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Agreement Concerning Electricity

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Agreement Concerning Electricity

Between the Government of Ontario and the Gouvernement du Québec

Office of the Premier

The Government of Ontario represented by the Premier of the Province of Ontario and the minister of Energy (hereinafter referred to as "Ontario")


The Gouvernement du Québec, represented by the Premier Ministre du Québec, the ministre de l'Énergie et des Ressources naturelles et the ministre responsable des Relations canadiennes et de la Francophonie canadienne (hereinafter referred to as "Québec")

Ontario and Québec hereinafter referred to as "Parties"

1. The Parties reaffirm their intention to cooperate in the following fields:

a)    Clean electricity trade;

b)    The reduction of greenhouse gases; and

c)    Network reliability and accessibility.

2. The Parties are willing to:

a)    Ensure that the Parties comply with the intention of the Memorandum of Understanding (MOU) signed on September 11 2015, that states that the Provinces would explore the possibilities of increasing electricity trade in order to help Ontario meet its needs through the supply of clean and renewable electricity from Québec.

3. The Parties anticipate one or several contractual agreements (the "Contracts") the terms of which must be developed by the Independent Electricity System Operator (IESO) and Hydro-Québec:

a)    Hydro-Québec to provide for 7 years from January 1, 2017 to December 31, 2023, fixed volumes of energy of 2 terawatt hours (TWh) to displace production from greenhouse gas (GHG) emitting resources.

b)    IESO to provide Hydro-Québec, throughout the duration of the Agreement, with 500 MW of capacity to help Québec meet its peak needs for the winter.

c)    IESO's energy may be provided to Hydro-Québec for their use during Ontario's surplus periods. Hydro-Québec will return part of this energy to Ontario to displace production from GHG emitting resources.

d)    Hydro-Québec, in return for the 500 MW of winter capacity supplied by IESO over 2015/16, commits to returning 500 MW of summer capacity to IESO before September 30, 2030.

e)    IESO and Hydro-Québec agree to cycle surplus energy from Ontario to Québec such that it can be returned to displace future production from greenhouse gas (GHG) emitting resources.

4. The Parties agree to facilitate and encourage their respective electricity agencies, IESO and Hydro-Québec to prepare and sign the Contracts stipulating their terms by December 1, 2016.

5. General Considerations

a)    This Agreement may be amended at any time and by mutual agreement of the Parties in writing.

b)    The Parties may terminate this Agreement at any time and by mutual consent in writing.  A signatory who wishes to terminate their participation in this Agreement should try and provide a notice of at least 90 days, in writing, to the other signatory.

c)    This purpose and intent of this Agreement is not to create legal obligations between the Parties.

Signed this day October 21, 2016 at Toronto.



Environment and Energy Government