First Reading of Ontario Bill 21 Which Is to Legislate "Smart Meters"

AMENDMENTS TO THE
ELECTRICITY ACT, 1998

1. Subsection 2 (1) of the Electricity Act, 1998 is amended by adding the following definitions:

"smart meter" means a metering device that measures and records electricity consumption or use based on its time of use; ("compteur intelligent")

"smart metering data" means data derived from smart meters, including data related to the consumers' consumption of electricity; ("données des compteurs intelligents")

"Smart Metering Entity" means the corporation incorporated, the limited partnership or the partnership formed or the entity designated pursuant to section 53.7 to accomplish the government's smart metering initiative; ("Entité responsable des compteurs intelligents")

"smart metering initiative" means those policies of the Government of Ontario related to its decision to, over time, equip each household in Ontario with a smart meter and includes the commitment to meet interim and final goals for the installation of the meters; ("initiative des compteurs intelligents")

2. The Act is amended by adding the following Part:

PART IV.2
THE SMART METERING ENTITY

The Smart Metering Entity

53.7 (1) To accomplish the government's policies in relation to its smart metering initiative, the Minister,

(a) may cause the Smart Metering Entity to be incorporated as a corporation under the Business Corporations Act;

(b) may cause the Smart Metering Entity to be formed as a limited partnership under the Limited Partnerships Act;

(c) may cause the Smart Metering Entity to be formed as a partnership; or

(d) may designate an entity by regulation as the Smart Metering Entity.

Name of the Smart Metering Entity

(2) Subject to the Business Corporations Act, the Business Names Act and the Limited Partnerships Act, as applicable, the Smart Metering Entity shall have the name prescribed for it by regulation and the regulation may require that the Smart Metering Entity maintain the prescribed name.

Objects or nature of the business of the Smart Metering Entity

53.8 The objects of the Smart Metering Entity, if it is a corporation, or the nature of its business activities, if the Smart Metering Entity is a limited partnership or a partnership, include, in addition to any other objects or business activities, the following:

1. To plan and implement and, on an ongoing basis, oversee, administer and deliver any part of the smart metering initiative as required by regulation under this or any Act or directive made pursuant to sections 28.3 or 28.4 of the Ontario Energy Board Act, 1998, and, if so authorized, to have the exclusive authority to conduct these activities.

2. To collect, and to facilitate the collection of, information and data and to store the information and data related to the metering of consumers' consumption or use of electricity in Ontario, including data collected from distributors and, if so authorized, to have the exclusive authority to collect and store the data.

3. To establish, to own or lease and to operate one or more databases to facilitate collecting, storing and retrieving smart metering data.

4. To provide and promote non-discriminatory access, on appropriate commercial terms, by distributors, retailers, the OPA and other persons,

i. to the information and data referred to in paragraph 2, and

ii. to the communication system that permits the Smart Metering Entity to transfer data about the consumption or use of electricity to and from its databases, including telecommunication equipment and technology and associated technology and systems.

5. To own or to lease and to operate a telecommunication system that permits the transfer of data about the consumption or use of electricity to and from its databases and telecommunication equipment and technology and any associated technologies and systems, directly or indirectly, including through one or more subsidiaries, if the Smart Metering Entity is a corporation.

6. To engage in such competitive procurement activities as are necessary to fulfil its objects or business activities.

7. To procure, as and when necessary, meters, metering equipment and technologies and any associated technologies and systems on behalf of distributors, as an agent or otherwise, directly or indirectly, including through one or more subsidiaries, if the Smart Metering Entity is a corporation.

8. To recover the costs approved by the Board associated with the conduct of its activities.

9. To undertake any other objects that are prescribed by regulation.

Status of the Smart Metering Entity

53.9 The Smart Metering Entity is not an agent of Her Majesty for any purpose and, if the Smart Metering Entity is a corporation, its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.

Powers of Smart Metering Entity corporation

53.10 If the Minister incorporates or designates a corporation as the Smart Metering Entity, it shall have the powers of a natural person except as limited under this Act.

Mandatory provisions in articles

53.11 (1) If the Smart Metering Entity is a corporation, its articles of incorporation and of such of its subsidiaries as may be prescribed by regulation must contain the conditions, restrictions, criteria or requirements that are prescribed by regulation.

Application of Business Corporations Act

(2) Despite clause 2 (3) (a) of the Business Corporations Act, the Business Corporations Act applies to the Smart Metering Entity, if it is a corporation, except that a regulation made under this Act may provide for the non-application of provisions of the Business Corporations Act to the Smart Metering Entity.

Smart Metering Entity participation in partnerships, etc.

53.12 (1) Nothing in this Part prevents the Smart Metering Entity, if it is incorporated, from participating in partnerships, limited partnerships, joint ventures or any other transaction or arrangement that may be prescribed by regulation, subject to such conditions or restrictions as may be prescribed by regulation.

Same

(2) For the purpose of subsection (1), the Smart Metering Entity may participate in transactions or arrangements directly or indirectly as a partner, limited partner, general partner or as a participant in a joint venture or may hold an interest in, directly or through one or more subsidiaries, a partnership, limited partnership, joint venture or any other transaction or arrangement.

Reporting requirements

53.13 The Smart Metering Entity shall provide the reports and information to the Minister that the Minister requires.

Collection of consumer information

53.14 In carrying out its objects or business activities, the Smart Metering Entity,

(a) may directly or indirectly collect information and data relating to the consumption or use of electricity from consumers, distributors or any other person; and

(b) may manage and aggregate the data related to consumers' electricity consumption or use.

Reciprocal obligations concerning information

53.15 (1) Distributors, retailers and other persons shall provide the Smart Metering Entity with such information as it requires to fulfil its objects or conduct its business activities.

Restrictions on the Smart Metering Entity

(2) If the Smart Metering Entity has provided access to a distributor, retailer or another person to information under this Part, it shall not engage in a business activity prescribed by regulation if,

(a) the person to whom access has been provided is also engaged in the business activity; and

(b) the access was granted for the purpose of the person engaging in the business activity.

Obligations of distributors, etc., re: installing meters

53.16 (1) If a distributor or any person licensed by the Board to do so installs a meter or replaces an existing meter, the distributor or person shall use a meter of a type prescribed by regulation, or mandated by a code issued by the Board or by an order of the Board for the classes of property prescribed by regulation or required by the Board within the time prescribed by regulation or required by the Board.

Same

(2) A regulation, code or order referred to in subsection (1) may require that a distributor or other person take certain actions and may require that the actions be taken within a specified time.

Prohibition re: discretionary metering activities

53.17 (1) On and after November 3, 2005, no distributor shall conduct discretionary metering activities unless the distributor is authorized to conduct the activity by regulation, an order of the Board or a code issued by the Board or it is required to do so under the Electricity and Gas Inspection Act (Canada).

Definition

(2) For the purpose of this section,

"discretionary metering activity" means the installation, removal, replacement or repair of meters or associated equipment, which is not mandated by the Electricity and Gas Inspection Act (Canada), by regulation, by an order of the Board or by a code issued by the Board.

Procurement contracts, transition

53.18 (1) The Minister may direct the Smart Metering Entity to assume, as of the date the Minister considers appropriate, responsibility for exercising all powers and performing all duties of the Crown, including powers and duties to be exercised and performed through an agency of the Crown,

(a) under any request for proposals, draft request for proposals, another form of procurement solicitation issued by the Crown or through an agency of the Crown or any other initiative pursued by the Crown or through an agency of the Crown, which relate to the government's smart metering initiative that was issued or pursued after November 3, 2005 and before January 1, 2008; and

(b) under any contract that relates to the procurement of any goods or service referred to in clause (a) that was entered into by the Crown or an agency of the Crown pursuant to a request for proposal, a draft request for proposal or another form of procurement solicitation.

Release of the Crown, etc.

(2) As of the day specified in the Minister's direction under subsection (1), the Smart Metering Entity shall assume responsibility in accordance with that subsection and the Crown and any Crown agency are released from any and all liabilities and obligations with respect to the matters for which the Smart Metering Entity has assumed responsibility.

Reimbursement of costs incurred by the Crown

53.19 (1) The Smart Metering Entity shall reimburse the Crown or, if so directed by the Minister, an agency of the Crown for costs relating to the Smart Metering Entity, a procurement contract or a matter within the objects of the Smart Metering Entity, if,

(a) the costs were incurred by the Crown or an agency of the Crown after November 3, 2005 and before January 1, 2008; or

(b) the liability of the Crown or an agency of the Crown for the costs arose during the period described in clause (a).

Payment of reimbursement

(2) The Smart Metering Entity shall make the reimbursement by making one or more payments in such amount or amounts at such time or times as may be determined by the Minister.

Minister's determinations final

(3) The determinations of the Minister under subsection (2) are final and conclusive and shall not be stayed, varied or set aside by any court.

Regulations

53.20 (1) The Lieutenant Governor in Council may make regulations,

(a) designating an entity as the Smart Metering Entity;

(b) prescribing the name of the Smart Metering Entity;

(c) governing the smart metering initiative;

(d) authorizing the Smart Metering Entity to have exclusive authority to conduct the metering activities referred to in section 53.8;

(e) prescribing objects for the purposes of section 53.8;

(f) prescribing, for the purposes of subsection 53.11 (1), conditions, restrictions, criteria or requirements to be included in the Smart Metering Entity's articles of incorporation and in the articles of incorporation of such of its subsidiaries as may be prescribed;

(g) prescribing subsidiaries of the Smart Metering Entity for the purposes of subsection 53.11 (1);

(h) prescribing provisions of the Business Corporations Act that do not apply to the Smart Metering Entity or to any of its subsidiaries that are prescribed;

(i) prescribing transactions or arrangements for the purposes of subsection 53.12 (1) and conditions or restrictions that apply to them;

(j) governing smart meters and the installation and maintenance of smart meters, metering equipment and technologies and any associated technologies and systems;

(k) identifying actions to be taken by the Smart Metering Entity, distributors and other persons licensed by the Board in respect of the installation of prescribed meters at prescribed locations or for prescribed classes of properties in priority to other locations or classes of property and prescribing the time within which such actions must be taken;

(l) prescribing measures to be taken by the Smart Metering Entity to facilitate the achievement of the targets associated with the smart metering initiative;

(m) identifying specific objectives or criteria applicable to the Smart Metering Entity's metering and telecommunications technologies;

(n) approving meters or a class of meters to be installed by a distributor or a person licensed by the Board, including specifying criteria which a meter must satisfy, with respect to a designated class of consumers.

General or specific

(2) A regulation may be general or specific in its application.

Commencement

3. (1) This section comes into force on the day the Energy Conservation Responsibility Act, 2005 receives Royal Assent.

Same

(2) Sections 1 and 2 come into force on a day to be named by proclamation of the Lieutenant Governor.

SCHEDULE C
AMENDMENTS TO THE
ONTARIO ENERGY BOARD ACT, 1998

1. Section 3 of the Ontario Energy Board Act, 1998 is amended by adding the following definitions:

"smart meter" means a metering device that measures and records electricity consumption or use based on its time of use or a metering device as prescribed by regulation that measures and records gas consumption in the manner prescribed by regulation; ("compteur intelligent")

"Smart Metering Entity" means the corporation incorporated, the limited partnership or the partnership formed or the entity designated pursuant to section 53.7 of the Electricity Act, 1998; ("Entité responsable des compteurs intelligents")

"smart metering initiative" means those policies of the Government of Ontario related to its decision to, over time, equip each household in Ontario with a smart meter with respect to electricity consumption and includes the commitment to meet interim and final goals for the installation of the meters; ("initiative des compteurs intelligents")

2. The Act is amended by adding the following sections:

Directives re smart metering initiative

28.3 (1) The Minister may issue, and the Board shall implement, directives approved by the Lieutenant Governor in Council relating to the government's smart metering initiative.

Directives re licence conditions

(2) The directives may require the Board, in the manner specified in the directives, to amend conditions in licences issued by the Board that relate to the Smart Metering Entity, distributors, retailers and transmitters or licences issued pursuant to section 57, including the following:

1. Conditions granting the exclusive right to the Smart Metering Entity to carry out any or all of its objects set out in section 53.8 of the Electricity Act, 1998.

2. Conditions granting the exclusive right to store information and data derived from smart meters to the Smart Metering Entity, including conditions in respect of the manner in which the information and data is stored.

3. Conditions providing for performance standards to be achieved by the Smart Metering Entity.

4. Conditions identifying agreements, including service or operating agreements, to be entered into by the Smart Metering Entity with distributors, transmitters, retailers or others and providing that the agreements must contain specific conditions, restrictions, criteria or requirements.

5. Conditions providing for circumstances in which the Smart Metering Entity shall provide a person with access to information and data relating to consumers' consumption or use of electricity collected pursuant to paragraph 2 of section 53.8 of the Electricity Act, 1998.

6. Conditions providing the Smart Metering Entity with the authority to conduct its metering activities in relation to the distribution of gas.

7. Conditions providing the Minister with exclusive authority to approve the initial base design, requirements, specifications and performance standards for smart meters or classes of smart meters to be installed for prescribed classes of consumers.

Directives re amending conditions in licences

(3) A directive may require the Board, in the manner specified in the directive, to amend conditions in licences granted to the Smart Metering Entity, distributors, transmitters, retailers or others granting the Smart Metering Entity exclusive jurisdiction in Ontario with respect to some or all of the activities it is authorized to undertake under Part IV.2 of the Electricity Act, 1998.

Publication

(4) A directive issued under this section shall be published in The Ontario Gazette.

No hearing

(5) The Board shall amend the conditions as required by a directive without holding a hearing.

Directives re regulatory and accounting treatment of costs

28.4 The Minister may issue, and the Board shall implement, directives approved by the Lieutenant Governor in Council in respect of the regulatory and accounting treatment of costs in orders made under section 78 and associated with meters owned before January 1, 2006 to ensure that distributors, transmitters, retailers or other persons are not financially disadvantaged by the implementation of the smart metering initiative.

3. Section 36 of the Act is amended by adding the following subsection:

Order of Board re Smart Metering Entity

(1.1) Neither the Smart Metering Entity nor any other person licensed to do so shall conduct activities relating to the metering of gas except in accordance with an order of the Board, which is not bound by the terms of any contract.

4. Section 57 of the Act is amended by striking out the portion before clause (a) and substituting the following:

Requirement to hold licence

57. Neither the OPA nor the Smart Metering Entity shall exercise their powers or perform their duties under the Electricity Act, 1998 unless licensed to do so under this Part and no other person shall, unless licensed to do so under this Part,

. . . . .

5. (1) Section 78 of the Act is amended by adding the following subsections:

Order re the Smart Metering Entity

(2.1) The Smart Metering Entity shall not charge for meeting its obligations under Part IV.2 of the Electricity Act, 1998 except in accordance with an order of the Board, which is not bound by the terms of any contract.

. . . . .

Rates

(3.0.1) The Board may make orders approving or fixing just and reasonable rates for the Smart Metering Entity in order for it to meet its obligations under this Act or under Part IV.2 of the Electricity Act, 1998.

Orders re deferral or variance accounts

(3.0.2) The Board may make orders permitting the Smart Metering Entity or distributors to establish one or more deferral or variance accounts related to costs associated with the smart metering initiative, in the circumstances prescribed in the regulations.

OfficeOfTheLegislativeAssemblyOfOntario