O. Reg. 772/20: ADJUSTMENTS UNDER SECTION 25.33 OF THE ACT
filed December 18, 2020 under Electricity Act, 1998, S.O. 1998, c. 15, Sched. A
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made under the
Electricity Act, 1998
Made: December 9, 2020
Filed: December 18, 2020
Published on e-Laws: December 18, 2020
Printed in The Ontario Gazette: January 2, 2021
Amending O. Reg. 429/04
(ADJUSTMENTS UNDER SECTION 25.33 OF THE ACT)
1. (1) Ontario Regulation 429/04 is amended by adding the following sections:
Allocation of deferred Class A amount
19.3 (1) In this section,
“applicable Class A consumer” means, in relation to a month, an applicable Class A customer who is a Class A consumer or deemed Class A consumer at any time in the month;
“applicable Class A customer” means, in relation to a month, a person or other entity that is, at any time in the month, a Class A market participant or a deemed Class A market participant, or a Class A consumer or a deemed Class A consumer, but does not include a licensed distributor that is a market participant;
“applicable Class A market participant” means, in relation to a month, an applicable Class A customer who is a Class A market participant or deemed Class A market participant at any time in the month;
“applicable Class A portion” for a month means, in relation to an applicable Class A customer, the portion of the monthly deferred Class A amount that is to be allocated to that applicable Class A customer for that month, as calculated under subsection (2);
“deferred Class A amount” means the total amount of the global adjustment that was not allocated in 2020 to applicable Class A customers due to the combined effects of section 19.1, before it was revoked, and of Ontario Regulation 191/20 (Order under Subsection 7.0.2 (4) of the Act — Global Adjustment for Market Participants and Consumers) made under the Emergency Management and Civil Protection Act, before it was revoked;
“monthly deferred Class A amount” means one-twelfth of the deferred Class A amount.
(2) Subject to subsection (9), for each month in 2021 every applicable Class A customer shall have their applicable Class A portion allocated to them, calculated using the formula,
MDCAA × (PDFA / PDFT)
in which,
“MDCAA” is the monthly deferred Class A amount,
“PDFA” is the peak demand factor for the applicable Class A customer for the month, and
“PDFT” is the total of the peak demand factors for all applicable Class A customers for the month.
(3) For each month in 2021, the IESO shall allocate to every applicable Class A market participant the applicable Class A portion for that applicable Class A market participant.
(4) Subject to subsection (9), for each month in 2021, the IESO shall allocate to every licensed distributor who is a market participant a portion of the monthly deferred Class A amount, calculated using the formula,
MDCAA × (PDFLD / PDFT)
in which,
“MDCAA” and “PDFT” have the same meaning as in subsection (2), and
“PDFLD” is the peak demand factor for the licensed distributor for the month.
(5) For each month in 2021, each licensed distributor referred to in subsection (4) shall allocate to every applicable Class A consumer of the licensed distributor the applicable Class A portion for that applicable Class A consumer.
(6) A licensed distributor referred to in subsection (4) shall not allocate to an embedded distributor that is a market participant, and of which the licensed distributor is the host distributor, any portion of the monthly deferred Class A amount in respect of the embedded distributor’s Class A consumers.
(7) Subject to subsection (9), for each month in 2021, each licensed distributor referred to in subsection (4) shall allocate to every wholly-embedded distributor of which the licensed distributor is the host distributor a portion of the monthly deferred Class A amount, calculated using the formula,
MDCAA × (PDFELD / PDFT)
in which,
“MDCAA” and “PDFT” have the same meaning as in subsection (2), and
“PDFELD” is the peak demand factor for the wholly-embedded distributor for the month.
(8) For each month in 2021, each wholly-embedded distributor referred to in subsection (7) shall allocate to every applicable Class A consumer of the wholly-embedded distributor the applicable Class A portion for that applicable Class A consumer.
(9) If a person or entity is an applicable Class A customer for part, but not all, of a month in 2021, then the following rules apply:
1. For the purposes of the formula in subsection (2), the “PDFA” for that person or entity shall be the peak demand factor for the part of the month that the person or entity is an applicable Class A customer multiplied by the ratio of the number of days in the month during which the person or entity was an applicable Class A customer to the total number of days in the month.
2. In calculating the “PDFT”, “PDFLD” and the “PDFELD” for the month for the purposes of the formulas in subsections (2), (4) and (7), only the amount determined under paragraph 1 shall be included as the peak demand factor for that person or entity.
(10) Despite subsections (1) to (9), no portion of the deferred Class A amount shall be allocated to,
(a) Ontario Power Generation Inc. in respect of the net volume withdrawn from the IESO-controlled grid at the Sir Adam Beck Pump Generating Station;
(b) Fort Frances Power Corporation in respect of the net volume withdrawn by it during the month from the IESO-controlled grid under its physical bilateral contract with Abitibi-Consolidated Hydro Limited Partnership; or
(c) a market participant in respect of the net volume withdrawn from the IESO-controlled grid in the course of providing ancillary services in accordance with the market rules.
(11) The IESO shall publish the monthly deferred Class A amount for a month (“MDCAA”) and the total of the peak demand factors for all applicable Class A customers for the month (“PDFT”) no later than the 10th business day of the following month.
Allocation of deferred Class B amount
19.4 (1) In this section,
“applicable Class A consumer” has the same meaning as in subsection 19.3 (1);
“applicable Class B consumer” means, in relation to a month, an applicable Class B customer who is a Class B consumer or deemed Class B consumer at any time in the month;
“applicable Class B customer” means, in relation to a month, a person or other entity, other than a licensed distributor that is a market participant, that is, at any time in the month,
(a) a Class B market participant or a deemed Class B market participant, or
(b) a Class B consumer or a deemed Class B consumer whose rates are not determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998;
“applicable Class B market participant” means, in relation to a month, an applicable Class B customer who is a Class B market participant or deemed Class B market participant at any time in the month;
“applicable Class B portion” for a month means, in relation to an applicable Class B customer, the portion of the monthly deferred Class B amount that is to be allocated to that applicable Class B customer for that month, as calculated under subsection (6) or (7);
“deferred Class B amount” means the total amount of the global adjustment that was not allocated in 2020 to applicable Class B customers, due to the combined effects of section 19.1, before it was revoked, and of 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, before it was revoked;
“monthly deferred Class B amount” means one-twelfth of the deferred Class B amount;
“specified Class B recovery rate” means the Class B recovery rate estimated or finally determined by the IESO that is used for the month by a licensed distributor in respect of an applicable Class B customer who is a Class B consumer or an embedded distributor.
(2) For each month in 2021, the IESO shall determine a Class B recovery rate to the nearest cent using the formula,
MDCBA / (P – Q – U.1 – RPPVA)
in which,
“MDCBA” is the monthly deferred Class B amount,
“P”, “Q” and “U.1” have the same meaning as in subsection 10 (1), and
“RPPVA” 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 month by all licensed distributors.
(3) The IESO shall, for each month,
(a) make a first estimate of the Class B recovery rate for the month and publish it no later than the last business day of the previous month;
(b) make a second estimate of the Class B recovery rate for the month and publish it after publishing its first estimate for the month but no later than the last business day of the month; and
(c) determine the actual Class B recovery rate for the month and publish it no later than the 10th business day of the following month.
(4) In making an allocation under subsections (11) to (16), a licensed distributor shall use,
(a) the first estimate of the Class B recovery rate for the month made by the IESO;
(b) the second estimate of the Class B recovery rate for the month made by the IESO; or
(c) the actual Class B recovery rate for the month as finally determined by the IESO.
(5) If a licensed distributor chooses to use the estimate of a Class B recovery rate described in clause (4) (a) or (b) in determining the applicable Class B portion to be allocated for a month to the account of an applicable Class B consumer, it must do the following:
1. Use the same Class B recovery rate for the month in respect of all applicable Class B consumers who are included in the same consumer class in an order issued by the Board under subsection 78 (2) of the Ontario Energy Board Act, 1998.
2. Establish and maintain, in accordance with any protocols established by the Board, such variance accounts as may be necessary to record all differences arising by reason of using the estimate of the Class B recovery rate instead of the actual Class B recovery rate as finally determined by the IESO.
(6) Subject to subsection (8), for each month in 2021 every applicable Class B market participant shall have allocated to them their applicable Class B portion, calculated using the formula,
CBRR × CBMP
in which,
“CBRR” is the actual Class B recovery rate for the month, and
“CBMP” is the total net volume of electricity withdrawn from the IESO-controlled grid by the applicable Class B market participant for the month.
(7) Subject to subsection (8), for each month in 2021 every applicable Class B consumer shall have allocated to them their applicable Class B portion, calculated using the formula,
CBRRS × CBC
in which,
“CBRRS” is the specified Class B recovery rate for the month, and
“CBC” is the total volume of electricity distributed to the applicable Class B consumer for the month.
(8) If a person or entity is an applicable Class B customer for part, but not all, of a month in 2021, then for the purposes of the formulas in subsections (6) and (7),
(a) in the case of an applicable Class B market participant, “CBMP” for that person or entity shall be the total net volume of electricity withdrawn by that person or entity for the part of the month that the person or entity was an applicable Class B market participant; and
(b) in the case of an applicable Class B consumer, “CBC” for that person or entity shall be the total volume of electricity distributed to that person or entity for the part of the month that the person or entity was an applicable Class B consumer.
(9) For each month in 2021, the IESO shall allocate to every applicable Class B market participant the applicable Class B portion for that applicable Class B market participant.
(10) For each month in 2021, the IESO shall allocate to every licensed distributor who is a market participant a portion of the monthly deferred Class B amount, calculated using the formula,
CBRR × (R + S – T – SU – RPPV)
in which,
“CBRR” is the actual Class B recovery rate for the month,
“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 by the licensed distributor or by a wholly-embedded distributor of which the licensed distributor is the host distributor.
(11) For each month in 2021, each licensed distributor referred to in subsection (10) shall allocate to every applicable Class B consumer of the licensed distributor the applicable Class B portion for that applicable Class B consumer.
(12) For each month in 2021, each licensed distributor referred to in subsection (10) shall allocate to every embedded distributor who is a market participant and of which the licensed distributor is the host distributor, in respect of the embedded distributor’s Class B consumers, a portion of the monthly deferred Class B amount calculated using the formula,
CBRRS × (FF – RPPVEDH)
in which,
“CBRRS” is the specified Class B recovery rate for the month,
“FF” is the volume of electricity distributed during the month by the host distributor to the embedded distributor, and
“RPPVEDH” is, subject to subsection (13), the total volume of electricity that was distributed to the embedded distributor by its host distributor during the month and that was distributed by the embedded distributor during the month to Class B consumers whose rates are determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998.
(13) If the embedded distributor reports to the IESO the total combined volume of electricity for the month that was distributed by the embedded distributor during the month to Class B consumers whose rates are determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998, and the volume includes both electricity that was distributed to the embedded distributor by its host distributor during the month and electricity that was withdrawn from the IESO-controlled grid by the embedded distributor during the month, then for the purposes of the formula set out in subsection (12) the value of “RPPVEDH” shall be deemed to be 0.
(14) For greater certainty, for each month in 2021, each embedded distributor referred to in subsection (12) shall allocate to every applicable Class B consumer of the embedded distributor the applicable Class B portion for that applicable Class B consumer.
(15) For each month in 2021, each licensed distributor referred to in subsection (10) shall allocate to every wholly-embedded distributor of which the licensed distributor is the host distributor, in respect of the wholly-embedded distributor’s Class B consumers, a portion of the monthly deferred Class B amount, calculated using the formula,
CBRRS × (CC+ DD – EE – SU.2 - RPPVED)
“CBRRS” is the specified Class B recovery rate for the month,
“CC” is the volume of electricity distributed by the host distributor to the wholly-embedded distributor during the month,
“DD” is the total volume of electricity, adjusted for losses as required by the Retail Settlement Code, supplied by embedded generators during the month to the wholly-embedded distributor,
“EE” is the total volume of electricity distributed by the wholly-embedded distributor to applicable Class A consumers during the month,
“SU.2” is the total volume of electricity conveyed by electricity storage facilities to the wholly-embedded distributor during the month, and
“RPPVED” is the total volume of electricity distributed by the wholly-embedded distributor during the month to Class B consumers whose rates are determined under subsection 79.16 (1) of the Ontario Energy Board Act, 1998.
(16) For each month in 2021, each wholly-embedded distributor referred to in subsection (15) shall allocate to every applicable Class B consumer of the wholly-embedded distributor the applicable Class B portion for that applicable Class B consumer.
(17) Despite subsections (1) to (16), no portion of the deferred Class B amount shall be allocated to,
(a) Ontario Power Generation Inc. in respect of the net volume withdrawn from the IESO-controlled grid at the Sir Adam Beck Pump Generating Station;
(b) Fort Frances Power Corporation in respect of the net volume withdrawn by it during the month from the IESO-controlled grid under its physical bilateral contract with Abitibi-Consolidated Hydro Limited Partnership; or
(c) a market participant in respect of the net volume withdrawn from the IESO-controlled grid in the course of providing ancillary services in accordance with the market rules.
(18) For each month in 2021, every licensed distributor who is a market participant shall report to the IESO 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 month by the licensed distributor or by a wholly-embedded distributor of which the licensed distributor is the host distributor.
(2) Sections 19.3 and 19.4 of the Regulation, as made by subsection (1), are revoked.
Commencement
2. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.
(2) Subsection 1 (2) comes into force on July 1, 2022.