![]() ![]() However, the OEB determined that “to ensure confidence in the market and to protect consumers … appropriate conditions can be put in place to address concerns about the potential abuse of market power that may arise from the completion of the transaction.” In coming to this conclusion, the OEB acknowledged OPG’s assurance that the transaction will not lead to an abuse of market power and the reasons supporting that assurance. In its Decision, the OEB found that the pending acquisition “raises concerns about the competitiveness of Ontario’s wholesale electricity market and the potential implications for electricity consumers.” Specifically, the OEB found that “the type of resources and significant capacity that will be within OPG’s expanded portfolio presents OPG with greater opportunity to set prices or affect competition in all three of the Operating Reserve (OR) markets, the Day Ahead Commitment Process (DACP) and the real-time energy market (Energy).” The OEB therefore decided that it must “include safeguards to protect the integrity of the market.” As noted by the OEB, this means OPG and its related entities will control approximately half of all generation capacity in Ontario and “a significantly larger portfolio of natural gas assets that provide certain services necessary to the efficient functioning of the market in terms of their supply of mid-range and peaking energy.” Upon the completion of the transaction, PEC will become a wholly-owned subsidiary of OPG, which is the largest electricity generator in Ontario. ![]() ![]() Specifically, the OEB’s Decision responds to the requested amendment of the electricity generation licence for PEC to reflect that it becomes the owner and operator of two other gas-fired generation facilities (in Napanee and Halton Hills). The OEB’s Decision relates to the pending acquisition of three gas-fired generation facilities by PEC from TransCanada Energy and TransCanada PipeLines. (PEC) and Ontario Power Generation (OPG). On April 9, 2020, the Ontario Energy Board (OEB) issued a Decision and Order Amending the Licences of Portlands Energy Centre L.P. ![]()
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