On January 19th, the Supreme Court of Canada issued a final ruling impacting four Non-Utility Generators (NUGs). In dismissing the Ontario Electricity Financial Corporation’s (OEFC’s) leave to appeal application, the Court upheld the original March 2015 decision that, among other things, found that the OEFC did not properly calculate the price paid for electricity generated under its power purchase agreements with the NUGs.
The NUGs undertook litigation after unsuccessful efforts to negotiate with the OEFC. Although the Ontario Court had earlier ruled in favour of the NUGs on this matter, the OEFC unsuccessfully appealed to the Court of Appeal in 2016, ultimately taking the case to the Supreme Court of Canada.
The Supreme Court’s January 19 decision refusing the OEFC’s application for leave to appeal the April 19, 2016 decision of the Ontario Court of Appeal effectively brought the case to a close, and confirmed the OEFC’s obligation to return to the previous method of calculating payments to Non-Utility Generators.