O. Reg. 442/01: RURAL OR REMOTE ELECTRICITYRATE PROTECTION

 

ontario regulation 442/01

made under the

ONTARIO ENERGY BOARD ACT, 1998

Made: November 28, 2001
Filed: November 30, 2001
Printed in The Ontario Gazette: December 15, 2001

RURAL OR REMOTE ELECTRICITY
RATE PROTECTION

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;

“Transitional Revenue Allocation Agreement” means the Transitional Revenue Allocation Agreement entered into under subsection 3 (2) of Ontario Regulation 80/01 by Ontario Electricity Financial Corporation, Ontario Power Generation Inc., Hydro One Inc., Electrical Safety Authority and the IMO, and available to the public from the Ministry of Energy, Science and Technology, as it read on October 31, 2001.

(2) A reference in this Regulation to a municipality referred to in Schedules 1 to 15 shall be deemed to be a reference to that municipality as it existed on May 6, 1999.

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. Consumers who occupy residential premises in a municipality referred to in Schedules 1 to 15.

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.

Amount of rate protection:  market opening to Dec. 31, 2002

3. (1) For the period from the day subsection 26 (1) of the Electricity Act, 1998 comes into force to December 31, 2002, the total amount of rate protection available for eligible consumers is the sum of the 12 amounts set out in the second row applicable to 2001 in Schedule 2 of Appendix 3 of the Transitional Revenue Allocation Agreement.

(2) For the period from the day subsection 26 (1) of the Electricity Act, 1998 comes into force to December 31, 2002, 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 under subsection (1), according to the following rules:

1. For each municipality referred to in Schedules 1 to 15, the Board shall take reasonable steps to ensure that, for each month in a period set out in the Schedule that applies to that municipality, the total amount of rate protection for consumers in the municipality who are in the class described in paragraph 1 of section 2 is the total monthly amount set out for that period in that Schedule.

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 sum of the 12 amounts set out in the second row applicable to 2001 in Schedule 2 of Appendix 3 of the Transitional Revenue Allocation Agreement, less $127 million, is used to provide rate protection to consumers who are in the class described in paragraph 4 of section 2.

4. After paragraphs 1, 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 subsection (1) is used to provide rate protection to the persons described in subsection 79 (2) of the Act and the consumers who are in the class described by paragraph 2 of section 2.

(3) If subsection 26 (1) of the Electricity Act, 1998 does not come into force on January 1, 2002, the following amounts shall be prorated to reflect the part of that year that subsection 26 (1) of that Act is in force:

1. The total amount of rate protection available for eligible consumers under subsection (1).

2. The amount referred to in paragraph 3 of subsection (2).

Amount of rate protection:  2003 and 2004

4. (1) The total amount of rate protection available for eligible consumers in each of the years 2003 and 2004 is $127 million, plus the amount calculated under subsection (2) for the year.

(2) For each of the years 2003 and 2004, 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.

(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.

(4) For each of the years 2003 and 2004, 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), according to the following rules:

1. For each municipality referred to in Schedules 1 to 15, the Board shall take reasonable steps to ensure that, for each month in a period set out in the Schedule that applies to that municipality, the total amount of rate protection for consumers in the municipality who are in the class described in paragraph 1 of section 2 is the total monthly amount set out for that period in that Schedule.

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 1, 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 the persons described in subsection 79 (2) of the Act and the consumers who are in the class described by paragraph 2 of section 2.

Compensation for distributors

5. (1) With respect to rate protection provided after subsection 26 (1) of the Electricity Act, 1998 comes into force, 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.

(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.

(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

(4) The IMO shall give a copy of the forecast and supporting documentation to Hydro One Networks Inc.

(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.

(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.

(7) Each month, the IMO shall pay the charges it collected under subsection (5) in the preceding month to Hydro One Networks Inc.

(8) Hydro One Networks Inc. shall pay the amounts it receives under subsection (7) into a separate account.

(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.

(10) If the amount collected under subsection (5) in the period from the day subsection 26 (1) of the Act comes into force until December 31, 2002 exceeds the total amount of rate protection available for eligible consumers under subsection 3 (1) in that period, 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 2003.

(11) If the amount collected under subsection (5) in the period from the day subsection 26 (1) of the Act comes into force until December 31, 2002 is less than the total amount of rate protection available for eligible consumers under subsection 3 (1) in that period, 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 2003.

(12) If the amount collected under subsection (5) in 2003 exceeds the total amount of rate protection available for eligible consumers under subsection 4 (1) in 2003, 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 2004.

(13) If the amount collected under subsection (5) in 2003 is less than the total amount of rate protection available for eligible consumers under subsection 3 (1) in that period, 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 2004.

(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).

Transition

6. This Regulation does not apply to electricity consumed after December 31, 2004.

Revocation

7. Ontario Regulations 315/99 and 2/01 are revoked.

Commencement

8. (1) Subject to subsection (2), this Regulation comes into force on the day subsection 26 (1) of the Electricity Act, 1998 comes into force.

(2) Sections 1 and 3, subsections 5 (1), (2), (3) and (4) and this section come into force on the day this Regulation is filed.

Schedule 1

TOWN OF BRACEBRIDGE

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$5,876.28
April 1, 2002 to March 31, 2003	3,917.52
April 1, 2003 to March 31, 2004	1,958.76

 

Schedule 2

TOWN OF CALEDON

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$111,085.07
April 1, 2002 to March 31, 2003	74,056.72
April 1, 2003 to March 31, 2004	37,028.36

 

Schedule 3

TOWN OF COLLINGWOOD

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$425.70
April 1, 2002 to March 31, 2003	283.80
April 1, 2003 to March 31, 2004	141.90

 

Schedule 4

TOWN OF DUNNVILLE

Period	Total Monthly Amount of Rate Protection
January 1, 2002 to December 31, 2002	$18,912.60
January 1, 2003 to December 31, 2003	9,456.30

 

Schedule 5

TOWN OF ESPANOLA

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$2,223.00
April 1, 2002 to March 31, 2003	1,482.00
April 1, 2003 to March 31, 2004	741.00

 

Schedule 6

TOWN OF FLAMBOROUGH

Period	Total Monthly Amount of Rate Protection
May 1, 2001 to April 30, 2002	$91.98
May 1, 2002 to April 30, 2003	61.32
May 1, 2003 to April 30, 2004	30.66

 

Schedule 7

TOWNSHIP OF GOULBOURN

Period	Total Monthly Amount of Rate Protection
January 1, 2002 to December 31, 2002	$13,573.56
January 1, 2003 to December 31, 2003	6,786.78

 

Schedule 8

TOWN OF GRAVENHURST

Period	Total Monthly Amount of Rate Protection
May 1, 2001 to April 30, 2002	$9,933.12
May 1, 2002 to April 30, 2003	6,622.08
May 1, 2003 to April 30, 2004	3,311.04

 

Schedule 9

TOWN OF HALDIMAND

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$57,133.62
April 1, 2002 to March 31, 2003	38,089.08
April 1, 2003 to March 31, 2004	19,044.54

 

Schedule 10

TOWN OF LINCOLN

Period	Total Monthly Amount of Rate Protection
January 1, 2002 to December 31, 2002	$21,016.30
January 1, 2003 to December 31, 2003	10,508.15

 

Schedule 11

CITY OF NANTICOKE

Period	Total Monthly Amount of Rate Protection
April 1, 2001 to March 31, 2002	$64,424.25
April 1, 2002 to March 31, 2003	42,949.50
April 1, 2003 to March 31, 2004	21,474.75

 

Schedule 12

TOWN OF SIOUX LOOKOUT

Period	Total Monthly Amount of Rate Protection
January 1, 2002 to December 31, 2002	$5,848.20
January 1, 2003 to December 31, 2003	2,924.10

 

Schedule 13

MUNICIPALITY OF SOUTH BRUCE

Period	Total Monthly Amount of Rate Protection
January 1, 2002 to December 31, 2002	$344.88
January 1, 2003 to December 31, 2003	172.44

 

Schedule 14

TOWNSHIP OF TAY

Period	Total Monthly Amount of Rate Protection
June 1, 2001 to May 31, 2002	$3,223.62
June 1, 2002 to May 31, 2003	2,149.08
June 1, 2003 to May 31, 2004	1,074.54

 

Schedule 15

Township Of West Lincoln

Period	Total Monthly Amount of Rate Protection
June 1, 2001 to May 31, 2002	$46,770.36
June 1, 2002 to May 31, 2003	31,180.24
June 1, 2003 to May 31, 2004	15,590.12

 

Schedule 16

Other Areas

Area	Total Monthly Amount of Rate Protection
Attawapiskat	$53,333.33
Fort Albany	30,000.00
Kaschechewan	50,000.00