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ARTICLE · 05 NOVEMBER 2008

OEB Proposes New Cost Treatment For Transmission Necessary To Enable Renewable Resource Development

Stikeman Elliott LLP
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On October 30, 2008, the Ontario Energy Board (OEB) issued a Notice of Proposal recommending amendments to the Transmission System Code (TSC).

CanadaEnergy and Natural Resources
Glenn Zacher
Glenn Zacher
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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 transmission grid.

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