Electricity Act, 1998

ontario REGULATION 160/99

DEFINITIONS AND EXEMPTIONS

Historical version for the period March 15, 2023 to December 6, 2023.

Last amendment: 38/23.

Legislative History: 596/99, 576/00, 164/01, 310/01, 19/02, 71/02, 116/02, 145/02, 201/02, 14/03, 328/09, 294/14, 132/15, 5/19, 268/19, 38/23.

This is the English version of a bilingual regulation.

Definitions

1. (1) In the Act and the regulations,

“agricultural waste” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act; (“déchets agricoles”)

“anaerobic digestion” means the decomposition of organic matter by bacteria in an oxygen-limiting environment; (“digestion anaérobie”)

“biodiesel” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act; (“biodiesel”)

“biofuel” means a liquid fuel made solely from biomass and includes ethanol, methanol and biodiesel; (“biocarburant”)

“biogas” means a gaseous fuel that is,

(a) landfill gas, or

(b) a gas made from the anaerobic digestion of, or any combination of,

(i) biomass,

(ii) source separated organics, or

(iii) organic matter, other than biomass, that is derived from a plant or animal and that is available at a farm operation; (“biogaz”)

“biomass” means organic matter, other than source separated organics, that is derived from a plant or animal, is available on a natural renewable basis and is,

(a) grown or harvested for the purpose of being used to generate electricity,

(b) waste from harvesting or processing agricultural products or waste from processing forestry products, including spent pulping liquor,

(c) agricultural waste,

(d) organic waste materials from a greenhouse, nursery, garden centre or flower shop,

(e) pulp and paper biosolids,

(f) waste from food processing, distribution and preparation operations, such as food packing, food preserving, wine making, cheese making, restaurants and grocery stores, and includes, as an example, organic waste from the treatment of wastewater from facilities where food or feed is processed or prepared,

(g) sewage biosolids,

(h) hauled sewage,

(i) waste from the operation of a sewage works subject to the Ontario Water Resources Act,

(j) woodwaste, or

(k) forest resources made available under a forest management plan approved under the Crown Forest Sustainability Act, 1994 or a managed forest plan approved under the Managed Forest Tax Incentive Program; (“biomasse”)

“farm operation” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act; (“exploitation agricole”)

“hauled sewage” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act; (“eaux usées transportées”)

“independent director” means, with respect to the IESO, a person who,

(a) is not a director, officer or employee of,

(i) a generator, transmitter, distributor or retailer,

(ii) a person who sells electricity or ancillary services through the IESO-administered markets or directly to another person, other than a consumer,

(iii) an industrial consumer, or

(iv) an affiliate of a person referred to in subclause (i), (ii) or (iii), and

(b) does not have a direct or indirect legal or beneficial interest in or commercial affiliation with,

(i) a generator, transmitter, distributor or retailer,

(ii) a person who sells electricity or ancillary services through the IESO-administered markets or directly to another person, other than a consumer, or

(iii) an affiliate of a person referred to in subclause (i) or (ii); (“administrateur indépendant”)

“municipal waste” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act; (“déchets municipaux”)

“person” includes,

(a) a municipal corporation,

(b) a commission established under the Public Utilities Act or any other general or special Act, and

(c) any body, however established, through which a municipal corporation generates, transmits, distributes or retails electricity; (“personne”)

“pulp and paper biosolids” has the same meaning as in Ontario Regulation 267/03 (General) made under the Nutrient Management Act, 2002; (“biosolides de papetière”)

“sewage biosolids” has the same meaning as in Ontario Regulation 267/03 (General) made under the Nutrient Management Act, 2002; (“biosolides d’égouts”)

“source separated organics” means organic waste that has been separated from other waste under a program operated by or for a municipality; (“matières organiques séparées à la source”)

“woodwaste” has the same meaning as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Environmental Protection Act. (“déchets de bois”)  O. Reg. 160/99, s. 1; O. Reg. 310/01, s. 1 (1); O. Reg. 328/09, s. 1 (1); O. Reg. 294/14, s. 1 (1).

(1.1) For the purposes of the definition of “biomass” in subsection (1), biomass does not include,

(a) peat or peat derivatives; and

(b) municipal waste, other than organic matter referred to in paragraphs (b) through (j) of the definition of “biomass”.  O. Reg. 328/09, s. 1 (2).

(2) For the purpose of clause (b) of the definition of “independent director” in subsection (1),

(a) an interest held as the beneficiary of a trust that does not permit the beneficiary to have any knowledge of the holdings of the trust is not a legal or beneficial interest; and

(b) an interest in a mutual fund as defined in section 1 of the Securities Act is not a legal or beneficial interest unless the mutual fund is operated as an investment club where,

(i) its shares or units are held by not more than 50 persons and its indebtedness has never been offered to the public,

(ii) it does not pay or give any remuneration for investment advice or in respect of trades in securities, except normal brokerage fees, and

(iii) all of its members are required to make contributions in proportion to the shares or units each holds for the purpose of financing its operations.  O. Reg. 310/01, s. 1 (2).

(3) For the purpose of clause (b) of the definition of “independent director” in subsection (1), a person has a commercial affiliation with another person if the person supplies goods or services to or receives goods or services from the other person, unless,

(a) the person receives the goods or services in the ordinary course of being a customer of a distributor or retailer or an affiliate of a distributor or retailer; or

(b) a person or committee appointed by the Minister for the purposes of this clause determines that the supply or receipt of the goods or services does not materially affect the independence of the person from,

(i) generators, transmitters, distributors and retailers,

(ii) persons who sell electricity or ancillary services through the IESO-administered markets or directly to another person, other than a consumer, or

(iii) affiliates of persons referred to in subclauses (i) and (ii).  O. Reg. 310/01, s. 1 (2); O. Reg. 294/14, s. 1 (2).

(4) For the purposes of the definition of “renewable energy generation facility” in the Act, the following associated or ancillary equipment, systems and technologies are prescribed:

1. Transmission or distribution lines of less than 50 kilometres in length that are associated with or ancillary to a renewable energy generation facility.

2. Transformer stations or distribution stations that are associated with or ancillary to a renewable energy generation facility.

3. Any transportation systems that are associated with or ancillary to the provision of access to a renewable energy generation facility, during the construction, installation, use, operation, changing or retiring of a renewable energy generation facility.  O. Reg. 328/09, s. 1 (2).

(5) For the purposes of subsection (4), the following apply:

1. A distribution line is associated with or ancillary to a renewable energy generation facility if the line is used to distribute electricity within the facility or from the facility to the distribution system of the distributor in whose distribution service area the renewable energy generation facility is located.

2. A transmission line is associated with or ancillary to a renewable energy generation facility if the line is used to transmit electricity within the facility or from the facility to the IESO-controlled grid.

3. A transformer station or distribution station is associated with or ancillary to a renewable energy generation facility if the station is used to transform the voltage of electricity at the facility, on a transmission line or on a distributor’s distribution system which is associated with or ancillary to the facility.

4. A transportation system includes all transportation systems constructed solely to provide access to the renewable energy generation facility, including transportation systems on Crown land, but does not include a highway which is intended for or used by the general public for the passage of vehicles.  O. Reg. 328/09, s. 1 (2).

(6) For the purposes of the definition of “renewable energy generation facility” in the Act, the following classes of waste disposal sites are prescribed:

1. A waste disposal site where the material referred to in clause (b) of the definition of biogas is subject to anaerobic digestion.

2. A waste disposal site where biomass is thermally treated.  O. Reg. 328/09, s. 1 (2); O. Reg. 294/14, s. 1.

(7) For the purpose of subsection 29.1 (1) of the Act,

“service” includes, but is not limited to, on-bill financing for electricity conservation and load management measures. O. Reg. 132/15, s. 1.

2. In sections 125 and 152 of the Act,

“execute” includes, with respect to an instrument that may be in an electronic format, to do what is required to complete the instrument in the electronic format.  O. Reg. 160/99, s. 2.

Exemptions

2.0.0.1 (1) Despite subsection 25.21 (1) of the Act, sections 25.14 to 25.17 of the Act do not apply with respect to the transfer by a transferor of environmental attributes that are generated before January 1, 2024, if their transfer is the subject of a contract entered into before January 1, 2023. O. Reg. 38/23, s. 1.

(2) Subsection (1) ceases to apply with respect to the transfer if the transferor takes steps to have the environmental attributes recognized in the clean energy credit registry as a clean energy credit, but a transferor shall not take steps to have previously-transferred environmental attributes recognized in the clean energy credit registry as a clean energy credit. O. Reg. 38/23, s. 1.

(3) Despite subsection 25.21 (1) of the Act, subclauses 25.16 (1) (b) (ii) and (iii) of the Act do not apply with respect to the transfer by a transferor of environmental attributes that are the subject of a contract entered into before January 1, 2023 respecting the transfer, regardless of when the environmental attributes are or were generated. O. Reg. 38/23, s. 1.

2.0.1 (1) Subsection 26 (1) and (6) of the Act do not apply to Cornwall Street Railway Light & Power Company Limited with respect to serving those consumers who are subject to,

(a) the agreement entered into by Cornwall Street Railway Light & Power Company Limited and The Corporation of the Township of Charlottenburgh on October 8, 1985;

(b) the agreement entered into by Cornwall Street Railway Light & Power Company Limited and The Corporation of the Township of Cornwall on December 4, 1985; or

(c) the franchise agreement entered into by Cornwall Street Railway Light and Power Company Limited and The Corporation of the City of Cornwall on July 31, 1998.  O. Reg. 19/02, s. 1; O. Reg. 71/02, s. 1.

(2) Subsection (1) does not apply after December 31, 2019.  O. Reg. 19/02, s. 1.

(3) Subsection 26 (1) of the Act does not apply to Granite Power Distribution Corporation with respect to serving those consumers who are subject to the franchise agreement entered into by Gananoque Light & Power Ltd. and The Corporation of the Town of Gananoque on November 14, 1994.  O. Reg. 19/02, s. 1.

(4) Subsection (3) does not apply after December 31, 2014.  O. Reg. 19/02, s. 1.

(5) Subsection 26 (1) of the Act does not apply to Cedars Rapids Transmission Co.  O. Reg. 19/02, s. 1.

(6) Subsection (5) ceases to apply if a transmission system owned or operated by Cedars Rapids Transmission Co. is connected to the IESO-controlled grid.  O. Reg. 19/02, s. 1; O. Reg. 294/14, s. 2.

(7) Subsection 26 (1) of the Act does not apply to Hydro One Remote Communities Inc.  O. Reg. 19/02, s. 1.

2.1 (1) Subsection 26 (3) of the Act does not apply to the following contracts:

1. The agreement made on January 2, 1990 between Ontario Hydro and Orillia Water, Light and Power Commission relating to Minden GS.

2. The agreement made on June 23, 1993 between Ontario Hydro and Orillia Water, Light and Power Commission relating to Swift Rapids GS.

3. The agreement entitled “Amended and Restated Power Rights Agreement” made on December 3, 1991 between Ontario Hydro and Spruce Falls Inc. or the loan agreement made on December 3, 1991 between Ontario Hydro and Spruce Falls Inc.  O. Reg. 19/02, s. 2; O. Reg. 38/23, s. 2.

(2) To the extent that a contract entered into by Ontario Hydro contains liabilities, rights or obligations that have been transferred to Ontario Hydro Remote Communities Inc., subsection 26 (3) of the Act does not apply to the contract.  O. Reg. 19/02, s. 2.

(3) Subsection 26 (3) of the Act does not apply to a contract described in Schedule 3 between Ontario Hydro and another party referred to in that Schedule.  O. Reg. 145/02, s. 1.

(4) Subsection 26 (3) of the Act does not apply to a contract described in Schedule 4 or 5.  O. Reg. 145/02, s. 1.

(5) The references in this section to contracts include all amendments made to those contracts before May 1, 2002.  O. Reg. 145/02, s. 1.

2.2 Subsection 26 (6) of the Act does not apply to Granite Power Distribution Corporation with respect to serving those consumers who are subject to the franchise agreement entered into by Gananoque Light & Power Ltd. and The Corporation of the Town of Gananoque on November 14, 1994.  O. Reg. 19/02, s. 2.

2.2.1 Sections 26 and 28 of the Act do not apply to a transmitter or distributor that is exempted from clause 57 (a) or (b) of the Ontario Energy Board Act, 1998 by section 4.0.1, 4.0.2 or 4.0.3.2 of Ontario Regulation 161/99.  O. Reg. 145/02, s. 2; O. Reg. 14/03, s. 1.

2.3 Section 28 of the Act does not apply to Hydro One Remote Communities Inc.  O. Reg. 19/02, s. 2.

2.4 (1) In this section and in section 2.5,

“First Nation” means a band as defined in the Indian Act (Canada), or a body of the aboriginal peoples of Canada who are treated by the Department of Indian Affairs and Northern Development (Canada) in the same manner as a body of the aboriginal peoples of Canada residing on a reserve as defined in the Indian Act (Canada).  O. Reg. 71/02, s. 2.

(2) The following provisions of the Act do not apply to a distributor who meets the conditions set out in subsection (3), and who distributes electricity in a community listed in Schedule 1:

1. Section 26.

2. Subsections 29 (4) to (6).  O. Reg. 71/02, s. 2; O. Reg. 268/19, s. 1 (1).

(3) The distributor must meet the following conditions:

1. The distributor must be a First Nation, or a corporation that is solely owned by a First Nation.

2. The distribution system owned by the distributor must not be connected to the IESO-controlled grid.

3. The distributor must only distribute electricity within its geographic service territory as it existed on January 1, 2002.

4. The distribution system owned by the distributor must not be owned by Hydro One Remote Communities Inc. O. Reg. 71/02, s. 2; O. Reg. 294/14, s. 3; O. Reg. 268/19, s. 1 (2).

2.5 (1) The following provisions of the Act do not apply to a distributor who meets the conditions set out in subsection (2), and who distributes electricity in a community listed in Schedule 2:

1. Section 26.

2. Subsections 29 (4) to (6).  O. Reg. 71/02, s. 2; O. Reg. 268/19, s. 2.

(2) The distributor must meet the following conditions:

1. The distributor must be a First Nation, or a corporation that is solely owned by a First Nation.

2. The distributor must only distribute electricity within its geographic service territory as it existed on January 1, 2002.  O. Reg. 71/02, s. 2.

2.6 Section 26 of the Act does not apply to Attawapiskat Power Corporation, Fort Albany Power Corporation or Kashechewan Power Corporation until May 1, 2004.  O. Reg. 71/02, s. 2.

3. Subsection 48.1 (3) of the Act does not apply to a subsidiary of Hydro One Inc. if everything that the subsidiary uses to transmit or distribute electricity outside Ontario was owned or operated by Ontario Hydro on March 31, 1999 and is located in jurisdictions bordering Ontario.  O. Reg. 160/99, s. 3; O. Reg. 201/02, s. 1.

4. Revoked:  O. Reg. 201/02, s. 2.

4.1 Subsection 142 (2) of the Act does not apply to a municipal corporation if, before November 7, 2000, the municipal corporation made an application to the Ontario Energy Board for approval to transfer, to a municipal electricity utility as defined in section 88 of the Act or to the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation, an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity.  O. Reg. 576/00, s. 1.

4.2 Section 144 of the Act does not apply to a municipal corporation if,

(a) before November 7, 2000, the municipal corporation made an application to the Ontario Energy Board for approval to transfer, to a municipal electricity utility as defined in section 88 of the Act or to the Generation Corporation, the Services Corporation or a subsidiary of the Generation Corporation or the Services Corporation, an interest in real or personal property that has been used in connection with generating, transmitting, distributing or retailing electricity; and

(b) the application to the Ontario Energy Board has not been finally determined or less than 120 days have elapsed since the application was finally determined.  O. Reg. 576/00, s. 1; O. Reg. 164/01, s. 1.

5. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 160/99, s. 5.

Schedule 1

1. Eabametoong First Nation.

2. Marten Falls First Nation.

3. Muskrat Dam First Nation.

4. Nibinamik First Nation.

5. North Spirit Lake First Nation.

6. Poplar Hill First Nation.

7. Sandy Lake First Nation.

8. Weenusk First Nation.

9. Wunnumin Lake First Nation.

O. Reg. 268/19, s. 3.

Schedule 2

1. Cat Lake First Nation.

O. Reg. 268/19, s. 3.

Schedule 3

O. Reg. 145/02, s. 3.

Schedule 4

O. Reg. 145/02, s. 3.

Schedule 5

O. Reg. 145/02, s. 3.