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ontario regulation 386/22

made under the

Ontario Energy Board Act, 1998

Made: April 14, 2022
Filed: April 20, 2022
Published on e-Laws: April 20, 2022
Printed in The Ontario Gazette: May 7, 2022

Amending O. Reg. 541/05

(NET METERING)

1. (1) Section 1 of Ontario Regulation 541/05 is amended by adding the following definitions:

“eligible customer” means a customer of a distributor who meets the criteria set out in section 7.1;

“eligible third party generator” means a generator of electricity who meets the criteria set out in section 7.1.

(2) The definition of “eligible electricity” in section 1 of the Regulation is revoked and the following substituted:

“eligible electricity” means the electricity that meets the criteria,

(a)  set out in section 7 that may be conveyed into a distributor’s distribution system by an eligible generator, or

(b)  set out in section 7.1 that may be conveyed into a distributor’s distribution system by an eligible third party generator;

2. (1) Subsection 2 (1) of the Regulation is amended by striking out “sections 3 and 4” in the portion before clause (a) and substituting “sections 3, 4 and 6”.

(2) Section 2 of the Regulation is amended by adding the following subsection:

(2) Subject to sections 3, 4 and 6, at the request of an eligible customer and in the circumstances and manner described in this Regulation, a distributor,

(a)  shall allow an eligible third party generator with whom the eligible customer has entered into an agreement mentioned in clause 7.1 (1) (a) to convey eligible electricity on behalf of the eligible customer into the distributor’s distribution system for a credit on the eligible customer’s electricity bill; and

(b)  shall bill the eligible customer on a net metering basis.

(3) Subsection 2 (3) of the Regulation is revoked and the following substituted:

(3) For the purposes of this Regulation, billing on a net metering basis is calculated in accordance with section 8 by,

(a)  in the case of billing an eligible generator in accordance with clause (1) (b), subtracting the value of the amount of eligible electricity conveyed into the distributor’s distribution system by the eligible generator from the value of the amount of electricity consumed from the system by the eligible generator; or

(b)  in the case of billing an eligible customer in accordance with clause (2) (b), subtracting the value of the amount of eligible electricity conveyed into the distributor’s distribution system by the eligible third party generator on behalf of the eligible customer from the value of the amount of electricity consumed from the system by the eligible customer.

3. (1) Subsection 3 (1) of the Regulation is amended by striking out “Subsection 2 (1) does not apply” at the beginning of the portion before paragraph 1 and substituting “Subsections 2 (1) and (2) do not apply”.

(2) Subsection 3 (2) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

4. Section 4 of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

5. Section 6 of the Regulation is revoked and the following substituted:

Subject to retail contract

6. A customer who has a contract with a retailer of electricity with respect to which a service transaction request, as defined in the Retail Settlement Code, has been implemented may enter into an agreement with a distributor to be billed on a net metering basis if,

(a)  the customer is an eligible generator or eligible customer;

(b)  the customer is billed under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code; and

(c)  the retailer confirms to the distributor that the retailer and the customer have an agreement that allows,

(i)  if the customer is an eligible generator, the customer to convey eligible electricity into the distributor’s distribution system for the purpose of being billed on a net metering basis, or

(ii)  if the customer is an eligible customer, an eligible third party generator to convey eligible electricity on behalf of the customer into the distributor’s distribution system for the purpose of being billed on a net metering basis.

6. (1) Subsection 7 (1) of the Regulation is amended by striking out “and” at the end of clause (d), by adding “and” at the end of clause (e) and by adding the following clause:

(f)  where the generator is a party to an agreement related to the renewable energy generation facility that was entered into on or after July 1, 2022, other than a net metering agreement, the generator confirms to the distributor that the information set out in subsection (4) has been disclosed to the generator.

(2) Section 7 of the Regulation is amended by adding the following subsections:

(4) The information referred to in clause (1) (f) is the following:

1.  The name and contact information of any other parties to the agreement.

2.  Whether the agreement is a lease, financing, hosting, licensing or other arrangement.

3.  The term of the agreement.

4.  The date on which the agreement begins to apply to the generator.

5.  For the renewable energy generation facility, the rated maximum output capacity as stated on the nameplate of the machinery or equipment that is used to produce electricity.

6.  Any insurance or warranty rights or obligations, including any obligation to pay a deductible, related to the renewable energy generation facility or related equipment, systems and technology and any limitations or exclusions in respect of coverage.

7.  The terms of payment, including any terms related to deposits, interest or any other financial or legal obligations under the agreement that affect the terms of payment.

8.  Any options or obligations to purchase the renewable energy generation facility or related equipment during or at the end of the term, including any relevant dates and costs associated with the options or obligations.

9.  Any other costs for which the generator will be responsible, including costs related to administration and account billing, insurance or warranty rights, leasing, rental, installation, connection, ongoing operation, maintenance and removal of the renewable energy generation facility or related equipment, systems and technology.

10.  Any right to terminate, suspend, amend, extend or renew the agreement.

11.  Any penalties under the agreement and the circumstances in which the generator would be liable to pay the penalties.

12.  Any right to transfer or assign the agreement.

13.  Any authority to put a lien on the generator’s property and the circumstances that would give rise to such a right.

14.  Any maintenance and operation obligations the generator has with respect to the renewable energy generation facility or related equipment, systems and technology.

15.  An estimate of the annual energy production of the renewable energy generation facility measured in kilowatt hours.

16.  An estimate of the annual electricity cost savings to the generator under the agreement.

(5) If confirmation that the information set out in subsection (4) has been disclosed to the generator is provided by the generator to a distributor in accordance with clause (1) (f), the information is deemed, for the purposes of this section, to have been disclosed.

7. The Regulation is amended by adding the following section:

Eligible customer and eligible third party generator

7.1 (1) A customer of a distributor is an eligible customer and a generator of electricity is an eligible third party generator if,

(a)  the customer and the generator have entered into an agreement for the purchase by the customer of electricity that is generated solely from a renewable energy generation facility that is owned or operated by the generator;

(b)  the generator generates the electricity primarily for the customer’s use;

(c)  the generator conveys the electricity that is generated directly from the point of generation to another point for the eligible customer’s consumption, without reliance on the distributor’s distribution system;

(d)  the generator conveys any electricity that is generated that is in excess of what is consumed by the customer into the distributor’s distribution system on behalf of the customer; and

(e)  neither the customer nor the generator is a party to any contract or agreement other than a net metering agreement or an agreement mentioned in clause (a) that provides for the sale, in whole or in part, of the electricity that the generator conveys into the distributor’s distribution system.

(2) For the purposes of clause (1) (c), electricity is conveyed directly from the point of generation to another point for the eligible customer’s consumption regardless of whether it is stored by the generator in a storage device for any period of time.

(3) For the purposes of clause (1) (d), electricity conveyed into the distributor’s distribution system may include electricity that was stored by the generator or customer in a storage device for any period of time, even if some or all of the stored electricity was not generated by the generator.

8. (1) Subsection 8 (1) of the Regulation is amended by striking out “eligible generator” in the portion before paragraph 1 and substituting “eligible generator or eligible customer”.

(2) Subsection 8 (2) of the Regulation is amended by striking out “eligible generator’s” wherever it appears and substituting in each case “eligible generator’s or eligible customer’s”.

(3) The definition of “C” in subsection 8 (2) of the Regulation is amended by striking out “eligible generator during the billing period” and substituting “eligible generator or eligible customer during the billing period”.

(4) The definition of “D” in  subsection 8 (2) of the Regulation is amended by striking out “by the eligible generator” and substituting “by the eligible generator or by the eligible third party generator on behalf of the eligible customer”.

(5) Subsection 8 (3) of the Regulation is amended by striking out “eligible generator’s” and substituting “eligible generator’s or eligible customer’s”.

(6) Subsection 8 (4) of the Regulation is amended by striking out “eligible generator generating eligible electricity or being billed on a net metering basis” at the end and substituting “eligible generator or eligible third party generator generating eligible electricity or to the eligible generator or eligible customer being billed on a net metering basis”.

(7) Subsection 8 (5) of the Regulation is amended by striking out “eligible generator’s” in the portion before paragraph 1 and substituting “eligible generator’s or eligible customer’s”.

(8) Paragraph 1 of subsection 8 (5) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

(9) Paragraph 2 of subsection 8 (5) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible third party generator”.

(10) Subsection 8 (6) of the Regulation is revoked and the following substituted:

(6) If the eligible generator or eligible customer has a contract with a retailer of electricity with respect to which a service transaction request, as defined in the Retail Settlement Code, has been implemented, the distributor shall modify the calculation of C and D for the purposes of subsection (2) according to the following rules:

1.  In any billing period when the portion of the bill covering competitive electricity services for the eligible generator or eligible customer constitutes a charge or is equal to $0, the amount of the charge or $0, as the case may be, shall be used as the charge for the commodity of electricity for the purpose of calculating C, and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating D.

2.  In any billing period when the portion of the bill covering competitive electricity services for the eligible generator or eligible customer constitutes a credit, the amount of the credit shall be used as the charge for the commodity of electricity for the purpose of calculating D, and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating C.

3.  The competitive electricity services for the purposes of paragraphs 1 and 2 shall be as calculated by the retailer in accordance with the agreement between the retailer and the eligible generator or eligible customer and transmitted to the distributor for inclusion in the eligible generator’s or eligible customer’s bill under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code.

4.  For the purposes of this section, the calculation of competitive electricity services shall not include any charges arising from the application of Ontario Regulation 429/04 (Adjustments under Section 25.33 of the Act) made under the Electricity Act, 1998.

(11) Subsection 8 (9) of the Regulation is amended by striking out “eligible generator’s meter” at the end and substituting “eligible generator’s or eligible customer’s meter”.

(12) Subsection 8 (10) of the Regulation is amended by striking out “eligible generator” wherever it appears and substituting in each case “eligible generator or eligible customer”.

(13) Clause 8 (10) (a) of the Regulation is amended by striking out “eligible generator’s meter” and substituting “eligible generator’s or eligible customer’s meter”.

(14) Subsection 8 (11) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

(15) Subsection 8 (12) of the Regulation is amended by striking out “eligible generator’s account” in the portion before clause (a) and substituting “eligible generator’s or eligible customer’s account”.

(16) Clause 8 (12) (a) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

(17) Subsection 8 (14) of the Regulation is revoked and the following substituted:

(14) In addition to any other amounts that may be billed to an eligible generator or eligible customer as specified in this section, a distributor may bill an eligible generator or eligible customer for incremental metering and other costs incurred in order to connect the eligible generator’s or eligible third party generator’s generation facilities to its distribution system in accordance with the Board’s Distribution System Code.

(18) Subsection 8 (15) of the Regulation is amended by striking out “eligible generator” and substituting “eligible generator or eligible customer”.

9. Subsection 9 (2) of the Regulation is revoked and the following substituted:

(2) A customer who is an eligible generator or eligible customer and who has cancelled a net metering agreement under subsection (1) may not, for 12 months after the cancellation, be billed on a net metering basis, except in the circumstances described in subsection 5 (3).

Commencement

10. This Regulation comes into force on the later of July 1, 2022 and the day it is filed.