Consultation on Time-of-Use Pricing Framework (EB-2007-0672)

Under the Regulated Price Plan (“RPP”), the Ontario Energy Board has set time-of-use (“TOU”) electricity prices for eligible consumers that have “smart meters” since May 2005.

TOU prices are designed to give consumers an incentive to shift their electricity use from “on peak” periods, when the price of electricity is highest, to “off peak” or “mid-peak” periods when electricity is relatively cheaper. Currently, about 20,000 consumers in Ontario have TOU prices. However, the number of consumers eligible for TOU pricing is expected to increase significantly over the next few years.

The Board is initiating a consultation process to assist it in determining whether there is a need to modify the current methodology for setting TOU electricity prices. On April 17, 2008, the Board posted a letter to inform interested parties of this initiative and how they can participate. The Board also posted a Staff Discussion Paper, Regulated Price Plan – Time-of-Use Prices: Design and Price Setting Issues (EB-2007-0672), that highlights some of the issues under consideration.

UPDATES

Date	Issue / Document

Jul 22-09	The Board has issued a revised Regulated Price Plan Manual that incorporates changes announced by the Board in its letter of May 13, 2009, as well as references to econometric modeling in relation to the setting of time-of-use prices. The revisions also include changes designed to more generally update the Manual to: (a) reflect changes in law, evolution in the marketplace and other relevant developments that have occurred since this Manual was originally issued in March 2005; and (b) reflect the fact that the processes and methodologies described in this Manual have now been in use by the Board for a number of years. These latter changes affect, among other things, the information basis upon which the Board sets Regulated Price Plan prices, but do not otherwise affect in a substantive way the manner in which the Board sets those prices. Revised Regulated Price Plan Manual
May 13-09	The Board has issued a Notice of Revision to the Regulated Price Plan Manual that changes time-of-use pricing periods and how global adjustment costs will be allocated and recovered through time-of-use prices. Notice of Revision
Jul 8-08	Additional submissions were received from the following: Canadian Federation of Independent Business (CFIB) Newmarket-Tay Power Distribution Ltd. Ontario Federation of Agriculture (OFA) Monica Smith Vulnerable Energy Consumers Coalition (VECC)
May 27-08	The following parties have made submissions in this consultation: Building Owners and Managers Association of the Greater Toronto Area (BOMA) Canadian Manufacturers and Exporters (CME) Coalition of Large Distributors (CLD) Direct Energy Energy Cost Management Inc. (ECMI) Electricity Distributors Association (EDA) Hydro One Networks Inc. (HONI) London Property Management Association (LPMA) Ontario Energy Savings L.P. (OESLP) Ontario Power Authority (OPA) Pollution Probe Individual submissions can be accessed by clicking on the name of the submitter.
May 15-08	Intervenors Requesting Cost Awards: Building Owners and Managers Association of the Greater Toronto Area (BOMA) Canadian Manufacturers and Exporters Consumers Council of Canada London Property Management Association Pollution Probe Vulnerable Energy Consumers Coalition Licensed electricity distributors have an opportunity to object to any of the requests for cost award eligibility. If an electricity distributor has any objections to any of the requests for cost eligibility, such objections must be filed with the Board by 4:45 p.m. on May 22, 2008. Any objections will be posted on the Board’s website. The Board will then make a final determination on the cost eligibility of the requesting parties.
Apr 17-08	The Board has posted a letter that explains how interested parties can participate in this consultation and a Staff Discussion Paper, Regulated Price Plan – Time-of-Use Prices: Design and Price Setting Issues (EB-2007-0672) that highlights some of the issues under consideration. Letter Staff Discussion Paper

CONTACT

For more information, please contact Russell Chute at 416-440-7682 or by email at Russell.Chute@oeb.gov.on.ca.