Minister’s Directive

To: The Independent Electricity System Operator

I, Todd Smith, Minister of Energy ("Minister"), hereby direct the Independent Electricity System Operator ("IESO") pursuant to section 25.32 of the Electricity Act, 1998 (the "Act") with regard to undertaking initiatives and activities related to supply and capacity of electricity resources to ensure the reliable operation of Ontario’s electricity system in response to ongoing and growing electricity needs expected in the future, as follows:

Background

In December 2022, the IESO published its Pathways to Decarbonization (“P2D”), a report back to the Minister that evaluates a moratorium on the procurement of new natural gas generation and an achievable pathway to zero emissions in the electricity sector.

Through the P2D assessment, the IESO outlined a potential system designed to meet peak demand almost three times the size of today’s system by 2050. The report included a scenario where an additional 17,800 megawatts (MW) of new nuclear supply may be needed by 2050 and recommended that the Province begin the planning, siting and environmental assessment work needed for new nuclear development.

In July 2023, in response to the P2D report, the Ontario Government released its Powering Ontario’s Growth plan which lays out Ontario’s plan to provide families and industries with reliable, low-cost and clean power needed to meet future electricity demand from economic growth and increasing electrification.

As part of Powering Ontario’s Growth, the Province announced that Bruce Power will be commencing pre-development work to site the first large-scale nuclear build in Ontario since 1993, starting with a federal Impact Assessment (IA) with the intent of locating up to 4,800 MW of new nuclear generation on the Bruce site.

The IA would help evaluate the suitability of the site by examining the impacts of a new nuclear generation facility at the Bruce site on the environment, the public and Indigenous communities. It is the first step in a multi-year process for approving new large-scale nuclear generation projects in Canada.

In July 2023, I wrote to IESO to work with Bruce Power to develop a cost sharing and recovery framework for a nuclear new-build IA at the Bruce site and asked that the framework include appropriate mechanisms to balance cost and risk sharing in order to minimize impacts on electricity ratepayers.

This directive to IESO regarding executing the funding agreement would help ensure that Bruce Power proceeds with the IA work in a cost-effective manner and support the government’s plan to develop an option for nuclear new-build at the Bruce site to meet Ontario’s projected electricity needs in a timely manner.

IESO and the Ministry of Energy will continue to work together to ensure Ontario’s electricity system continues to be ready to meet the needs of Ontario’s residents and businesses.

Directive

Therefore, in accordance with the authority under subsection 25.32(5) of the Act, the IESO is hereby directed as follows:

  1. IESO shall use reasonable efforts to enter into a funding agreement with Bruce Power for sharing and recovery of costs incurred for undertaking an Impact Assessment for siting new nuclear generating capacity at the Bruce site, substantially in the form of the draft funding agreement submitted by IESO to me on March 8, 2024.

General

This Directive takes effect on the date it is issued.

Order in Council 490/2024