OEB Consultation on Regulatory Framework for Local Energy Efficiency Programs

The OEB is seeking input on the regulatory treatment of local electricity demand-side management (eDSM) programs. These programs (also referred to as Stream 2 programs), led by local electricity distributors, aim to reduce energy use and provide both local and system-wide benefits.

This consultation responds to government directives asking the OEB to:

• Develop a cost-sharing model using distribution rates and the Global Adjustment.
• Reduce barriers to local energy efficiency program activities, by updating the OEB’s NWS Guidelines or otherwise acting to support such programs.

The Independent Electricity System Operator (IESO) is also involved, following a ministerial directive to the IESO to support and co-fund local eDSM programs that benefit both local and system-wide electricity needs. A joint working group of the IESO and local electricity distributors has submitted the Stream 2 Report, which outlines a proposed funding and regulatory framework. The OEB is using this report as a starting point for its consultation.

Complete details, including key dates for stakeholder participation in this initiative, can be found in the OEB’s July 23, 2025, notice of Consultation on the Regulatory Treatment of Local Electricity Demand-side Management (Stream 2) Programs.