Proposal
Proposed amendments to O. Reg. 442/01 (Rural or Remote Electricity Rate Protection made under the Ontario Energy Board Act, 1998 (OEBA) and to O. Reg. 429/04 (Adjustments Under Section 25.33 of the Act) made under the Electricity Act, 1998 and proposed regulations under the Ontario Rebate for Electricity Consumers Act, 2016, if passed, and other consequential regulatory amendments.
Regulation Number(s):
442/01
429/04
429/04
Instrument Type:
Proposal
Bill or Act:
Ontario Energy Board Act, 1998; Electricity Act, 1998; Ontario Rebate for Electricity Consumers Act, 2016
Summary of Proposal:
8% Rebate:
ENERGY is proposing to create new regulations under the Ontario Rebate for Electricity Consumers Act, 2016, if passed. These regulations would provide the necessary framework for the reimbursement/payment process, including invoices, reporting, record-keeping and auditing requirements as well as eligibility of remote unlicensed distributors for the 8% rebate.
The proposed regulations would include provisions addressing:
• Base invoice amounts for invoices issued by licenced distributors or licenced retailers; the IESO; Cornwall Street Railway Light and Power Company Limited.; Dubreuil Lumber Inc.;
• Flow through of financial assistance;
• Financial assistance re fees and charges imposed by unit sub-meter providers;
• Rules for invoices
• Payments directly to consumers
• Duty to provide information
• Records
• Requirements to provide information for reimbursement purposes
• Reimbursement to electricity vendors
• Reimbursement to unit-submeter providers
• Requirement to establish a variance account
Rural or Remote Rate Protection:
ENERGY proposes amending O. Reg. 442/01 to increase the total amount of rate protection available for eligible consumers each year from a maximum of $127 million plus other amounts calculated under subsections 4(2) and 4(3.1) to a maximum of $237 million plus other amounts calculated under subsections 4(2) and 4(3.1) and to include required on-bill messaging. Additionally, ENERGY is considering options to periodically adjust the maximum amount of rate protection available going forward.
Industrial Conservation Initiative:
The Ministry of Energy is proposing to amend Ontario Regulation 429/04 (Adjustments Under Section 25.33 of the Act) made under the Electricity Act, 1998 ("O. Reg. 429/04") in order to expand eligibility under the Industrial Conservation Initiative (ICI) to include all electricity consumers and market participants with an average monthly peak demand greater than one megawatt (MW).
Currently, ICI is available only to electricity consumers and market participants with an average monthly peak demand of greater than 5 MW and electricity consumers and market participants in certain energy intensive industrial sectors with an average monthly peak demand of greater than 3 MW and less than or equal to 5 MW.
The new proposed amendments would require eligible electricity consumers/market participants with an average monthly peak demand of greater than 1 MW and less than or equal to 5 MW to opt-in to be eligible for participation in ICI.
ENERGY proposes making consequential amendments to O. Reg. 275/04 (Information on Invoices to Certain Classes of Consumers of Electricity) and O. Reg 161/99 (Definitions and Exemptions) made under the Ontario Energy Board Act, 1998.
All proposed regulations and regulatory amendments relating to the 8% rebate would take effect on January 1, 2017. Others may have later effective dates having regard to the technical aspects of the proposal.
Ontario Clean Energy Benefit Act, 2010:
ENERGY is also proposing to amend O. Reg. 495/10 made under the Ontario Clean Energy Benefit Act, 2010 to specify final dates for submitting claims for unpaid financial assistance, and for reimbursement for financial assistance provided, under that Act
ENERGY is proposing to create new regulations under the Ontario Rebate for Electricity Consumers Act, 2016, if passed. These regulations would provide the necessary framework for the reimbursement/payment process, including invoices, reporting, record-keeping and auditing requirements as well as eligibility of remote unlicensed distributors for the 8% rebate.
The proposed regulations would include provisions addressing:
• Base invoice amounts for invoices issued by licenced distributors or licenced retailers; the IESO; Cornwall Street Railway Light and Power Company Limited.; Dubreuil Lumber Inc.;
• Flow through of financial assistance;
• Financial assistance re fees and charges imposed by unit sub-meter providers;
• Rules for invoices
• Payments directly to consumers
• Duty to provide information
• Records
• Requirements to provide information for reimbursement purposes
• Reimbursement to electricity vendors
• Reimbursement to unit-submeter providers
• Requirement to establish a variance account
Rural or Remote Rate Protection:
ENERGY proposes amending O. Reg. 442/01 to increase the total amount of rate protection available for eligible consumers each year from a maximum of $127 million plus other amounts calculated under subsections 4(2) and 4(3.1) to a maximum of $237 million plus other amounts calculated under subsections 4(2) and 4(3.1) and to include required on-bill messaging. Additionally, ENERGY is considering options to periodically adjust the maximum amount of rate protection available going forward.
Industrial Conservation Initiative:
The Ministry of Energy is proposing to amend Ontario Regulation 429/04 (Adjustments Under Section 25.33 of the Act) made under the Electricity Act, 1998 ("O. Reg. 429/04") in order to expand eligibility under the Industrial Conservation Initiative (ICI) to include all electricity consumers and market participants with an average monthly peak demand greater than one megawatt (MW).
Currently, ICI is available only to electricity consumers and market participants with an average monthly peak demand of greater than 5 MW and electricity consumers and market participants in certain energy intensive industrial sectors with an average monthly peak demand of greater than 3 MW and less than or equal to 5 MW.
The new proposed amendments would require eligible electricity consumers/market participants with an average monthly peak demand of greater than 1 MW and less than or equal to 5 MW to opt-in to be eligible for participation in ICI.
ENERGY proposes making consequential amendments to O. Reg. 275/04 (Information on Invoices to Certain Classes of Consumers of Electricity) and O. Reg 161/99 (Definitions and Exemptions) made under the Ontario Energy Board Act, 1998.
All proposed regulations and regulatory amendments relating to the 8% rebate would take effect on January 1, 2017. Others may have later effective dates having regard to the technical aspects of the proposal.
Ontario Clean Energy Benefit Act, 2010:
ENERGY is also proposing to amend O. Reg. 495/10 made under the Ontario Clean Energy Benefit Act, 2010 to specify final dates for submitting claims for unpaid financial assistance, and for reimbursement for financial assistance provided, under that Act
Further Information:
Link to Bill 13
Proposal Number:
16-ENE007
Posting Date:
September 28, 2016
Comments Due Date:
November 12, 2016
Contact Address:
77 Grenville Street, 6th Floor
Toronto, ON
M7A 2C1
Toronto, ON
M7A 2C1