On October 30, 2008, the Ontario Energy Board (OEB) issued a
Notice of Proposal recommending amendments to the Transmission
System Code (TSC).
The proposed amendments would recognize a new category of
transmission facilities - "enabler facilities" - that are
necessary to meet government policy aimed at facilitating increased
renewable resource development. Similar to views expressed by
regulators in California and Texas, the OEB acknowledged that the
TSC's current customer-pays treatment for "connection
facilities" would inhibit development of new renewable
resources, many of which are small in size, will operate
intermittently and are located significant distances from the
In its supporting Background Paper, the OEB considered three
alternative cost approaches to the status quo. The OEB ultimately
settled on the "hybrid option" whereby initial enabler
facility costs would be pooled temporarily and included as part of
a transmitter's rate base, with generators subsequently making
pro-rata capital contributions as and when they became
connected (any unsubscribed portion of the enabler facilities would
remain in the transmitter's rate base.) Notably, the OEB
recommended that the hybrid option should apply not only to enabler
facilities included in an OEB-approved integrated power system plan
(IPSP), but also to those enabler facilities associated with
renewable resources being developed pursuant to government
directive. As well, the OEB indicated that it would be necessary to
devise a "transmitter designation process" whereby the
OEB, on application by a transmitter or on its own motion, would
conduct a proceeding to designate a transmitter, including hearing
and selecting among alternative or competing proposals for
developing and constructing enabler facilities.
The OEB has given interested parties until December 1, 2008 to
make written submissions on the proposed amendments
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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