ontario regulation 27/08

made under the

Ontario Energy Board Act, 1998

Made: February 13, 2008
Filed: February 19, 2008
Published on e-Laws: February 20, 2008
Printed in The Ontario Gazette: March 8, 2008


Amending O. Reg. 53/05

(Payments under Section 78.1 of the Act)

1. Ontario Regulation 53/05 is amended by adding the following sections:

Nuclear development deferral account, transition

5.3 (1) Ontario Power Generation Inc. shall establish a deferral account in connection with section 78.1 of the Act that records, for the period up to the effective date of the Board’s first order under section 78.1 of the Act, the costs incurred and firm financial commitments made on or after June 13, 2006, in the course of planning and preparation for the development of proposed new nuclear generation facilities that are associated with any one or more of the following activities:

1. Activities for carrying out an environmental assessment under the Canadian Environmental Assessment Act.

2. Activities for obtaining any governmental licence, authorization, permit or other approval.

3. Activities for carrying out a technology assessment or for defining all commercial and technical requirements to, or with, any third parties.

(2) Ontario Power Generation Inc. shall record simple interest on the monthly opening balance of the account at an annual rate of 6 per cent applied to the monthly opening balance in the account, compounded annually. 

Nuclear development variance account

5.4 (1) Ontario Power Generation Inc. shall establish a variance account in connection with section 78.1 of the Act that records, on and after the effective date of the Board’s first order under section 78.1 of the Act, differences between actual non-capital costs incurred and firm financial commitments made and the amount included in payments made under that section for planning and preparation for the development of proposed new nuclear generation facilities.

(2) Ontario Power Generation Inc. shall record interest on the balance of the account as the Board may direct.

2. Subsection 6 (2) of the Regulation is amended by adding the following paragraphs:

4.1 The Board shall ensure that Ontario Power Generation Inc. recovers the costs incurred and firm financial commitments made in the course of planning and preparation for the development of proposed new nuclear generation facilities, to the extent the Board is satisfied that,

i. the costs were prudently incurred, and 

ii. the financial commitments were prudently made.

. . . . .

7.1 The Board shall ensure the balances recorded in the deferral account established under subsection 5.3 (1) and the variance account established under subsection 5.4 (1) are recovered on a straight line basis over a period not to exceed three years, to the extent the Board is satisfied that,

i. the costs were prudently incurred, and 

ii. the financial commitments were prudently made.

3. This Regulation comes into force on the day it is filed.