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Ontario Energy Board Act, 1998
Loi de 1998 sur la commission de l’énergie de l’Ontario

ONTARIO REGULATION 442/01

RURAL OR REMOTE ELECTRICITY RATE PROTECTION

Consolidation Period:  From July 1, 2017 to the e-Laws currency date.

Last amendment: O. Reg. 192/17.

This Regulation is made in English only.

CONTENTS

1.

Definitions

2.

Eligibility for rate protection

4.

Amount of rate protection

5.

Compensation for distributors

6.

Amount of rate protection – from appropriation

7.

Duty of the Board to provide information

8.

Duty to provide information for compliance purposes

9.

Duty to provide information for reimbursement purposes

10.

Reimbursement to Hydro One Networks Inc.

11.

Reliance on information

Schedule 1

 

Schedule 2

 

 

Definitions

1. (1) In this Regulation,

“government premises” means premises occupied by the Crown in right of Canada or Ontario or a facility that is funded in whole or in part by the Crown in right of Canada or Ontario, but does not include premises occupied by,

(a) Canada Post Corporation, Hydro One Inc. or a subsidiary of Hydro One Inc., or

(b) social housing, a library, a recreational or sports facility, or a radio, television or cable television facility;

“IESO” and “IESO-controlled grid” have the same meaning as in the Electricity Act, 1998;

“market participant” means a market participant under the Electricity Act, 1998;

“rate protection” means rate protection under section 79 of the Act;

“remote area” means a part of Ontario, whether or not connected to the IESO-controlled grid that receives electricity from Hydro One Remote Communities Inc.;

“residential premises” means a dwelling occupied as a residence continuously for at least eight months of the year and, where the residential premises is located on a farm, includes other farm premises associated with the residential electricity meter;

“rural area” means those parts of Ontario connected to the IESO-controlled grid that, before March 31, 1999, received electricity from Ontario Hydro and, at the time subsection 26 (1) of the Electricity Act, 1998 came into force, were receiving electricity from Hydro One Networks Inc. O. Reg. 442/01, s. 1 (1); O. Reg. 383/04, s. 1 (1); O. Reg. 391/09, s. 1; O. Reg. 273/16, s. 1; O. Reg. 365/16, s. 1; O. Reg. 192/17, s. 1.

(2) Revoked:  O. Reg. 383/04, s. 1 (2).

Eligibility for rate protection

2. In addition to the persons described in subsection 79 (2) of the Act, the following classes of consumers in Ontario are eligible for rate protection:

1. Revoked:  O. Reg. 383/04, s. 2.

2. Consumers who occupy residential premises in a rural area and who, if section 108 of the Power Corporation Act had not been repealed by section 28 of Schedule E to the Energy Competition Act, 1998 and electricity had continued to be distributed by Ontario Hydro, would have been entitled, pursuant to section 108 of the Power Corporation Act as it read on March 31, 1999, to pay Ontario Hydro a discounted rate for the electricity they consumed.

3. Consumers who occupy residential premises in an area referred to in Schedule 1, if Ontario Hydro distributed electricity in the area before December 16, 1997 and electricity in the area is now distributed by a distributor connected to the IESO-controlled grid, other than a subsidiary of Hydro One Networks Inc.

4. Consumers who occupy premises, other than government premises, in a remote area.

5. Consumers,

i. who are treated as residential-rate class customers under Ontario Regulation 445/07 (Reclassifying Certain Classes of Consumers as Residential-Rate Class Customers:  Section 78 of the Act) made under the Act, or

ii. who occupy residential premises in an area served by a distributor where,

A. the distributor is licensed to serve the consumers,

B. the area is not less than 10,000 square kilometres in size, and

C. the average customer density for the distributor is less than seven customers per kilometre of distribution line.  O. Reg. 442/01, s. 2; O. Reg. 262/03, s. 1; O. Reg. 383/04, s. 2; O. Reg. 446/07, s. 1; O. Reg. 391/09, s. 2; O. Reg. 273/16, s. 2.

3. Revoked:  O. Reg. 383/04, s. 3.

Amount of rate protection

4. (1) This section and section 5 apply to rate protection for consumers in a remote area referred to in subsection 79 (2) of the Act and consumers referred to in paragraphs 3 to 5 of section 2 of this Regulation. O. Reg. 192/17, s. 2 (1).

(1.1) Revoked: O. Reg. 192/17, s. 2 (1).

(2) For each year, the Board shall calculate the amount by which Hydro One Remote Communities Inc.’s forecasted revenue requirement for the year, as approved by the Board, exceeds Hydro One Remote Communities Inc.’s forecasted consumer revenues for the year, as approved by the Board.  O. Reg. 442/01, s. 4 (2); O. Reg. 383/04, s. 4 (3).

(2.1) For the purposes of subsection (2), Hydro One Remote Communities Inc.’s forecasted revenue requirement shall include, in addition to such other amounts as approved by the Board, any amounts approved by the Board relating to the following:

1. A new transmission system that originates between Dryden and Ignace and terminates at Pickle Lake.

2. A transmission system from the point of connection at the IESO-controlled grid to points of connection to the distribution system that services each remote community listed in Schedule 2.

3. A distribution system that serves a remote community listed in Schedule 2, if necessary to connect the community to a transmission system.

4. Upgrades to the existing transmission system between Dryden and Red Lake, if necessary to connect a distribution system that serves a remote community listed in Schedule 2 to the transmission system. O. Reg. 273/16, s. 3 (2).

(3) For the purpose of subsection (2), Hydro One Remote Communities Inc.’s forecasted consumer revenues for a year shall be based on the rates set out for those classes in the most recent rate order made by the Board.  O. Reg. 442/01, s. 4 (3); O. Reg. 273/16, s. 3 (3).

(3.1) For each year, in respect of the rates for a distributor serving consumers described in paragraph 5 of section 2, the Board shall calculate the amount by which the distributor’s forecasted revenue requirement for the year, as approved by the Board, exceeds the distributor’s forecasted consumer revenues for the year, as approved by the Board.  O. Reg. 335/07, s. 1 (2).

(3.2) For the purpose of subsection (3.1), the distributor’s forecasted consumer revenues for a year shall be based on the rate classes and on the rates set out for those classes in the most recent rate order made by the Board and shall be adjusted in line with the average, as calculated by the Board, of any adjustment to rates approved by the Board for other distributors for the same rate year.  O. Reg. 335/07, s. 1 (2).

(4) For each year, the Board shall calculate the amount of rate protection for individual consumers to whom this section applies in a manner that ensures that the total amount of rate protection for those consumers is equal to the total amount of rate protection available for the year, according to the following rules:

1. Revoked: O. Reg. 383/04, s. 4 (5).

2. For each of the areas referred to in Schedule 1, the Board shall take reasonable steps to ensure that, for each month, the total amount of rate protection for consumers in the area who are in the class described in paragraph 3 of section 2 is the total monthly amount set out for that area in Schedule 1.

3. The Board shall take reasonable steps to ensure that an amount equal to the amount calculated under subsections (2) and (3.1) for the year is used to provide rate protection to consumers who are in the class described in paragraphs 4 and 5 of section 2.

4. Revoked: O. Reg. 192/17, s. 2 (3).

O. Reg. 442/01, s. 4 (4); O. Reg. 262/03, s. 2; O. Reg. 383/04, s. 4 (4-6); O. Reg. 335/07, s. 1 (3); O. Reg. 273/16, s. 3 (4); O. Reg. 365/16, s. 2 (2); O. Reg. 192/17, s. 2 (2, 3).

(5) Any distributor that distributes electricity to eligible consumers shall provide, on a quarterly basis, such information relating to this Regulation as the Board may require, in a form specified by the Board.  O. Reg. 383/04, s. 4 (7).

Compensation for distributors

5. (0.1) In this section,

“rate protection interest costs” means interest costs incurred by the IESO for the purpose of ensuring that payments to distributors are made in accordance with clause (7) (b). O. Reg. 52/16, s. 1 (1).

(1) The Board shall calculate the amount of the charge to be collected by the IESO under subsection (5) for each kilowatt hour of electricity that is withdrawn from the IESO-controlled grid, as determined in accordance with the market rules, for use by consumers in Ontario, so that the total amount forecast to be collected is equal to the total amount of rate protection to be provided.  O. Reg. 383/04, s. 5 (1); O. Reg. 391/09, s. 3 (1).

(2) At least 60 days before the end of each calendar year, the IESO shall submit to the Board,

(a) a forecast of the number of kilowatt hours of electricity that will be withdrawn from the IESO-controlled grid, as determined in accordance with the market rules, for use by consumers in Ontario during the next calendar year; and

(b) supporting documentation for the forecast.  O. Reg. 442/01, s. 5 (2); O. Reg. 391/09, s. 3 (2, 3).

(3) The forecast shall be derived from information submitted to the Board under section 25 of the Electricity Act, 1998 in respect of the next fiscal year  O. Reg. 442/01, s. 5 (3); O. Reg. 273/16, s. 4.

(4) Revoked: O. Reg. 52/16, s. 1 (2).

(5) The IESO shall collect the charge calculated by the Board under subsection (1) from market participants and any other person who, with the approval of the IESO, withdraws electricity from the IESO-controlled grid for use by consumers in Ontario.  O. Reg. 442/01, s. 5 (5); O. Reg. 391/09, s. 3 (5).

(6) A distributor or retailer who bills a consumer for electricity shall aggregate the amount that the consumer is required to contribute to the compensation required by subsection 79 (3) of the Act with the wholesale market service rate described in the Electricity Distribution Rate Handbook issued by the Board, as it read on October 31, 2001.  O. Reg. 442/01, s. 5 (6).

(7) Each month, the IESO shall,

(a) record the charges collected under subsection (5) in the preceding month; and

(b) from those charges, pay to distributors the compensation to which they are entitled under subsection 79 (3) of the Act. O. Reg. 52/16, s. 1 (3).

(8) Any amounts remaining after payments are made to distributors under clause (7) (b) may be used by the IESO to defray any rate protection interest costs it has incurred. O. Reg. 52/16, s. 1 (3).

(9) The IESO shall establish a variance account that records differences between the amounts collected by the IESO under subsection (5) and the sum of the amount paid under clause (7) (b) and any amounts used for the purposes of subsection (8). O. Reg. 52/16, s. 1 (3).

(10) Any interest or other income earned on the variance account shall be held in the account and shall be used for the purposes of clause (7) (b), subject to subsection (8). O. Reg. 52/16, s. 1 (3).

(11) Revoked:  O. Reg. 383/04, s. 5 (2).

(12) If the amount collected under subsection (5) in a year exceeds the total amount of rate protection available for eligible consumers under section 4 for that year plus any rate protection interest costs incurred in that year, the excess shall be applied against the amount necessary to compensate distributors who are entitled to compensation under subsection 79 (3) of the Act for the following year. O. Reg. 52/16, s. 1 (4); O. Reg. 365/16, s. 3; O. Reg. 192/17, s. 3 (1).

(13) If the amount collected under subsection (5) in a year is less than the total amount of rate protection available for eligible consumers under section 4 for that year plus any rate protection interest costs incurred in that year, the difference shall be added to the amount necessary to compensate distributors who are entitled to compensation under subsection 79 (3) of the Act for the following year. O. Reg. 52/16, s. 1 (4); O. Reg. 365/16, s. 3; O. Reg. 192/17, s. 3 (1).

(14) Hydro One Networks Inc. is entitled to compensation under subsection 79 (3) of the Act for amounts it paid for rate protection for electricity consumed before the day Ontario Regulation 192/17 came into force, but invoiced on or after January 1, 2017, including for amounts Hydro One Networks Inc. paid to consumers for electricity consumed in December 2016 but invoiced on or after January 1, 2017. O. Reg. 192/17, s. 3 (2).

(15) If the amounts Hydro One Networks Inc. receives from the IESO under this section for electricity consumed before the day Ontario Regulation 192/17 came into force are not sufficient to compensate Hydro One Networks Inc. under subsection (14), the IESO shall transfer to Hydro One Networks Inc. the difference between the amounts Hydro One Networks Inc. received under this section and the amounts it paid for rate protection. O. Reg. 192/17, s. 3 (2).

(16) If the amounts Hydro One Networks Inc. receives from the IESO under this section for electricity consumed before the day Ontario Regulation 192/17 came into force exceed the amounts required to compensate Hydro One Networks Inc. under subsection (14), Hydro One Networks Inc. shall transfer to the IESO the difference between the amounts it received under this section and the amounts it paid for rate protection. O. Reg. 192/17, s. 3 (2).

(17) The first time the Board calculates the amount of the charge to be collected by the IESO under subsection (1) in respect of electricity consumed on or after July 1, 2017, the Board shall take into account the amounts referred to in subsections (14) to (16) and shall rely on any information provided by Hydro One Networks Inc. regarding those amounts. O. Reg. 192/17, s. 3 (2).

(18) For the purposes of payments required under subsections (14) to (16), the IESO shall rely on any information provided by Hydro One Networks Inc. regarding those amounts. O. Reg. 192/17, s. 3 (2).

(19) Payments required under this section by the IESO to Hydro One Networks Inc. or by Hydro One Networks Inc. to the IESO and any subsequent adjustments may be made, at the option of the IESO, by way of set-off in the accounts maintained by the IESO. O. Reg. 192/17, s. 3 (2).

Amount of rate protection – from appropriation

6. (1) This section and sections 7 to 11 apply to rate protection for consumers in a rural area referred to in subsection 79 (2) of the Act and consumers referred to in paragraph 2 of section 2 of this Regulation. O. Reg. 192/17, s. 4.

(2) Beginning on July 1, 2017, consumers in a rural area referred to in subsection 79 (2) of the Act and consumers referred to in paragraph 2 of section 2 of this Regulation will receive $60.50 per month for rate protection for electricity consumed on or after July 1, 2017. O. Reg. 192/17, s. 4.

(3) Compensation to Hydro One Networks Inc. for rate protection described in subsection (2) shall be paid for out of the money appropriated by the Legislature in accordance with subsection 79 (4.2) of the Act. O. Reg. 192/17, s. 4.

Duty of the Board to provide information

7. (1) The Board shall provide to the Ministry of Energy the information specified by the Minister respecting,

(a) the projected number of consumers entitled to receive rate protection under section 6; and

(b) the projected amount of rate protection to be provided to those consumers. O. Reg. 192/17, s. 4.

(2) Information under subsection (1) shall be provided in the format and at the times specified by the Minister. O. Reg. 192/17, s. 4.

Duty to provide information for compliance purposes

8. (1) Hydro One Networks Inc. shall, on receipt of a request from the Ministry of Energy, the IESO or the Board, provide the information relating to the Act and this Regulation that is specified in the request within the time period specified in the request, for the purpose of administering and monitoring compliance with section 79 of the Act and this Regulation. O. Reg. 192/17, s. 4.

(2) Without restricting the generality of subsection (1), examples of information that may be requested under that subsection are,

(a) the amount of rate protection provided by Hydro One Networks Inc. under section 6; and

(b) the number and location of accounts receiving the rate protection. O. Reg. 192/17, s. 4.

Duty to provide information for reimbursement purposes

9. (1) Hydro One Networks Inc. shall provide to the IESO, in the format and at the times specified by the IESO, information respecting the amount of rate protection under section 6 to which eligible consumers who have accounts with Hydro One Networks Inc. are entitled for the last month ending before the day the information is to be provided, and any adjustments to be made in respect of earlier months. O. Reg. 192/17, s. 4.

(2) The IESO shall provide to the Ministry of Energy, in the format and at the times specified by the Minister, information respecting the amount of rate protection under section 6 to which eligible consumers who have accounts with Hydro One Networks Inc. are entitled for the last month ending before the day the information is to be provided, and any adjustments to be made in respect of earlier months. O. Reg. 192/17, s. 4.

(3) For the purposes of this section, Hydro One Networks Inc. may estimate the amount of rate protection to which consumers who have accounts are entitled for a month. O. Reg. 192/17, s. 4.

(4) If Hydro One Networks Inc. estimates the amount of rate protection under subsection (3), it must include an adjustment for any difference between the estimate and the actual amount that consumers were entitled to with the information required under subsection (1) as soon as possible after the actual amount becomes known. O. Reg. 192/17, s. 4.

Reimbursement to Hydro One Networks Inc.

10. (1) Based on the information provided by the IESO under section 9, the Minister shall reimburse Hydro One Networks Inc. for rate protection it provides in accordance with section 6 to consumers entitled to receive the rate protection. O. Reg. 192/17, s. 4.

(2) Based on the information Hydro One Networks Inc. provides under section 9,

(a) the Minister shall pay to the IESO, in keeping with the IESO timeline for invoice payments, sufficient amounts to reimburse Hydro One Networks Inc. for the rate protection under section 6 to which consumers are entitled for a month, subject to any adjustments to be made in respect of earlier months; and

(b) the IESO shall, after receiving the information required for a month from Hydro One Networks Inc., pay to Hydro One Networks Inc. a sufficient amount to reimburse it for the rate protection under section 6 to which consumers who have accounts with Hydro One Networks Inc. are entitled for the month, subject to any adjustments to be made in respect of earlier months. O. Reg. 192/17, s. 4.

(3) Despite subsection (2), the amount of reimbursement to which Hydro One Networks Inc. is entitled is subject to such adjustments as may be required by reason of,

(a) the provision to the Ministry of Energy or the IESO of additional information; or

(b) a determination made by an inspector who conducts an inspection or inquiry under section 79.8 of the Act that relates to Hydro One Networks Inc. O. Reg. 192/17, s. 4.

(4) Despite subsections (2) and (3), no amount is payable as a reimbursement to Hydro One Networks Inc. if it fails, without reasonable cause, to provide any information required to be provided under this Regulation within the time it is required to be provided. O. Reg. 192/17, s. 4.

(5) Payments required under this section by the IESO to Hydro One Networks Inc. and any subsequent adjustments may be made, at the option of the IESO, by way of set-off in the accounts maintained by the IESO. O. Reg. 192/17, s. 4.

Reliance on information

11. For the purposes of the reimbursements required under section 10, the Minister and the IESO shall rely on the information provided as required under this Regulation. O. Reg. 192/17, s. 4.

Schedule 1

Area

Total Monthly Amount of Rate Protection

Attawapiskat

$53,333.33

Fort Albany

$30,000.00

Kaschechewan

$50,000.00

O. Reg. 273/16, s. 5.

Schedule 2

Item

Remote Community

1.

Bearskin Lake

2.

Big Trout Lake

3.

Deer Lake

4.

Kasabonika Lake

5.

Kingfisher Lake

6.

Landsdowne House

7.

Marten Falls

8.

Sachigo Lake

9.

Sandy Lake

10.

Wapakeka

11.

Weagamow

12.

Webequie

O. Reg. 273/16, s. 5.

Schedules 3-15 Revoked:  O. Reg. 383/04, s. 7.

Schedule 16 Revoked:  O. Reg. 273/16, s. 6.