2003/63 (a)

BACKGROUNDER

SCOPE OF FEDERAL–PROVINCIAL ENERGY RESPONSIBILITY

Responsibility for energy matters in Canada is divided between federal and provincial governments:

• The Government of Canada is involved in electricity issues when transmission lines cross international borders and may be involved when interprovincial borders are crossed. For example, the construction of international and interprovincial power lines requires the approval of the National Energy Board (NEB), an independent federal tribunal that reports to Parliament through the Minister of Natural Resources Canada. The NEB also approves Canada’s exports of electricity to the U.S.
• Provinces have jurisdiction over electric power production, transmission and distribution within their province. Over time, most of the provinces have created both interprovincial and international connections.
   

Energy boards and governments in each of the provinces are responsible for establishing rules governing energy in their jurisdiction. For example, the Ontario Energy Board works closely with the Independent Market Operator (IMO) to regulate Ontario’s market. It establishes and enforces rules for fair and transparent treatment of power generation, transmission and distribution companies.

Most provinces are part of an interconnected electricity “grid,” a network of power plants, substations and transmission lines that crosses borders, both provincial and international. Sharing electricity supplies north-south has in the past been more prevalent, economical and effective than east-west transmission. However, the Government of Canada has been looking with the provinces at the feasibility of more east-west transmission lines. For example, Manitoba and Ontario have a major study under way to bring Manitoba electricity to Ontario.

Reliability of the electricity grid is governed by the North American Electric Reliability Council (NERC), a self-regulating reliability organization. It sets non-binding standards for the operation of the grid, trains operators, investigates power disturbances, and makes recommendations to improve reliability. All major Canadian utilities interconnected to the North American grid are members of and participate in NERC. As part of the lessons learned from the 1965 blackout, failsafes were put in place to isolate sections of the grid from one another.

For more information, media may contact: