Regulation - LGIC
Ontario Regulation 429/04 Amendments
Regulation Number(s):
O. Reg. 429/04
Instrument Type:
Regulation - LGIC
Bill or Act:
Electricity Act, 1998
Summary of Proposal:
The proposed regulatory amendments would be made in two specific areas of the Regulation to provide more equitable outcomes and improve overall alignment of the Regulation with the policy intention. The specific areas are:
1. Addressing ICI eligibility rules related to promoting continuity of ICI eligibility in scenarios where electricity is to be supplied by a new, grid-connected transmission line to an existing Class A facility. Proposed effective date: July 1, 2023.
2. Exempting GA charges for power purchased from outside of the province using private transmission lines. Proposed implementation date: May 1, 2024.
The first set of proposed amendments would allow for the electricity withdrawn at a new connection point by an existing Class A facility to be fully eligible for the ICI once the new connection is energized, rather than having to fulfill a full base period as a Class B customer in respect of that electricity.
The amendments would eliminate the need for a customer in such a scenario to establish their ICI eligibility for the new connection point. The proposed change would allow IESO or an LDC, as applicable, to amalgamate the demand of any customer with multiple connections at a single facility, whether transmission-connected or distribution-connected, for the purposes of determining their ICI eligibility and GA billing.
The second area of the proposed amendments would be aimed at creating an exemption from GA charges for customers who consume electricity supplied from outside of the province using private transmission lines. The rationale for the proposed changes is that the electricity in such cases does not give rise to the types of costs that GA is intended to recover, such as the difference between contracted supply and market price.
The proposed regulatory amendments may be subject to change after considering feedback from the Regulatory Registry (RR) posting and stakeholder consultations.
1. Addressing ICI eligibility rules related to promoting continuity of ICI eligibility in scenarios where electricity is to be supplied by a new, grid-connected transmission line to an existing Class A facility. Proposed effective date: July 1, 2023.
2. Exempting GA charges for power purchased from outside of the province using private transmission lines. Proposed implementation date: May 1, 2024.
The first set of proposed amendments would allow for the electricity withdrawn at a new connection point by an existing Class A facility to be fully eligible for the ICI once the new connection is energized, rather than having to fulfill a full base period as a Class B customer in respect of that electricity.
The amendments would eliminate the need for a customer in such a scenario to establish their ICI eligibility for the new connection point. The proposed change would allow IESO or an LDC, as applicable, to amalgamate the demand of any customer with multiple connections at a single facility, whether transmission-connected or distribution-connected, for the purposes of determining their ICI eligibility and GA billing.
The second area of the proposed amendments would be aimed at creating an exemption from GA charges for customers who consume electricity supplied from outside of the province using private transmission lines. The rationale for the proposed changes is that the electricity in such cases does not give rise to the types of costs that GA is intended to recover, such as the difference between contracted supply and market price.
The proposed regulatory amendments may be subject to change after considering feedback from the Regulatory Registry (RR) posting and stakeholder consultations.
Analysis of Regulatory Impact:
There are expected to be no new administrative costs for business under the proposal.
Further Information:
Proposal Number:
23-ENDM015
Posting Date:
April 17, 2023
Comments Due Date:
May 17, 2023
Contact Address:
77 Grenville St, 7th floor