Newsroom 2013 Feed in Tariff Program Independent Electricity System Operator

Newsroom 2013 Feed in Tariff Program Independent Electricity System Operator Newsroom 2013 December 14, 2013: FIT Program application period now closed The application period is now closed. The OPA will review each application for completeness, followed by an eligibility review for those complete applications. November 4, 2013: FIT Program now accepting Applications The OPA is now accepting Applications for Small FIT Projects with a proposed capacity of more than 10 kilowatts (kw) and generally up to 500 kw. November 1, 2013: New FIT/microFIT Price Schedule available The OPA has posted an updated FIT/microFIT price schedule that will apply to any new contracts that are issued on or after January 1, 2014. October 29, 2013: Updated FIT Rules Version 3.0 Updated FIT Rules Version 3.0 have been posted. October 9, 2013: Final documents for Version 3 of the FIT Program now available The final documents for Version 3 of the FIT Program are now available. October 16, 2013: 2014 Price Review Stakeholder Consultation The OPA is undertaking a price review of the 2014 FIT and microfit programs. September 27, 2013: Revised Draft FIT 3 Access Rights Definition and Prescribed Form The revised draft Access Rights definition and prescribed form are being posted for a second brief comment period to provide stakeholders a further opportunity to provide feedback. September 17, 2013: Development of a New Renewable Energy Competitive Procurement Process The Large Renewable Procurement Interim Recommendations Report is now available. September 11, 2013: Draft FIT 3 Prescribed Forms Posting The OPA has begun posting draft prescribed forms for version 3 of the FIT Program. All forms are anticipated to be posted by Friday September 13, 2013. September 4, 2013: Draft FIT 3 Program documents available for comment To prepare for the opening of the next FIT application period in fall 2013, the OPA has made draft versions of the FIT 3 Program Rules, Contract and Standard Definitions available for comment. September 4, 2013: Connection Impact Assessment Best Practices and Timelines Information about connection impact assessment timelines and a set of best practices is now available. August 16, 2013: Changes to Domestic Content and New FIT/microFIT Price Schedule The OPA has made changes to the domestic content rules applicable to new contracts and the FIT and microfit price schedule. August 1, 2013: Development of a new renewable energy competitive procurement process The OPA is commencing the development of a new competitive procurement process for large renewable energy. July 3, 2013: Small FIT contracts offered The OPA offered 951 new Small FIT contracts representing 146.5 MW of power. June 26, 2013: New hydroelectric project direction extends FIT Contracts for waterpower projects New hydroelectric project direction extends Milestone Date for Commercial Operation for FIT waterpower contracts. June 24, 2013: 2013 Price Review Additional Feedback Requested The OPA is interested in receiving additional pricing feedback relating to the possible removal of domestic content requirements from future microfit and FIT (for all project sizes) procurements. June 17, 2013: Approach to project delays and potential Events of Default The OPA has developed an approach to project delays and potential Events of Default. June 12, 2013: FIT Program Directive Click here to link to the June 12, 2013 FIT Program Directive. May 31, 2013: Program Update for Small FIT Applicants Please click the link above for details on the program update for Small FIT Applicants. May 30, 2013: Update on Small FIT Applications Click here for a presentation provided by Shawn Cronkwright, Director, Renewables Procurement, at CanSIA's Solar Ontario 2013 conference in Niagara Falls.

May 14, 2013: Initial reviews completed for Small FIT Applications OPA, together with an independent Evaluation Monitor, has now completed its review to determine if the applications were complete and eligible. Click here for FAQs. March 25, 2013: 2013 price review stakeholder consultation The OPA is gathering information to review the FIT and microfit pricing structure for 2013. Click here for details. March 22, 2013: FIT Contract Update: Domestic Content Grid Amendment The OPA has posted an amendment to the FIT Contract Exhibit C Domestic Content: Table 1, Activity#11 for wind towers. The amended Contract (Version 2.1.1) is available here. Click here to view the draft posting. February 20, 2013: FIT Program Quarterly Report Click here to view the FIT Program Quarterly Report dated January 31, 2013. January 28, 2013: FIT 2 Summary of Small FIT Applications The OPA has posted a summary of the Small FIT applications submitted during the Small FIT application window. Click here to view the summary. January 18, 2013: Small FIT Application Window Now Closed The Small FIT application window is now closed. Click here for more information.

December 14, 2013: FIT Program application period now closed Thank you to all who submitted applications during the FIT application period. The application period is now closed. The OPA will review each application for completeness, followed by an eligibility review for those complete applications. Unconstructed Rooftop Solar Pilot, Contract Capacity Set-Aside (CCSA) and non-ccsa applications that pass both of these stages will be ranked according to priority points and time stamp and tested for transmission and distribution availability. Applicants are encouraged to monitor their My FIT Home Page and the primary contact s email address provided in their application in case any clarifications are required.

November 4, 2013: FIT Program now accepting Applications The OPA is now accepting Applications for Small FIT Projects with a proposed capacity of more than 10 kilowatts (kw) and generally up to 500 kw. The OPA will award up to 123.5 megawatts (MW) worth of Contracts (the Procurement Target) as a result of Applications received during this FIT Application Period. This includes the 2013 Procurement Target of up to 70 MW plus 53.5 MW remaining from the previous Application Period. The FIT Application Start Date is November 4, 2013, and the Application End Date is December 13, 2013 at 11:59:59 p.m. Eastern Prevailing Time. Applicants are required to submit hard-copy Application materials and payment to the OPA s offices no later than five Business Days after the date of submitting an electronic Application Form. The OPA will also now accept Applications during this period for the Unconstructed Rooftop Solar Pilot, which includes a separate Procurement Target of up to 15 MW. Please note that the Final FIT Rules, Contract and other program documents were posted in October 2013. Before submitting your Application, please carefully review the latest versions of the program documents in the program resources section of the FIT Website to ensure you understand how the FIT Program has changed from version 2. For more information on how the program has changed, click on the Summary of Changes Table and the FIT 3 FAQs. Procurement Targets, Contract Capacity Set-Asides, and start and end dates for this Application Period are set out here. Applicants should note that the Minister of Energy issued a direction to the OPA on October 28, 2013, which has exempted Non-Rooftop Solar Projects located on First Nation reserve lands from certain agricultural land use restrictions. An updated version of the FIT Rules has been posted in the program resources section of the FIT Website to reflect this change. Applicants should also note that there have been some additional changes to the program documents since they were posted on October 9, 2013, including to the Prescribed Form: Applicant Legal Name and Entity Confirmation. Applicants should ensure they are using and referring to the current program documents. Applicants should note that Applications cannot be revised after they have been submitted. Please ensure your Application is complete and accurate before you submit it. In the event that you have made an error on your Application, a complete and accurate Application Withdrawal - Request Form must be submitted to the OPA for the previous Application prior to submitting a new Application for the same Project. The previous Application will be terminated by the OPA and the reference number and Time Stamp associated to the Application will become invalid. As outlined in the Rules, all Applications will be reviewed for completeness and eligibility. If an Application is incomplete or ineligible, it will be terminated. Complete and eligible Applications will then be ranked by Priority Points and Time Stamp in order to be tested for transmission and distribution availability. Questions about the FIT Application Period can be directed to the OPA s customer service centre at 1-888-387-3403 or sent by email to FIT@powerauthority.on.ca. Questions submitted through any other channel may not receive a response. A procurement process for renewable energy projects larger than 500 kw is currently under development, and more details will be provided on the OPA website when they are available.

November 1, 2013: New FIT/microFIT Price Schedule Available As required by the April 5, 2012 and June 12, 2013 FIT directions, the OPA has posted an updated FIT/microFIT price schedule. Please note that prices listed in the January 1, 2014 price schedule have not changed from the August 26, 2013, price schedule. View the new price schedule here. The OPA is required to review the prices offered to generators under the FIT and microfit programs on a regular basis to ensure both ratepayer value and a fair return on investment. The OPA thanks those who provided feedback during the recent price review. This price schedule will apply to any new contracts that are issued on or after January 1, 2014. FIT applicants are reminded that their contract price will be based on the price schedule in effect at the time of their contract offer. The next price review is scheduled for fall of 2014 to be effective on January 1, 2015.

October 9, 2013: Final Documents for Version 3 of the FIT Program now available Thank you to those who recently submitted feedback on the draft versions of the FIT Program documents. Final versions of the FIT 3 Program Rules, Contract, Standard Definitions and other program documents have now been posted on the FIT Program website. Additional supporting guidance documents will be posted shortly. The rest of the FIT website is also currently being updated and will soon be made available with revised FIT 3 information. The OPA is not accepting FIT Program applications at this time, but the application period for FIT projects is expected to open on November 4, 2013, and close on December 13, 2013. This application period will have a procurement target of up to 123.5 megawatts (MW), which includes the procurement target of up to 70 MW plus 53.5 MW remaining from the previous application period. Potential applicants are reminded that FIT projects are those that are larger than 10 kilowatts (kw) and generally up to 500 kw. A procurement process for larger renewable energy projects is currently under development, and more details will be provided on the OPA website when they are available. The OPA recommends that you carefully review the final versions of the program documents to ensure you understand how the FIT Program has changed. A summary of changes table has been created detailing the important revisions from FIT 2.1 to FIT 3. The changes reflect the policy decisions of the Minister of Energy as indicated in the June 12, 2013 and August 16, 2013, directions. In addition, several revisions have been made to the draft version of the FIT Program Rules as a result of feedback received, which are reflected in the black-lined versions of the documents. The FIT 3 Rules contain tailored provisions for applicants who want to participate in the Unconstructed Rooftop Solar Pilot, which includes a separate procurement target of up to 15 MW. The application start and end dates for the pilot will be the same as for other FIT Program applicants who will apply during the upcoming fall 2013 application period. Please note the following procurement targets and contract capacity set asides (CCSAs) that are referred to in the FIT Program Rules as being available on the FIT Program website. The procurement targets and CCSAs also include portions not allocated from the 2012 application period. Procurement Target for this FIT 3 Application Period CCSAs available for this FIT 3 Application Period Procurement Target for Unconstructed Rooftop Solar Pilot 70 MW (from June 12, 2013 direction) + 53.5 MW (not contracted from last Application Period) = 123.5 MW Community Participation Projects 20.916 MW Aboriginal First Nations Projects 13.944 MW Participation Projects (20.916 MW) Métis Projects 6.972 MW Municipal and Public Sector Entity 41.833 MW Participation Projects 15.0 MW

Important note: Anyone interested in the FIT Program may review the posted documents and prepare themselves for the opening of the Application Period but shall be solely responsible for all costs, expenses and liabilities incurred in this regard and the OPA assumes no responsibility or liability, whether or not the Application Period is opened or not opened and whether or not the FIT Program is suspended, revoked, amended or revised. Under no circumstances whatsoever shall the OPA be liable for any claims for compensation or damages, including any indirect, punitive or consequential damages associated with the preparation of an application in anticipation of the opening of the Application Period.

October 16, 2013: 2014 Price Review - Stakeholder Consultation 2014 Price Review Stakeholder Consultation As directed by the Minister of Energy on April 5, 2012, and June 12, 2013, the OPA is undertaking a price review of the 2014 FIT and microfit programs. Updated pricing is expected to be published in November and to become effective January 1, 2014. To inform the price review, the OPA is interested in receiving feedback that considers any recent market changes that affect the costs of developing renewable energy generation facilities in Ontario. To help develop the 2014 pricing schedule, the OPA is asking key stakeholder organizations and associations, representing a wide membership from consumers, developers, generators and distributors, to complete a FIT pricing questionnaire. Their responses will help inform the 2014 price schedule. The list of stakeholder organizations and associations that have been invited to provide feedback is set out below. We encourage all interested stakeholders to work through their industry association to provide input. If your interests are not captured by any of the organizations listed, please contact the OPA at FIT@powerauthority.on.ca. The OPA requests that stakeholder organizations and associations provide their feedback by Friday, October 25, 2013. The updated pricing will come into effect on January 1, 2014 and replace the schedule that took effect on August 26, 2013, which reflected changes in equipment costs and the changes to the domestic content rules for the FIT program as it moves towards compliance with the May 24, 2013, World Trade Organization ruling. For information about the recent changes to the price schedule, click here: http://fit.powerauthority.on.ca/newsroom/august-16-2013-program-update. For more details about the FIT and microfit programs, follow either of the links below: http://fit.powerauthority.on.ca/what-feed-tariff-program http://microfit.powerauthority.on.ca/ List of Stakeholders Industry Associations Ontario Biogas Association Canadian Bioenergy Association Canadian Solar Industries Association Canadian Wind Energy Association Ontario Waterpower Association Association of Power Producers of Ontario Ontario Energy Association Electricity Distributors Association Ratepayer Groups

Association of Major Power Consumers in Ontario Energy Probe Consumers Council of Canada Vulnerable Energy Consumers Coalition Low Income Energy Network First Nation and Métis Chiefs of Ontario Métis Nation of Ontario Community Association of Municipalities of Ontario Ontario Sustainable Energy Association Ontario Federation of Agriculture Community Power Fund

September 4, 2013: Draft FIT 3 Program Documents Available for Comment (revised September 27) To prepare for the opening of the next FIT application period in fall 2013, the OPA is making draft versions of the FIT 3 Program Rules, Contract and Standard Definitions available for comment. The OPA also expects to post draft versions of the prescribed forms for comment during the second week of September. These drafts are intended to reflect the policy decisions of the Minister of Energy as indicated in the June 12, 2013, and August 16, 2013, directions. A summary of changes to the FIT Program from 2.1 to draft 3 is available here. The draft FIT 3 Rules contain tailored provisions for applicants who want to participate in the Unconstructed Rooftop Solar Pilot program, including a separate procurement target of 15 megawatts (MW). The timeline for the pilot program will be the same as for other FIT applicants who will apply in the fall 2013 application period. For other important dates, see the 2013 FIT and microfit procurement schedule, which includes preliminary schedules for 2014 and 2015. These schedules are meant to assist prospective applicants and are subject to change. Below are links to draft FIT 3 Program documents. Thank you for providing your feedback by September 20, 2013. The final versions of the documents are expected to be available by early October in advance of the start of the application period. Click here for the draft FIT 3 Rules. Click here for the revised draft Access Rights Definition. Revised draft September 27, 2013 Click here for the revised draft Access Rights Declaration Prescribed Form. Revised draft September 27, 2013 Click here for the draft FIT 3 Contract. Click here for the draft FIT 3 Contract comparison to version 2.1.1. Click here for the draft FIT 3 Standard Definitions. Click here for the draft FIT 3 Standard Definitions comparison to version 2.1. Click here for a summary of changes to the FIT Program from version 2.1 to draft version 3. Click here for the draft Prescribed Forms. Click here for the August 26, 2013 price schedule, which is now in effect. Click here for procurement schedules.

Directions June 12, 2013 August 16, 2013 September 27, 2013: Revised Draft FIT 3 Access Rights Definition and Prescribed Form The OPA has received constructive feedback on the definition of Access Rights found in Section 2.1(n) of the draft FIT 3 Rules and the draft Access Rights Declaration prescribed form. Due to the issues encountered by Applicants during FIT 2.1 with evidencing Site Access Rights, the OPA is adopting an alternative approach to confirming Access Rights that does not involve submitting lease agreements, option agreements, etc. The OPA s intent is to have an Applicant confirm that it has Access Rights when submitting an Application by confirming in a statutory declaration that it does have Access Rights and that it has received legal advice regarding the subject matter of the declaration. Attached to the declaration is a certificate of a solicitor confirming he or she provided legal advice to the Applicant and confirming that the declarations of the Applicant are true. Based on the feedback received on the draft version posted September 4, 2013, the OPA has amended the definition of Access Rights to make it an objective standard. As such the Applicant and solicitor are no longer confirming the sufficiency of the Access Rights to build and operate the project. The declaration has been amended to clarify it speaks only to the status of the Access Rights at the date the declaration and certification are provided. It has also been amended to confirm that the solicitor s acknowledgement is not intended to be an opinion of the solicitor. The revised draft Access Rights definition and prescribed form are being posted here for a second brief comment period to provide stakeholders a further opportunity to provide feedback. Thank you for submitting your comments by October 2, 2013.

September 11, 2013: FIT 3 Draft Prescribed Forms The OPA has begun posting draft prescribed forms for version 3 of the FIT Program. All forms are anticipated to be posted by Friday September 13, 2013. The draft versions of the Prescribed Forms for FIT 3 are posted below. Please note that these Prescribed Forms are currently in draft form for comment and are not to be used for the purposes of submitting an Application. Note: forms not linked are coming soon. Aboriginal Participation Project Declaration Aboriginal Support Resolution (First Nation) Aboriginal Support Resolution (Métis Community) Aboriginal Support Resolution Confirmation Access Rights Declaration Revised draft September 27, 2013 Applicant Declaration re: Co-op Members and Solicitor's Acknowledgement Applicant Legal Name and Entity Confirmation Application Withdrawal Building Permit Confirmation for URSP Project Community Participation Project Declaration Consent of Co-op Member Engineer/Architect Confirmation for URSP Project Engineering Assessment for Rooftop Solar Project Municipal Council Blanket Support Resolution Municipal Council Support Resolution Municipal Council Support Resolution Confirmation Municipal or Public Sector Entity Participation Project Declaration

Property Owner Declaration for Community Participation Project Request Form - FIT CAE Return of Fee Request Form - FIT CAR Return of Fee and Security Soil Study Peer Review Attestation for Non-Rooftop Solar Visual Screening and Setback Acknowledgement Waterpower Declaration September 30, 2013 Zoning Certificate for Non-Rooftop Solar Facility

September 4, 2013: Connection Impact Assessment Best Practices and Timelines Note: This item is cross-posted from the Ministry of Energy's website. As part of the Two-Year Review of the FIT Program, generators and distributors identified the need for greater clarity and transparency of the connection process for distribution-connected generation projects. The resulting recommendation from the Two-Year Review Report in March 2012 was to: Establish best practices and processes for LDCs and transmitters that will improve communication, transparency and coordination between the OPA, LDCs, transmitters and generators regarding the Connection Impact Assessment (CIA) process and status of applications. The Ministry of Energy has developed a set of best practices in consultation with the OEB, OPA, IESO, Electricity Distributors Association, and several generator organizations to increase transparency and predictability for generators, as well as to help both LDCs and generators better understand how the connection process can influence development timelines and milestones. The review resulted in two key documents: A set of best practices recommended for any organization involved in preparing impact assessments, available on the Ministry of Energy's website. A visual description of the parts of the Distribution System Code and regulation applicable to the timelines for CIA applications, available on the OEB s website. The Electricity Distributors Association, the Ministry of Energy and their partners in this effort encourage local distribution companies and generators to adopt and implement these best practices to improve the transparency, coordination and understanding of the connection impact assessment process.

August 16, 2013: Changes to Domestic Content and New FIT/microFIT Price Schedule On August 16, 2013, the Minister of Energy directed the OPA to make changes to the FIT and microfit Programs, including changes to the domestic content rules applicable to new contracts. View the Minister s letter of direction. The OPA has also reviewed and updated the FIT and microfit price schedule. The OPA is required to review the prices offered to generators under the FIT and microfit programs on a regular basis to ensure both ratepayer value and a fair return on investment. View the new price schedule and the price comparison table. This price schedule will apply to any new contracts that are issued while the price schedule is in effect. The new directive moves the FIT and microfit programs toward compliance with the May 24, 2013 World Trade Organization (WTO) ruling by lowering the domestic content requirements for on-shore wind facilities and solar photovoltaic facilities. The domestic content requirements for new FIT contracts awarded as of the date of the directive are as follows: For on-shore wind facilities, the minimum domestic content level shall be 20 per cent For solar photovoltaic, (PV) facilities utilizing crystalline silicon PV technology, the minimum domestic content levels shall be 22 per cent. For solar photovoltaic, (PV) facilities utilizing thin-film PV technology, the minimum required domestic content level shall be 28 per cent. For solar photovoltaic (PV) facilities utilizing concentrated PV technology the minimum required domestic content level shall be 19 per cent.

July 3, 2013: Small FIT contracts offered Ontario s clean energy economy continues to grow as the Ontario Power Authority (OPA) offers 951 new Small Feed-in Tariff (FIT) renewable energy contracts. These contracts represent 146.5 megawatts (MW) of power, enough to power more than 21,000 homes. Over 98 percent of the successful applications received municipal council support resolutions. Most of these contract offers are for solar photovoltaic (PV) projects, including 934 solar PV projects, 16 bioenergy projects and one waterpower project. In total, project developers are expected to invest over $750 million in the Ontario economy, and the projects are expected to result in 2,200 jobs for Ontarians. The projects announced today include 46 MW or 219 projects with Aboriginal participation and 27.8 MW or 136 projects with community participation. See the complete list of Small FIT contract offers. August 20, 2013: List updated to include project addresses. See a summary of Small FIT participation project contracts offered. These contracts are being offered to successful applicants who applied during the Small FIT application period from December 14, 2012, to January 18, 2013. The OPA was authorized to offer up to 200 MW of contracts to these applicants; the remaining 53.5 MW of capacity that was not contracted in this round will be added to the procurement target for this fall s Small FIT application period. Details for this next window will be posted on the FIT website when they are available.

June 26, 2013: New hydroelectric project direction extends FIT Contracts for waterpower projects On June 26, 2013, the Minister provided direction to the OPA relating to existing waterpower FIT Contracts. Acknowledging the unique regulatory approval requirements for these projects, the OPA was directed to offer a three-year extension to the Milestone Date for Commercial Operation. The OPA will be contacting these existing FIT Suppliers directly in the next few weeks with more information regarding this extension. Click here for the the direction.

June 24, 2013: Price review - additional feedback requested The Minister of Energy recently announced that Ontario intends to comply with the World Trade Organization s ruling on the domestic content provisions of the FIT Program. The intention is that these provisions would be affected in future FIT and microfit procurement processes. The OPA is interested in receiving additional pricing feedback relating to the possible removal of domestic content requirements from future microfit and FIT (for all project sizes) procurements. To supplement feedback we received earlier this spring before the WTO ruling from a range of industry associations, we have sent a questionnaire to CanSIA and CanWEA, two organizations that represent the interests of the solar and wind industries in Ontario. We encourage all interested stakeholders to work through their industry association to provide their input. If your interests are not captured by these two organizations, please contact the OPA at FIT@powerauthority.on.ca. The deadline for feedback is Wednesday, July 10, 2013. See the original price review announcement in March. The current price schedule is located at: http://fit.powerauthority.on.ca/program-resources/price-schedule. The Minister has also issued a direction to the OPA setting annual capacity targets for Small FIT (projects generally 500 kw), and microfit (projects 10 kw). Large renewable energy projects (generally > 500 kw) will be procured on a competitive basis. The OPA will consult on this new competitive procurement process later this summer. For additional details please see the Minister s June 12 Direction to the OPA.

June 17, 2013: Approach to project delays and potential Events of Default In response to a number of questions the OPA has received regarding project delays and potential Supplier Events of Default, the OPA has developed the following approach to such delays. Please note that the information provided here is meant for informational purposes only and shall not be relied upon by Suppliers. Suppliers will be sent a letter should they fail to meet their Notice to Proceed (NTP) Request date and/or their Milestone Date for Commercial Operation (MCOD). The letter will advise that the OPA will not act upon its termination rights arising under Section 9.2(a) of the FIT Contract for those Suppliers that have not provided the OPA with a completed NTP Request in compliance with Section 2.4(c) of the FIT Contract and/or have not attained Commercial Operation of the Contract Facility on or before the MCOD pursuant to Section 2.5 (or Schedule 2 Special Terms and Conditions (Launch Applications)) of the FIT Contract. This information does not constitute a waiver of any actual or potential default, nor does it amend the FIT Contract. The FIT Contract remains in full force and effect. For clarity, it shall remain a Supplier Event of Default (and the OPA maintains its right to terminate the Supplier s FIT Contract) if the Commercial Operation Date has not occurred on or before the following: For solar rooftop facilities, the date which is six months after the Milestone Date for Commercial Operation pursuant to section 1.3 of Exhibit A of the FIT Contract. For solar ground-mounted projects, the date which is 18 months after the Milestone Date for Commercial Operation pursuant to section 1.3 of Exhibit A of the FIT Contract, as amended by the OPA s letter to Suppliers of August, 2011. For all other FIT facilities, the date which is 18 months after the Milestone Date for Commercial Operation pursuant to 9.1(j) of the FIT Contract. Questions about this approach to delays and potential Events of Default should be directed to your contract analyst.

Ministry of Energy Office of the Minister 4 th Floor, Hearst Block 900 Bay Street Toronto ON M7A 2E1 Tel.: 416-327-6758 Fax: 416-327-6754 Ministere de l'energie Bureau du ministre 4 etage, edifice Hearst 900, rue Bay Toronto ON M7A 2E1 Tel.: 416 327-6758 Telec.: 416 327-6754 [ij 1111!111,. Ontario JUN 12 2013 Mr. Colin Andersen Chief Executive Officer Ontario Power Authority 1600-120 Adelaide Street West Toronto ON M5H 1T1 MC-2013-1450 Dear Mr. Andersen: RE: Renewable Energy Program The Ontario government is committed to ensuring that a clean, reliable and sustainable supply of electricity is developed through processes that encourage local participation and respect communities. Going forward, the following changes will be made to the Feed-in Tariff (FIT) Program: Supporting the long-term sustainability of the FIT Program by setting annual procurement targets of 150 megawatts for Small FIT and 50 megawatts for microfit for each of the next four years. Replacing the Large FIT program with a new competitive procurement process and working with municipalities and Aboriginal communities to help identify appropriate locations and siting requirements. Providing potential new economic development and revenue opportunities for municipalities and public sector entities by strengthening their participation in the Small FIT program. Public sector entities are publicly funded schools, public colleges, public universities, hospitals, publicly-owned long-term care homes, public transit services and Metrolinx. Direction Pursuant to the authority I have, as Minister of Energy, under sections 25.32 and 25.35 of the Electricity Act, 1998, I hereby direct the Ontario Power Authority to continue the FIT Program developed pursuant to the direction issued September 24, 2009, and amended by subsequent directions, subject to such further amendments as may be required in order to implement the policies set out below. Page 1 of 7

May 31, 2013: Program Update for Small FIT Applicants TO ALL SMALL FIT APPLICANTS Thank you for your interest in Ontario s FIT program. In the past few days, the OPA has started to receive feedback from applicants, asking for more information about why their applications failed and for the opportunity to correct errors. We appreciate these concerns and are taking steps to address them. Unsuccessful applicants can reapply All unsuccessful applicants will have an opportunity to reapply during the next Small FIT application period to open in fall 2013. The Ontario Power Authority will hold Small FIT webinars starting in June 2013 to review the program requirements, discuss the most common issues encountered during the application review and to discuss how we can work together to improve the process. Common issues A transparent process Working together Common issues The following is a summary of some of the most common and most frequently occurring issues. Missing supporting materials submission. Applications required both an online electronic submission and a follow-up hard copy package that included supporting materials. Some applicants only provided online applications. Wrong fees and securities provided (incorrect amounts, improper format, for example, cheques not certified). Wrong or inconsistent legal names. An applicant may have identified a certain legal name ( Company X Inc ). Other supporting materials received would then either identify a legal name of some variation of the Company X name ( Company X Inc LP ) or possibly an entirely different company name. Variations of a company name were not acceptable as every different company name may be a separate legal entity. Missing originals. Photocopies of forms and supporting documents were submitted rather than required originals. Many of these forms required signatures, including those of a third-party engineer. FIT reference numbers were not included on documents. These numbers are critical for tracking which materials, including fees and securities, belong to which application throughout the review process. Missing required forms altogether. Incomplete forms. Inconsistent and inaccurate forms. Unacceptable locations. Some projects were attempting to locate on prime agricultural lands, or to build on or next to residential properties. Lease, Option and Site Access Rights were not in the name of the applicant. Lease, Option and Site Access Rights conditions were in favour of the landlord.

A transparent process The OPA is committed to managing successful procurements of clean energy. To that end, our procurement processes are designed to be fair and transparent. We appreciate the effort that goes into each application. To ensure all applicants received objective and equal treatment, the OPA hired an independent evaluation monitor, through a competitive tender (request for proposal). Using an evaluation monitor is a regular practice in large public sector procurement processes and at the OPA. The evaluation monitor reviewed a selected sampling of different types of applications to ensure the criteria for review was being applied objectively and consistently to all applicants. Specifically, the evaluation monitor was responsible for reviewing the: small FIT project evaluation criteria for objectivity and integrity selection process to ensure it was suitable and objectively conducted communication process to ensure an equitable opportunity was provided to all applicants to participate in the FIT process and to ensure adherence to the OPA process. The independent evaluation monitor is also responsible for providing a written opinion regarding the integrity of the review and contracting process once the contracts have been issued and the process has been concluded. Working together Thank you again for your comments. We appreciate your feedback and your interest in making the FIT program a success. We look forward to hearing from you at our June webinars. In the meantime, please contact the FIT team at FIT@powerauthority.on.ca if you have additional questions or comments.

Shawn Cronkwright at CanSIA's Solar Ontario 2013 An update on Small Fit applications from Shawn Cronkwright, Director, Renewables Procurement, on May 30, 2013, at CanSIA's Solar Ontario 2013 conference in Niagara Falls. Downloads: Thu, 05/30/2013 FIT 2 Five Months In

FIT 2 Five Months In Shawn Cronkwright Director, Renewables Procurement CanSIA Solar Ontario Niagara Falls May 30, 2013

Overview FIT 1 MicroFIT FIT 2 Objectives Small FIT Process What s Next? 2

Ontario Power Authority Ensure reliable, cost-effective, sustainable electricity supply for Ontario. Key Activities Long-Term Procuring Enabling Power New Conservation System Supply Across the Planning Province 3

Procurement to date Contract Capacity (MW W) 3,500 3,000 2,500 2,000 1,500 1,000 Non-Hydro Renewables Executed Contract Capacity 3,237 Bio-energy Solar PV 2,320 Wind 779 500 314 424 391 447 245 0 2004 2005 2007 2008 2009 2010 2011 2012 4

FIT 1 - So Now What? Energy Group Bioenergy 18 11 20 49 Solar PV (Rooftop) Solar PV (Ground) 575 332 508 1,415 95 44 6 145 Water 35 9 0 44 Wind 60 7 8 75 TOTALS 783 403 542 1,728 Energy Group Number of Contracts Executed Pre- Total NTP COD NTP Contracts Pre- NTP Contracts Executed [MW] NTP COD Total Contracts Bioenergy 18 27 14 58 Solar PV (Rooftop) Solar PV (Ground) 103 67 81 251 543 374 21 939 Water 123 63 0 185 Wind 2,450 407 257 3,113 TOTALS 3,237 937 373 4,546 * Values and totals may vary slightly due to rounding 5

MicroFIT 2 Looking Back Over Ten Months Eligible ibl Application Stage Contract t Stage Energy Group Approved Applications Capacity [kw] Applications Connected / Contract Executed Capacity [kw] Bioenergy 0 0 0 0 Solar PV (Roof) 3,508 33,376 1,272 10,690 Solar PV (Ground) 115 1,144 54 519 Water 0 0 0 0 Wind 1 10 0 0 TOTALS 3,624 34,531 1,326 11,209 4.3 MW remaining towards 50 MW Procurement Target * Data as of May 27, 2013 * Values and totals may vary slightly due to rounding 6

MicroFIT for 2013 Build on the success since re-launch in July 2012 Process has become more streamlined Enhanced user interface and web-based tools Greater visibility of application status Application review times are significantly reduced Average time for OPA processing from July Dec 2012 was approximately 15 days Program queries response typically within 48 hours OPA averaged approximately 250 applications reviewed per week through 2012 Updated prices and a reasonable procurement target will allow for continued success throughout 2013 7

FIT 2 Objectives How are we doing so far? Two-Year Review Report Recommendations: Continue commitment to clean energy Opportunities for new projects Streamline processes and create jobs MicroFIT 2 application process Encourage greater community and Aboriginal participation Priority points, capacity set-asides Improve municipal engagement Priority points Municipal support resolutions Land use siting restrictions ti Reduce prices to reflect lower costs Ongoing Expand Ontario s clean energy economy 8

FIT 2 Small FIT Applications Submitted Initial Small FIT Application Period: December 14, 2012 January 18, 2013 Technology Resubmitted Applications New Applications Total Applications Resubmitted MW New MW Total MW Biogas 7 42 49 2.2 13.0 15.2 Biomass 4 11 15 2.0 4.2 6.2 Landfill Gas 0 0 0 0 0 0 Solar PV (non- Rooftop) Solar PV (Rooftop) 152 310 462 63.8 118.2 181.9 1,826 1,559 3,385 295.0 318.2 613.2 Water 1 18 19 0.1 5.7 5.9 Wind (on-shore) 2 6 8 0.1 3.0 3.1 TOTALS 1,992 1,946 3,938 363.2 462.4 825.6 * Totals may vary slightly due to rounding 9

FIT 2 Small FIT Applications Submitted Submitted Applications % of Total Total 3,938 Aboriginal Participation: 1,645 41.8% First Nation CCSA Eligible: 431 10.9% Métis CCSA Eligible: 63 1.6% Community Participation: 458 11.6% Community CCSA Eligible: 326 8.3% 23% 23% 42% Aboriginal Participation Community Participation 12% Educ. / Health Participation Other Education or Health Care Participation: 930 23.6% Total Participation Projects: 3,033 77.0% * Totals may vary slightly due to rounding 10 Non- CCSA 70% First Nation CCSA: 26% Métis CCSA: 4%

Small FIT Process Where are we? COMPLETE COMPLETE TAT/DAT process underway *Timelines are targets 11

What happened to my application? The OPA reviewed each and every application individually Applications were reviewed in accordance with the FIT 2.1 Rules as posted Completeness Eligibility Status as Contract Capacity Set-aside Priority Points Every applicant was notified of the status of each application Accepted: Complete and Eligible Rejected: Unsuccessful Complete and Eligible applications are currently undergoing connection screening Transmission Availability Test (TAT) OPA in coordination with our sector partners (Transmitters, IESO) Distribution Availability Test (DAT) Local Distribution Companies Projects that pass TAT and DAT will be eligible for contract offers 12

What if my application was unsuccessful? The OPA will be holding webinars to provide additional information to applicants Review program requirements Discuss common issues encountered during application review Provide more detailed feedback to help applicants understand the issues Opportunity for question and answer Additional materials will be posted on our website Applicants will have an opportunity to apply during the next application period 13

Small FIT Common Application Issues Missing supporting materials submission Wrong fees and securities provided d Wrong or inconsistent legal names Missing originals FIT reference numbers not included on documents Forms Missing, incomplete, inconsistent, inaccurate Unacceptable locations Site access rights 14

FIT 2 Small FIT Applications Accepted Applications determined to be complete and eligible Technology Resubmitted Applications New Applications Total Applications Resubmitted MW New MW Total MW Biogas 3 14 17 1.0 5.0 6.0 Biomass 0 2 2 0 0.6 0.6 Landfill Gas 0 0 0 0 0 0 Solar PV (non- Rooftop) Solar PV (Rooftop) 24 27 51 10.3 9.9 20.1 704 386 1,090 98.3 66.9 165.3 Water 1 2 3 0.1 0.6 0.8 Wind (on-shore) 0 0 0 0 0 0 TOTALS 732 431 1,163 109.7 83.1 192.8 * Totals may vary slightly due to rounding 15

FIT 2 Small FIT Applications Accepted Accepted Applications % of Total Total 1,163 Aboriginal Participation: 281 24.2% First Nation CCSA Eligible: 76 6.5% Métis CCSA Eligible: 33 2.8% Community Participation: 171 14.7% Community CCSA Eligible: 95 82% 8.2% 38% 24% 23% Aboriginal Participation Community Participation 15% Educ. / Health Participation Other Education or Health Care Participation: 446 38.3% Total Participation Projects: 898 77.2% Total Applications with Municipal i Support Resolution: * Totals may vary slightly due to rounding 1,142 98.2% 16 Non- CCSA 61% First Nation CCSA: 27% Métis CCSA: 12%

FIT 2 Small FIT Applications Submitted Applications Accepted Applications 23% 42% 23% 24% 23% 12% 38% 15% Aboriginal Participation Educ. / Health Participation Community Participation Other * Totals may vary slightly due to rounding 17

Un-built Rooftop Solar Pilot Program Pilot stream for applicants with un-constructed buildings Small FIT rooftop solar projects 10 kw 500 kw Up to 15 MW in 2013 Industry stakeholdering well underway Finalization of program structure in progress Unique application requirements Pilot intended to test program structure Anticipated launch Fall 2013 Goal is to synchronize successful pilot framework into regular FIT program in 2014 18

What s Next? Pricing Understand WTO ruling and its impact Update prices to reflect today s costs MicroFIT Feedback has been positive Build on the success Small FIT Contract t awards from current application period Un-built rooftop pilot draft materials Subsequent application periods Large Projects Opportunities for municipal input Coordinated with system needs and Long Term Energy Plan 19

Questions and Resources Questions regarding FIT or microfit, including application questions: FIT@powerauthority.on.ca microfit@powerauthority.on.ca Questions regarding your existing FIT or microfit contract: FIT.contract@powerauthority.on.ca microfit.contract@powerauthority.on.ca t@ th it Where to find additional information: fit.powerauthority.on.ca microfit.powerauthority.on.ca ontario.ca/refo 20

May 14, 2013: Initial Reviews Completed for Small FIT Applications The OPA received almost 4,000 Small FIT applications from across the province during the application window that opened on December 14, 2012, and closed on January 18, 2013. The OPA, together with an independent Evaluation Monitor, has now completed its review to determine if the applications were complete and eligible. Over the next week, all applicants will receive a message on their My FIT Home Page on the status of their applications. Applications that passed both the completeness and eligibility reviews will move onto the transmission and distribution availability testing in the order in which they have been ranked, according to the priority points awarded during the review process. The time stamp has been used to determine the order where applications had the same number of points. Up to 200 MW of contracts are expected to be offered in the summer of 2013 to applications that pass the transmission and distribution availability testing once testing is complete. Applications that did not pass the completeness and eligibility reviews will be terminated and will not be subject to further testing. For more information, click here for FAQs.

March 25, 2013: 2013 Price review - Stakeholder Consultation As directed by the Minister of Energy on April 5, 2012, the Ontario Power Authority is reviewing the FIT and microfit pricing structure for 2013. The OPA is required to review the prices offered to generators under the FIT and microfit programs on a regular basis to ensure both ratepayer value and a fair return on investment are achieved. To help develop the 2013 pricing schedule, the OPA is asking key stakeholder organizations and associations, representing a wide membership from consumers, developers, generators and distributors, to complete a FIT Pricing questionnaire. Their responses will inform the 2013 price schedule. The list of stakeholder organizations and associations that have been invited to provide feedback is set out below. We encourage all interested stakeholders to work through their industry association to provide input. If your interests are not captured by any of the organizations listed, please contact the OPA at FIT@powerauthority.on.ca. The OPA requested that stakeholder organizations and associations provide their feedback by Wednesday, April 10, 2013. The comment period is now closed. We thank you for your feedback. Once the feedback has been considered, and the 2013 price schedule has been set, the OPA plans to host a webinar for all interested stakeholders to review the new price schedule. Details for the session will be made available once they have been finalized. For information about current FIT prices, click here: http://fit.powerauthority.on.ca/program-resources/price-schedule. For more details about the FIT and microfit programs, click here: http://fit.powerauthority.on.ca/what-feed-tariffprogram andhttp://microfit.powerauthority.on.ca/, respectively. List of Stakeholders Generation Industry Groups Ontario Biogas Association Canadian Solar Industries Association Canadian Wind Energy Association Ontario Waterpower Association Association of Power Producers of Ontario Ratepayer Groups Association of Major Power Consumers in Ontario Energy Probe Consumers Council of Canada Vulnerable Energy Consumers Coalition Low Income Energy Network First Nation and Métis Chiefs of Ontario Métis Nation of Ontario Community

Ontario Sustainable Energy Association Ontario Federation of Agriculture Community Power Fund Other Ontario Energy Association Ontario Electricity Financial Corporation Ontario Financing Authority Electricity Distributors Association

Count of Contracts and Applications Contracts Executed Energy Group Pre-NTP NTP COD Total Contracts Existing Applications Bioenergy 18 11 20 49 29 Solar PV (rooftop) 575 332 508 1,415 180 Solar PV (ground) 95 44 6 145 483 Water 35 9 0 44 38 Wind 60 7 8 75 152 Totals 783 403 542 1,728 882 kw for Contracts and Applications Contracts Executed Energy Group Pre-NTP NTP COD Total Contracts Existing Applications Bioenergy 17,946 26,707 13,594 58,247 145,937 Solar PV (rooftop) 102,975 66,654 81,093 250,722 63,864 Solar PV (ground) 543,140 374,346 21,085 938,571 3,786,710 Water 122,862 62,500 0 185,362 154,999 Wind 2,449,861 406,500 256,800 3,113,161 6,425,350 Totals 3,236,784 936,707 372,571 4,546,062 10,576,861

FIT 2 - Summary of Small FIT Applications January 28, 2013: FIT 2 Summary of Small FIT Applications Technology Resubmitted Applications New Applications Total Applications Resubmitted kw New kw Total kw Biogas 7 42 49 2,239 12,963 15,202 Biomass 4 11 15 2,000 4,225 6,225 Landfill gas 0 0 0 0 0 0 Solar PV (non-rooftop) 152 310 462 63,755 118,191 181,946 Solar PV (Rooftop) 1,826 1,559 3,385 294,962 318,237 613,199 Water 1 18 19 120 5,743 5,863 Wind (on-shore) 2 6 8 140 3,000 3,140 TOTALS 1,992 1,946 3,938 363,216 462,359 825,575