Hydro One Inc., Ontario Power Generation Inc., each of these companies’ subsidiaries, and every municipal electricity utility pay property taxes like every other land owner in Ontario. In addition, these companies make extra payments to the province for the lands they own that contain generating or transformer station buildings or structures.
These extra payments are known as the payments in lieu of additional municipal and school taxes and go towards paying down the remaining stranded debt of the former Ontario Hydro.
If a generating or transformer station building or structure owned by one of the above companies on January 1, 2000 was sold at a later date, the new owner continues to pay the province the payments in lieu.
Hydro-electric generating stations and wind turbine towers do not pay the payments in lieu. However, hydro-electric generating stations do pay the gross revenue charge.
Hydro One Inc. and every municipal electricity utility are required to make:
Ontario Power Generation Inc. makes monthly payments by the 16th of each month.