Ontario Energy Board

Amendments to the Distribution System Code (DSC)
December 18, 2018

Note: The text of the amendments is set out in italics below, for ease of identification only.

  1. Section 1.2 of the DSC is amended by replacing the definition of “customer” with the following:
    “customer”
    means a generator or consumer whose facilities are connected to or are intended to be connected to a distributor’s distribution system. This includes developers of residential or commercial sub-divisions. For the purposes of section 3 of this Code (except section 3.3), an embedded distributor is deemed to be a customer;
  2. Section 1.2 of the DSC is amended by replacing the definition of “embedded distributor” with the following:
    “embedded distributor”
    means a distributor that is provided electricity by a host distributor;
  3. Section 1.2 of the DSC is amended by replacing the word “the” with “a” in the definition of “host distributor”.
  4. Section 1.2 of the DSC is amended by adding the following new definition in alphabetical order:
    “distributor-owned asset”
    means an asset owned by a distributor other than an asset installed as part of a basic connection;
  5. Section 1.7 of the DSC is amended by adding the following paragraph at the end of the section:

    The amendments to sections 3.2.20, 3.2.21, 3.2.23 and 3.2.24 made by the Board on December 18, 2018 come into force on March 18, 2019.

  6. Section 3 of the DSC is amended by adding the following new section 3.0 before section 3.1:
      1. For the purposes of section 3 of this Code (except section 3.3), an embedded distributor is deemed to be a customer.
  7. Section 3.1 of the DSC is amended by adding the following new sections 3.1.7, 3.1.7A, 3.1.8, 3.1.9, 3.1.10 and 3.1.11 after section 3.1.6:
        1. Where a distributor-owned asset has reached its end-of-life and is planned to be retired and replacement is determined to be the optimal solution, the distributor shall undertake an assessment to determine the appropriate capacity of the replacement asset. Where the asset is a distribution station that is connected to the transmission system or a distribution line that connects a load customer with a non-coincident peak demand that is equal to or greater than 5 MW, that assessment shall be undertaken in consultation with the applicable customer(s). Where the asset is replaced, the distributor shall either:
          1. not recover a capital contribution from a customer to replace that asset, where the new asset is the same capacity or lower capacity; or
          2. recover a capital contribution from a customer to replace the asset, where the customer requires additional capacity. The capital contribution shall be limited to the incremental cost relative to the cost of a like-for-like replacement asset.
          1. Where a distributor-owned asset has not reached its end-of-life and is replaced at the request of a customer, the distributor shall recover a capital contribution from the customer. The capital contribution shall be equal to the remaining net book value of the replaced asset plus the advancement cost.
        2. A distributor shall not connect to the distribution system of another distributor for the purpose of obtaining additional transmission connection capacity without the approval of the Board. The two distributors shall file a joint application for approval of the arrangement between them, any investment in distribution assets, and the compensation to be provided by the connecting distributor to the other distributor (“the facilitating distributor”), with the Board and include as part of the application:
          1. confirmation by the IESO that the proposed distribution investment would avoid a higher cost investment in a transmission connection facility and would be the optimal infrastructure solution from a regional planning perspective;
          2. a copy of the agreement between the connecting distributor and the facilitating distributor; and
          3. evidence that there is sufficient capacity on the transmission connection facility that connects the facilitating distributor to the transmission network to meet the forecast needs of both distributors (i.e., a transmission connection investment will not be required during the forecast period), by providing the amount of excess capacity on the transmission connection facility and a load forecast from each distributor.

          The agreement between the connecting distributor and the facilitating distributor shall ensure the customers of the facilitating distributor will not be negatively affected in any way due to the connection to the facilitating distributor’s distribution system. In that regard, the agreement shall specify:

          1. the capital contribution that the connecting distributor will provide to the facilitating distributor to compensate it for all the costs incurred to facilitate the distribution investment that connects it, taking into account any capital contribution refund that may be required under section 6.3.17 of the Transmission System Code;
          2. any additional charges incurred by the facilitating distributor, due to the incremental load withdrawn from the transmission system by the connecting distributor, shall be recovered from the connecting distributor;
          3. any other costs that may be identified by the two distributors, for the purpose of cost recovery from the connecting distributor, including any investment required in existing distribution assets of the facilitating distributor; and
          4. the frequency by which the connecting distributor will provide an updated load forecast to the facilitating distributor.

          For the purpose of this section, the connecting distributor shall be considered a customer of facilitating distributor under section 3.1.

        3. For a new or modified distributor-owned asset that will serve a mix of load customers and generator customers, a distributor shall attribute the cost to the customers on a pro-rata basis, based on the apportioned benefit, taking into account factors including the respective rated peak output of each generation facility and the respective non-coincident incremental peak load requirements of each load customer, and the relative line length in proportion to the line length being shared by the customers.
        4. Where a customer requests the relocation of a distributor-owned asset, the distributor shall recover from that customer the cost of relocating that asset, except to the extent recovery is limited under law.
        5. Where a distributor-owned asset is relocated in the absence of a customer request, the distributor shall bear the cost of relocating that asset.
  8. Section 3.2.4 of the DSC is amended by replacing “may” with “shall”, adding “an embedded distributor or” before “a customer”, removing “or distributor” after “a generator”, and replacing “not exceed” with “be equal to”.
  9. Section 3.2.5 of the DSC is amended by replacing “may” with “shall” and replacing “not exceed” with “be equal to”.
  10. Section 3.2.20 of the DSC is amended by replacing “may” with “shall” in the first sentence of the section.
  11. Section 3.2.21 of the DSC is amended by replacing “If an expansion deposit is collected under section 3.2.20, the expansion deposit” with “The expansion deposit collected under section 3.2.20”.
  12. Section 3.2.23 of the DSC is replaced with the following:
        1. Once the facilities are energized and subject to sections 3.2.22 and 3.2.24, the distributor shall annually return the percentage of the expansion deposit in proportion to the actual connections (for residential developments) or actual demand (for commercial and industrial developments) that materialized in that year (i.e., if twenty percent of the forecasted connections or demand materialized in that year, then the distributor shall return to the customer twenty percent of the expansion deposit). This annual calculation shall only be done for the duration of the five-year customer connection horizon. If at the end of the customer connection horizon the forecasted connections (for residential developments) or forecasted demand (for commercial and industrial developments) have not materialized, the distributor shall be allowed to retain the remaining portion of the expansion deposit.
  13. Section 3.2.24 of the DSC is replaced with the following:
        1. If the alternative bid option was chosen, the distributor shall retain at least ten percent of the expansion deposit for a warranty period for at least two years. This portion of the expansion deposit can be applied to any work required to repair the expansion facilities within the two year warranty period. The two year warranty period begins:
          1. when the last forecasted connection in the expansion project materializes (for residential developments) or the last forecasted demand materializes (for commercial and industrial developments); or
          2. at the end of the five-year customer connection horizon,

          whichever is first. The distributor shall return any remaining portion of this part of the expansion deposit at the end of the two year warranty period.

  14. Section 3.2.27 of the DSC is replaced with the following:
        1. Unforecasted customers that connect to the distribution system during the five-year customer connection horizon will benefit from the earlier expansion and should contribute their share. In such an event, the initial contributors shall be entitled to a rebate from the distributor. A distributor shall collect from the unforecasted customers an amount equal to the rebate the distributor shall pay to the initial contributors. The amount of the rebate shall be determined as follows:
          1. for a period of up to five years, the initial contributor shall be entitled to a rebate without interest, based on apportioned benefit for the remaining period; and
          2. (the apportioned benefit shall be determined by considering such factors as the relative name-plate rated capacity of the generator customers, the relative non-coincident peak demand of the load customers and the relative line length in proportion to the line length being shared by the customers, as applicable.
  15. Section 3.4 of the DSC is revoked.
  16. The following new sections 3.5 and 3.6 are added to the DSC, after the former section 3.4:
      1. Bypass Compensation
        1. A distributor shall require bypass compensation from a customer with a non-coincident peak demand that meets or exceeds 5 MW, if:
          1. the customer disconnects its load facility from the distributor’s distribution system and connects that facility to a generation facility or to another load facility that is not owned by the distributor such that the distributor will no longer receive rate revenues in relation to that disconnected facility; or
          2. the customer, while retaining its connection to the distributor’s distribution system, also connects its load facility to a generation facility or to another load facility that is not owned by the distributor such that the customer reduces its load served directly by the distributor’s distribution system, and the distributor’s rate revenues in relation to that facility will be reduced.

          The distributor shall calculate bypass compensation using the methodology set out in section 3.5.3.

        2. A distributor shall not require bypass compensation from any customer:
          1. when a load customer provides its own facility to serve new load or transfers new load to the facility of another person;
          2. for any reduction in a customer’s existing load served by the distributor’s distribution system that the customer has demonstrated to the reasonable satisfaction of the distributor (such as by means of an energy study or audit) has resulted from embedded renewable generation, energy conservation, energy efficiency or load management activities; or
          3. where a distributor-owned asset has been overloaded, and a customer transfers the overload to its own facility or to the facility of another person.
        3. For the purposes of section 3.5.1, the distributor shall calculate bypass compensation by first multiplying the net book value of the bypassed distributor-owned asset (including a salvage credit and reasonable removal and environmental remediation costs, if applicable) by the bypassed capacity on the relevant distributor-owned asset. The distributor shall then divide the resulting figure by the maximum amount of load that can be supplied by the bypassed distributor-owned asset. For the purposes of this calculation, the bypassed capacity on the relevant distributor-owned asset shall be equal to the difference between the customer’s existing load on that distributor-owned asset at the time of bypass and the highest rolling three-month average of the customer’s non-coincident peak demand in the twelve-month period following the date on which bypass occurred.
      2. Upstream Transmission Connections
        1. Where a distributor has been required to provide a capital contribution to a transmitter under the Transmission System Code for the purpose of a new or modified transmitter-owned connection facility, and the new or modified transmitter-owned connection facility also meets the needs of an embedded distributor and/or a load customer with a non-coincident peak demand that is equal to or greater than 5 MW, the distributor shall require a capital contribution from all beneficiaries that contributed to the need for the new or modified transmitter-owned connection facility based on their respective incremental capacity requirements and the total project cost. The distributor shall request that the transmitter, who owns the connection facility, calculate the capital contribution amount for each beneficiary using the methodology and inputs described in Appendix 5 of the Transmission System Code.
  17. Section 9.7.1 of the DSC is amended by adding the word “that is not a wholesale market participant” before the words “shall provide its host distributor”:
        1. For each calendar month, beginning in 2016, an embedded distributor that is not a wholesale market participant shall provide its host distributor, no later than the second business day of the following month, with the following information:
          1. for each OESP rate class, the total number of the embedded distributor’s customers that received OESP rate assistance; and
          2. for each OESP rate class, the total amount of rate assistance received by the embedded distributor’s customers.

(152-G013)

Amendments to the Transmission System Code (TSC) December 18, 2018

Note: The text of the amendments is set out in italics below, for ease of identification only.

  1. Sections 6.3.12 and 6.3.13 of the TSC are amended by replacing the word “For” at the beginning of each section with “Subject to section 6.3.18, for”.
  2. Sections 6.3.14 and 6.3.15 of the TSC are amended by replacing the word “Where” at the beginning of each sentence with “Subject to section 6.3.18, where”.
  3. Section 6.3.14 of the TSC is further amended by deleting the word “relative” before “length” in paragraph (b), and adding “in proportion to the length of line being shared by the customers” after “customer”.
  4. Section 6.3.15 of the TSC is further amended by deleting the word “relative” before “length” in paragraph (b), and adding “in proportion to the length of line being shared by the customers” after “customer”.
  5. Section 6.3.16 of the TSC is replaced with the following:
        1. Subject to section 6.3.18, for a new or modified transmitter-owned connection facility that will serve a mix of load customers and generator customers, a transmitter shall attribute the cost of the new connection facility or modification to those customers based on their proportional benefit, which the transmitter shall determine by considering such factors as the incremental rated peak output of each generation facility, the non-coincident incremental peak load requirements of each load customer, and the length of line used by each customer in proportion to the length of line being shared by the customers.
  6. Section 6.3.17A of the TSC is replaced with the following:
          1. For the purposes of section 6.3.17, the transmitter shall determine the amount of:
            1. the refund to the initial customer from the subsequent customer by calculating a revised capital contribution amount using the prescribed economic evaluation methodology set out in section 6.5 and the same inputs as used in the original economic evaluation except for load (which will be based on the actual load of the initial customer up to the time of connection of the subsequent customer and a revised load forecast for the remainder of the economic evaluation period) and revised attributed cost (which will be determined using the methodology set out in section 6.3.14, 6.3.15 or 6.3.16, as applicable); and
            2. the financial contribution from the subsequent customer by calculating a capital contribution amount using the prescribed economic evaluation methodology set out in section 6.5 and the same inputs as used in the original economic evaluation except for load (which will be based on the subsequent customer’s load forecast for the remainder of the economic evaluation period) and attributed cost (which will be determined using the methodology set out in section 6.3.14, 6.3.15 or 6.3.16, as applicable).
  7. The following new sections 6.3.18, 6.3.18A, 6.3.19 and 6.3.20 are added to the TSC immediately after section 6.3.17A:
        1. Where one or more customers triggers the need for a new or modified transmitter-owned connection facility and the IESO undertakes an assessment at the request of a transmitter that confirms the new or modified connection facility will also address a broader network system need, the transmitter shall determine the proportional benefit and the related attribution of costs between the triggering customer(s), collectively, and the network pool. The transmitter shall then attribute the collective triggering customer costs to each triggering customer(s) in accordance with the methodology set out in section 6.3.12, 6.3.13, 6.3.14, 6.3.15 or 6.3.16, as applicable.
          1. Where section 6.3.18 applies, the transmitter shall apply to the Board for approval of the attribution of costs between the triggering customer(s) and the network pool. Where the Board approves a different attribution of costs, the transmitter shall recalculate the capital contribution to be made by the triggering customer(s).
        2. Where a distributor is required under this Code to provide a capital contribution to a transmitter, the transmitter shall permit the capital contribution to be provided in equal installments over a period of time not to exceed five years unless a longer period is approved by the Board. Where a distributor provides the capital contribution in installments, the transmitter shall charge interest on the unpaid balance at the Board’s prescribed construction work in progress (CWIP) rate which is updated quarterly and published on the Board’s website. The interest charges shall accrue monthly commencing on the date the connection asset goes into service and be paid annually, as part of each installment payment.
        3. For the purposes of section 3.6.1 of the Distribution System Code, the transmitter shall, upon the request of a transmission-connected distributor, calculate the capital contribution amount for each distributor and each distribution-connected large load customer with a non-coincident peak demand exceeding 5 MW that contributes to the need for a new or modified transmitter-owned connection facility using the methodology and inputs described in Appendix 5 of this Code. The transmitter shall calculate any true-ups in respect of each capital contribution in accordance with the true-up provisions of section 6.5.
  8. The heading of section 6.7 of the TSC is replaced with the following:
      1. Replacement And Relocation Of Existing Connection Facilities
  9. Section 6.7.2 of the TSC is replaced with the following:
        1. Where a transmitter-owned connection facility has reached its end-of-life and is planned to be retired and replacement with a new connection facility is determined to be the optimal solution, the transmitter shall undertake an assessment, in consultation with any affected customers, to determine the appropriate capacity of the replacement connection facility. Where the asset is replaced, the transmitter shall either:
          1. not recover a capital contribution from a customer to replace that connection facility, where the new facility is the same capacity or lower capacity; or
          2. recover a capital contribution from a customer to replace the connection facility, where the customer requires additional capacity. The capital contribution shall be limited to the incremental cost relative to the cost of a like-for-like replacement facility.
  10. The following new section 6.7.2A is added to the TSC immediately after section 6.7.2:
          1. Where a transmitter-owned connection facility has not reached its end-of-life and is replaced at the request of a customer, the transmitter shall recover a capital contribution from the customer. The capital contribution shall be equal to the remaining net book value of the replaced asset plus the advancement cost.
  11. Sections 6.7.5 to 6.7.11 of the TSC are revoked. (Note: these sections, with some modifications, are renumbered as sections 11.2.4 to 11.2.10 of the TSC – see below.)
  12. Section 11.2.1 of the TSC is replaced with the following:
        1. A transmitter shall require bypass compensation from a customer if:
          1. the customer disconnects its load facility from the transmitter’s connection facilities and connects that facility to a generation facility or to another load facility that is not owned by the transmitter such that both the load facility and a generation facility are connected to the transmitter’s transmission facilities on that customer’s side of the connection point and the transmitter will no longer receive line connection or transformation connection rate revenues in relation to that disconnected facility; or
          2. the customer, while retaining its connection to the transmitter’s transmission system, also connects its load facility to a generation facility or to another load facility that is not owned by the transmitter such that the customer reduces its load served directly by the transmitter’s transmission system, and the line connection or transformation connection rate revenues in relation to that facility will be reduced.

          The transmitter shall calculate bypass compensation using the methodology set out in section 11.2.6.

  13. The following new sections 11.2.4 to 11.2.10 are added to the TSC immediately after section 11.2.3:
        1. When a load customer provides its own connection facility to serve new load or transfers new load to the connection facility of another person, the transmitter shall not require bypass compensation from that customer.
        2. Subject to sections 6.7.2, 11.2.6 and 11.2.7, for all or a portion of existing load a load customer may bypass a transmitter-owned connection facility with its own connection facility or the connection facility of another person, provided that the load customer compensates the transmitter.
        3. For the purposes of sections 11.2.1 and 11.2.5, but subject to section 11.2.7, the transmitter shall calculate bypass compensation by first multiplying the net book value of the bypassed connection facility, including a salvage credit and reasonable removal and environmental remediation costs, if applicable, by the bypassed capacity on the relevant connection facility. The transmitter shall then divide the resulting figure by the total normal supply capacity of the bypassed connection facility. For purposes of this calculation:
          1. the bypassed capacity on the relevant connection facility shall be equal to the difference between the customer’s existing load on that connection facility at the time of bypass and the highest rolling three-month average of the customer’s non-coincident peak demand in the twelve-month period following the date on which bypass occurred; and
          2. the normal supply capacity of the bypassed connection facility shall be determined by the transmitter in accordance with the Board-approved procedure referred to in section 6.2.7.
        4. Where an economic evaluation, including an economic evaluation referred to in section 6.3.9 or 6.3.17A, was conducted by a transmitter for a load customer in relation to a connection facility on the basis of a load forecast, a transmitter shall not require bypass compensation from a customer under section 11.2.5 in relation to any load that represents that customer’s contracted capacity, during the related economic evaluation period.
        5. A transmitter should avoid overloading a connection facility above its total normal supply capacity. Where a connection facility has been overloaded, and a customer transfers the overload to its own connection facility or to the connection facility of another person, the transmitter shall not require bypass compensation from that customer.
        6. A transmitter shall promptly notify the Board upon becoming aware that a load customer that is a distributor intends to bypass a transmitter-owned connection facility with its own connection facility or the connection facility of another person.
        7. Where a transmitter becomes aware that a load customer intends to bypass a transmitter-owned connection facility with its own connection facility or the connection facility of another person, the transmitter shall promptly notify all other load customers served by the connection facility that is intended to be bypassed.

(152-G014)

Marriage Act

certificates of temporary registration as person authorized to solemnize marriage in Ontario have been issued to the following:

December 17, 2018 to December 23, 2018

Date Name Location Effective Date
21-Dec-2018 to 25-Dec-2018 Speelman, Sieman Andrew Mt Mellick, PE, CA 20-Dec-2018

certificate of cancellation of registration as a person authorized to solemnize marriage in Ontario have been issued to the following:

December 17, 2018 to December 23, 2018

Name Location Effective Date
Bristow, Naomi Beeton, ON, CA 20-Dec-2018
Farrier, Keyon Toronto, ON, CA 20-Dec-2018
Hildebrandt, David B Hanover, ON, CA 20-Dec-2018
Krall, Frank Anthony Windsor, ON, CA 20-Dec-2018
Nadon, Suzanne Pembroke, ON, CA 20-Dec-2018
Raymer, John Halifax, NS, CA 20-Dec-2018
Reist, Ronald R New Dundee, ON, CA 20-Dec-2018
Smith, David Blair Napanee, ON, CA 20-Dec-2018
Theriault, Paul Adelard Ridgetown, ON, CA 20-Dec-2018
Tollefson, Dale Whitby, ON, CA 20-Dec-2018
Trask, Noah Albert Clarenville, NL, CA 20-Dec-2018
Vaughn, Kevin Cobourg, ON, CA 20-Dec-2018

Alexandra Schmidt
Deputy Registrar General

(152-G015)

certificate of permanent registration as a person authorized to solemnize marriage in Ontario have been issued to the following:

December 24, 2018 to December 30, 2018

Name Location Effective Date
Paisley, Harold Wilson Elmira, ON, CA 27-Dec-2018

Re-Registrations

Name Location Effective Date
Leung, Andrew Fook Bun Toronto, ON, CA 27-Dec-2018

certificates of temporary registration as person authorized to solemnize marriage in Ontario have been issued to the following:

December 24, 2018 to December 30, 2018

Date Name Location Effective Date
09-May-2019 to 13-May-2019 McLeod, Margaret Ann Edmonton, AB, CA 27-Dec-2018
31-Jan-2019 to 04-Feb-2019 Oddy, Graeme Rupert Toronto, ON, CA 27-Dec-2018

Alexandra Schmidt
Deputy Registrar General

(152-G016)

certificate of permanent registration as a person authorized to solemnize marriage in Ontario have been issued to the following:

December 31, 2018 to December 31, 2018

Name Location Effective Date
Boctor, Steve A Woodstock, ON, CA 31-Dec-2018
Cameron, Paulette V Brampton, ON, CA 31-Dec-2018
Cooper, Christine Jean Agnes Midland, ON, CA 31-Dec-2018
Culetta, Rachel Shirley Louise Havelock, ON, CA 31-Dec-2018
Faleyimu, Yetunde Bolanle Toronto, ON, CA 31-Dec-2018
Fehr, Heinrich Ruthven, ON, CA 31-Dec-2018
Gaspari, Joanne Marie Mississauga, ON, CA 31-Dec-2018
James, Roburn Cornelius Toronto, ON, CA 31-Dec-2018
Klassen, Peter Enns Straffordville, ON, CA 31-Dec-2018
McFarlane, William David Alfred Renfrew, ON, CA 31-Dec-2018
McKenna, Laurence Edward Cambridge, ON, CA 31-Dec-2018
Melles, Berhane Kahsai Kitchener, ON, CA 31-Dec-2018
Nuttall, Timothy Simon Tecumseh, ON, CA 31-Dec-2018
O’Haire, Devin Hunter Toronto, ON, CA 31-Dec-2018
Parlane, Daphne Estella Hamilton, ON, CA 31-Dec-2018
Richer, Louise Diane Kingston, ON, CA 31-Dec-2018
Robinson, Robert I Coldwater, ON, CA 31-Dec-2018
Sisson, Alana Marie Lindsay, ON, CA 31-Dec-2018

certificate of cancellation of registration as a person authorized to solemnize marriage in Ontario have been issued to the following:

December 31, 2018 to December 31, 2018

Name Location Effective Date
Boctor, Steve Woodstock, ON, CA 31-Dec-2018

Alexandra Schmidt
Deputy Registrar General

(152-G017)