The appellant, Ontario Electricity Financial Corporation, appealed a decision regarding the calculation of amounts payable to the respondent non-utility generators under long-term power purchase agreements.
The dispute centered on whether a new government regulation reallocating the Global Adjustment Mechanism (GA) altered the calculation of Total Market Costs (TMC) under the agreements.
The application judge found that the new GA calculation was inconsistent with the definition of TMC, which required costs to be allocated pro rata to consumption.
The Court of Appeal dismissed the appeal, finding that the application judge did not decide the case on an unargued issue, made no palpable and overriding factual errors, and properly interpreted the agreements without improperly implying a term.