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ARTICLE · 24 APRIL 2017

OEB Requires Electricity Distributor To Take Over Embedded Distributor's Operations

Aird & Berlis LLP
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On April 4, 2017, the Ontario Energy Board (OEB) issued an Order requiring Algoma Power Inc. (Algoma Power) to operate the electricity distribution system owned by Dubreuil Lumber Inc.

CanadaEnergy and Natural Resources
David Stevens
David Stevens
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On April 4, 2017, the Ontario Energy Board (OEB) issued an Order requiring Algoma Power Inc. (Algoma Power) to operate the electricity distribution system owned by Dubreuil Lumber Inc. (DLI) in the Township of Dubreuil (which is north of Wawa, Ontario). The OEB's Order follows notification from DLI that it would not be able to continue to offer electricity distribution service to its 300 customers because of financial and staffing issues.

Under the OEB's Order, Algoma Power is granted a six-month interim distribution licence to take possession and control of the DLI electricity distribution system and provide service to and collect revenues from DLI's customers. Algoma Power is required to report to the OEB about the condition of DLI's distribution system and to record both revenues and costs from serving DLI's customers in a deferral account. In the meantime, DLI is required to either renew its distribution licence or sell or transfer its distribution assets to

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