Minister’s directive

To: the ontario energy board

I, Glenn Thibeault, Minister of Energy, hereby direct the Ontario Energy Board (“OEB” or “Board”) pursuant to section 25.30 (2) of the Electricity Act, 1998, as follows:

The OEB shall submit to me by no later than January 31, 2018, an implementation plan containing an outline of the steps that the OEB intends to take to implement the goals and objectives set out in Delivering Fairness and Choice in respect of matters falling within the OEB’s jurisdiction.  The plan shall reflect the content of the relevant chapters of Delivering Fairness and Choice and include steps that clearly demonstrate how the OEB plans to implement the policy reviews, processes and other initiatives enumerated below. The implementation plan should comprehensively detail the key implementation milestones for each initiative, provide sufficient detail on process and timing, and articulate intended outcomes.

The implementation plan should also include, in keeping with the OEB’s prescribed requirements for consultation, how the OEB will engage with relevant interested or affected parties including Indigenous communities, regulated entities and consumers.

  1. Delivering Efficiency and Value

    With respect to the Government of Ontario’s objective of delivering efficiency and value to consumers:

    1. Having regard to the Board’s performance-based approach to regulating electricity transmitters and distributors (“Utilities”), examine and identify steps for strengthening Utility accountability  and reporting in relation to service quality issues identified by their customers, including but not limited to customer reliability and power quality.  In doing this, the Board shall consider transparency, responsiveness to customers, efficiency and cost-effectiveness, in addition to such other principles as the Board considers appropriate. Examine and identify steps for pursuing opportunities to advance the cost-effective modernization of Ontario’s electricity sector. Opportunities to be examined include, but are not limited to:
      • Cost-effective smart grid and non-wires solutions;
      • Active system management and customer participation;
      • Energy efficiency measures on distribution systems.

      In doing so, the Board shall consider the issue of the diffusion of benefits that may arise from these and other distribution-system investments.

    2. Assess market opportunities and facilitate those that would reduce costs and provide value for customers, and identify barriers to the development of distributed energy resources, such as energy storage, at scales and locations that provide value to customers and the bulk and local distribution systems.
    3. On receipt of recommendations from the Independent Electricity System Operator (IESO) regarding its review of the regional planning process provided further to the Minister’s Directive to the IESO dated October 26, 2017, the OEB shall identify steps to implement such changes as may be appropriate to improve to utility regional planning processes.
      • Examine and identify steps for encouraging coordinated, long-term approaches amongst asset owners with respect to the replacement of transmission and distribution assets at the end of their service life.
  2. Ensuring Affordable and Accessible Energy

    With respect to the Government of Ontario’s objective of ensuring affordable and accessible energy:

    1. Identify areas where additional authorities or more effective tools would enhance the Board’s capacity to regulate the sector in the public interest, including capacity to:
      • mitigate costs for ratepayers, whether directly or indirectly by, for example, enabling more efficient and proportionate review of utility applications;
      • protect consumers in the natural gas sector;
      • reduce costs and find efficiencies in the distribution sector, such as shared services amongst local distribution companies.
    2. Examine and identify steps to strengthen consumer protection in relation to the activities of unit sub-meter providers.
  3. Enhancing Commitment to Energy Conservation and Efficiency

    With respect to the Government of Ontario’s objective of enhancing energy conservation and efficiency:

    1. Move forward with the implementation of the vision embedded in the OEB’s Regulated Price  Plan Roadmap, including consideration of,
      • New pricing structures that give greater consumer control, make it easier for consumers to respond to pricing signals and incent consumers to do so;
      • Tools to enhance energy literacy and consumer understanding of the energy sector.
  4. Responding to Climate Change Challenge

    With respect to the Government of Ontario’s objective of responding to the climate change challenge:

    1. In concert with the examination conducted under section 1, examine and provide guidance to utilities as appropriate on approaches for integrating cost-effective opportunities for climate change adaptation into their planning processes and operations.
    2. Examine and identify steps for pursuing cost-effective opportunities for electricity distributors to facilitate access to residential smart charging for electric vehicles.
  5. Encouraging an Innovative Sector

    With respect to the Government of Ontario’s objective of encouraging an innovative sector:

    1. In taking the steps referred to in sections 1 to 4, consider further opportunities for encouraging a culture of innovation in the electricity distribution sector.
    2. Examine and identify opportunities for utilities to raise the profile of their modernization/ innovation plans, while continuing to plan their systems consistent with the Board’s expectations for cost effective and rigorous asset management.

Order in Council 2122/2017