O. Reg. 52/16: RURAL OR REMOTE ELECTRICITY RATE PROTECTION

 

ontario regulation 52/16

made under the

Ontario Energy Board Act, 1998

Made: March 2, 2016
Filed: March 4, 2016
Published on e-Laws: March 4, 2016
Printed in The Ontario Gazette: March 19, 2016

Amending O. Reg. 442/01

(RURAL OR REMOTE ELECTRICITY RATE PROTECTION)

1. (1) Section 5 of Ontario Regulation 442/01 is amended by adding the following subsection:

(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).

(2) Subsection 5 (4) of the Regulation is revoked.

(3) Subsections 5 (7), (8) and (9) of the Regulation are revoked and the following substituted:

(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.

(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.

(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).

(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).

(4) Subsections 5 (12), (13) and (14) of the Regulation are revoked and the following substituted:

(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 (1.1) 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.

(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 (1.1) 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.

(14) Hydro One Networks Inc. shall transfer the charges it received from the IESO under this section that are held by it on the day Ontario Regulation 52/16 comes into force back to the IESO.

(15) The IESO may not use charges for the purposes of subsection (8) until it pays to Hydro One Networks Inc. an amount necessary to meet the deficit, if any, between the amounts Hydro One Networks Inc. received under this section and the amounts paid by Hydro One Networks Inc. to distributors under this section, as of the day referred to in subsection (14).

(16) For the purposes of subsections (14) and (15), a reference to this section is a reference to this section as it read immediately before Ontario Regulation 52/16 came into force.

Commencement

2. This Regulation comes into force on the later of March 4, 2016 and the day it is filed.