Regulation - LGIC

Proposed amendments to O. Reg. 442/01 (Rural or Remote Electricity Rate Protection) and O. Reg. 315/14 (Ontario Electricity Support Program) made under the Ontario Energy Board Act, 1998 (OEBA) and proposed regulations under the OEBA as enabled under the Ontario Fair Hydro Plan Act, 2017, if passed.

Regulation Number(s):
new regulations as appropriate
Instrument Type:
Regulation - LGIC
Bill or Act:
Ontario Energy Board Act, 1998; proposed Ontario Fair Hydro Plan Act, 2017
Summary of Proposal:
ENERGY proposes to create new regulations under the OEBA, if the OFHPA is passed, which would provide the framework to deliver broadened distribution rate protection (DRP) First Nations Delivery Credit (FNDC) and to streamline signing up social assistance clients for the OESP. Proposed regulations would define eligibility scope, reimbursement process for LDCs, reporting, record-keeping and auditing requirements.

Proposed regulations for DRP establish a mechanism for OEB to calculate maximum monthly distribution charge for prescribed consumers. This charge would be established by calculating the fully-fixed base distribution rates, using approved 2017 rates for the prescribed residential rate classes of a prescribed group of distributors, having regards to costs.

The proposed prescribed LDCs and residential rate classes would be: Hydro One R2&R1; Algoma R-1 (excl. reclassified); Atikokan; InnPower; Chapleau; Sioux Lookout; Lakeland-Parry Sound rate schedule; North Ont Wires.

Proposed amendments (DRP, RRRP, FNDC) would enable payment flows to prescribed LDCs to allow recovery of rate protection provided to customers. Planned payment flows will follow the same reimbursement process under ORECA, including requirements to provide information for reimbursement purposes, duty to provide information, records, invoicing requirements.

ENERGY proposes amending O. Reg. 442/01 to prescribe tax-based funding for Hydro One's R2 customers to cover costs of the total amount of rate protection for Hydro One's R2 customers. Proposed amendments will provide for a fixed monthly credit ($60.50), replacing the existing prescribed annual amount and will remove the escalating factor, as provisions under the DRP provide additional benefits.

Proposed amendments would enable payment flows to Hydro One to allow recovery of RRRP payments made to its customers.

ENERGY proposes bringing forward a regulation that would provide program parameters for the provision of an on-reserve First Nations Delivery Credit. The proposed amendments would, if approved, provide for a credit of 100% of the delivery line to on-reserve First Nation residential customers.

For First Nations on-reserve customers that are served by LDCs where customers are not billed a delivery charge, the credit will eliminate a monthly service charge or minimum monthly charge from the bill.

The program is to be funded through the tax base similar to the ORECA model. Proposed amendments would enable payment flows to LDCs to allow recovery of credits provided to customers.

The program would not limit any eligibility for existing rate relief programs that mitigate total bill such as the Low Income Energy Program (LEAP) or OESP.

The FNDC will appear as a visible line item on the bill that clearly demonstrates savings. Residential customers living on-reserve, would automatically receive the credit.

There are 11 LDCs identified by OEB that provide service to on-reserve customers who are expected to be affected by the program: Algoma, Attawapiskat, Bluewater, Cat Lake, Cornwall, Fort Albany, Kashechewan, Hydro One, Remote Communities, PUC (Sault Ste. Marie), Thunder Bay.

All proposed regulations and regulatory amendments would take effect on the date that they are filed.

ENERGY proposes amending O. Reg. 314/15 to enable the Ministry of Community and Social Services and the OEB to streamline signing up social assistance clients for the OESP.
Further Information:
Proposal Number:
Posting Date:
May 12, 2017
Comments Due Date:
June 10, 2017
Contact Address:
77 Grenville Street, 6th Floor
Toronto, ON
M7A 2C1