For House Use Only. Prince Edward Island Legislative Assembly ASSEMBLY / SESSION / YEAR. 65th General / 1st / 2015 AMENDMENTS
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1 HOUSE USE ONLY CHAIR: WITH / WITHOUT 1st SESSION, 65th GENERAL ASSEMBLY Province of Prince Edward Island 64 ELIZABETH II, 2015 BILL NO. 46 An Act to Amend the Electric Power Act Honourable Paula J. Biggar Minister of Transportation, Infrastructure and Energy GOVERNMENT BILL MICHAEL D. FAGAN Queen s Printer Charlottetown, Prince Edward Island
2 For House Use Only Prince Edward Island Legislative Assembly AMENDMENTS ASSEMBLY / SESSION / YEAR 65th General / 1st / 2015 BILL NUMBER: 46 PAGE No. of PAGES TITLE: AN ACT TO AMEND THE ELECTRIC POWER ACT # SECTION AMENDMENT DATE NOTED: CERTIFIED CORRECT: COMMITTEE CLERK CHAIRMAN, IN COMMITTEE
3 BILL NO An Act to Amend the Electric Power Act BE IT ENACTED by the Lieutenant Governor and the Legislative Assembly of the Province of Prince Edward Island as follows: 1. (1) Subsection 1(1) of the Electric Power Act R.S.P.E.I. 1988, Cap. E-4, is repealed and the following substituted: 1. (1) In this Act, (a) approved energy efficiency and demand-side resources plan means, in respect of a public utility, an energy efficiency and demand-side resources plan of the public utility that is approved by the Commission under section 16.1, and includes any amendments to the plan that are approved by the Commission under that section; (b) Commission means the Island Regulatory and Appeals Commission established under section 2 of the Island Regulatory and Appeals Commission Act R.S.P.E.I. 1988, Cap. I-11; (c) Corporation means the Prince Edward Island Energy Corporation established under the Energy Corporation Act R.S.P.E.I. 1988, Cap.E-7; (d) electric energy includes electric power that is produced, transmitted, distributed or furnished by a public utility; (e) energy efficiency and demand-side resource measures means, in respect of a public utility, any activities, techniques, standards or programs that are or may be used by the public utility to reduce the consumption of electric energy or modify when electric energy is consumed; (f) Minister means the Minister of the Crown designated by the Lieutenant Governor in Council as the Minister responsible for the administration of this Act; (g) Operating Fund means the Operating Fund as defined in the Financial Administration Act R.S.P.E.I. 1988, Cap. F-9; (h) permit means a permit issued by the Commission under subsection 2.1(2); (i) person includes an individual, a partnership, a corporation and a municipal corporation; Definitions approved energy efficiency and demand-side resources plan Commission Corporation electric energy energy efficiency and demand-side resource measures Minister Operating Fund permit person 1
4 2 Bill No. 46 An Act to Amend the Electric Power Act 2015 public utility rate base renewable energy generator service (j) public utility means any person, and the lessees, trustees, liquidators or receivers of any person, that owns or leases, operates, manages or controls, or is incorporated for the purpose of owning or leasing, operating, managing or controlling, any plant or equipment for the production, transmission, distribution or furnishing of electric energy, either directly or indirectly, to or for the public, but unless the Lieutenant Governor in Council by proclamation declares otherwise, does not include any city or town except to the extent that the city or town furnishes electric energy to customers beyond its corporate limits; (k) rate base means the maximum valuation of assets fixed by the Commission pursuant to section 21 upon which a public utility may earn a percentage of return established by the Commission, or another method of computing a maximum return as determined by the Commission; (l) renewable energy generator means a renewable energy generator as defined in the Renewable Energy Act R.S.P.E.I. 1988, Cap. R-12.1; (m) service includes (i) the furnishing to or for a customer by a public utility for compensation of equipment, owned or leased by it, and facilities for the production, transmission, distribution or furnishing of electric energy for the purposes of heat, light and power, (ii) the provision by a public utility for compensation of electric energy for the purposes set out in subclause (i), and (iii) the provision by a public utility for compensation of access to pole space for the attachment of cables or equipment used by a cable television system, but does not include the distribution or furnishing of electric energy to a public utility. (2) Section 1 of the Act is amended by the addition of the following after subsection (2): Corporation not public utility (3) For greater certainty, the Corporation is not a public utility for the purpose of this Act. 2. Section 3 of the Act is amended (a) in clause (b), by the deletion of the words the same. and the substitution of the words the line; ; and (b) by the addition of the following after clause (b): (c) purchase electric energy generated from facilities and equipment owned or leased by the Corporation, if required to do so by the 2
5 2015 An Act to Amend the Electric Power Act Bill No Government of Prince Edward Island, as part of its obligation to provide service in accordance with clause (a); and (d) lease capacity to produce electric energy from facilities and equipment owned or leased by the Corporation, if required to do so by the Government of Prince Edward Island, as part of its obligation to provide service in accordance with clause (a). 3. Section 12.1 of the Act is repealed and the following substituted: 12.1 Maritime Electric Company, Limited shall, as determined in accordance with generally accepted accounting principles, (a) maintain at all times not less than 35 per cent of its capital invested in the power system in the form of common equity; and (b) ensure that, for the year, not more than 40 per cent of its capital is invested in the power system in the form of common equity. Common equity 4. The Act is amended by the addition of the following after section 12.1: 12.2 Maritime Electric Company, Limited shall consult with and, at the request of the Corporation, directly involve the Corporation in planning and in negotiations between Maritime Electric Company, Limited and any third party in relation to the supply or generation of electric energy from any source. 5. The Act is amended by the addition of the following after section 17: 17.1 (1) Where the Commission under subsection 17(3) has approved an annual capital budget or a portion of it that relates to the acquisition of new generating equipment or additional generating capacity, the public utility shall, if required to do so by the Government of Prince Edward Island, lease the new generating equipment or additional capacity, as the case may be, from the Corporation. (2) With respect to new generating equipment or additional capacity that a public utility is required by the Government of Prince Edward Island to lease from the Corporation under subsection (1), (a) the new generating equipment or additional capacity shall be purchased by the Corporation, if the Corporation is directed to do so by the Government of Prince Edward Island; and (b) the title to the new generating equipment purchased by the Corporation vests in the Corporation in accordance with subsection 2(5) of the Energy Corporation Act. 6. (1) Subject to subsection (2), this Act comes into force on assent. Obligation to consult, etc. Government option to purchase Property of Corporation 3
6 4 Bill No. 46 An Act to Amend the Electric Power Act 2015 (2) Section 3 of this Act comes into force on January 1,
7 2015 An Act to Amend the Electric Power Act Bill No EXPLANATORY NOTES SECTION 1 repeals subsection 1(1) of the Electric Power Act R.S.P.E.I. 1988, Cap. E-4, and substitutes a new subsection 1(1) to add a definition of Corporation to be used in the amendments, to amend other definitions for consistency with the amendments and to correct the placement of the defined term rate base, and to re-letter the clauses in alphabetical order. The section also adds a new subsection (3) to clarify that the Corporation is not a public utility. SECTION 2 amends section 3 of the Act to add a new clause (c) that establishes a duty of a public utility to purchase electric energy and lease capacity to produce electric energy from facilities and equipment owned or leased by the Corporation, if required to do so by the Government. SECTION 3 repeals section 12.1 of the Act and substitutes a new section 12.1 to clarify the wording and change the percentage of common equity that Maritime Electric Company, Limited is required to maintain from not less than 40 per cent to not less than 35 per cent and not more than 40 per cent. SECTION 4 amends the Act by adding a new section 12.2 that establishes the obligation of Maritime Electric Company, Limited to consult with and, at the request of the Corporation, directly involve the Corporation in planning and in negotiations between Maritime Electric Company, Limited and any third party in relation to the supply or generation of electric energy from any source. SECTION 5 amends the Act by adding a new section 17.1 that requires a public utility whose annual capital budget or a portion of it that relates to the acquisition of new generating equipment or additional generating capacity has been approved by the Commission under subsection 17(3) to lease the new generating equipment or additional capacity, as the case may be, from the Corporation, if required to do so by the Government of Prince Edward Island. The section also clarifies the Corporation s obligations and rights when it is directed to purchase new generating equipment or additional generating capacity by the Government of Prince Edward Island. SECTION 6 provides for the commencement of the Act. 5
8 BILL NO. 46 An Act to Amend the Electric Power Act STAGE: DATE: 1st Reading: November 25, nd Reading: To Committee: Reported: 3rd Reading and Pass: Assent: SIGNATURES: Honourable H. Frank Lewis, Lieutenant Governor Honourable Francis (Buck) Watts, Speaker Clerk Honourable Paula J. Biggar Minister of Transportation, Infrastructure and Energy GOVERNMENT BILL st SESSION, 65th GENERAL ASSEMBLY
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