Policy
Proposal to Enable a New Voluntary Enhanced Time-of-Use Rate Including Consideration of a New Ultra-Low Overnight Price
Regulation Number(s):
N/A
Instrument Type:
Policy
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Proposal:
The OEB will be consulting with stakeholders in February 2022 on specific proposed price design(s). This Registry consultation seeks more general input on the consideration of alternative price options. The consultation also seeks input on opportunities to address other electricity-sector barriers, as identified by the TEC, that could facilitate the further adoption of EVs.
Specifically, the ministry is seeking input on the following questions:
System and environmental perspective of optional rate
• To what extent could a new optional province-wide enhanced TOU pricing plan help shift RPP electricity demand to lower-demand, overnight periods for activities such as EV charging?
• How might an increased electricity price during periods of high demand (e.g. weekday afternoons/evening) and a lower electricity price during periods of low demand (e.g. overnight) help to integrate new sources of electricity demand, such as EV charging, into the distribution system? What impact might it have?
• How might government, its agencies and partners make use of the best available information, for example consumption data and EV ownership figures, to understand and forecast charging demand and profiles to inform a new rate design that ensures full cost recovery?
Customer perspective of optional rate
• How might an increased electricity price during periods of high demand and a lower electricity price during periods of lower demand help to remove barriers to households or small businesses in adopting EVs or other clean technologies? What impact might it have?
• What factors would be important to encourage consumers to opt into the new optional enhanced TOU rate plan?
Additional electricity sector opportunities
On November 15, 2021, the Minister of Energy wrote to the OEB to provide a new mandate letter. In this letter the Minister noted the expected increased adoption of EVs in the coming years and requested the OEB to "take steps to facilitate their efficient integration into the provincial electricity system, including providing guidance to Local Distribution Companies (LDCs) on system investments to prepare for EV adoption." With this in mind,
• How could LDC connection processes be improved for at-home and/or commercial charging infrastructure?
• How can government better facilitate information sharing between LDCs and future EV users so LDCs can make appropriate infrastructure investments and be prepared to meet needs?
• How could distribution costs for larger customers billed on a demand basis be changed to support activities such as EV charging? How could this be accomplished while mitigating any impact to other electricity customers?
• How could LDCs effectively invest in their infrastructure to support EV adoption in the province ahead of demand materialization? What role could non-wires alternatives play in such investments?
• How could residential net-metering arrangements (i.e., rooftop solar and battery storage) support residential EV charging, reduce electricity bills and reduce the need for distribution infrastructure?
Next steps on this proposal will be determined following the completion of this public consultation and receipt of the report back from the OEB. An additional proposal will be posted should it be determined that legislative and/or regulatory changes would be required to proceed with a change to RPP pricing or to address additional electricity-sector barriers.
Specifically, the ministry is seeking input on the following questions:
System and environmental perspective of optional rate
• To what extent could a new optional province-wide enhanced TOU pricing plan help shift RPP electricity demand to lower-demand, overnight periods for activities such as EV charging?
• How might an increased electricity price during periods of high demand (e.g. weekday afternoons/evening) and a lower electricity price during periods of low demand (e.g. overnight) help to integrate new sources of electricity demand, such as EV charging, into the distribution system? What impact might it have?
• How might government, its agencies and partners make use of the best available information, for example consumption data and EV ownership figures, to understand and forecast charging demand and profiles to inform a new rate design that ensures full cost recovery?
Customer perspective of optional rate
• How might an increased electricity price during periods of high demand and a lower electricity price during periods of lower demand help to remove barriers to households or small businesses in adopting EVs or other clean technologies? What impact might it have?
• What factors would be important to encourage consumers to opt into the new optional enhanced TOU rate plan?
Additional electricity sector opportunities
On November 15, 2021, the Minister of Energy wrote to the OEB to provide a new mandate letter. In this letter the Minister noted the expected increased adoption of EVs in the coming years and requested the OEB to "take steps to facilitate their efficient integration into the provincial electricity system, including providing guidance to Local Distribution Companies (LDCs) on system investments to prepare for EV adoption." With this in mind,
• How could LDC connection processes be improved for at-home and/or commercial charging infrastructure?
• How can government better facilitate information sharing between LDCs and future EV users so LDCs can make appropriate infrastructure investments and be prepared to meet needs?
• How could distribution costs for larger customers billed on a demand basis be changed to support activities such as EV charging? How could this be accomplished while mitigating any impact to other electricity customers?
• How could LDCs effectively invest in their infrastructure to support EV adoption in the province ahead of demand materialization? What role could non-wires alternatives play in such investments?
• How could residential net-metering arrangements (i.e., rooftop solar and battery storage) support residential EV charging, reduce electricity bills and reduce the need for distribution infrastructure?
Next steps on this proposal will be determined following the completion of this public consultation and receipt of the report back from the OEB. An additional proposal will be posted should it be determined that legislative and/or regulatory changes would be required to proceed with a change to RPP pricing or to address additional electricity-sector barriers.
Analysis of Regulatory Impact:
TBD
Further Information:
Link to Environmental Registry
Proposal Number:
21-ENDM037
Posting Date:
February 9, 2022
Comments Due Date:
March 28, 2022