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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

Amended to O. Reg. 383/04

RURAL OR REMOTE ELECTRICITY RATE PROTECTION

Historical version for the period December 10, 2004 to July 4, 2007.

This Regulation is made in English only.

CONTENTS

1.

Definitions

2.

Eligibility for rate protection

4.

Amount of rate protection: 2003 and 2004

5.

Compensation for distributors

Schedule 16

Other areas

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, the Services Corporation or a subsidiary of the Services Corporation, or

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

“IMO” and “IMO-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 those parts of Ontario not connected to the IMO-controlled grid that, before March 31, 1999, received electricity from Ontario Hydro and, at the time subsection 26 (1) of the Electricity Act, 1998 comes into force, are receiving 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 IMO-controlled grid that, before March 31, 1999, received electricity from Ontario Hydro and, at the time subsection 26 (1) of the Electricity Act, 1998 comes into force, are receiving electricity from Hydro One Networks Inc.;

“Services Corporation” has the same meaning as in the Electricity Act, 1998. O. Reg. 442/01, s. 1 (1); O. Reg. 383/04, s. 1 (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 16, 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 IMO-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 who occupy residential premises in an area served by a distributor where,

i. the distributor is licensed to serve the consumers,

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

iii. 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.

3. Revoked: O. Reg. 383/04, s. 3.

Amount of rate protection: 2004 and 2005

4. (1) The total amount of rate protection available for eligible consumers in each of the years 2004 and 2005 is $127 million, plus the amount calculated under subsection (2) for the year. O. Reg. 442/01, s. 4 (1); O. Reg. 383/04, s. 4 (1).

(1.1) The total amount of rate protection for eligible consumers in each year after 2005 shall not exceed $127 million and shall be based on the amount of rate protection provided by the distributor to eligible consumers for the previous year plus the amount calculated under subsection (2). O. Reg. 383/04, s. 4 (2).

(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).

(3) For the purpose of subsection (2), Hydro One Remote Communities Inc.’s forecasted consumer revenues for a year shall be based on the rate classes set out in Transitional Rate Order RP-1998-0001 made by the Board and 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).

(4) For each year, the Board shall calculate the amount of rate protection for individual consumers referred to in subsection 79 (2) of the Act and in section 2 of this Regulation 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 under subsection (1) or (1.1), according to the following rules:

1. Revoked: O. Reg. 383/04, s. 4 (5).

2. For each of the areas referred to in Schedule 16, 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 16.

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

4. After paragraphs 2 and 3 are complied with, the Board shall take reasonable steps to ensure that the remainder of the total amount of rate protection available under subsections (1) and (2) is used to provide rate protection to,

i. the persons described in subsection 79 (2) of the Act,

ii. the consumers who are in the class described by paragraph 2 of section 2, and

iii. the consumers who are in the class described by paragraph 5 of section 2 to the maximum set out in a rate order amended under section 79.8 of the Act. O. Reg. 442/01, s. 4 (4); O. Reg. 262/03, s. 2; O. Reg. 383/04, s. 4 (4-6).

(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. (1) The Board shall calculate the amount of the charge to be collected by the IMO under subsection (5) for each kilowatt hour of electricity that is withdrawn from the IMO-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).

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

(a) a forecast of the number of kilowatt hours of electricity that will be withdrawn from the IMO-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).

(3) The forecast shall be derived from information submitted to the Board under section 19 of the Electricity Act, 1998 in respect of the next fiscal year O. Reg. 442/01, s. 5 (3).

(4) The IMO shall give a copy of the forecast and supporting documentation to Hydro One Networks Inc. O. Reg. 442/01, s. 5 (4).

(5) The IMO shall collect the charge calculated by the Board under subsection (1) from market participants and any other person who, with the approval of the IMO, withdraws electricity from the IMO-controlled grid for use by consumers in Ontario. O. Reg. 442/01, s. 5 (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 IMO shall pay the charges it collected under subsection (5) in the preceding month to Hydro One Networks Inc. O. Reg. 442/01, s. 5 (7).

(8) Hydro One Networks Inc. shall pay the amounts it receives under subsection (7) into a separate account. O. Reg. 442/01, s. 5 (8).

(9) Each month, Hydro One Networks Inc. shall, from the account referred to in subsection (8), pay distributors the compensation to which they are entitled under subsection 79 (3) of the Act. O. Reg. 442/01, s. 5 (9).

(10), (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 subsection 4 (1) or (1.1) in the year, the excess less the amount used to provide rate protection under subparagraph 4 iii of subsection 4 (4) 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. 383/04, s. 5 (3).

(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 subsection 4 (1) or (1.1) in the year, the difference plus the amount used to provide rate protection under subparagraph 4 iii of subsection 4 (4) 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. 383/04, s. 5 (4).

(14) Any interest or other income earned on the account referred to in subsection (8) shall be held in the account and shall be used for the purpose of subsection (9). O. Reg. 442/01, s. 5 (14).

6. Revoked: O. Reg. 383/04, s. 6.

7. Omitted (revokes other Regulations). O. Reg. 442/01, s. 7.

8. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 442/01, s. 8.

SCHEDULES 1-15 Revoked: O. Reg. 383/04, s. 7.

SCHEDULE 16
OTHER AREAS

Area

Total Monthly Amount of Rate Protection

Attawapiskat

$53,333.33

Fort Albany

30,000.00

Kaschechewan

50,000.00

O. Reg. 442/01, Sched. 16.