Electricity Franchise Rate Approval - Toronto Bylaw

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

Toronto, Ontario municipal bylaws and city approval processes govern how electricity franchise arrangements and related rates are authorized, enforced and reviewed within city limits. This guide explains who oversees approvals, what steps council and utilities typically follow, enforcement and appeal routes, and where to find official City of Toronto rules and notices. For the controlling municipal law framework see the City of Toronto Municipal Code and Council bylaws and reports that approve franchise agreements and related terms City of Toronto Municipal Code[1].

Overview of the approval process

The approval of electricity franchise agreements and any municipal measures that affect franchise-related rates in Toronto combines several steps: utility proposal and technical filings, City staff review, municipal reports to Council, Council decision (bylaw or resolution), and implementation in coordination with the distributor and provincial regulators where applicable. The Ontario Energy Board regulates distribution rates for electricity distributors; municipal approvals typically address franchise rights, use of public rights-of-way, and any municipal fee or charge, while OEB sets distribution rates through its public application process.

Who is involved

  • City Council and the City Clerk - adopt or enact bylaws authorizing franchise agreements and related municipal terms.
  • City divisions (for example, Transportation Services, Infrastructure and Transportation, or Municipal Licensing & Standards) - review technical, encroachment and right-of-way implications.
  • Utility/distributor (e.g., Toronto Hydro) - negotiates terms and files rate or capital applications with the Ontario Energy Board when distribution rates are involved.

Penalties & Enforcement

Penalties and enforcement for breaches of municipal requirements related to electricity franchises, such as unauthorized use of public rights-of-way or failure to follow permit conditions, are handled under the City of Toronto bylaws and enforced by the applicable city division and by-law officers. Specific fine amounts and escalation schedules for franchise-related breaches are not provided on the cited municipal code overview page; see the municipal code and the enforcing division for precise figures [1].

  • Fine amounts: not specified on the cited page.
  • Escalation (first, repeat, continuing offences): not specified on the cited page.
  • Non-monetary sanctions: possible orders to correct work, removal of encroachments, stop-work directions, and court enforcement; specific remedies depend on the bylaw or franchise agreement wording.
  • Enforcer and complaint pathway: by-law enforcement units and the city division responsible for the relevant right-of-way or permit; use the City of Toronto by-law or contact pages to report violations.
  • Appeals and review: appeal routes depend on the instrument (bylaw or order); timelines for judicial review or statutory appeal are set by the governing statute or bylaw and are not specified on the cited municipal code overview page.
Check the specific bylaw or franchise agreement for exact penalties and timelines.

Applications & Forms

Franchise agreements are typically authorized by City Council through bylaws and are not processed via a standard public form. Where permits are required for work in the right-of-way, standard permit or excavation forms managed by City divisions apply. The municipal code overview does not publish a single franchise application form; contact the City division responsible for utility coordination for the applicable permit forms [1].

Common compliance steps and action items

  • Request or review the enacted franchise bylaw or council report authorizing the franchise.
  • Obtain required right-of-way, excavation, or construction permits from the relevant city division.
  • Where municipal fees apply, confirm fee amounts and invoicing processes with the City finance division.
  • If a distribution rate change is involved, review Ontario Energy Board filings by the distributor for rate-related approval steps.
Engage early with City staff and the utility to avoid delays in approvals and permits.

FAQ

Who approves electricity franchise agreements in Toronto?
The City of Toronto, typically by City Council through a bylaw or resolution; operational details are managed by the appropriate city division and the utility.
Do franchise agreements change utility distribution rates?
Municipal franchise agreements govern rights and municipal terms; distribution rates are regulated by the Ontario Energy Board through its public rate application processes.
Where do I report unauthorized utility work in the street?
Contact City of Toronto by-law enforcement or the division responsible for right-of-way permits; see the Help and Support / Resources section below for links.

How-To

  1. Identify the relevant franchise bylaw or council report for the utility and download the document from the City of Toronto website.
  2. Contact the City division responsible for right-of-way or utility coordination to confirm permit requirements.
  3. Apply for and secure any required permits (excavation, encroachment, traffic management) before work begins.
  4. If a rate or distribution change is involved, review the utility's Ontario Energy Board filings and participate in public consultation where available.
  5. If you encounter suspected non-compliance, report it to City by-law enforcement and retain records (photos, permits, correspondence).

Key Takeaways

  • Franchise agreements are authorized by City Council and implemented with City divisions and the utility.
  • Distribution rates are regulated provincially by the Ontario Energy Board; municipal bylaws address rights-of-way and municipal terms.

Help and Support / Resources


  1. [1] City of Toronto Municipal Code - Municipal Code and bylaws
Daniel Roy

Daniel Roy

Municipal Bylaw Analyst

Daniel analyses municipal bylaws across Canadian provinces and territories. He checks every guide against official municipal and provincial sources.