O. Reg. 277/14: PAYMENTS RE SECTION 25.33 OF THE ACT

Link to law: http://www.ontario.ca/laws/regulation/r14277
Published: 2014-12-16

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ontario regulation 277/14

made under the

Electricity Act, 1998

Made: December 10, 2014
Filed: December 16, 2014
Published on e-Laws: December 16, 2014
Printed in The Ontario Gazette: January 3, 2015


Amending O. Reg. 430/04

(PAYMENTS RE SECTION 25.33 OF THE ACT)

1. Section 4 of Ontario Regulation 430/04 is revoked and the following substituted:

Amounts: IESO sales directly to regulated consumers

4. (1) In this section,

  “A” is the amount payable by regulated consumers to the IESO for electricity for a month, calculated at the regulated prices for each regulated consumer, for the net volume of electricity withdrawn from the IESO-controlled grid by the regulated consumers, other than the volume of electricity, if any, purchased during the month by regulated consumers under physical bilateral contracts submitted to the IESO in accordance with the market rules, and

  “B” is the amount that would be payable by the same regulated consumers to the IESO for electricity for the same volume of electricity for the same month if the amount were to be calculated under the market rules, subject to the adjustment allocated to those regulated consumers for that month by the IESO in accordance with Ontario Regulation 429/04 (Adjustments under Section 25.33 of the Act) made under the Act.

(2) If there is a difference between “A” and “B”, the IESO shall record the amounts of such difference in a variance account used by the IESO to track amounts related to “A” and “B” before the end of the second month following the month referred to in “A”.

2. (1) The definition of “D” in subsection 5 (1) of the Regulation is amended by adding “with” after “in accordance”.

(2) Subsections 5 (2), (3), (4) and (5) of the Regulation are revoked and the following substituted:

(2) If there is a difference between a licensed distributor’s “C” and “D”, the licensed distributor shall give the IESO such information as the IESO may specify with respect to the amounts in the form specified by the IESO and before the expiry of the period specified by the IESO.

(3) The following rules apply if a licensed distributor’s “C” is greater than “D”:

1. The licensed distributor shall make a payment equal to the difference to the IESO before the expiry of the period specified by the IESO.

2. The IESO shall record the payment required under paragraph 1 in a variance account used by the IESO to track the amounts related to “C” and “D” after receiving the information required under subsection (2) and before the end of the second month following the month referred to in “C”.

(4) If a licensed distributor’s “C” is less than “D”, the IESO shall, after receiving the information required under subsection (2), make a payment equal to the difference to the licensed distributor, and record the amount of the payment in the variance account referred to in paragraph 2 of subsection (3).

(5) If the IESO establishes protocols under section 11 authorizing interim payments based on estimates with subsequent adjustments, subsections (1), (2), (3) and (4) apply with necessary modifications with respect to the interim payments.

3. (1) Subsection 6 (2) of the Regulation is amended by adding “and” at the end of clause (a), by striking out “and” at the end of clause (b) and by revoking clause (c).

(2) Paragraph 3 of subsection 6 (3) of the Regulation is revoked and the following substituted:

3. The IESO shall record the payment required under paragraph 1 in a variance account used by the IESO to track the amounts related to “E” and “F” after receiving the information required under clause (2) (b) and before the end of the second month following the month referred to in “E”.

(3) Subsections 6 (4) and (5) of the Regulation are revoked and the following substituted:

(4) The following rules apply if an embedded distributor’s “E” in relation to a host distributor is less than “F”:

1. The IESO shall, after receiving the information required under clause (2) (b), make a payment equal to the difference to the host distributor and record the amount of the payment in the variance account referred to in paragraph 3 of subsection (3).

2. The host distributor shall make a payment equal to the payment required under paragraph 1 to the embedded distributor before the expiry of the period specified by the Board.

4. Subsections 11 (1) and (2) of the Regulation are revoked and the following substituted:

Interim payments based on estimates

(1) The IESO may establish protocols authorizing interim payments based on estimates with subsequent adjustments under any of the following provisions:

1. Paragraph 1 of subsection 5 (3) and subsection 5 (4).

2. Paragraph 2 of subsection 6 (3) and paragraph 2 of subsection 6 (4).

5. Sections 13, 14, 15 and 16 of the Regulation are revoked and the following substituted:

Reporting to the IESO and Board

13. (1) Upon request, a licensed distributor, embedded generator or retailer shall give the IESO such information relating to payments required by this Regulation as the IESO may require in the form and within the period specified by the IESO.

(2) Upon request, the IESO, a licensed distributor, embedded generator or retailer shall give the Board such information relating to payments required by this Regulation as the Board may require in the form and within the period specified by the Board.

Method of payment

14. (1) Payments required by this Regulation between licensed distributors and the IESO may be made at the option of the IESO by way of set-off in the accounts maintained by the IESO. 

(2) Payments required by this Regulation between an embedded distributor and its host distributor may be made at the option of the host distributor by way of set-off in the accounts maintained by the host distributor.

Timing of payment

15. The IESO shall make each payment to a licensed distributor that is required by this Regulation after the IESO receives the required information from the licensed distributor in accordance with this Regulation, and the payment shall be reflected in the first invoice sent to the licensed distributor after the IESO receives that information from the licensed distributor.

Reliance on certain information

16. (1) For the purposes of the payments required by this Regulation between the IESO and licensed distributors, the IESO shall rely on the information provided to it by the licensed distributors. 

(2) For the purposes of payments required by this Regulation between host distributors and embedded distributors, host distributors shall rely on the information provided to them by the embedded distributors.

Commencement

6. This Regulation comes into force on the later of January 1, 2015 and the day it is filed.