Who Approves Utility Franchise Rates in Mississauga

Utilities and Infrastructure Ontario 4 Minutes Read · published February 11, 2026 Flag of Ontario

In Mississauga, Ontario, approval of electricity and natural gas franchise rates involves both the City of Mississauga and provincial regulators. The Ontario Energy Board (OEB) regulates how utilities set distribution and delivery rates charged to customers, while the City negotiates and approves municipal franchise agreements and any franchise fees paid by utilities for use of municipal rights-of-way. This article explains which bodies approve which parts of a utility bill, how decisions are enforced, how residents can ask questions or appeal, and practical steps Mississauga taxpayers can take.

Municipal franchise fees and provincial rate approval are separate processes with different decision-makers.

Who approves what

The responsibilities divide roughly as follows:

  • Ontario Energy Board (provincial) - approves distributor and delivery rates, service charges, and many regulated fees for electricity and natural gas.
  • City of Mississauga Council - approves franchise agreements, which set franchise fee arrangements, terms for use of municipal rights-of-way, and local contract terms with utility companies.
  • Local utility companies (e.g., local distributor or gas company) - file rate applications with the OEB and implement approved charges; they negotiate contractual terms with the City for franchise obligations.

How approvals work in practice

Utilities seeking changes to regulated distribution or delivery rates must file an application with the Ontario Energy Board and follow OEB public consultation and hearing procedures; the OEB issues a decision setting allowable rates. Separately, the City of Mississauga negotiates and approves franchise agreements by Council resolution or by-law, addressing franchise fees and municipal terms. Changes to a franchise agreement typically require City procurement, legal review, and Council approval.

Rate components on customer bills may originate from both provincial OEB decisions and municipal franchise agreements.

Penalties & Enforcement

Enforcement depends on whether the issue concerns provincial rate approvals, utility compliance with OEB orders, or municipal franchise/by-law obligations.

  • OEB enforcement and remedies - the OEB enforces compliance with its orders and approved tariffs through compliance proceedings and may require refunds or account adjustments; specific monetary penalties for noncompliance are set out in OEB orders or applicable provincial statutes and are case-specific.
  • Municipal enforcement - the City enforces franchise agreement terms and municipal by-laws through City administrative processes, potential contract remedies, and Council-directed actions; civil remedies or contract damages may apply if a utility breaches a franchise agreement.
  • Complaints and inspections - residents can raise billing or service concerns with the utility first, then with the OEB (for regulated-rate matters) or with City By-law Enforcement or the City Clerk (for franchise/by-law matters) if the issue relates to municipal obligations.

Fine amounts, escalation schedules for repeated offences, and certain non-monetary sanctions (for example, orders to remedy breaches or directions to refund customers) are generally determined in the governing instrument (OEB order, franchise agreement, or municipal by-law) and vary by case; these specifics are set in the applicable OEB decisions or the signed municipal franchise agreement and are not uniform across all matters.

Appeals, reviews and time limits

  • OEB decisions - parties may request a review and vary or appeal an OEB decision to the Divisional Court under statutory timelines set by the OEB Act and court rules.
  • Municipal decisions - Council approvals of franchise agreements may be subject to judicial review on limited grounds and must follow procedural requirements under the Municipal Act or applicable procurement rules.

Defences and municipal discretion

  • Permits/variances - municipal discretion in franchise agreements can provide permitted exceptions or transitional arrangements documented in the signed agreement.
  • Reasonable excuse and compliance plans - utilities often present remediation or compliance plans to regulators and municipalities as part of dispute resolution.

Applications & Forms

Rate change requests by utilities are submitted to the Ontario Energy Board through formal application processes; municipal franchise agreements are approved by City Council and may require standard City contract forms. For individual complaints:

  • Contact your utility's customer service for billing enquiries.
  • File an OEB complaint for regulated-rate or service issues as directed on the OEB consumer pages.
  • Contact City of Mississauga By-law Enforcement or the City Clerk for franchise agreement or municipal right-of-way concerns.
Start with the utility, then escalate to the OEB or City depending on whether the issue is rate-regulated or contractual.

Action steps for Mississauga taxpayers

  • Gather your bill and account information before contacting the utility.
  • Contact the utility's customer service to request explanation or correction.
  • If unresolved, file a complaint with the Ontario Energy Board for regulated-rate matters.
  • For municipal franchise issues, raise the matter with City of Mississauga By-law Enforcement or your Ward Councillor and request Council follow-up.

FAQ

Who sets the rates I pay on my electricity or gas bill?
Your utility's distribution and delivery rates are set through Ontario Energy Board processes, while municipal franchise fees and agreement terms are set by City Council and the signed franchise agreement.
Can Mississauga change provincial energy rates?
No. The City cannot change OEB-approved rates; the City negotiates franchise terms but cannot override provincial regulatory decisions.
How do I challenge a rate increase?
First contact your utility for details, then follow the Ontario Energy Board complaint and public consultation procedures if the issue concerns regulated rates or the utility's application.

How-To

  1. Collect your recent utility bill and note the specific charge you dispute.
  2. Contact the utility's customer service to request an explanation and file an internal complaint.
  3. If unresolved and the matter involves regulated rates or delivery charges, file a complaint with the Ontario Energy Board following their consumer complaint steps.
  4. If the issue concerns a municipal franchise agreement, contact the City of Mississauga By-law Enforcement or your Ward Councillor and request Council review or a status update on the franchise matter.

Key Takeaways

  • The OEB approves distribution and delivery rates; Mississauga approves franchise agreements and fees.
  • Start disputes with your utility, then escalate to the OEB or City depending on the issue.
  • Specific fines and remedies depend on the governing OEB decision or signed franchise agreement and vary by case.

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