ONTARIO regulation 341/02

made under the

Ontario energy board Act, 1998

Made: December 10, 2002
Filed: December 10, 2002
Printed in The Ontario Gazette: December 28, 2002

Compensation and set-offs under Part V of the Act

Definitions

1. In this Regulation,

“embedded distributor” means, in respect of another licensed distributor, a licensed distributor who is an embedded distributor under the Retail Settlement Code under the Act and for whom the other licensed distributor is the host distributor under the Retail Settlement Code;

“Financial Corporation” means the Financial Corporation under the Electricity Act, 1998 or a subsidiary of it;

“licensed distributor” means a distributor licensed under the Act.

Payments by licensed distributors to retailers

2. (1) Every licensed distributor shall make a payment to a retailer in accordance with this section in respect of any payments that the retailer is required to make under subsection 79.1 (2) of the Act to low-volume consumers located in the licensed distributor’s service area.

(2) The amount of the payment shall be the amount determined by multiplying $75 by the number of payments of $75 the retailer is required to make under subsection 79.1 (2) of the Act to low-volume consumers located in the licensed distributor’s service area.

(3) The licensed distributor shall make the payment to the retailer,

(a) by paying the retailer the amount determined under subsection (2); or

(b) by way of set-off of the amount determined under subsection (2) against amounts payable by the retailer to the licensed distributor.

(4) The licensed distributor shall make the payment,

(a) after receipt from the retailer of a statement setting out,

(i) the total number of the retailer’s low-volume consumers to whom the retailer is required to make a payment under subsection 79.1 (2) of the Act that are located in the licensed distributor’s service area, and

(ii) the total amount payable by the retailer to the consumers referred to in subclause (i); and

(b) after the IMO makes the payment to the licensed distributor required under section 5.

(5) The licensed distributor shall make the payment required under this section in accordance with subsection (4) even if the retailer has not yet made any payments to low-volume consumers required under subsection 79.1 (2) of the Act.

(6) Every retailer shall provide the following information to the licensed distributor, the IMO and the Financial Corporation forthwith after making all payments required under subsection 79.1 (2) of the Act to low-volume consumers:

1. The total number of the retailer’s low-volume consumers to whom the retailer made a payment under subsection 79.1 (2) of the Act.

2. The total amount payable by the retailer to the consumers referred to in paragraph 1.

Payments by licensed distributors to embedded distributors

3. (1) Every licensed distributor who is a market participant shall make a payment in accordance with this section to an embedded distributor in respect of any payments the embedded distributor is required to make,

(a) under subsection 79.1 (1) of the Act to low-volume consumers located in the embedded distributor’s service area; or

(b) under section 2 to a retailer.

(2) The amount of the payment shall be the amount determined by multiplying $75 by the number of payments of $75 the embedded distributor is required to make under subsection 79.1 (1) of the Act to low-volume consumers located in the embedded distributor’s service area plus the amount, if any, that the embedded distributor is required to pay a retailer under section 2.

(3) The licensed distributor shall make the payment to the embedded distributor,

(a) by paying the embedded distributor the amount determined under subsection (2); or

(b) by way of set-off of the amount determined under subsection (2) against amounts payable by the embedded distributor to the licensed distributor.

(4) The licensed distributor shall make the payment,

(a) after receipt from the embedded distributor of a statement setting out,

(i) the total number of the embedded distributor’s low-volume consumers to whom the embedded distributor is required to make a payment under subsection 79.1 (1) of the Act,

(ii) the total amount payable by the embedded distributor to the consumers referred to in subclause (i),

(iii) all of the information in statements provided to the embedded distributor by retailers under clause 2 (4) (a); and

(b) after the IMO makes the payment to the licensed distributor required under section 5.

(5) The licensed distributor shall make the payment required under this section in accordance with subsection (4) even if the embedded distributor has not yet made any payments to low-volume consumers required under subsection 79.1 (1) of the Act or to a retailer under section 2.

(6) Every embedded distributor shall provide the following information to the Financial Corporation forthwith after making all payments required under subsection 79.1 (1) of the Act to low-volume consumers:

1. The total number of the embedded distributor’s low-volume consumers to whom the embedded distributor made a payment under subsection 79.1 (1) of the Act.

2. The total amount payable by the embedded distributor to the consumers referred to in paragraph 1.

Payments to embedded distributors in respect of reductions to equal billing plan accounts

4. (1) Every licensed distributor who is a market participant shall make a payment to an embedded distributor who is required to make a reduction to an equal billing plan account under subsection 79.1 (9) of the Act.

(2) The amount payable to the embedded distributor shall be the total of all amounts determined under subclause 79.1 (9) (b) (ii) of the Act in respect of the equal billing plan accounts maintained by the embedded distributor.

(3) The licensed distributor shall make the payment to the embedded distributor,

(a) by paying the embedded distributor the amount determined under subsection (2); or

(b) by way of set-off of the amount determined under subsection (2) against amounts payable by the embedded distributor to the licensed distributor.

(4) The licensed distributor shall make a payment to the embedded distributor on account of the amount payable,

(a) after receipt from the embedded distributor of a statement setting out,

(i) the total number of equal billing plan accounts for which the embedded distributor is required to make reductions under subsection 79.1 (9) of the Act, and

(ii) the amount determined under subsection (2); and

(b) after the IMO makes the payment to the licensed distributor required under section 7.

(5) The licensed distributor shall make the payment required under this section in accordance with subsection (4) even if the embedded distributor has not yet made any reductions to the equal billing plan accounts required under subsection 79.1 (9) of the Act.

(6) Every embedded distributor shall provide the following information to the Financial Corporation forthwith after making all reductions to equal billing plan accounts required under subsection 79.1 (9) of the Act:

1. The total number of equal billing plan accounts to which reductions were made by the embedded distributor under subsection 79.1 (9) of the Act.

2. The total amount of the reductions to the equal billing plan accounts made by the embedded distributor under subsection 79.1 (9) of the Act.

Payments to licensed distributors by the IMO

5. (1) The IMO shall make a payment to every licensed distributor who is a market participant and is required to make a payment described in section 2 to a retailer, equal to the payment, if any, that the licensed distributor is required to make under section 2 to the retailer.

(2) The IMO shall make the payment to a licensed distributor required under subsection (1) after receipt by the IMO of a statement from the licensed distributor setting out the information, if any, provided to the licensed distributor by the retailer under clause 2 (4) (a).

(3) The IMO shall make a payment to every licensed distributor who is a market participant and who is required to make a payment described in section 3 to an embedded distributor, equal to the payment, if any, that the licensed distributor is required to make under section 3 to the embedded distributor.

(4) The IMO shall make the payment to a licensed distributor required under subsection (3) after receipt by the IMO of a statement from the licensed distributor setting out the information, if any, provided to the licensed distributor by embedded distributors under clause 3 (4) (a).

(5) The IMO shall make a payment to every licensed distributor who is a market participant and who is required to make a payment under subsection 79.1 (1) of the Act equal to the amount, if any, determined by multiplying $75 by the number of payments the licensed distributor is required to make under subsection 79.1 (1) of the Act to low-volume consumers, after receipt of a statement from the licensed distributor setting out,

(a) the total number of the licensed distributor’s low-volume consumers to whom the licensed distributor is required to make a payment under subsection 79.1 (1) of the Act; and

(b) the total amount payable by the licensed distributor to the consumers referred to in clause (a).

(6) The IMO shall make a payment to a licensed distributor required under this section,

(a) by paying the licensed distributor an amount payable to the licensed distributor under this section; or

(b) by way of set-off of an amount payable to the licensed distributor under this section against amounts payable by the licensed distributor to the IMO.

(7) The IMO shall make the payments required under this section even if the licensed distributor has not yet made any payments to the low-volume consumers required under subsection 79.1 (1) of the Act, any payments to retailers required under section 2 or any payments to embedded distributors required under section 3.

(8) Every licensed distributor who is a market participant shall provide the following information to the IMO and the Financial Corporation forthwith after making all payments required under subsection 79.1 (1) of the Act to low-volume consumers:

1. The total number of the licensed distributor’s low-volume consumers to whom the licensed distributor made a payment under subsection 79.1 (1) of the Act.

2. The total amount payable by the licensed distributor to the consumers referred to in paragraph 1.

Payments to licensed distributors in respect of reductions to PPVA accounts

6. (1) The IMO shall make a payment to every licensed distributor who is a market participant and who is required to make a reduction to a PPVA account under subsection 79.1 (8) of the Act.

(2) The total amount payable to the licensed distributor shall be the amount by which “A” exceeds “B” where,

“A”  is the total amount of all reductions to PPVA accounts required to be made by the licensed distributor under subsection 79.1 (8) of the Act; and

“B”  is any interest costs or charges recorded in the PPVA accounts that are payable immediately before the reductions by the licensed distributor’s low-volume consumers in respect of their PPVA accounts.

(3) The IMO shall make the payment to the licensed distributor,

(a) by paying the licensed distributor the amount determined under subsection (2); or

(b) by way of set-off of the amount determined under subsection (2) against amounts payable by the licensed distributor to the IMO.

(4) The IMO shall make a payment to the licensed distributor on account of the amount payable after receipt from the licensed distributor of a statement setting out,

(a) the total number of PPVA accounts for which the licensed distributor is required to make reductions under subsection 79.1 (8) of the Act; and

(b) the amount determined under subsection (2).

(5) The IMO shall make the payment required under this section in accordance with subsection (4) even if the licensed distributor has not yet made any reductions to the PPVA accounts required under subsection 79.1 (8) of the Act.

(6) Every licensed distributor shall provide the following information to the IMO and the Financial Corporation forthwith after making all reductions to PPVA accounts required under subsection 79.1 (8) of the Act:

1. The total number of PPVA accounts to which reductions were made by the licensed distributor under subsection 79.1 (8) of the Act.

2. The total value of the reductions to the PPVA accounts for the licensed distributor’s low-volume consumers, less any interest charges or costs recorded in the PPVA accounts that were payable immediately before the reductions by the licensed distributor’s low-volume consumers in respect of their PPVA accounts.

Payments to licensed distributors in respect of reductions to equal billing plan accounts

7. (1) The IMO shall make a payment to every licensed distributor who is a market participant and is required,

(a) to make a reduction to an equal billing plan account under subsection 79.1 (9) of the Act; or

(b) to make a payment to an embedded distributor under section 4.

(2) The total amount payable to the licensed distributor shall be the total of,

(a) all amounts determined under subclause 79.1 (9) (b) (ii) of the Act in respect of the equal billing plan accounts maintained by the licensed distributor; and

(b) all amounts the licensed distributor is required to pay embedded distributors under section 4.

(3) The IMO shall make the payment to the licensed distributor,

(a) by paying the licensed distributor the amount determined under subsection (2); or

(b) by way of set-off of the amount determined under subsection (2) against amounts payable by the licensed distributor to the IMO.

(4) The IMO shall make a payment to the licensed distributor on account of the amount payable after receipt from the licensed distributor of a statement setting out,

(a) the total number of equal billing plan accounts for which the licensed distributor is required to make reductions under subsection 79.1 (9) of the Act;

(b) the amount determined under subsection (2); and

(c) the information provided to the licensed distributor by embedded distributors under clause 4 (4) (a).

(5) The IMO shall make the payment required under this section in accordance with subsection (4) even if the licensed distributor has not yet,

(a) made any reductions to the equal billing plan accounts required under subsection 79.1 (9) of the Act; or

(b) made any payments to embedded distributors under section 4.

(6) Every licensed distributor who is a market participant shall provide the following information to the IMO and the Financial Corporation forthwith after making all reductions to equal billing plan accounts required under subsection 79.1 (9) of the Act:

1. The total number of equal billing plan accounts to which reductions were made by the licensed distributor under subsection 79.1 (9) of the Act.

2. The total amount of the reductions to the equal billing plan accounts made by the licensed distributor under subsection 79.1 (9) of the Act.

Payment by Financial Corporation to the IMO

8. (1) The Financial Corporation shall make a payment to the IMO equal to the amount, if any, that the IMO is required to make to a licensed distributor under this Regulation, upon receipt of such information as the Financial Corporation may require concerning retailers, embedded distributors and licensed distributors referred to in this Regulation and the payments required to be made under this Regulation by the IMO.

(2) The Financial Corporation shall make a payment required under this section even if the IMO has not yet made a payment to a licensed distributor required under this Regulation.

Form of information

9. All statements and other information required to be provided under this Regulation by a retailer, embedded distributor, licensed distributor or the IMO shall be in such form and provided in such manner as the Financial Corporation may require.