Electricity Act, 1998

PART I GENERAl

1 The purposes of this Act include the following: (a) to ensure the adequacy, safety, sustainability and reliability of electricity supply in Ontario through responsible planning and management of electricity resources, supply and demand; (a.1) to establish a mechanism for energy planning; (a.1.1) to support economic growth in a manner consistent with the policies of the Government of Ontario; (a.2) to promote electrification and facilitate energy efficiency measures aimed at using electricity to reduce overall emissions in Ontario; (b) to encourage electricity conservation and the efficient use of electricity in a manner consistent with the policies of the Government of Ontario; (c) to facilitate load management in a manner consistent with the policies of the Government of Ontario; (d) to promote the use of cleaner energy sources and technologies, including alternative energy sources an…

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”) “alternative energy source” means a source of energy, (a) that is prescribed by the regulations or that satisfies criteria prescribed by the regulations, and (b) that can be used to generate electricity through a process that is cleaner than certain other generation technologies in use in Ontario before June 1, 2004; (“source d’énergie de remplacement”) “ancillary services” means services necessary to maintain the reliability of the IESO-controlled grid, including frequency control, voltage control, reactive power and operating reserve services; (“services accessoires”) “Board” means the Ontario Energy Board; (“Commission”) “charges” means, with respect to the IESO, amounts charged by the IESO, or by a predecessor within the meaning of section…

3 (1) This Act applies despite the provisions of the Municipal Act, 2001 relating to the production, manufacture, distribution or supply of a public utility by a municipality or a municipal service board. 1998, c. 15, Sched. A, s. 3; 2002, c. 17, Sched. F, Table. City of Toronto Act, 2006 (2) This Act applies despite the provisions of the City of Toronto Act, 2006 relating to the production, manufacture, distribution or supply of a public utility by the City or by a city board as defined in subsection 3 (1) of that Act. 2006, c. 11, Sched. B, s. 4 (1). Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003 2006, c. 11, Sched. B, s. 4 (1) - 01/01/2007

3.1 (1) The Minister shall establish an advisory committee to provide advice to the Minister on such matters relating to electricity as the Minister may specify. 2004, c. 23, Sched. A, s. 3. Appointment (2) The Minister shall appoint the members of the advisory committee. 2004, c. 23, Sched. A, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 3 - 01/01/2005

3.2 (1) No cause of action arises against the Crown, any current or former member of the Executive Council or employee, officer or agent of or adviser to the Crown, the IESO, or any current or former director, officer, employee or agent of or adviser to the IESO, as a direct or indirect result of, (a) the enactment of the amendments made to this Act by Schedule 1 to the Protect Ontario by Unleashing our Economy Act, 2025, or the amendment or repeal of any provision added to this Act by that Schedule; (b) the issuance, amendment or revocation of any provision of a directive under subsection 25.32 (5) that includes a requirement described in subsection 25.32 (6.1); (c) the making, amendment or revocation of any provision of a regulation for the purposes of subsection 25.32 (12) or section 25.32.1; or (d) anything done or not done in accordance with the provisions added to this Act by Sched…

PART II Independent ELECTRICITY SYSTEM OPERATOR

4 In this Part, “Independent Electricity System Operator” means, unless the context requires otherwise, the corporation continued under subsection 5 (1); (“Société indépendante d’exploitation du réseau d’électricité”) “Ontario Power Authority” means the corporation established under subsection 25.1 (1) as that subsection read immediately before subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force and “OPA” has a corresponding meaning; (“Office de l’électricité de l’Ontario”, “OEO”) “predecessor” means either the predecessor Independent Electricity System Operator or the Ontario Power Authority; (“entité remplacée”) “predecessor Independent Electricity System Operator” means the Independent Electricity System Operator as the corporation was continued under subsection 4 (1) as that subsection read immediately before…

5 (1) The predecessor Independent Electricity System Operator and the Ontario Power Authority are amalgamated and shall continue as one corporation without share capital in accordance with this Part. 2014, c. 7, Sched. 7, s. 3 (1). Name of corporation (2) The name of the corporation formed under subsection (1) is the Independent Electricity System Operator in English and Société indépendante d’exploitation du réseau d’électricité in French. 2014, c. 7, Sched. 7, s. 3 (1). Composition (3) The IESO is composed of the members of its board of directors. 2014, c. 7, Sched. 7, s. 3 (1). Separation of functions (4) The board of directors shall take such steps as it considers advisable and appropriate to ensure that there is an effective separation of functions and activities of the IESO relating to, (a) its market operations; and (b) its procurement and contract management activities. 2014, c. …

6 (1) The objects of the IESO are, (a) to exercise the powers and perform the duties assigned to it under this Act, the regulations, directions, the market rules and its licence; (b) to enter into agreements with transmitters to give it authority to direct the operation of their transmission systems; (c) to direct the operation and maintain the reliability of the IESO-controlled grid to promote the purposes of this Act; (d) to participate in the development by any standards authority of criteria and standards relating to the reliability of the integrated power system; (e) to establish and enforce criteria and standards relating to the reliability of the integrated power system; (f) to work with the responsible authorities outside of Ontario to co-ordinate the IESO’s activities with the activities of those authorities; (g) to operate the IESO-administered markets to promote the purposes o…

7 If the IESO is dissolved, any property of the IESO remaining after the payment of all of its debts and liabilities is vested in the Crown in right of Ontario. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2001, c. 9, Sched. F, s. 1 (1) - 08/08/2001 2004, c. 23, Sched. A , s. 7 - 05/02/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

8 The IESO is not an agent of the Crown for any purpose, despite the Crown Agency Act. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 8 (1, 2) - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

9 (1) The IESO shall make information that is directed to the general public available in French, including information with respect to programs, services and general communications. 2014, c. 7, Sched. 7, s. 3 (1). Board to ensure compliance (2) The IESO’s board of directors shall take all reasonable measures and make all reasonable plans to ensure that the obligation placed on the IESO to make information directed to the general public available in French is met. 2014, c. 7, Sched. 7, s. 3 (1). Limitation, general (3) The IESO’s obligation to make information available in French is subject to the limits that are reasonable in the circumstances. 2014, c. 7, Sched. 7, s. 3 (1). Limitations, rules, manuals, etc. (4) The IESO’s obligation to make information available in French does not apply to the following: 1. Rules, manuals, standards, procedures or communications relating to the operat…

10 (1) The IESO’s board of directors shall manage and supervise the management of the IESO’s business and affairs. 2014, c. 7, Sched. 7, s. 3 (1). Composition (2) The board of directors shall be composed of, (a) the chief executive officer of the IESO; and (b) at least eight and not more than 10 additional individuals appointed by the Minister. 2014, c. 7, Sched. 7, s. 3 (1). Directors to be independent (3) Each director shall hold office as an independent director and not as a representative of any class of persons. 2014, c. 7, Sched. 7, s. 3 (1). Restriction on persons who may be directors (4) For the purposes of clause (2) (b), no person who is a member of a class of persons prescribed by the regulations may hold office as a director of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Term of office and appointment (5) A director appointed in accordance with clause (2) (b) shall hold office …

11 The board of directors shall appoint a chief executive officer of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 11 (1, 2) - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

12 Every director of the IESO shall, in exercising and performing his or her powers and duties as a director, (a) act honestly and in good faith in the best interests of the IESO; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 12 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

13 The directors, officers, employees and agents of the IESO shall comply with any provisions relating to conflict of interest contained in the Governance and Structure By-law or any procedures, rules or codes established pursuant to the By-law. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2002, c. 1, Sched. A, s. 3 - 27/06/2002 2004, c. 23, Sched. A, s. 13 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

13.1-13.2 Repealed: 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 14 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

14 (1) The board of directors may establish policies, rules, guidelines and codes, including codes of conduct, applicable to the directors, officers, employees and agents of the IESO and to members of panels established by the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Conflict (2) Any provision of a policy, rule, guideline or code that conflicts with this Act, the regulations or the IESO’s by-laws is void. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 15 (1, 2) - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

14.1 Repealed: 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2002, c. 1, Sched. A, s. 4 - 27/06/2002 2004, c. 23, Sched. A, s. 16 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

15 (1) The board of directors may, in accordance with the Governance and Structure By-law, (a) delegate any of its powers or duties to a committee of the board or a panel established by the board or to one or more directors; and (b) delegate any of its powers to manage the business and affairs of the IESO to one or more officers of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Terms, conditions and restrictions (2) A delegation under subsection (1) is subject to any terms, conditions and restrictions set out in the delegation. 2014, c. 7, Sched. 7, s. 3 (1). Same (3) A delegation under subsection (1) may be general or specific. 2014, c. 7, Sched. 7, s. 3 (1). Exceptions (4) The board of directors shall not delegate its power to make by-laws or to approve the financial statements or annual reports of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004,…

16 (1) The board of directors may establish such panels as the board considers necessary for the purposes of this Act. 2014, c. 7, Sched. 7, s. 3 (1). Testimony (2) A member of a panel established 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 IESO, 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. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 18 (1-6) - 01/01/2005 2006, c. 21, Sched. F, s. 136 (1) - 25/07/2007 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

17 Subject to the by-laws of the IESO, a panel established by the board of directors may use the services of, (a) the IESO’s employees, with the consent of the IESO; and (b) persons other than the IESO’s employees who have technical or professional expertise that is considered necessary. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 19 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

18 (1) The IESO shall establish one or more processes by which consumers, distributors, generators, transmitters and other persons who have an interest in the electricity industry may provide advice and recommendations for consideration by the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Same, direction by Minister (2) The Minister may direct the IESO to establish specific processes under subsection (1) and the IESO shall comply with such a direction. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 20 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

19 (1) No action or other civil proceeding shall be commenced against a director, officer, employee or agent of the IESO or a member of a committee or panel established by the board of directors of the IESO 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, the regulations under any Act, the IESO’s licence, the IESO’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. 2014, c. 7, Sched. 7, s. 3 (1). Same (2) Subsection (1) does not relieve the IESO 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). 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2002, c. 23, s. 3 (3, 5) - 09/12/2002; 2002, c…

19.1 Repealed: 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 22 - 01/01/2005 2009, c. 33, Sched. 14, s. 2 (2) - 15/12/2009 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

20 (1) A record that contains information provided to or obtained by the IESO or a predecessor relating to a market participant and that is designated by the head of the IESO as confidential or highly confidential is deemed for the purpose of section 17 of the Freedom of Information and Protection of Privacy Act to be a record that reveals a trade secret or scientific, technical, commercial, financial or labour relations information, supplied in confidence implicitly or explicitly, the disclosure of which could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons or organization. 2014, c. 7, Sched. 7, s. 3 (1). Definition (2) In this section, “head” means the person designated as the head of the IESO in the regulations made under the Freedom of Information and Protect…

20.1 Repealed: 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 24 - 01/01/2005 2008, c. 7, Sched. G, s. 2 - 14/05/2008 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

21 Part XX of the Employment Standards Act, 2000 does not apply to a director of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 25 - 01/01/2005 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

22 (1) The board of directors of the IESO may make by-laws regulating the business and affairs of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Governance and Structure By-law (2) The board of directors shall ensure that it maintains a by-law dealing with matters of corporate governance and structure, including, (a) the appointment of the chief executive officer of the IESO; (b) the circumstances in which a director ceases to hold office; (c) the remuneration and benefits of the chair and the other members of the board; (d) conflict of interest; (e) the delegation of the IESO’s powers and duties; (f) the establishment, composition and functions of panels; (g) such other matters as are prescribed by regulation or as are appropriate to the governance and structure of the corporation. 2014, c. 7, Sched. 7, s. 3 (1). Amendment or repeal of Governance and Structure By-law (3) A by-law that amends…

23 (1) The Lieutenant Governor in Council may by order authorize the Minister of Finance to purchase securities of or make loans to the IESO in the amounts, at the times and on the terms and conditions as the Minister of Finance may determine subject to 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 subject to any other terms and conditions that are specified by the Lieutenant Governor in Council. 2014, c. 7, Sched. 7, s. 3 (1). 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). 2014, c. 7, Sched. 7, s. 3 (1). Delegation (3) In an order under subsection (1), the Lieutenant Governor in Council may delegate any or all of the powers of the Minister of Finance under this section to, (a) a p…

24 (1) At least 120 days before the beginning of each fiscal year, the IESO shall submit its proposed business plan for the fiscal year to the Minister for approval. 2014, c. 7, Sched. 7, s. 3 (1). Minister’s approval (2) The Minister may approve the proposed business plan or refer it back to the IESO for further consideration. 2014, c. 7, Sched. 7, s. 3 (1). Transition, business plan (3) Despite subsection (1) and when requested to do so by the Minister, the IESO shall submit a business plan in respect of its first full or partial fiscal year that occurs after subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force within 30 days after the Minister requests the plan and the Minister may approve the proposed business plan or refer it back to the IESO for further consideration. 2014, c. 7, Sched. 7, s. 3 (1). Transiti…

25 (1) The IESO shall, at least 60 days before the beginning of each fiscal year, submit its proposed expenditure and revenue requirements for the fiscal year and the fees it proposes to charge during the fiscal year to the Board for review, but shall not do so until after the Minister approves the IESO’s proposed business plan for the fiscal year under section 24. 2014, c. 7, Sched. 7, s. 3 (1). Previous fees continued (2) Until the Board approves the proposed expenditure and revenue requirements for the fiscal year and the fees the IESO proposes to charge during the fiscal year, the fees approved for the previous fiscal year remain in effect unless the Board orders otherwise. 2014, c. 7, Sched. 7, s. 3 (1). Exception (3) Where the IESO is unable to make its submission under subsection (1) within the time required under that subsection, the IESO shall file its proposed expenditure and r…

25.1 (1) The IESO may establish and charge fees to recover, (a) the costs of anything done in connection with the IESO-controlled grid or the IESO-administered markets; (b) the costs of doing anything the IESO is required or permitted to do under this or any other Act; and (c) any other type of expenditure the recovery of which is permitted by the regulations, subject to any limitations and restrictions set out in the regulations. 2014, c. 7, Sched. 7, s. 3 (1). May recover costs of procurement contracts (2) For greater certainty, the IESO may, subject to the regulations, establish and impose charges to recover from consumers its costs and payments related to procurement contracts. 2014, c. 7, Sched. 7, s. 3 (1). Board deemed to approve recovery (3) The IESO’s recovery of its costs and payments related to procurement contracts is deemed to be approved by the Board. 2014, c. 7, Sched. 7, …

25.2 (1) The board of directors of the IESO shall appoint one or more auditors licensed under the Public Accounting Act, 2004 to audit annually the accounts and transactions of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Auditor General (2) The Auditor General may audit the accounts and transactions of the IESO. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2009, c. 12, Sched. B, s. 2 - 09/09/2009 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

25.3 (1) The IESO 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. 2014, c. 7, Sched. 7, s. 3 (1). Financial statements (2) The audited financial statements of the IESO shall be included in the annual report. 2014, c. 7, Sched. 7, s. 3 (1). Tabling (3) The Minister shall submit the annual report to the Lieutenant Governor in Council and shall then table the report before the Assembly if it is in session or, if not, deposit the report with the Clerk of the Assembly. 2014, c. 7, Sched. 7, s. 3 (1). Other persons (4) The IESO may give its annual report to other persons before the Minister complies with subsection (3). 2014, c. 7, Sched. 7, s. 3 (1). Transition, annual reports (5) The board of directors shall prepare and deliver the annual report for the las…

25.4 (1) The IESO shall submit to the Minister such reports and information as the Minister may require from time to time and shall, if required by the Minister to do so, examine, report and advise on any question respecting electricity. 2014, c. 7, Sched. 7, s. 3 (1); 2016, c. 10, Sched. 2, s. 5. Same (2) The IESO shall submit to the Minister of Finance such reports and information as the Minister of Finance may require from time to time. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2016, c. 10, Sched. 2, s. 5 - 01/07/2016

25.5 (1) The IESO shall provide the Board and the Market Surveillance Panel with such information as the Board or Panel may require from time to time. 2014, c. 7, Sched. 7, s. 3 (1). Same (2) Without limiting the generality of subsection (1), the IESO shall provide the Board and the Market Surveillance Panel with such information relating to any actual or potential conflict of interest related to the actions, operations or functions of the IESO as the Board or Panel may require from time to time. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

25.6 Except as otherwise provided by the regulations, the Business Corporations Act, the Not-for-Profit Corporations Act, 2010 and the Corporations Information Act do not apply to the IESO. 2014, c. 7, Sched. 7, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015; 2014, c. 7, Sched. 7, s. 3 (2) - 19/10/2021 Statutory Powers Procedure Act

25.7 The Statutory Powers Procedure Act does not apply to a proceeding before the IESO, its board of directors or any committee, panel, person or body to which a power or duty has been delegated under this Part. 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

Transitional Matters

25.8 (1) The following occur when subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force: 1. The predecessor Independent Electricity System Operator and the Ontario Power Authority cease to exist as entities separate from the IESO. 2. All rights, property and assets that belong to the predecessor Independent Electricity System Operator and the Ontario Power Authority immediately before the subsection comes into force become the rights, property and assets of the IESO. 3. All outstanding debts, liabilities and obligations of the predecessor Independent Electricity System Operator and the Ontario Power Authority immediately before the subsection comes into force become the debts, liabilities and obligations of the IESO. 4. The members of the boards of directors of the predecessor Independent Electricity System Operato…

25.9 (1) All individuals who were employees of the predecessor Independent Electricity System Operator or the Ontario Power Authority immediately before subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force become employees of the IESO when the subsection comes into force. 2014, c. 7, Sched. 7, s. 3 (1). Agreements (2) All employment agreements to which the predecessor Independent Electricity System Operator or the Ontario Power Authority was a party and that were in effect immediately before subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force continue in effect after the subsection comes into force as if the IESO were substituted for the predecessor Independent Electricity System Operator or the Ontario Power Authority, as the case may be,…

25.10 (1) This section applies in respect of the governance of the IESO and other matters concerning the IESO on the day subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force. 2014, c. 7, Sched. 7, s. 3 (1). Chief executive officer (2) Despite sections 11 and 25.9, the chief executive officers of the predecessors cease to hold office on the day subsection 3 (1) of Schedule 7 to the Building Opportunity and Securing Our Future Act (Budget Measures), 2014 comes into force and the Minister shall appoint the first chief executive officer of the IESO, but nothing in this subsection prevents the board of directors of the IESO from appointing any subsequent chief executive officer. 2014, c. 7, Sched. 7, s. 3 (1). Panels (3) A panel established under section 13 or 25.10 as they read immediately before subsection 3 (1) of S…

PART II.1 CLEAN ENERGY CREDITS

25.11 In this Part, “clean energy credit” means environmental attributes associated with the generation of one megawatt-hour of electricity that are recognized in the clean energy credit registry as a clean energy credit, following the submission of information to the registry in accordance with section 25.15; (“crédit pour l’énergie propre”) “clean energy credit registry” means the registry established or designated, as the case may be, under section 25.22; (“registre des crédits pour l’énergie propre”) “environmental attributes” means attributes or characteristics relating to the environmental benefits associated with electricity generated in Ontario from an energy source specified by the regulations, that, (a) unless otherwise specified by the regulations, are subject to transfer on their own without the electricity to which they are associated, and (b) meet any requirements specified…

25.12 The following persons and entities shall make such environmental attributes as are specified by the regulations available for transfer in the time and manner specified by the regulations: 1. The IESO. 2. Ontario Power Generation Inc. 3. Any generator or other person or entity specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023

25.13 If the regulations so provide, a generator or other person or entity specified by the regulations shall not make environmental attributes available for transfer except as provided for by the regulations. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023 Registration

25.14 (1) A transferor shall register with the clean energy credit registry in accordance with the registry rules. 2022, c. 23, Sched. 1, s. 3. Transferees (2) A transferee shall register with the clean energy credit registry in accordance with the registry rules. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023

25.15 (1) A transferor that intends to transfer environmental attributes shall submit to the clean energy credit registry such information respecting the environmental attributes as is specified by the registry rules. 2022, c. 23, Sched. 1, s. 3. Same (2) The information referred to in subsection (1) shall be submitted in the time and manner specified by the registry rules. 2022, c. 23, Sched. 1, s. 3. Restriction (3) Information respecting any given environmental attributes may only be submitted to the clean energy credit registry once. 2022, c. 23, Sched. 1, s. 3. Same (4) Subsection (3) does not prevent the submission of information respecting environmental attributes in order to correct an error, add missing information, address a technical issue connected to the clean energy credit registry or otherwise ensure the correctness of the information submitted to the registry in respect o…

25.16 (1) A transferor shall not transfer environmental attributes unless, (a) the environmental attributes are recognized in the clean energy credit registry as a clean energy credit, following the submission of information to the registry in accordance with section 25.15; and (b) the following conditions are met: (i) the environmental attributes associated with the clean energy credit were generated within the period specified by the regulations, (ii) the clean energy credit is to be transferred to a transferee who has an account with the IESO or a distributor with respect to the transferee’s consumption of electricity, and who meets any other requirements specified by the regulations, (iii) the clean energy credit is to be credited against electricity that was consumed by the transferee in Ontario within the period specified by the regulations, (iv) the clean energy credit has not bee…

25.17 (1) The transferee to whom a clean energy credit is transferred in accordance with section 25.16, or a person or entity acting on the transferee’s behalf, shall indicate on the clean energy credit registry, in the time and manner specified by the registry rules, that the credit has been retired. 2022, c. 23, Sched. 1, s. 3. Transferor (2) If a transferor’s clean energy credit is not transferred within the time described in subsection 25.16 (2) or otherwise in accordance with section 25.16, the transferor may indicate on the clean energy credit registry, in the time and manner specified by the registry rules, that the credit has been retired. 2022, c. 23, Sched. 1, s. 3. Unauthorized retirement (3) No person or entity shall indicate on the clean energy credit registry that a clean energy credit has been retired, except in accordance with subsection (1) or (2). 2022, c. 23, Sched. 1,…

25.18 Transferors, transferees and any other persons or entities specified in the regulations shall provide to the IESO or the Minister such information as the IESO or Minister specifies for the purposes of this Part, in the time and manner specified by the IESO or Minister. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 29 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023 Proceeds of transfer

25.19 (1) The IESO shall apply its proceeds from the transfer of its clean energy credits in the time and manner specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Ontario Power Generation Inc. (2) Ontario Power Generation Inc. shall apply its proceeds from the transfer of its clean energy credits in the time and manner specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 1998, c. 15, Sched. A, s. 25.19 (3) - no effect - see 2004, c. 23, Sched. A, s. 30 - 31/01/2005 2004, c. 23, Sched. A, s. 30 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023

25.20 This Part applies with necessary modifications with respect to the transfer and retirement of a partial clean energy credit. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 31 (1, 2) - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023

25.21 (1) This Part applies with respect to the transfer of environmental attributes generated on or after the day section 3 of Schedule 1 to the Progress on the Plan to Build Act (Budget Measures), 2022 comes into force, even if the transfer is the subject of a contract that was entered into before that day. 2022, c. 23, Sched. 1, s. 3. Same (2) If the regulations so provide, this Part applies with respect to the transfer of environmental attributes generated before the day section 3 of Schedule 1 to the Progress on the Plan to Build Act (Budget Measures), 2022 came into force, to the extent and with any changes specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 32 - 20/12/2004 2009, c. 33, Sched. 14, s. 2 (3) - 15/12/2009 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015 2022, c. 23, Sched. 1, s. 3 - 15/03/2023

25.22 (1) The IESO shall, in accordance with the regulations if any, establish and maintain or designate a registry for the purposes of this Part that meets any requirements specified by the regulations and that is capable of, (a) accepting and displaying the registration of transferors and transferees; (b) accepting and displaying information respecting environmental attributes, and recognizing environmental attributes as clean energy credits; (c) accepting and displaying information respecting the transfer of clean energy credits, including information respecting the credits that are available for transfer; (d) accepting and displaying information respecting the retirement of clean energy credits; and (e) any other function specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Direction re registry (2) If the regulations direct the IESO to do so, the IESO shall, in accordance with…

25.23 (1) The IESO may, subject to any regulations made under clause 25.25 (1) (b), make rules, (a) governing the operation of any clean energy credit registry established by the IESO; (b) governing the participation of transferors and transferees in the clean energy credit registry for the purposes of this Part, including requiring the submission of specified information to the registry and specifying the time and manner of meeting the requirements; (c) requiring the payment of fees connected to the use of the clean energy credit registry, specifying their amounts, and specifying the time and manner of making the payments; (d) governing any other matter required or permitted in this Part or the regulations made under subsection 25.25 (1) to be provided for by the registry rules; and (e) respecting any matter that the IESO considers necessary or advisable in connection with the clean ene…

25.24 (1) The IESO shall, within the time specified by the regulations after the end of every calendar year, submit to the Minister a report that contains the following information respecting that year: 1. The total volume of electricity generated in the year by all generators directly connected to the IESO-controlled grid or a distributor’s distribution system, broken down by energy source. 2. The total number of clean energy credits transferred in the year in accordance with section 25.16, broken down by energy source. 3. Any other information specified by the regulations. 2022, c. 23, Sched. 1, s. 3. Publication (2) The IESO shall publish on its public website every report submitted to the Minister under subsection (1). 2022, c. 23, Sched. 1, s. 3. Duty to provide information (3) The IESO may require a distributor, transferor, transferee or any other person or entity specified by the …

25.25 (1) The Minister may make regulations, (a) governing any matter required or permitted in this Part to be provided for by the regulations, other than in subsection (7); (b) governing the making of the registry rules, including specifying timing, criteria or methodology that must be included in or applied under the registry rules or specifying any other matters that must be included in the registry rules; (c) exempting any person or entity from subclause 25.16 (1) (b) (i), (iv) or (v), subject to such conditions or restrictions as may be specified by the regulations; (d) specifying or providing for methods for determining amounts that constitute all or any part of IESO’s proceeds from the transfer of its clean energy credits for the purposes of clauses 25.33 (1) (c) and (2) (c); (e) defining, for the purposes of this Part, any word or expression used in this Part that is not defined …

25.26-25.28 Repealed: 2014, c. 7, Sched. 7, s. 3 (1). Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 32 - 20/12/2004 2014, c. 7, Sched. 7, s. 3 (1) - 01/01/2015

Part II.2 Planning, Procurement and Pricing

25.29 (1) The Minister may, subject to the approval of the Lieutenant Governor in Council, issue an integrated energy plan setting out and balancing the Government of Ontario’s goals and objectives respecting energy for the period specified by the plan. 2024, c. 26, Sched. 1, s. 3. Same (2) For the purposes of subsection (1), an integrated energy plan may include goals and objectives respecting, (a) the affordability of energy for consumers and the cost-effectiveness of planned energy resources; (b) the availability and reliability of the supply, transmission or distribution of energy to consumers; (c) the enhancement and expansion of energy infrastructure and resources to support economic growth and trade; (d) the role of electricity, natural gas, hydrogen and other energy resources, as well as energy efficiency, storage and demand management, in building a clean energy economy; (e) the…

25.30 (1) The Minister may, subject to the approval of the Lieutenant Governor in Council, issue a directive to the IESO that sets out the Government of Ontario’s requirements respecting the implementation of the integrated energy plan by the IESO and any other related requirements, other than matters listed in subsection 25.32 (2). 2024, c. 26, Sched. 1, s. 3. To the Board (2) The Minister may, subject to the approval of the Lieutenant Governor in Council, issue a directive to the Board that sets out the Government of Ontario’s requirements respecting the implementation of the integrated energy plan in respect of matters falling within the Board’s jurisdiction. 2024, c. 26, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 34 - 01/01/2005 2014, c. 7, Sched. 7, s. 5 (1-4) - 01/01/2015 2016, c. 10, Sched. 2, s. 7 - 01/07/2016 2024, c. 26, Sched. 1, s.…

25.31 Repealed: 2024, c. 26, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2004, c. 23, Sched. A, s. 35 - 01/01/2005 2014, c. 7, Sched. 7, s. 6 (1-4) - 01/01/2015 2016, c. 10, Sched. 2, s. 7 - 01/07/2016 2024, c. 26, Sched. 1, s. 3 - 04/12/2024

25.32 (1) Repealed: 2024, c. 26, Sched. 1, s. 4 (1). Entering into contracts (2) The IESO shall, if required to do so under a directive issued under subsection (5) or a direction continued under subsection (9) or (10), as amended, enter into contracts for the procurement of, (a) electricity supply, capacity or storage; (b) changes in electricity demand; (c) measures related to the conservation of electricity or the management of electricity demand; (d) transmission systems or any part of such systems, including the development of all or part of such systems; or (e) measures aimed at promoting electrification or using electricity to reduce overall emissions in Ontario. 2016, c. 10, Sched. 2, s. 7; 2019, c. 6, Sched. 1, s. 2; 2024, c. 26, Sched. 1, s. 4 (2, 3). Transmitters (3) Despite clause (2) (d), the IESO is not required to enter into a contract under subsection (2) in order to select…

25.32.1 (1) The IESO shall not procure a good or service respecting a matter that is not listed in subsection 25.32 (2) if the good or service meets the conditions prescribed by the regulations respecting, (a) its country, region or territory of origin, as determined in the regulations; or (b) the country, region or territory of origin of the person or entity that is, or that beneficially owns or controls, a supplier of the good or service, as determined in the regulations. 2025, c. 4, Sched. 1, s. 3. Same (2) For the purposes of clause (1) (b), (a) country, region or territory of origin of a person or entity may be determined by reference to any relevant factor including, as applicable, (i) where a person is ordinarily resident, (ii) where a head office or other office is located, (iii) jurisdiction of incorporation, (iv) the number or proportion of employees of the person or entity tha…

25.33 (1) The IESO shall, through its billing and settlement systems, make adjustments in accordance with the regulations that ensure that, over time, payments by classes of market participants in Ontario that are prescribed by regulation reflect, (a) amounts paid to generators, the Financial Corporation and distributors, whether the amounts are determined under the market rules or under section 78.1, 78.2 or 78.5 of the Ontario Energy Board Act, 1998, other than amounts funded under section 25.34; (b) amounts paid to entities with whom the IESO has or had a procurement contract, as determined under the procurement contract, other than amounts listed under subsection (2.1); and (c) the IESO clean energy credit proceed amounts determined by the regulations made by the Minister under clause 25.25 (1) (d). 2014, c. 7, Sched. 7, s. 8 (1); 2017, c. 16, Sched. 1, s. 43 (2); 2018, c. 17, Sched.…

25.34 (1) The IESO shall pay all or any portion of the amounts described in subsection (2), as determined by the Minister, out of money appropriated for the purpose of this section by the Legislature, if any. 2018, c. 17, Sched. 14, s. 2. Same (2) Subsection (1) applies with respect to the following amounts: 0.1 Such amounts described in clause 25.33 (1) (a) or (2) (a) as may be prescribed by the regulations. 1. Subject to the regulations, amounts required to be paid by the IESO to an entity as a result of the termination, in accordance with Order in Council 1003/2018 made on July 5, 2018, of a procurement contract to which the entity was a party. 2. The amounts prescribed by the regulations that are paid by the IESO to entities under such procurement contracts entered into under clause 25.32 (2) (a), (b), (c) or (e) as may be prescribed by the regulations. 2019, c. 6, Sched. 1, s. 4 (1)…