Summary: National Steel Car Limited challenged the constitutionality of Ontario's feed-in tariff (FIT) renewable electricity procurement program, arguing it constituted an unauthorized tax rather than a regulatory charge. The FIT Program, established under the Green Energy Act, aims to encourage renewable energy production, impacting electricity costs for heavy users like National Steel Car.

Key Points:

• Legal Arguments: National Steel Car contended that the costs associated with the FIT Program, notably reflected in the Global Adjustment fee, served economic purposes and thus constituted a tax requiring explicit legislative authorization.
• Lower Court and Appeal Findings:
  • Both the application judge and the Court of Appeal affirmed that the charges were valid regulatory charges, fundamentally linked to the regulatory purpose of promoting renewable energy, in accordance with the Electricity Act’s objectives.
  • The court dismissed the idea that the FIT Program was a colorable attempt to tax, emphasizing its primary regulatory intent and incidental economic benefits.

Outcome: The Court of Appeal dismissed the appeal, supporting the lower court's ruling that the FIT Program's costs embedded in the Global Adjustment were legitimate regulatory charges. The decision underscores the program's alignment with regulatory goals of transitioning to renewable energy sources, confirming its constitutionality under current legislative frameworks. The total amount payable to the respondents was not specified in the document.