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O. Reg. 227/20: ADJUSTMENTS UNDER SECTION 25.33 OF THE ACT

filed May 29, 2020 under Electricity Act, 1998, S.O. 1998, c. 15, Sched. A

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ontario regulation 227/20

made under the

Electricity Act, 1998

Made: May 28, 2020
Filed: May 29, 2020
Published on e-Laws: May 29, 2020
Printed in The Ontario Gazette: June 13, 2020

Amending O. Reg. 429/04

(ADJUSTMENTS UNDER SECTION 25.33 OF THE ACT)

1. Section 5 of Ontario Regulation 429/04 is amended by adding the following subsections:

(1.1) Despite the definition of “base period” in subsection (1), for the purposes of determining whether a condition specified in subsection (1.2) is met in respect of the base period ending in 2020, if a Class A consumer or Class A market participant failed as of April 30, 2020 to satisfy the condition but would have satisfied the condition if the base period had ended on February 29, 2020, the base period for the consumer or market participant means the period commencing on May 1, 2019 and ending on February 29, 2020.

(1.2) For the purposes of subsection (1.1), the condition referred to is,

(a)  in the case of a Class A consumer, the condition set out in paragraph 3 of subsection 6 (1), clause 6.1 (2) (a), paragraph 3 of subsection 6.1.1 (1.1) or paragraph 4 of subsection 6.1.1 (1.2), as applicable; and

(b)  in the case of a Class A market participant, the condition set out in paragraph 3 of subsection 7 (1), clause 7.1 (2) (a), paragraph 3 of subsection 7.1.1 (1.1) or paragraph 4 of subsection 7.1.1 (1.2), as applicable.

2. Subsection 18 (6) of the Regulation is revoked.

3. (1) Part III of the Regulation is amended by adding the following section:

Special allocation rules, 2020

19.1 (1) This section applies, despite anything to the contrary in this Part, with respect to the allocation of global adjustment in relation to electricity withdrawn from the IESO-controlled grid during the period commencing immediately after Ontario Regulation 191/20 (Order under Subsection 7.0.2 (4) of the Act - Global Adjustment for Market Participants and Consumers) made under the Emergency Management and Civil Protection Act ceases to apply and ending on June 30, 2020.

(2) The total amount of the global adjustment that may be allocated to Class B market participants and Class B consumers whose rates are not determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998 shall be the amount determined using a Class B rate that is the lesser of the following:

1.  The Class B rate determined under section 10.

2.  $115 per megawatt hour.

(3) If the total amount of the global adjustment that may be allocated under subsection (2) is determined using the Class B rate referred to in paragraph 2 of that subsection,

(a)  the rate referred to in that paragraph is deemed to be the Class B rate with respect to the period referred to in subsection (1), for the purposes of the other provisions of this Part;

(b)  the amount allocated to a licensed distributor under subparagraph 2 ii of subsection 11 (2) shall be adjusted in accordance with subsection (4) using the formula,

(B1 – B2) x (R + S – T – SU – RPPV)

in which,

  “B1” is the rate referred to in paragraph 1 of subsection (2),

“B2” is the rate referred to in paragraph 2 of subsection (2),

  “R”, “S”, “T” and “SU” have the same meaning as in subparagraph 2 ii of subsection 11 (2), and

“RPPV” is the total volume of electricity distributed to Class B consumers whose rates are determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998 during the period referred to in subsection (1) by the licensed distributor or by a wholly-embedded distributor of which the licensed distributor is the host distributor;

(c)  the amount allocated to each Class B market participant under paragraph 3 of subsection 11 (2) shall be adjusted in accordance with subsection (4) using the formula,

(B1 – B2) x (U – SU.1)

in which,

“B1” is the rate referred to in paragraph 1 of subsection (2),

“B2” is the rate referred to in paragraph 2 of subsection (2), and

“U” and “SU.1” have the same meaning as in paragraph 3 of subsection 11 (2); and

(d)  the total amount of the global adjustment that may be allocated to a Class A market participant or a Class A consumer shall be the amount that would be allocated to the market participant or consumer but for this clause, reduced in the same proportion as the proportionate difference between the rates referred to in paragraphs 1 and 2 of subsection (2).

(4) For the purposes of clauses (3) (b) and (c),

(a)  if the amount calculated using the applicable formula is positive, the allocation shall be decreased by that amount; and

(b)  if the amount calculated using the applicable formula is negative, the allocation shall be increased by that amount.

(5) This section applies, with necessary modifications, with respect to the total volume of electricity distributed by a licensed distributor during the period referred to in subsection (1) to Class B consumers whose rates are not determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998 and to Class A consumers, and, for greater certainty, it applies with respect to the allocation of global adjustment by the licensed distributor and by any embedded distributor of which the licensed distributor is the host distributor.

(2) Section 19.1 of the Regulation, as made by subsection (1), is revoked.

Commencement

4. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Subsection 3 (2) comes into force on the later of January 1, 2021 and the day this Regulation is filed.