Bill 40: Protect Ontario By Securing Affordable Energy For Generations Act 2025

Outcomes

Schedule 1: Amendments to Electricity Act, 1998
1. Mandate expansion: Economic growth and the development of a hydrogen market and economy in Ontario are covered under new purposes.
2. Electricity Pricing: With new regulations, government appropriations can fund electricity generator payments rather than consumers being the sole ratepayers.
3. Distributor Duties: Distributors are prohibited from connecting, or reconnecting, to facilities/users with larger energy needs, unless they meet specific (future) requirements.

Schedule 2: Amendments to Municipal Franchises Act, 1990
1. Municipality Approval: Utility access to public highways no longer requires approval from municipal electors; it only requires a by-law adoption.
2. Energy Board Authority: Ontario Energy Board (OEB) is responsible for renewal as well as construction, extension, and/or addition of gas distribution in a municipality.

Schedule 3: Amendments to Ontario Energy Board Act, 1998
1. Mandate Expansion: The OEB mandate includes supporting economic growth in the electricity sector, a key consideration added when approving applications.
2. Authority: OEB’s Chief Executive Officer (CEO) is granted the authority to issue internal procedural policies. The Electricity Act will prevail (over OEB) in matters of conflicting orders, policies or licenses.

The OEB must consider government appropriations (used as payments to electricity transmitters) when setting and approving electricity rates.
The development of a hydrogen market and economy is now a key agenda item for the province.
Transmitters or distributors to high-demand load facilities will be overseen by a new authority designated to enable grid access for high-impact projects (such as data centers) and determine new requirements.