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1Section 2 of New Brunswick Regulation 2006-58 under the Electricity Act is amended by adding the following definitions in alphabetical order:

“eligible electricity” means electricity generated in the Province at any of the following facilities owned and operated by an eligible large industrial enterprise: (électricité admissible)

(a) an approved generation facility;

(b) an eligible facility at which electricity is generated through the combustion of woody biomass or its by-products from the chemical manufacture of pulp, including black and red liquors, for the purposes of cogeneration or producing combined heat and power; or

(c) a facility at which electricity is generated through the combustion of woody biomass or its by-products from the chemical manufacture of pulp, including black and red liquors, for the purposes of cogeneration or producing combined heat and power.

“eligible facility” means a facility that meets the following criteria: (installation admissible)

(a) the facility has an electrical energy requirement of not less than 50 GWh per year;

(b) the facility obtains all or a portion of its electricity on a firm basis from the standard service supplier; and

(c) 50% or more of the primary products produced by the facility are exported to another province or territory of Canada or elsewhere.

“eligible large industrial enterprise” means an organization or a group of organizations that is directly or indirectly owned or controlled by the same person and that(grande entreprise industrielle admissible)

(a) owns and operates an eligible facility, and

(b) owns and operates a facility that generates eligible electricity.

“fiscal year” means the period commencing April 1 in one year and ending March 31 the next year. (exercice financier)

2Section 3 of the Regulation is amended

(a) in subsection (1) in the portion preceding the table by striking out “from an approved generation facility” and substituting “from eligible large industrial enterprises and approved generation facilities”;

(b) in subsection (2) by striking out “from an approved generation facility” and substituting “from an eligible large industrial enterprise or an approved generation facility”;

(c) by adding after subsection (2) the following:

3(3)Despite subsection (2), the electricity obtained from a sanitary landfill that is an approved generation facility is not required to include the immediate and unfettered rights of ownership of any and all the environmental attributes associated with the destruction of methane in order to count towards fulfilling the requirement under subsection (1).

3The Regulation is amended by adding after section 3 the following:

Large Industrial Renewable Energy Purchase Program

3.1(1)Subject to subsection (2) and section 3.5, the standard service supplier shall, in accordance with the Large Industrial Renewable Energy Purchase Program, obtain enough eligible electricity from an eligible large industrial enterprise that the cumulative cost of firm electricity for all of the eligible facilities owned and operated by the eligible large industrial enterprise is reduced by the target reduction percent.

3.1(2)The target reduction percent for an eligible large industrial enterprise shall be based on the amount of electricity that the eligible facilities owned and operated by the eligible large industrial enterprise were contracted to obtain on a firm basis from the standard service supplier immediately prior to the eligible large industrial enterprise’s participation in the Large Industrial Renewable Energy Purchase Program.

Purchase price for eligible electricity

3.2The purchase price that the standard service supplier shall pay for eligible electricity under the Large Industrial Renewable Energy Purchase Program is $95.00 per MWh.

Calculation of Canadian average rate

3.3(1)On or before March 31 in each year, the Minister shall calculate the Canadian average rate for the next fiscal year.

3.3(2)The Minister shall, using the representative customer load profiles, data and methodologies that the Minister considers to be relevant, calculate the Canadian average rate based on the rates that will be in effect on April 1 for firm electricity in those provinces and territories of Canada selected by the Minister.

Target reduction percent

3.4On or before March 31 in each year, the Minister shall calculate the target reduction percent for the next fiscal year by:

(a) subtracting the Canadian average rate for firm electricity for the next fiscal year for those customers who are engaged in a particular manufacturing or processing activity from the rate for firm electricity that will be in effect on April 1 for the eligible facilities that are owned and operated by eligible large industrial enterprises and that are engaged in that particular manufacturing or processing activity;

(b) dividing the amount in paragraph (a) by the rate for firm electricity that will be in effect on April 1 for the eligible facilities that are owned and operated by eligible large industrial enterprises and that are engaged in that particular manufacturing or processing activity; and

(c) multiplying the amount in paragraph (b) by 100.

Special measures

3.5(1)If the facilities owned and operated by an eligible large industrial enterprise are not capable of generating a sufficient amount of eligible electricity that, if sold to the standard service supplier in accordance with the Large Industrial Renewable Energy Purchase Program, would result in a reduction in the cumulative cost of firm electricity by the target reduction percent for all of the eligible facilities owned and operated by the eligible large industrial enterprise, the standard service supplier may alter the eligible facilities’ contracted supply mix that was in place immediately prior to the eligible large industrial enterprise’s participation in the Program by decreasing the proportion of firm electricity and increasing the proportion of interruptible electricity.

3.5(2)The savings achieved in the first year the eligible large industrial enterprise participates in the Large Industrial Renewable Energy Purchase Program as a result of an alteration in the eligible facilities’ contracted supply mix under subsection (1) shall apply in the subsequent years the eligible large industrial enterprise participates in the Program and shall be taken into account when the standard service supplier obtains eligible electricity from the eligible large industrial enterprise under subsection 3.1(1).

3.5(3)The standard service supplier shall waive any restrictions or penalties that would otherwise apply to an alteration in the eligible facilities’ contracted supply mix under subsection (1).

4Section 7 of the Regulation is amended

(a) in subsection (1) by striking out the portion preceding paragraph (a) and substituting the following:

7(1)If the standard service supplier obtains electricity from eligible large industrial enterprises and approved generation facilities for a given compliance year in an amount in excess of the amount required to be obtained under subsection 3(1) for the compliance year, it shall

(b) by repealing subsection (2) and substituting the following:

7(2)If the standard service supplier fails to obtain the amount of electricity required to be obtained under subsection 3(1) from eligible large industrial enterprises and approved generation facilities in a given compliance year, it shall record the shortfall and shall ensure that it is eliminated within three years after the year in which it is incurred.

5Section 8 of the Regulation is amended

(a) in subsection (2)

(i) in paragraph (c) by striking out “each approved generation facility” and substituting “each eligible large industrial enterprise and each approved generation facility”;

(ii) in paragraph (d) of the English version by striking out “in respect of electricity obtained from an approved generation facility”;

(iii) in paragraph (e) of the English version by striking out “in respect of electricity obtained from an approved generation facility”;

(b) in subsection (3) by striking out “electricity referred to in paragraph (2)(c)” and substituting “electricity referred to in paragraph (2)(c), other than the electricity generated from the destruction of methane and obtained from a sanitary landfill that is an approved generation facility”.

TRANSITIONAL PROVISIONS AND COMMENCEMENT

Transitional provisions

6(1)For the period commencing January 1, 2012, and ending March 31, 2012, the purchase price that the standard service supplier shall pay for eligible electricity under the Large Industrial Renewable Energy Purchase Program is $95.00 per MWh.

6(2)For the period commencing January 1, 2012, and ending March 31, 2012, the Minister shall, using the representative customer load profiles, data and methodologies that the Minister considers to be relevant, calculate the Canadian average rate based on the rates that will be in effect on January 1, 2012, for firm electricity in those provinces and territories of Canada selected by the Minister.

6(3)For the period commencing January 1, 2012, and ending March 31, 2012, the Minister shall, in accordance with section 3.4, calculate the target reduction percent based on

(a) the rate for firm electricity that will be in effect on January 1, 2012, for eligible facilities owned and operated by eligible large industrial enterprises, and

(b) the Canadian average rate for firm electricity calculated under subsection (2).

Commencement

7This Regulation shall be deemed to have come into force on January 1, 2012.

2012-2 - Electricity Act

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