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O. Reg. 315/99: RURAL OR REMOTE ELECTRICITY RATE PROTECTION

under Ontario Energy Board Act, 1998, S.O. 1998, c. 15, Sched. B

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Versions
revoked or spent May 1, 2002

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

ONTARIO REGULATION 315/99

Amended to O. Reg. 442/01

RURAL OR REMOTE ELECTRICITY
RATE PROTECTION

Note: This Regulation was revoked on the day subsection 26 (1) of the Electricity Act, 1998 comes into force. This day has been named as May 1, 2002. See: O. Reg. 442/01, ss. 7, 8 (1).

This Regulation is made in English only.

1. (1) In this Regulation,

“Generation Corporation” has the same meaning as in the Electricity Act, 1998;

“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,

(a) premises that are occupied by Canada Post Corporation, the Services Corporation or a subsidiary of the Services Corporation, or

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

“municipal distributor” means,

(a) a municipal corporation that distributes electricity directly,

(b) a commission established under the Public Utilities Act or any other general or special Act through which a municipal corporation distributes electricity,

(c) any other body, however established, through which a municipal corporation distributes electricity, or

(d) a corporation established pursuant to section 142 of the Electricity Act, 1998;

“municipal residential consumer” means a residential consumer to whom a municipal distributor distributes electricity;

“remote community” means a community in which a subsidiary of the Services Corporation distributes electricity but that is not connected to a transmission system owned or operated by a subsidiary of the Services Corporation;

“remote community consumers” means the consumers referred to in paragraph 2 of subsection 3 (1) and the consumers in the class of consumers described in subsection 79 (2) of the Act who, but for subsection 79 (2) of the Act, would be consumers referred to in paragraph 2 of subsection 3 (1);

“rural or remote rate reduction” means rate reduction under subsection 79 (1) of the Act;

“rural residential consumers served by subsidiaries of the Services Corporation” means the consumers referred to in paragraph 1 of subsection 3 (1) and the consumers in the class of consumers described in subsection 79 (2) of the Act who, but for subsection 79 (2) of the Act, would be consumers referred to in paragraph 1 of subsection 3 (1);

“rural residential premises” means residential premises, including farm buildings and other farm premises associated with a residence, that are occupied on a year-round basis and are located in,

(a) an area of Ontario in which a subsidiary of the Services Corporation distributes electricity and in which Ontario Hydro distributed electricity on March 31, 1999,

(b) a municipality referred to in the Schedules in which a subsidiary of the Services Corporation does not distribute electricity and in which Ontario Hydro distributed electricity on February 29, 1996, or

(c) a First Nation community listed in subsection 4 (5) in which Ontario Hydro distributed electricity before December 16, 1997;

“Services Corporation” has the same meaning as in the Electricity Act, 1998;

“weighted average municipal bill” means the weighted average municipal bill calculated under paragraph 1 of subsection 4 (1). O. Reg. 315/99, s. 1 (1); O. Reg. 2/01, s. 1.

(2) A reference in this Regulation to a municipality referred to in the Schedules shall be deemed to be a reference to that municipality as it existed on the day this Regulation comes into force. O. Reg. 315/99, s. 1 (2).

2. The areas of Ontario in which electricity is distributed by subsidiaries of the Services Corporation are designated as rural or remote areas for the purpose of section 79 of the Act and this Regulation. O. Reg. 315/99, s. 2.

3. (1) In addition to the class of consumers described in subsection 79 (2) of the Act, the following classes of consumers are eligible for rate protection under section 79 of the Act:

1. Consumers who,

i. occupy rural residential premises that are located in a part of Ontario in which a subsidiary of the Services Corporation distributes electricity and in which, on March 31, 1999, Ontario Hydro distributed electricity, and

ii. in the absence of a rural or remote rate reduction, would pay more than 15 per cent more than the weighted average municipal bill for the first 1,000 kilowatt hours of electricity consumed per month.

2. Consumers who occupy premises in remote communities, other than government premises.

3. Consumers who,

i. occupy rural residential premises that are located in a municipality referred to in the Schedules in an area in which electricity is not distributed by a subsidiary of the Services Corporation and in which Ontario Hydro distributed electricity on February 29, 1996, and

ii. would have been entitled, if section 28 of Schedule E to the Energy Competition Act had not come into force and electricity were distributed to the consumers by Ontario Hydro, to pay a rate for electricity consumed that would have been discounted by Ontario Hydro under section 108 of the Power Corporation Act.

4. Consumers who occupy rural residential premises in a First Nation community listed in subsection 4 (5) in which electricity is distributed to consumers by a distributor who is connected to the IMO-controlled grid. O. Reg. 315/99, s. 3 (1); O. Reg. 2/01, s. 2.

(2) Paragraph 3 of subsection (1) does not apply to consumers who occupy premises that are located in a municipality referred to in the Schedules after the end of the last period that is set out in the Schedule that is applicable to that municipality.  O. Reg. 315/99, s. 3 (2).

4. (1) The following rules apply to the calculation of the amount of rural or remote rate reduction for rural residential consumers served by subsidiaries of the Services Corporation:

1. The Board shall calculate the weighted average municipal bill in the following manner:

i. For each municipal distributor, multiply the number of municipal residential consumers to whom the municipal distributor distributes electricity by the amount payable to the municipal distributor by a municipal residential consumer for the first 1,000 kilowatt hours of electricity consumed per month, not including any amount payable under subsection 79 (4) of the Act towards compensation for lost revenue resulting from rural or remote rate reduction.

ii. Add together the products determined under subparagraph i in respect of all municipal distributors.

iii. Divide the sum determined under subparagraph ii by the total number of municipal residential consumers to whom electricity is distributed by municipal distributors.

2. The Board shall calculate the weighted average rural bill for subsidiaries of the Services Corporation in the following manner:

i. For each rate class that applies to rural residential consumers served by subsidiaries of the Services Corporation, multiply the number of premises occupied by those consumers to which the rate class applies by the amount that would be payable for the first 1,000 kilowatt hours of electricity consumed per month in those premises, not including any amount payable under subsection 79 (4) of the Act towards compensation for lost revenue resulting from rural or remote rate reduction.

ii. Add together the products determined under subparagraph i in respect of all rate classes that apply to rural residential consumers served by subsidiaries of the Services Corporation.

iii. Divide the sum determined under subparagraph ii by the total number of premises occupied by rural residential consumers served by subsidiaries of the Services Corporation.

3. The Board shall calculate the amount of rural or remote rate reduction for rural residential consumers served by subsidiaries of the Services Corporation in a manner that the Board forecasts will result in the weighted average rural bill for subsidiaries of the Services Corporation calculated under paragraph 2 not exceeding the weighted average municipal bill by more than 15 per cent.

4. Paragraph 3 does not prohibit the Board from calculating the amount of rural or remote rate reduction in a manner that results in the amount payable by particular consumers exceeding the weighted average municipal bill by more than 15 per cent.  O. Reg. 315/99, s. 4 (1).

(2) The Board shall calculate the amount of rural or remote rate reduction for remote community consumers in a manner that ensures that the rates charged to those consumers are no greater than the rates charged to the lowest-density comparable class of consumers in other areas of Ontario in which electricity is distributed by subsidiaries of the Services Corporation. O. Reg. 315/99, s. 4 (2).

(3) Subject to subsection (4), the Board shall calculate the amount of rural or remote rate reduction for consumers referred to in paragraph 3 of subsection 3 (1) who occupy premises that are located in a municipality referred to in the Schedules in a manner that ensures that the total amount of rural or remote rate reduction for those consumers in each period set out in the Schedule that is applicable to that municipality is equal to the amount set out for that period in that Schedule. O. Reg. 315/99, s. 4 (3).

(4) The Board shall calculate the amount of rural or remote rate reduction for consumers referred to in paragraph 3 of subsection 3 (1) who occupy premises that are located in a municipality referred to in the Schedules in a manner that ensures that the total amount of rural or remote rate reduction for those consumers for the period during which paragraph 3 of subsection 3 (1) applies to those consumers is equal to the sum of the amounts set out for all the periods set out in the Schedule that is applicable to that municipality, reduced by the amount paid under subsection 83.7 (24) of the Power Corporation Act in respect of employees who, under section 83.7 of that Act, accept employment with the distributor that distributes electricity to those consumers. O. Reg. 315/99, s. 4 (4).

(5) The Board shall calculate the amount of the rural or remote rate reduction for consumers referred to in paragraph 4 of subsection 3 (1) who occupy rural residential premises located in a First Nation community listed in one of the following paragraphs in a manner that ensures that the total amount of the rural or remote rate reduction for consumers in that community is the amount set out in that paragraph for each 12-month period starting with the day on which electricity is first distributed to those consumers by a distributor who is connected to the IMO-controlled grid:

1. For Attawapiskat, the amount of $640,000.

2. For Fort Albany, the amount of $360,000.

3. For Kashechewan, the amount of $600,000. O. Reg. 2/01, s. 3.

5. The following rules apply with respect to the amounts that must be collected to compensate distributors that distribute electricity to consumers who are eligible for rate protection under section 79 of the Act for lost revenue resulting from rural or remote rate reduction:

1. After making orders fixing or approving rates for the distributors, the Board shall estimate, for the period for which the orders will be in effect, the total amount that must be recovered from consumers to compensate the distributors for lost revenue resulting from rural or remote rate reduction.

2. The Board shall determine the monthly amount that must be collected from each consumer in order to collect the amount estimated under paragraph 1 by the end of the period for which the orders referred to in paragraph 1 are in effect.

3. The Board may use different methods to determine, for different classes of consumers, the monthly amounts referred to in paragraph 2.

4. The amount determined under paragraph 2 for a consumer shall be collected monthly by the distributor that distributes electricity to the consumer or, if the consumer is not a customer of a distributor, by the Generation Corporation.

5. The due date for payment by a consumer of an amount to be collected under paragraph 4 shall be the same as the due date for payment of rates fixed or approved under section 78 of the Act.

6. Interest and penalties on late payments are payable with respect to payments by consumers of amounts to be collected under paragraph 4 on the same basis as interest and penalties on late payments are payable with respect to rates that are fixed or approved by the Board under section 78 of the Act.

7. Distributors and the Generation Corporation shall remit the amounts collected under paragraph 4 on a monthly basis to the distributors that distribute electricity to consumers who are eligible for rate protection under section 79 of the Act, through such intermediaries and in such amounts as the Board may direct.

8. If the amount collected under paragraph 4 during the period for which the orders referred to in paragraph 1 are in effect exceeds the actual amount necessary to compensate the distributors that distribute electricity to consumers who are eligible for rate protection under section 79 of the Act for lost revenue resulting from rural or remote rate reduction, the excess shall be applied against the amount necessary to compensate those distributors for the next period.

9. If the amount collected under paragraph 4 during the period for which the orders referred to in paragraph 1 are in effect is less than the actual amount necessary to compensate the distributors that distribute electricity to consumers who are eligible for rate protection under section 79 of the Act for lost revenue resulting from rural or remote rate reduction, the shortfall shall be added to the amount necessary to compensate those distributors for the next period. O. Reg. 315/99, s. 5.

SCHEDULE 1

TOWN OF BRACEBRIDGE

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$117,525.60

April 1, 2000 to March 31, 2001

94,020.48

April 1, 2001 to March 31, 2002

70,515.36

April 1, 2002 to March 31, 2003

47,010.24

April 1, 2003 to March 31, 2004

23,505.12

O. Reg. 315/99, Sched. 1.

SCHEDULE 2

TOWN OF CALEDON

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$2,221,701.60

April 1, 2000 to March 31, 2001

1,777,361.28

April 1, 2001 to March 31, 2002

1,333,020.96

April 1, 2002 to March 31, 2003

888,680.64

April 1, 2003 to March 31, 2004

444,340.32

O. Reg. 315/99, Sched. 2.

SCHEDULE 3

TOWN OF COLLINGWOOD

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$8,514.00

April 1, 2000 to March 31, 2001

6,811.20

April 1, 2001 to March 31, 2002

5,108.40

April 1, 2002 to March 31, 2003

3,405.60

April 1, 2003 to March 31, 2004

1,702.80

O. Reg. 315/99, Sched. 3.

SCHEDULE 4

TOWN OF DUNNVILLE

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$378,252.00

January 1, 2000 to December 31, 2000

453,902.40

January 1, 2001 to December 31, 2001

340,426.80

January 1, 2002 to December 31, 2002

226,951.20

January 1, 2003 to December 31, 2003

113,475.60

O. Reg. 315/99, Sched. 4.

SCHEDULE 5

TOWN OF ESPANOLA

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$44,460.00

April 1, 2000 to March 31, 2001

35,568.00

April 1, 2001 to March 31, 2002

26,676.00

April 1, 2002 to March 31, 2003

17,784.00

April 1, 2003 to March 31, 2004

8,892.00

O. Reg. 315/99, Sched. 5.

SCHEDULE 6

TOWN OF FLAMBOROUGH

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to April 30, 2000

$1,839.60

May 1, 2000 to April 30, 2001

1,471.68

May 1, 2001 to April 30, 2002

1,103.76

May 1, 2002 to April 30, 2003

735.84

May 1, 2003 to April 30, 2004

367.92

O. Reg. 315/99, Sched. 6.

SCHEDULE 7

TOWNSHIP OF GOULBOURN

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$305,405.10

January 1, 2000 to December 31, 2000

325,765.44

January 1, 2001 to December 31, 2001

244,324.08

January 1, 2002 to December 31, 2002

162,882.72

January 1, 2003 to December 31, 2003

81,441.36

O. Reg. 315/99, Sched. 7.

SCHEDULE 8

TOWN OF GRAVENHURST

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to April 30, 2000

$198,662.40

May 1, 2000 to April 30, 2001

158,929.92

May 1, 2001 to April 30, 2002

119,197.44

May 1, 2002 to April 30, 2003

79,464.96

May 1, 2003 to April 30, 2004

39,732.48

O. Reg. 315/99, Sched. 8.

SCHEDULE 9

TOWN OF HALDIMAND

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$1,142,672.40

April 1, 2000 to March 31, 2001

914,137.92

April 1, 2001 to March 31, 2002

685,603.44

April 1, 2002 to March 31, 2003

457,068.96

April 1, 2003 to March 31, 2004

228,534.48

O. Reg. 315/99, Sched. 9.

SCHEDULE 10

TOWN OF HEARST

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$34,052.16

January 1, 2000 to December 31, 2000

34,052.16

January 1, 2001 to December 31, 2001

17,026.08

O. Reg. 315/99, Sched. 10.

SCHEDULE 11

TOWN OF LINCOLN

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$472,866.75

January 1, 2000 to December 31, 2000

504,391.20

January 1, 2001 to December 31, 2001

378,293.40

January 1, 2002 to December 31, 2002

252,195.60

January 1, 2003 to December 31, 2003

126,097.80

O. Reg. 315/99, Sched. 11.

SCHEDULE 12

CITY OF NANTICOKE

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to March 31, 2000

$1,288,485.00

April 1, 2000 to March 31, 2001

1,030,788.00

April 1, 2001 to March 31, 2002

773,091.00

April 1, 2002 to March 31, 2003

515.394.00

April 1, 2003 to March 31, 2004

257,697.00

O. Reg. 315/99, Sched. 12.

SCHEDULE 13

TOWN OF SIOUX LOOKOUT

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$131,584.50

January 1, 2000 to December 31, 2000

140,356.80

January 1, 2001 to December 31, 2001

105,267.60

January 1, 2002 to December 31, 2002

70,178.40

January 1, 2003 to December 31, 2003

35,089.20

O. Reg. 315/99, Sched. 13.

SCHEDULE 14

MUNICIPALITY OF SOUTH BRUCE

Period

Total Amount of Rural or Remote Rate Reduction

May 1, 1999 to December 31, 1999

$7,759.80

January 1, 2000 to December 31, 2000

8,277.12

January 1, 2001 to December 31, 2001

6,207.84

January 1, 2002 to December 31, 2002

4,138.56

January 1, 2003 to December 31, 2003

2,069.28

O. Reg. 315/99, Sched. 14.

SCHEDULE 15

TOWNSHIP OF TAY

Period

Total Amount of Rural or
Remote Rate Reduction

June 1, 1999 to May 31, 2000

($342.00 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($385.20 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($285.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2000 to May 31, 2001

($273.60 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($308.16 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($228.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2001 to May 31, 2002

($205.20 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($231.12 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($171.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2002 to May 31, 2003

($136.80 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($154.08 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($114.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2003 to May 31, 2004

($68.40 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($77.04 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($57.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

O. Reg. 315/99, Sched. 15.

SCHEDULE 16

TOWNSHIP OF WEST LINCOLN

Period

Total Amount of Rural or

Remote Rate Reduction

June 1, 1999 to May 31, 2000

($342.00 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($385.20 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($285.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2000 to May 31, 2001

($273.60 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($308.16 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($228.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2001 to May 31, 2002

($205.20 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($231.12 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($171.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2002 to May 31, 2003

($136.80 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($154.08 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($114.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

June 1, 2003 to May 31, 2004

($68.40 × the number of consumers who occupy premises in the 1R2 rate class on May 31, 1999) + ($77.04 × the number of consumers who occupy premises in the 1F2-1 rate class on May 31, 1999) + ($57.00 × the number of consumers who occupy premises in the 1F2-3 rate class on May 31, 1999)

O. Reg. 315/99, Sched. 16.