| Home | Industry Relations | OEB Key Initiatives | Rate Protection - Determination of Direct Benefits |    |
Rate Protection and the Determination of Direct Benefits under Ontario Regulation 330/09 (EB-2009-0349)
The Green Energy Act introduced a mechanism whereby some of the Board-approved costs incurred by a distributor to make an ‘eligible investment’ for the purpose of connecting a ‘renewable energy generation facility’ to its distribution system may be recovered from all provincial ratepayers rather than solely from the ratepayers of the distributor making the investment.
Regulation 330/09 sets out the framework for the determination of the amount which may be recovered from all provincial ratepayers. In particular, the difference between:
(a) the costs associated with making an eligible investment and determined to be the responsibility of the distributor in accordance with the Distribution System Code, and
(b) the amount the Board determines to represent the ‘direct benefits’ that accrue to prescribed consumers as a result of all or part of the eligible investment made or planned to be made by the distributor.
The amount the Board determines to represent the ‘direct benefits’ that accrue to prescribed customers of the distributor will also represent the amount that will be recovered from the distributor’s customers. The Board is initiating a consultation process to address how the Board should determine what constitutes those ‘direct benefits’ and the methodology for quantifying them.
UPDATES
|
Date |
Issue / Document |
|---|---|
|
Oct 28-09 |
The Board has issued its Decision on Cost Eligibility in relation to this initiative. |
|
Oct 16-09 |
The Board has posted requests for cost eligibility received in relation to the Board’s consultation process to address how the Board should determine the direct benefits that accrue to the consumers of a distributor when that distributor has incurred costs to make an eligible investment to accommodate renewable generation. Electricity distributors who wish to object to any of the cost eligibility requests must file their objection with the Board by October 23, 2009.
|
|
Sep 25-09 |
The Board has issued a letter to notify all interested parties of the Board’s intent to initiate a consultation process in the coming weeks to address how the Board should, in accordance with the requirements of Ontario Regulation 330/09, determine the direct benefits that accrue to the consumers of a distributor when that distributor has incurred costs to make an eligible investment in its distribution system to accommodate a renewable energy generation facility. |
CONTACT
For more information, please contact Chris Cincar at chris.cincar@oeb.gov.on.ca or at 416-440-7696.