Proposed amendments to O. Reg. 429/04 (Adjustments Re: Section 25.33 of the Act) and O. Reg. 280/14 (IESO Eligible Investments and Borrowing) made under the Electricity Act, 1998 and proposed regulations under the Ontario Fair Hydro Plan Act, 2017 (OFHPA), if passed.
Bill or Act:
Electricity Act, 1998; proposed Ontario Fair Hydro Plan Act, 2017, if passed.
Summary of Proposal:
As outlined in the proposed OFHPA, a portion of the GA would be refinanced in accordance with Ontario's Fair Hydro Plan.
The Ministry of Energy (ENERGY) proposes to create a new regulation under the OFHPA, if passed, which would provide criteria and detail to support key aspects of the OFHPA. Another new regulation would provide for the implementation of the required calculations related to the refinancing of GA. ENERGY also proposes OFHPA-related amendments to O. Reg. 429/04 and O. Reg. 280/14.
Regulation (New) to be made under the proposed Ontario Fair Hydro Plan Act, 2017
The Government intends to bring forward a general regulation under the proposed OFHPA which would provide for the implementation of the roles and responsibilities of the Financial Services Manager and IESO in relation to the refinancing of GA. The Regulation would provide criteria and detail, as necessary, to support key aspects of the proposed OFHPA, including IESO deferral and the establishment and transfer of portions of the regulatory asset, as well as the establishment of the related variance account.
The regulation may also provide for any further principles that have to be taken into account by the Minister in the calculation of the Fair Allocation amount, as well as providing further criteria related to the development and implementation of the Financing Plan by the Financial Services Manager.
Regulation (new) to be made under Part II of the proposed Ontario Fair Hydro Plan Act, 2017
The Regulation would support the required calculations related to the refinancing of GA, including:
• The required rate reductions under the OFHPA for regulated rate consumers;
• The adjustments to be made in respect of specified consumers as defined in the OFHPA who are not regulated rate consumers;
• The methodology for determining electricity rates and adjustments to GA costs after April 30, 2018; and
• The flow-through of rates and adjustments in circumstances involving unit sub-metering.
Amendment to O. Reg. 429/04 (Adjustments Re: Section 25.33 of the Act) under the Electricity Act, 1998
In order to accomplish the refinancing of GA, in a manner which is consistent with the proposed OFHPA, the Government intends to amend O. Reg. 429/04 to ensure that IESO has the authority it needs to make the appropriate adjustments in the amounts it collects from local distributors and others, and that those distributors and others reflect those adjustments in the amounts they collect from consumers.
The proposed amendments would work with other regulations to be established under the proposed OFHPA to enable the Ontario Energy Board (OEB), IESO, distributors and others to appropriately carry out their respective responsibilities in establishing rates in respect of, making adjustments on behalf of, and invoicing, respectively, specified consumers.
Amendment to O. Reg. 280/14 (IESO Eligible Investments and Borrowing) to be made under the Electricity Act, 1998
The Government would amend O. Reg. 280/14 in a manner which would provide IESO with the necessary authority related to its OFHPA activities including the funding, borrowing and financial arrangements contemplated under the proposed OFHPA. IESO would be expected to amend its Statement of Borrowing in a manner consistent with the amended regulation, once approved.
May 15, 2017
Comments Due Date:
June 10, 2017
77 Grenville Street, 7th Floor