Consultation to Develop a Regulatory Framework for Natural Gas Distributors’ Cap and Trade Compliance Plans
The OEB has completed its consultation to develop a natural gas regulatory framework to support the implementation of Ontario’s Cap and Trade program.
The OEB issued a Regulatory Framework for the Assessment of Costs of Natural Gas Utilities’ Cap and Trade Activities (the “Regulatory Framework”) on September 26, 2016 (posted below). The Regulatory Framework describes the OEB’s expectation for each utility to develop cap and trade Compliance Plans that include robust information regarding compliance strategies. The Regulatory Framework also outlines the OEB’s approach for assessing the cost consequences of proposed cap and trade activities.
The OEB indicated in the Regulatory Framework that it would provide a Long Term Carbon Price Forecast (LTCPF) Report, to be updated annually, and a Marginal Abatement Cost Curve (MACC), to be updated at the beginning of each three-year compliance period.
Effective July 3, 2018, the government of Ontario cancelled the cap and trade regulation and prohibited all trading of emission allowances.