust to comply with all of its obligations and undertakings under the governing documents for the existing funding obligations, under all other contracts to which it is a party and under this Act, and iii. otherwise maintain and observe reasonable and prudent practices in connection with the Fair Hydro Trust’s operations. 2019, c. 6, Sched. 3, s. 5. Administration of the investment asset (2) The administration of the investment asset…

13 Neither the Financial Services Manager nor the Fair Hydro Trust shall provide for further funding obligations to be incurred by or on behalf of the Fair Hydro Trust on or after the final plan date. 2019, c. 6, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 5 - 01/11/2019

14 (1) The Fair Hydro Trust is the only financing entity established under this Act and, for greater certainty, no other financing entity shall be established under this Act. 2019, c. 6, Sched. 3, s. 5. Financing entity (2) For the purposes of this section, the term “financing entity” has the meaning assigned to it in this Act as it read immediately before the final plan date. 2019, c. 6, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 5 - 01/11/2019

15 The Financial Services Manager shall, as soon as practicable on or after the final plan date, amend the Financing Plan that was prepared under this Act, having regard to the following principles: 1. The payment of existing funding obligations, FHT expenses and taxes payable by the Fair Hydro Trust should be made promptly as they become due and payable in accordance with their terms. 2. No further funding obligations may be incurred by or on behalf of the Fair Hydro Trust on or after the final plan date. 3. The Fair Hydro Trust should maintain its legal existence and remain in good standing until all existing funding obligations and any other obligations and liabilities of the Fair Hydro Trust have been satisfied or otherwise extinguished. 4. The Fair Hydro Trust should comply with all of its obligations and undertakings under the governing documents for the existing funding obligation…

Part Iv The Investment Asset

16 (1) A transfer under section 26 of this Act as it read immediately before the final plan date constituted a valid and enforceable absolute assignment, conveyance and sale of the corresponding ownership interest in the investment asset to the Fair Hydro Trust. 2019, c. 6, Sched. 3, s. 5. Effect of transfer (2) The Fair Hydro Trust shall have a valid and enforceable ownership interest in the investment asset as it is comprised on and after the final plan date. 2019, c. 6, Sched. 3, s. 5. Deemed perfection, etc. (3) At the time a transfer occurred under section 26 of this Act as it read immediately before the final plan date, the transfer of the investment asset to the Fair Hydro Trust shall be deemed to have been and shall be perfected, vested, valid and binding as against the transferor and all other persons who have claims of any kind against the transferor. 2019, c. 6, Sched. 3, s. 5…

17 (1) On and after the final plan date, the investment asset constitutes and shall be comprised of a current and irrevocable property right and interest consisting, collectively, of the following rights and interests of the investment asset owner and which constitute a substitution and continuation of the investment asset that existed before the final plan date: 1. The right and interest to receive and recover amounts required to be paid by the Crown under section 6 from the Crown and the right to determine those amounts in accordance with this Act and the regulations. 2. The right and interest to receive and recover amounts required to be paid by Ontario Power Generation Inc. under section 8 from Ontario Power Generation Inc. and the right to determine those amounts in accordance with this Act and the regulations. 3. All rights and entitlements with respect to, i. any account, regardle…

18 (1) The security interest over the investment asset granted to secure the existing funding obligations and other obligations under or contemplated by the governing documents for the existing funding obligations continues to be valid and enforceable in accordance with its terms. 2019, c. 6, Sched. 3, s. 5. Same (2) The investment asset owner may grant a security interest over all or a specified portion of its right, title and interest in, to and under the investment asset to or in favour of any person to secure an existing funding obligation. 2019, c. 6, Sched. 3, s. 5. Validity (3) A security interest granted under this Act, including a security interest granted under this Act as it read immediately before the final plan date, shall be valid and enforceable in accordance with its terms. 2019, c. 6, Sched. 3, s. 5. Perfection and priority of security interests (4) All provisions of the…

19-22 Repealed: 2019, c. 6, Sched. 3, s. 5. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 5 - 01/11/2019 Part V Repealed: 2019, c. 6, Sched. 3, s. 5. Part VI Repealed: 2019, c. 6, Sched. 3, s. 5.

Part VII Miscellaneous

33 (1) A court in the Province of Ontario may, upon application by the investment asset owner or a secured party, order the sequestration and payment of amounts in respect of amounts payable under section 6 by the Crown or amounts payable under section 8 by Ontario Power Generation Inc., in each case for the benefit of the investment asset owner or secured party. 2019, c. 6, Sched. 3, s. 6. Same (2) An order under subsection (1) does not limit any other remedies available to the applicant. 2019, c. 6, Sched. 3, s. 6. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 6 - 01/11/2019

34 The law governing, as applicable, the validity, enforceability, attachment, perfection, priority and exercise of remedies with respect to a transfer under this Act, a security interest in the investment asset, the amounts payable under sections 6 and 8 and any undertaking of the Crown under section 5 shall be the laws of the Province of Ontario. 2019, c. 6, Sched. 3, s. 6. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 6 - 01/11/2019

35, 36 Repealed: 2019, c. 6, Sched. 3, s. 6. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 6 - 01/11/2019

37 (1) The provisions of this Act and the regulations apply despite any provision of any other Act regarding the attachment, assignment or perfection, or the effect of perfection or priority of any transfer or security interest. Crown Liability and Proceedings Act, 2019 (2) For greater certainty, this Act prevails over sections 5 and 27 of the Crown Liability and Proceedings Act, 2019. 2019, c. 7, Sched. 17, s. 170 (3). Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 7 - 01/11/2019; 2019, c. 7, Sched. 17, s. 170 (1-3) - 01/11/2019

38 Despite any requirement under any Act, no approvals, notices or authorizations other than those specified in this Act are required under the Financing Plan. 2017, c. 16, Sched. 1, s. 38; 2019, c. 6, Sched. 3, s. 8. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 8 - 01/11/2019

39 (1) No action or other civil proceeding shall be commenced against any employee of the Province or Ontario Power Generation Inc. 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 for any alleged neglect or default in the exercise or performance in good faith of such a power or duty. 2017, c. 16, Sched. 1, s. 39 (1). Same (2) Nothing in subsection (1) shall be read as limiting the effect of subsection 19 (1) of the Electricity Act, 1998 or subsection 11 (1) of the Ontario Energy Board Act, 1998. 2017, c. 16, Sched. 1, s. 39 (2). Same (3) Despite subsection 8 (3) of the Crown Liability and Proceedings Act, 2019, subsection (1) does not relieve the Crown of liability in respect of a tort committed by a person mentioned in subsection (1) to which it would otherwise be subject. 2017, c…

40 (1) On the application of the investment asset owner, the Superior Court of Justice may make an order described in subsection (2) if it is satisfied that the Financial Services Manager has failed to comply with or has contravened this Act or the regulations or that the Financial Services Manager will fail to comply with or will contravene this Act or the regulations. 2019, c. 6, Sched. 3, s. 9. Order (2) The Superior Court of Justice may, by order, (a) direct the Financial Services Manager to comply with this Act or the regulations; (b) restrain the Financial Services Manager from contravening this Act or the regulations; or (c) require compensation to be provided by the Financial Services Manager to the investment asset owner. 2019, c. 6, Sched. 3, s. 9. Same (3) An application under subsection (1) may be made by the investment asset owner in addition to exercising any other right of…

41 Repealed: 2019, c. 6, Sched. 3, s. 9. Section Amendments with date in force (d/m/y) 2019, c. 6, Sched. 3, s. 9 - 01/11/2019

42 (1) The Lieutenant Governor in Council may make regulations in respect of the following matters: 1. Governing anything that is required or permitted to be prescribed or that is required or permitted to be done by, or in accordance with, the regulations or as authorized, specified or provided in the regulations. 2. Defining, for the purposes of a regulation, words and expressions used in this Act that are not defined in the Act. 3. Governing transitional matters relating to the enactment of Schedule 3 to the Fixing the Hydro Mess Act, 2019. 4. Providing for and governing the limitation period for the purposes of subsections 1.3 (2.1), 1.4 (1.1) and 1.5 (5). 5.-7. Repealed: 2019, c. 6, Sched. 3, s. 10 (1). 8. Prescribing the time within which any action required by this Act may be required to be done. 9. Providing for such other matters as the Lieutenant Governor in Council considers ad…

43, 44 Omitted (amends, repeals or revokes other legislation). Part IX (OMITTED)

45 Omitted (provides for coming into force of provisions of this Act).

46 Omitted (enacts short title of this Act). ______________