Output-Based Pricing System Regulations

Marginal note:Increased capacity of electricity generation

• 41.2 (1) If, on or after January 1, 2021, an electricity generation facility’s electricity generation capacity from gaseous fuels increases by 50 MW or more and that increased capacity is from a unit designed to operate at a thermal energy to electricity ratio of less than 0.9, the person responsible for the covered facility must determine the GHG emissions limit that applies to the facility for each compliance period, as of the compliance period during which the increase occurred, in accordance with subsection (2).

• Marginal note:Different output-based standard

  (2) The GHG emissions limit that applies to the electricity generation facility, expressed in CO₂e tonnes, is determined for each compliance period in accordance with the formula

  

  where

  A_j

  is the gross amount of electricity generated during the compliance period, quantified in accordance with section 32, for each of the following units:

  • (a) for each unit “i” within the electricity generation facility, from each of the specified industrial activities set out in paragraphs 38(a) and (b), column 1, of Schedule 1 that are engaged in at the electricity generation facility,

  • (b) from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the unit, for each unit “i” within an electricity generation facility that

    • (i) was generating electricity prior to the facility’s increase in electricity generation capacity, except units referred to in the description of E or F, and

    • (ii) that began generating electricity on or after January 1, 2021, if the unit has an electricity generation capacity of less than 50 MW or designed to operate at a thermal energy to electricity ratio equal to or greater than 0.9;

  B_j

  the output-based standard applicable to each of the specified industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at each unit “i” and that is set out in column 3;

  C

  is, for each unit “k” within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that has an electricity generation capacity equal to or greater than 50 MW and that has a thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period quantified in accordance with section 32, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 that is engaged in at the electricity generation facility;

  D

  is the output-based standard set out in the description of D in subsection 41.1(2) that is applicable to the compliance period in question;

  E

  is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and whose thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity added to a unit, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 32 and subsection (3);

  F

  is, for each unit “l” that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and whose thermal energy to electricity ratio of less than 0.9, the gross amount of electricity generated during the compliance period that is attributed to the capacity of the unit before the additional capacity was added, from the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1, quantified in accordance with section 32 and subsection (3);

  G

  is the output-based standard applicable to the specified industrial activity set out in paragraph 38(c), column 1, of Schedule 1 and set out in column 3;

  i

  is the i^th unit, where “i” goes from 1 to n and where n is the total number of units within the electricity generation facility generating electricity using fossil fuels, except units referred to in the description of k and l;

  j

  is the j^th activity, where “j” goes from 1 to m and where m is the total number of industrial activities set out in paragraphs 38(a) to (c), column 1, of Schedule 1 that are engaged in at the electricity generation facility;

  k

  is the k^th unit, where “i” goes from 1 to r and where r is the total number of units within the electricity generation facility that started generating electricity from gaseous fuels on or after January 1, 2021, that have an electricity generation capacity equal to or greater than 50 MW and that have a thermal energy to electricity ratio of less than 0.9; and

  l

  is the l^th unit, where “i” goes from 1 to s and where s is the total number of units that generated electricity from gaseous fuels within the electricity generation facility prior to the facility’s increase in electricity generation capacity and whose electricity generation capacity was increased by 50 MW or more and whose thermal energy to electricity ratio of less than 0.9.

• Marginal note:Apportionment of electricity generation

  (3) For the purposes of the descriptions of E and F in subsection (2), the gross amount of electricity generated by a unit referred to those descriptions is apportioned, using engineering estimates, to the capacity added to the unit and to the capacity of the unit before the additional capacity was added, based on the ratio of its increased capacity to its total capacity, taking into account the increased capacity.

• Marginal note:Increased capacity — rule

  (4) For the purposes of subsection (1), the electricity generation capacity, from gaseous fuels, of an electricity generation facility increases by 50 MW or more for a calendar year as of the day on which its electricity generation capacity is 50 MW greater than its electricity generation capacity on December 31, 2020. For greater certainty, any increase in a unit’s capacity is cumulative.