STANDARD APPLICATION OF RATES MANUAL


As part of its mandate to regulate Ontario's electricity industry, the Ontario Energy Board is assessing the Ontario Hydro Standard Application of Rates Manual to decide which parts of this document require incorporation into the Rates Handbook and/Codes presently under development, and which parts are no longer relevant under the new regulatory regime.


Attached, for your information, is an unofficial update of this document that was prepared by Ontario Hydro in consultation with the MEUs in 1996, but never issued due to impending changes in legislation.


If you have any concerns about this matter or see any issues that need to be dealt with, please call Martin Davies at 416-440-8107.







MAJOR CHANGES/REVISIONS BETWEEN THE 1991 ONTARIO HYDRO STANDARD APPLICATION OF RATES MANUAL AND THE
UNISSUED 1996 UPDATE



The following list describes some of the major changes/revisions between the issued 1991 Ontario Hydro Standard Application of Rates Manual and the attached unissued 1996 update. This summary is not intended to be all-inclusive of every difference between the two versions. For example, there are Section changes reflecting a change in the ordering of the material and small wording/editorial revisions that are not mentioned here.


  1. The 1996 version incorporates a Preamble that explains the purpose, uses and legal status of the document.

  2. The 1996 version places the legislative authorities in a separate Section, whereas in 1991, they were part of the general policies Section II.

  3. The 1996 version incorporated policies for Time-of-Use (TOU) services in a number of the Sections, representing an addition to the 1991 version.

  4. General Policies, Section II, 9, in the 1996 manual "Access to and inspection of equipment, including meters," is a new section.

  5. General Policies, Section II, 10 - 15 in the 1996 manual on payment of bills, late payment charges and related topics are revisions and expansions of Section II, 11 - 13 in the 1991 version.
  6. General Policies, Section II, 16,17 in the 1996 manual on dispute involvement by Industry Canada and the dispute involvement charge are revisions and expansions of Section II, 22 in the 1991 version.

  7. General Policies, Section II, 18 in the 1996 manual on security deposits is significantly expanded from Section II, 14 in the 1991 version.

  8. General Policies, Section II, 19 and 20 in the 1996 manual on proration of accounts and special service facilities have expanded and clarified Section II, 15 and 16 respectively from the 1991 version..

  9. A number of paragraphs contained in the 1991 manual's General Policies Section have been dropped from or relocated within the 1996 version, including (8) 'Suburban Service,' (10) 'Disposal Restrictions' that have been removed and (21) 'Rental Equipment' that has been put into Section IX.

  10. The 1996 manual's Residential Service Section does not discuss seasonal occupancy as was done in the 1991 version.

  11. In the 1996 version of the Residential Service Section, the 'Application' subsection contains the statement that when the Supply Authority is, at its discretion, applying residential rates to apartment buildings: The alternative selected by the Supply Authority must be applied consistently throughout its jurisdiction. This statement is not in the 1991 version.

  12. The 1996 version also contains another additional qualifier in this section that is again not contained in the 1991 version (but is in Section IV General Service) to the effect that:

      Where electric service is provided to combined residential and business (including agricultural usage) and the wiring does not provide for separate metering, the service classification shall be at the discretion of the Supply Authority. It should be based on such things as the estimated predominate consumption or the municipal tax roll classification.

  13. The 1996 version's Residential Service Section contains a paragraph on other rate options that is not included in the 1991 version.

  14. The 1996 version's General Service Section IV contains similar additions to the Application paragraph to those quoted above for the Residential Service Section.

  15. Section IV, 6, 7, 8, 'Billing Demand,' 'Transformer Losses' and 'Allowance for non Supply Authority owned step down facilities' are rewritten from the 1991 version's equivalent sections.

  16. The 1996 manual's General Service Section IV does not include the coverage of Intermittent Loads that was in Section IV, 10 of the 1991 version.

  17. The 1996 version's Commercial-Industrial Service Section V is a revision to Section VII from the 1991 version. It contains similar additions to the Application paragraph to those quoted above for the Residential Service Section as well as a similar new paragraph on billing frequency.

  18. The 1996 version contains a new section on Intermediate Use Service Section VI that was not in the 1991 version as a separate section, but was discussed in a different way in Section IV, General Service, 3 Intermediate user in 1991.

  19. The 1996 manual's Section VII, Large Use Service, has an expanded and revised Application section, relative to the 1991 version.

  20. The 1996 manual's Section VIII, Municipal Street Lighting Service, does not contain the paragraph on Equipment charge that appears in the 1991 version.

  21. The 1996 manual contains an additional section on Equipment Rentals, not contained in the 1991 version.

  22. The Examples and Explanatory Notes and Definitions Sections in the 1996 version are revised and significantly expanded from the equivalent Sections in the 1991 version.



1999 09 08







DRAFT STANDARD

APPLICATION

OF RATES

AND CHARGES




FOR USE BY

MUNICIPAL ELECTRIC UTILITIES

IN ONTARIO









TABLE OF CONTENTS


    PREAMBLE

    SECTION I - LEGISLATIVE AUTHORITY
    1. Governing legislation
    2. Power Corporation Act authority
    3. Schedule of rates and charges

    SECTION II - GENERAL POLICIES
    1. Supply contract
    2. Terms of contract
    3. Interpretations and regulations
    4. Time-of-use (TOU) service and time periods
    5. Time-of-use metering costs
    6. Supply voltages
    7. Non-discrimination
    8. Resale restrictions
    9. Access to and inspection of equipment, including meters
    10. Payment of bills
    11. Late payment charge
    12. Collection of account
    13. Disconnection of electric service
    14. Reconnection of electric service
    15. Billing errors
    16. Dispute involvement by Industry Canada
    17. Dispute involvement charge
    18. Security deposits
    19. Proration of accounts
    20. Special service facilities
    21. Temporary electric service
    22. Account setup charge
    23. Returned cheque charge
    24. Specific service charges, including work done at a customer's request
    25. Disagreement

    SECTION III - RESIDENTIAL SERVICE
    1. Application
    2. Billing frequency
    3. Flat-rate services
    4. Other rate options

    SECTION IV - GENERAL SERVICE
    1. Application
    2. Small scattered loads
    3. Billing frequency
    4. Measured demand
    5. Power Factor
    6. Billing demand
    7. Transformer losses
    8. Allowance for non Supply Authority owned step down facilities
    9. Flat-rate services
    10. Emergency service and back-up power service
    11. Other rate options

    SECTION V - COMMERCIAL-INDUSTRIAL SERVICE
    1. Application
    2. Billing frequency
    3. Application of Section IV
    4. Premises of worship

    SECTION VI - INTERMEDIATE USE SERVICE
    1. Application
    2. Billing frequency
    3. Measured demand
    4. Application of Section IV

    SECTION VII - LARGE USE SERVICE
    1. Application
    2. Billing frequency
    3. Measured demand
    4. Application of Section IV

    SECTION VIII - MUNICIPAL STREET LIGHTING SERVICE
    1. Application
    2. Billing frequency

    SECTION IX - EQUIPMENT RENTALS
    1. Application
    2. Billing frequency
    3. Equipment rental charge

    SECTION X - EXAMPLES AND EXPLANATORY NOTES
    1. Resale restrictions
    2. Partial payment of bills
    3. Late payment charge
    4. Security deposit policy
    5. Proration of accounts
    6. Billing demand adjustment to reflect power factor
    7. Transformer losses and non Supply Authority owned stepdown faclities
    8. Transformer losses and allowances in the absence of measured quantities

    GLOSSARY DEFINITIONS
    1. Actual costs
    2. Back-up power
    3. Billing demand
    4. Contract
    5. Customer
    6. Due date
    7. Electric service
    8. Emergency service
    9. Energy
    10. Late payment charge
    11. Measured demand
    12. Municipal corporation
    13. Point of delivery
    14. Restricted hour service
    15. Specific service charges
    16. Standard of service
    17. Supply
    18. Supply Authority
    19. Supply voltage
    20. Utilization voltage











PREAMBLE


  1. This document and its contents have been approved by Ontario Hydro, with respect to its regulatory responsibility and authority over the municipal electric utilities in Ontario, to provide them with guidance in the application of the rates and charges they charge to their customers.


  2. It forms an integral part of a Supply Authority's Schedule of Rates and Charges as approved by Ontario Hydro.


  3. While this document does not have the same status in law as a statute or its supporting regulations, it nevertheless provides the Supply Authority with a reasonable outline, interpretation and application of various legislative Acts and other policies that establish the limits under which Ontario Hydro regulates its operation.


  4. Despite the effective date of this document being *********, the actual implementation of its contents by a Supply Authority will be at the effective date of its next change in rates and charges. Until that time, the material as outlined in the January 1, 1991 edition of the Standard Application of Rates shall be used.


  5. When seeking direction on a specific aspect, the entire document must be taken into consideration, not just the reference in a particular Section. For example, the reference to the need for the approval of Ontario Hydro for a rate or charge is dealt with in the first Section and, therefore, not required throughout the rest of the document. It should be noted, however, that there are explicit mentions in the document whenever the approval of Ontario Hydro is not required.


  6. The inclusion of the numerous examples and explanatory notes in Section X and the set of definitions in the Glossary hopefully will provide a better understanding of a particular application.










SECTION I - LEGISLATIVE AUTHORITY


  1. Governing legislation
      Upon application to the Supply Authority by the customer, service and energy shall be supplied to the customer in accordance with the provisions of the Power Corporation Act and the Public Utilities Act.

  2. Power Corporation Act authority
      Section 113 (1) of the Power Corporation Act RSO 1990 c.P.18, as amended, states "The rates and charges for supplying power, and the rents and charges to meet the cost of any work or service done or furnished for the purposes of a supply of power, chargeable by any municipal corporation generating or receiving and distributing power are subject at all times to the approval and control of the Corporation [Ontario Hydro]...."

  3. Schedule of rates and charges
      All rates, rents and charges of the Supply Authority shall be in accordance with the Schedule of Rates as approved by Ontario Hydro. Such schedules may contain rates, rents and charges, or their applications, which are not specifically provided for in this publication.











SECTION II - GENERAL POLICIES


  1. Supply contract
      The supply of service and energy implies a contractual obligation between the Supply Authority and the customer. The Supply Authority, at its option, may enter into a written contract with the customer. The contractual obligation for the supply of energy, whether implied or written, shall be considered as having a term of one year and continue on a month to month basis until terminated by either party. Any special contractual arrangements entered into between the customer and the Supply Authority shall take precedence over the standard contractual obligation. The Supply Authority may terminate the contract, notwithstanding the provisions of this paragraph, where the customer no longer requires the supply of service and energy.

  2. Terms of contract
      Upon request, the Supply Authority shall make available to the customer, the terms and conditions for the supply of service and energy. The terms and conditions for the supply of service and energy may be amended from time to time.

  3. Interpretations and regulations
      The supply of service and energy by the Supply Authority to the customer shall be subject to the clauses herein as amended from time to time, and to such additional terms and conditions as may be adopted by the Supply Authority.

  4. Time-of-use (TOU) service and time periods
      Providing the Supply Authority is billed by Ontario Hydro on time-of-use (TOU) rates, the Supply Authority at its discretion may adopt TOU retail rates on either an optional or mandatory basis for residential customers, as classified in Section III, and general service customers, as classified in Section IV. TOU retail rates are mandatory for intermediate use customers, as classified in Section VI, and large use customers as classified in Section VII. Time periods for TOU retail rates are stipulated on the Supply Authority's schedule of rates and charges.

      The seasonal effects of TOU rates on revenue and cost recovery should be taken into consideration. For example, for TOU rates offered on an optional basis, the customer should be required to remain in the particular class for a period of at least twelve months from the start of the service classification. For mandatory TOU rates, the classification of the customer is at the discretion of the Supply Authority.

  5. Time-of-use metering costs
      Where the Supply Authority has established optional TOU rates, an amount representing the additional monthly cost associated with the use of TOU metering equipment over non-TOU metering equipment is to be included in the charges to the customers choosing these optional rates, either through the optional rates or through a capital contribution.

  6. Supply voltages
      Electric service shall be provided at the voltages and number of phases as available from the Supply Authority for residential, general service, commercial, industrial, or for special purposes.

  7. Non-discrimination
      There shall be no undue discrimination among customers of the Supply Authority as to rates, charges or service.

  8. Resale restrictions
      As outlined in Section 3(1) of the Municipal Franchises Act, R.S.O. 1990 c.M.55, no person shall acquire the right to supply to inhabitants of a municipality any energy, unless a by-law has been assented to by the municipal electors.

      As a result, unless such a by-law has been assented to, no customer of the Supply Authority shall resell any energy supplied by the Supply Authority. It is the responsibility of the Supply Authority to ensure that any submetering arrangement is not a resale. The Attorney General is responsible for the prosecution of a customer who is accused of reselling electricity. For further information, refer to Example 1 of Section X - Examples and Explanatory Notes.

  9. Access to and inspection of equipment, including meters
      As outlined in Section 50 of the Public Utilities Act, R.S.O. 1990 c.P.52, the Supply Authority has the right to free access to a customer's premises for the inspection and reading of meters and other equipment and the removal of the same, if deemed necessary. Normally, meters should be read by a representative of the Supply Authority at least once a year.

  10. Payment of bills
      Bills are due when rendered by the Supply Authority. A customer may pay the bill without the application of a late payment charge up to a due date, which shall be a minimum of sixteen calendar days from the date of mailing or hand delivery of the bill. This due date shall be identified clearly on the customer's bill.

      Where payment is made by mail, payment will be deemed to be made on the date post marked. Where payment is made at a financial institution acceptable to the Supply Authority, payment will be deemed to be made when stamped/acknowledged by the financial institution or an equivalent transaction record is made.

      A partial payment will be applied to any outstanding arrears before being applied to the current billing, unless special considerations have been made by the Supply Authority. For further information, refer to Example 2, Section X - Examples and Explanatory Notes.

  11. Late payment charge
      Where the total amount of the bill has not been paid within the time outlined in Clause 10, a one time 5% late payment charge shall be applied to the amount of the bill outstanding on the due date exclusive of any applicable taxes (eg. G.S.T.) as well as the arrears from previous billings. The charge is intended to cover part of the costs associated with collection efforts created by customers delinquent on their accounts. It is not an interest charge. For further information, refer to Example 3, Section X - Examples and Explanatory Notes.

  12. Collection of account
      Steps should be taken by the Supply Authority to collect the total amount of the bill, if not paid within the time outlined in Clause 10. A collection of account charge may be made if a representative of the Supply Authority is dispatched to collect the account. However, this charge shall only be applied if the Supply Authority is successful in collecting an acceptable portion of the account. The customer shall be subject either to a collection of account charge or a reconnection charge, as outlined in Clause 14, in any billing period, unless partial payments of the account have been accepted by the Supply Authority. If partial payments have been accepted through a collection trip, more than one collection of account charge or a reconnection charge may be made in one billing period, but the number of such charges should not exceed the number of partial payments received by the Supply Authority.

  13. Disconnection of electric service
      A disconnect notice will be issued in writing not less than seven days after the due date, as defined in Clause 10. A notice which is given by mail shall be deemed to be received by the customer on the third working day after mailing. Both the customer and tenants of the customer will receive seven days' notice before cut-off.

      Prior to the disconnection of the electric service, a representative of the Supply Authority will make reasonable efforts to establish direct contact with the customer. The Supply Authority should also, where possible, notify the occupants of each separately occupied unit in the premises. The electric service will not be disconnected by reason of the non-payment of bills until seven days after a disconnection notice has been given to the customer and as set out in this Clause.

      As outlined in Section 28(3) and Section 59 of the Public Utilities Act R.S.O. 1990 c.P.52, the Supply Authority may shut off the supply of electric service due to non-payment of account, but such an action does not relieve the customer of the liability for arrears together with the expenses of cutting off the supply.

  14. Reconnection of electric service
      Where the electric service has been disconnected in order to collect the account and then reconnected, a reconnection of service charge may be applied. The customer shall be subject either to a collection of account charge, as outlined in Clause 12, or to a reconnection of service charge in any billing period, unless partial payments of the account have been accepted by the Supply Authority. If partial payments have been accepted through a collection trip, more than one collection of account charge or a reconnection charge may be made in one billing period, but the number of such charges should not exceed the number of partial payments received by the Supply Authority.

  15. Billing errors
      Where a billing error, from any cause, has resulted in an over billing, and where Industry Canada has not become involved in a dispute, as outlined in Clause 16, the customer will be credited with the amount erroneously paid. For practical reasons, such as records retention, the amount erroneously paid for a period up to six years normally is considered appropriate.

      Where a billing error, from any cause, has resulted in an under billing, and where Industry Canada has not become involved in a dispute, as outlined in Clause 16, the customer will be charged with the amount erroneously not billed. In the case of an individual residential customer not responsible for the error, the usual practice is to use a period not exceeding two years. For other applications, including instances of wilful damage as outlined in Section 53 of the Public Utilities Act, R.S.O. 1990 c.P.52, the amount erroneously not billed for a period of up to six years is considered appropriate.

  16. Dispute involvement by Industry Canada
      The Supply Authority has an obligation to inform the customer of the assistance provided by Industry Canada in a dispute investigation. Industry Canada has jurisdiction, under the federal Electricity and Gas Inspection Act, in a dispute involvement between the Supply Authority and its customer where the condition or registration of a meter or metering installation is in question. Typically, Industry Canada will verify the accuracy of the meter and/or the metering installation, meter and billing multipliers used and the application of the rate structures. Once Industry Canada becomes involved, the provisions of the federal Act take precedence over any provincial requirements.

  17. Dispute involvement charge
      At the discretion of the Supply Authority, a dispute involvement charge for utility services related to the Industry Canada review of a customer initiated dispute investigation may be made by the Supply Authority to the customer if Industry Canada dismisses the dispute.

  18. Security deposits
      Under Section 50(4) of the Public Utilities Act, R.S.O. 1990 c.P.52, the Supply Authority may require a customer to give a reasonable security deposit before supplying or as a condition of continuing to supply service. The Supply Authority should have a written policy approved by its Commission, establishing the terms and conditions for the taking of such a deposit from its customers. The application, level and form of security deposits are not subject to Ontario Hydro approval. For further information, refer to Example 4, Section X - Examples and Explanatory Notes.

  19. Proration of accounts
      Accounts shall be prorated where the initial bill or final bill to a customer is for a time period that is different from the normal billing period or where the rates have been revised effective on a date not coincident with the customer's billing date. The proration is done according to the following principles:

      • For accounts billed only on energy consumption, proration will consist of revising the length of the consumption blocks of the rate structure in proportion to the number of days in the actual billing period to the number of days in the normal billing period. The minimum bill and equipment rental charges may be prorated in the same manner.

      • For accounts billed on both energy consumption and demand, the energy blocks will be revised as above and the size of the first demand block and the billing demand will be revised upward or downward in proportion to the number of days in the actual billing period.

      • Allowances for non utility owned transformation, if required, shall be applied to the prorated billing levels.

      For further information, refer to Example 5, Section X - Examples and Explanatory Notes.

  20. Special service facilities
      Where the use of a customer's equipment interferes with the supply to other customers or requires the installation of other than normal supply facilities, the Supply Authority may, at its discretion, require the customer to cease use of, or make alterations to, the offending equipment as a condition of continuing service to that customer.

      If other than normal facilities are required to provide satisfactory service to this customer or to prevent undue disturbance to other customers, such additional facilities shall be supplied at the customer's expense.

  21. Temporary electric service
      Temporary electric service, including community decorative lighting, should be provided at regular residential, general, or commercial/industrial service rates as appropriate. At the discretion of the Supply Authority, the account may be prorated based on the number of days the service was in use.

      In addition to the charge for energy, the customer should pay for the cost of erecting and removing any additional equipment and a rental charge may be made for transformation equipment supplied by the Supply Authority specifically for this service.

      If deemed advisable, a deposit in guarantee of the account may be collected.

  22. Account setup charge
      At the discretion of the Supply Authority, an account setup charge may be applied when a new account is opened in order to recover the costs associated with the set up of the new account directly from those customers creating the costs. If such a charge is established, it must be applied consistently to all accounts.

  23. Returned cheque charge
      Where a customer renders a cheque in payment of an account and the cheque is returned by the financial institution for faulty issue, a charge known as a returned cheque charge may be added to the customer's account to cover the cost associated with processing the returned cheque.

  24. Specific service charges, including work done at a customer's request
      For the provision of services that are not included in a Supply Authority's standard level of service, including work done at a customer's request, the Supply Authority may charge the customer at actual costs or through a specific service charge, depending on the type of service. When a customer is billed the actual cost of the work, Ontario Hydro approval of the charge is not required.

      Where the Supply Authority has approval to levy this type of a specific service charge, it may waive the charge as long as it does so consistently without undue discrimination.

  25. Disagreement
      Should any disagreement arise out of the wording or intent of the Clauses contained in this document, it shall be referred to Ontario Hydro whose decision shall be final.








SECTION III - RESIDENTIAL SERVICE


  1. Application
      All service supplied to single-family dwelling units for domestic or household purposes shall be classed as residential service.

      Multi-unit residential establishments such as apartment buildings supplied through one service (bulk metered) normally shall be classified as general service. At its discretion, the Supply Authority may apply residential rates to apartment buildings with six or less units by the simple application of the residential rate or by blocking the residential rate by the number of units. The alternative selected by the Supply Authority must be applied consistently throughout its jurisdiction.

      Where electric service is provided to combined residential and business (including agricultural usage) and the wiring does not provide for separate metering, the service classification shall be at the discretion of the Supply Authority. It should be based on such things as the estimated predominate consumption or the municipal tax roll classification.

  2. Billing frequency
      Rates are quoted on a monthly basis. At the discretion of the Supply Authority, accounts may be rendered on a different billing frequency (eg. bi-monthly, quarterly or semi-annually). The application of billing on other than a monthly basis requires multiplying the energy block sizes and minimum bills by a factor to correspond to the billing period (eg. for bi-monthly billing the factor is two and for quarterly billing the factor is three).

  3. Flat-rate services
      With due regard to the wise use of energy, energy may be supplied on a monthly flat-rate basis for applications such as water heating, sentinel lighting and other services where conditions warrant, and under conditions of supply established by the Supply Authority.

  4. Other rate options
      Contracts for other rate options, such as time of use rates, may be made with residential customers under conditions and rates which will be determined by the Supply Authority.








SECTION IV - GENERAL SERVICE


  1. Application
      All service supplied to premises other than those classified as residential under Section III, commercial-industrial under Section V, intermediate use under Section VI, large use under Section VII, or municipal street lighting under Section VIII shall be classified as general service.

      Multi-unit residential establishments such as apartment buildings supplied through one service (bulk metered) normally shall be classified as general service. At its discretion, the Supply Authority may apply residential rates to apartment buildings with six or less units by the simple application of the residential rate or by blocking the residential rate by the number of units. The alternative selected by the Supply Authority must be applied consistently throughout its jurisdiction.

      Where electric service is provided to combined residential and business (including agricultural usage) and the wiring does not provide for separate metering, the service classification shall be at the discretion of the Supply Authority. It should be based on such things as the estimated predominate consumption or the municipal tax roll classification.

      At the discretion of the Supply Authority, it may offer time of use rates, either mandatory or at the customer's option, for its general service customers. Normally, the classification of an individual customer into this option shall be based on its monthly maximum kilowatt component of demand averaged over the most recent twelve consecutive months, regardless of whether the demand occured in the peak or off-peak periods.

  2. Small scattered loads
      Each location to which service is supplied to small loads scattered throughout the distribution system of the Supply Authority, such as traffic signals and control lighting (other than municipal street lighting), sign and display lighting, telephone booths, and cable television amplifiers, shall be considered as a separate service. The energy either may be measured or estimated, at the discretion of the Supply Authority.

  3. Billing frequency
      Rates are quoted on a monthly basis. At the discretion of the Supply Authority for customers with billing demands less than or equal to 50 kW, accounts may be rendered on a different billing frequency (eg. bi-monthly, quarterly or semi-annually). The application of billing on other than a monthly basis requires multiplying the energy block sizes and minimum bills by a factor to correspond to the billing period (eg. for bi-monthly billing the factor is two and for quarterly billing the factor is three).

      For customers with billing demands greater than 50 kW, accounts shall be rendered monthly.

  4. Measured demand
      For general service customers on non TOU based rates, the measured demand shall be based on the highest value recorded during the billing period. For general service customers on TOU based rates, the measured demand shall be based on the highest value recorded during the peak period of the billing period.

      Unless otherwise indicated on the Supply Authority's schedule of rates and charges, the time interval for measuring demand for general service customers shall be 15 minutes.

      The metering may be either a thermal type recording or indicating demand meter, or an integrating type demand meter. For the thermal type of demand meter, a standard nominal response time of 16 minutes shall apply. Where an integrating type demand meter is used, a demand interval of not more than 15 minutes shall apply.

  5. Power Factor
      For customers with a power factor (the ratio of kilowatts (kW) to kilovolt-amperes (kVA)) of less than 90 %, metering that measures both kW and kVA is recommended. This permits the recovery of incremental distribution costs associated with low power factor and a more accurate monitoring of equipment loading.

  6. Billing demand
      Where demand is measured only in kilowatts, the billing demand shall be taken as the measured demand, adjusted for transformer losses, if applicable.

      Where demand is measured only in kilovolt-amperes, the billing demand shall be taken as 90% of the measured demand, adjusted for transformer losses, if applicable.

      Where demand is measured in both kilovolt-amperes and kilowatts, the billing demand shall be based on the greater of the measured kilowatt demand or 90% of the measured kilovolt-ampere demand resulting from a lagging power factor, regardless of when these values were established, both adjusted for transformer losses, if applicable. A measured kilovolt-ampere demand resulting from a demonstrated leading power factor shall not be used in determining the billing demand.

      For further information, refer to Example 6, Section X - Examples and Explanatory Notes.

  7. Transformer losses
      An allowance for a nominal level of 1% transformer losses is included in the determination of the retail electricity rates. Depending on whether the transformer is provided by the Supply Authority or otherwise, or whether the metering is installed on the primary or secondary side of the transformer, an adjustment to the measured demand may be required, as follows:

      Where metering is installed on the secondary or low voltage side of the stepdown facilities, no adjustment normally needs to be made for transformer losses. For non Supply Authority owned transformer installations having losses greater than the nominal level, an adjustment should be made to reflect the added losses.

      Where metering is installed on the primary or high voltage side of the stepdown facilities or where service is metered and supplied directly to a customer's high voltage equipment without the necessity of any step down, the nominal allowance for transformer losses shall be subtracted from the measured demand and energy.

      The value of the allowance for transformer losses for supply voltages up to and including 50 kV either shall be the nominal 1% of the measured demand and energy or as stipulated by the transformer's manufacturer. The value of the allowance for transformer losses for supply voltages exceeding 50 kV shall be as stipulated by the transformer's manufacturer.

      Where local conditions warrant, an alternative procedure of adjusting measured quantities for transformer losses, when approved by Ontario Hydro, may be applied.

      For clarification and examples, refer to Example 7, Section X - Examples and Explanatory Notes.

  8. Allowance for non Supply Authority owned step down facilities
      The cost associated with stepdown transformation to utilization voltage is included in the determination of the electricity rates. Where a Supply Authority provides stepdown facilities to the utilization voltage, no allowance shall be given to the customer.

      Where the Supply Authority does not provide stepdown facilities from either distribution or transmission voltage to the utilization voltage or where service is supplied directly to a customer's high voltage equipment without the necessity of any stepdown transformation, the customer's monthly bill shall be adjusted by an allowance. For a Supply Authority that offers a restricted hour discount, it shall be applied first to the customer's bill, followed by any allowance for stepdown transformation.

      The transformation allowance applies to the total load on the secondary or low voltage side of the non Supply Authority owned facility, except when the customer is participating in a rate option for incremental load (such as Real Time Pricing) that requires the establishment of a customer base line (CBL) load. Then, the transformation allowance applies to the CBL. Where such a transformer supplies multiple customers and if metering is not in place to provide the total transformer load (such as in a strip mall with individual energy metering for the tenants), the quantity to which the transformer allowance is applied and how it is to be applied should be determined in an agreement between the Supply Authority and the owner of the transformer.

      For further information, refer to Example 7, Section X - Examples and Explanatory Notes.

  9. Flat-rate services
      With due regard to the wise use of energy, energy may be supplied on a monthly flat-rate basis for applications such as water heating, sentinel lighting and other services where conditions warrant, and under conditions of supply established by the Supply Authority.

  10. Emergency service and back-up power service
      A contract may be made with a general service customer with its own electrical generation facility for the provision of emergency service or for back-up power service to supply energy from time to time, under conditions and rates established by the Supply Authority.

  11. Other rate options
      Contracts for other rate options may be made with general service customers under conditions and rates which will be determined by the Supply Authority. Such options might include restricted hour discounts, scheduled hour rates or marginal cost-based rates for incremental energy use.








SECTION V - COMMERCIAL-INDUSTRIAL SERVICE


  1. Application
      This section is applicable only for those Supply Authorities that have existing small commercial, commercial and industrial customer classifications or a single commercial-industrial classification. A commercial service having a connected load of less than 5 kW may be classified as a small commercial service.

      Multi-unit residential establishments such as apartment buildings supplied through one service (bulk metered) normally shall be classified as commercial-industrial service. At its discretion, the Supply Authority may apply residential rates to apartment buildings with six or less units by the simple application of the residential rate or by blocking the residential rate by the number of units. The alternative selected by the Supply Authority must be applied consistently throughout its jurisdiction.

      Where electric service is provided to combined residential and business (including agricultural usage) and the wiring does not provide for separate metering, the service classification shall be at the discretion of the Supply Authority. It should be based on such things as the estimated predominate consumption or the municipal tax roll classification.

  2. Billing frequency
      Rates are quoted on a monthly basis. If the customer is billed on metered demand, the account shall be rendered monthly. At the discretion of the Supply Authority if the customer is billed on connected load, accounts may be rendered on a different billing frequency (eg. bi-monthly, quarterly or semi-annually). The application of billing on other than a monthly basis requires multiplying the energy block sizes and minimum bills by a factor to correspond to the billing period (eg. for bi-monthly billing the factor is two and for quarterly billing it is three).

  3. Application of Section IV
      Clauses 2, 4, 5, 6, 7, 8, 9, 10 and 11 of Section IV also apply to the commercial-industrial service classification.

  4. Premises of worship
      Premises of worship, including social and recreational facilities directly associated with the premises, but excluding residential quarters, may be billed at commercial-industrial rates with a discount. The discount shall not apply to flat rate water heating, separately metered space heating or air conditioning, or when billed as a small commercial service.








SECTION VI - INTERMEDIATE USE SERVICE


  1. Application
      At the discretion of the Supply Authority, an individual customer with a monthly maximum kilowatt component of demand that exceeds 10 per cent of the total load of the Supply Authority, regardless of when the demand occurs, except if the maximum demand is established as a result of the customer taking back-up power from the Supply Authority and that is not classified as either a mandatory time of use general service customer as defined in Section IV or a large use service as defined in Section VII, may be classified as an intermediate use service.

      Normally a customer's classification will be reviewed annually.

  2. Billing frequency
      Accounts shall be rendered monthly.

  3. Measured demand
      Unless otherwise indicated on the Supply Authority's schedule of rates and charges, the time period for measuring demand for an intermediate use service customer shall be 60 minutes. The measured demand should be based on the maximum level of the rolling average demand during 60 consecutive minutes in the billing period as recorded on an integrating type demand meter with a demand interval of not more than 15 minutes.

  4. Application of Section IV
      Clauses 5, 6, 7, 8, 9, 10 and 11 of Section IV also apply to the intermediate use service classification.








SECTION VII - LARGE USE SERVICE


  1. Application
      An individual customer whose monthly measured maximum kilowatt component of demand averaged over the most recent twelve consecutive months is equal to or greater than 5,000 kW, regardless of whether the demand occurs in the peak or off-peak periods except if the maximum demand is established as a result of the customer taking back-up power from the Supply Authority, shall be classified as a large use service.

      The rates to be charged are determined and quoted at utilization voltage and on a time of use (TOU) basis.

      Normally a customer's classification will be in effect for a calendar year and will be reviewed annually. In order to balance between the costs incurred and the revenue received as a result of the application of the seasonal aspects of the TOU rates, the Supply Authority may wish to make any changes to a customer's classification, either in to or out of this class, effective only on the first of January or the first of July.

      Where forecasts for a new customer's demand or the expansion of an existing customer would clearly establish that it will become a large user, the customer may be classified as a large use service as soon as the monthly maximum kilowatt component of demand is equal to or exceeds 5,000 kW.

  2. Billing frequency
      Accounts shall be rendered monthly.

  3. Measured demand
      For large use service customers, the demand time period shall be 60 minutes. The measured demand should be based on the maximum level of the rolling average demand during 60 consecutive minutes in the billing month as recorded on an integrating type demand meter with a demand interval of not more than 15 minutes.

  4. Application of Section IV
      Clauses 5, 6, 7, 8, 9, 10 and 11 of Section IV also apply to the large use service classification.








SECTION VIII - MUNICIPAL STREET LIGHTING SERVICE


  1. Application
      Electric service supplied to street lighting equipment owned by or operated for the municipal corporation shall be classified as a municipal street lighting service.

  2. Billing frequency
      The account may be rendered annually or at such lesser intervals as may be agreed upon between the Supply Authority and the municipal corporation.








SECTION IX - EQUIPMENT RENTALS


  1. Application
      Equipment that is owned by the Supply Authority and provided on a rental basis (e.g. water heaters and sentinel lighting) shall be classified as equipment rentals.

  2. Billing frequency
      The account for such rentals may be rendered to coincide with energy billing or as deemed appropriate by the Supply Authority.

  3. Equipment rental charge
      The determination of appropriate equipment rental rates charged to the participating customers shall incorporate all costs associated with a particular rental program.








SECTION X - EXAMPLES AND EXPLANATORY NOTES


  1. Resale Restrictions - Section II Clause 8
      Subject to the passing of the appropriate by-law mentioned in Section II Clause 8, where a multi-unit establishment e.g. apartment building, shopping plaza, office building, is supplied through one service and metered on a bulk basis, the customer of the Supply Authority (e.g. the landlord) can not resell the electric power and energy to the tenants.

      The Supply Authority should clearly stipulate the resale restrictions in any contractual arrangements made with its customers.

      The customer may collect the amount billed by the Supply Authority from the tenants in one of the following ways:

      • include the amount billed by the Supply Authority in the total costs and recover it in the rent paid by the tenants;

        or

      • allocate the amount billed by the Supply Authority among the tenants based on the number of apartments, stores, offices etc., or based on square footage of use by tenants or by means of individual unit meters.

      Where individual unit meters are used, the owner of the meters must be registered with Industry Canada and the meters must meet Industry Canada's specifications. The amount collected from the tenants for electricity consumed must not exceed the amount billed by the Supply Authority.

      As an example, consider that a private sub-metering system is installed to measure the electric consumption for each of eight tenants and the common area as illustrated below:

      The landlord's electricity bill from the Supply Authority based on a demand of 100 kilowatts and an energy consumption of 30,000 kilowatthours, is in the amount of $2,300.00. Over the same time interval, the private sub-metering system shows the individual consumptions as follows;

      TenantConsumptionPortion of Bill
       (kWh)($)
         
      A3,500269.23
      B3,000230.77
      C4,000307.69
      D4,500346.15
      E5,000384.62
      F2,000153.85
      G2,500192.31
      H1,500115.38
      COMMON3,900300.00
       29,9002,300.00



      Note that there is a difference of 100 kilowatthours between the energy consumption recorded by the Supply Authority's bulk metering system and the total energy consumption recorded by the private sub-metering system. This is to be expected and is attributable to internal losses incurred by the landlord's service entrance equipment and to the differences in the meter reading times between the Supply Authority and the landlord.

      Tenant A's portion of the bill is calculated as follows:

        3,500/29,900 x $2,300 = $269.23

      The portional shares of the Supply Authority's electric bill for the other tenants and the common service are calculated in a similar manner and are shown above.


  2. Payment of bills - Section II Clause 10
      The following is an example of the treatment of a partial payment of a bill and the arrears showing on a subsequent bill. Unless a specific arrangement has been made between the Supply Authority and the customer, a partial payment is applied first to outstanding arrears and then to the current bill. Such a specific arrangement might be when a previous bill is being reviewed, the customer may keep the current balance paid up and maintain the amount of the bill under investigation as an arrear.


      Bill 1 
      Charge for electricity consumed in Billing period 1180.00
      Water Heater Rental12.00
      Sub-total192.00
      G.S.T. (7% of Sub-total, excluding arrears)13.44
      Amount due upon receipt205.44
      Late Payment Charge (5% of sub-total, excluding arrears)9.60
      Amount owing if paid after due date 215.04
        
      Partial payment received (prior to due date)175.00
      Amount outstanding30.44
      Late Payment Charge (5% of Amount outstanding)1.52
      Amount owing (shown on Bill 2)31.96
        
        
      Bill 2 
      Amount owing from Bill 131.96
      Charge for electricity consumed in billing period 2200.00
      Water Heater Rental12.00
      Sub-total243.96
      G.S.T. (7% of Sub-total, excluding arrears)14.84
      Amount due upon receipt258.80
      Late Payment Charge (5% of sub-total, excluding arrears)10.60
      If paid after due date269.40


        Note:
        The 7% Goods and Services Tax is not included in the calculation of the Late Payment Charge.

        The application of the Late Payment Charge is dealt with in the subsequent Example 3.


  3. Late Payment Charge - Section II Clause 11
      The late payment charge is implemented according to the voluntary Residential Guidelines for Credit, Collection and Cut-Off Practices of Public Utility Suppliers tabled in the Ontario Legislature in 1978.

      The late payment charge is applied when a customer does not pay its bill prior to the due date. It is a one time flat rate charge set at 5% and is applied only to the amount outstanding on the due date exclusive of any applicable taxes as well as previous arrears. As a result of a customer's action (or inaction) in the payment of its account, the Supply Authority must provide services beyond the routine collection activities. Legally, it is considered to be a pre-estimate of damages and therefore should be a reasonable and conscionable amount to cover the costs associated with collection and reconnection activities related to non payment of account.

      As shown in the previous Example 2, in the late payment charge associated with Bill 1, if there was no partial payment, it would have been $9.60. This is calculated on the amount charged for the electricity consumed and other services such as the water heater rental ($192.00) but excludes the G.S.T. amount of $13.44.

      Because of the partial payment, the actual late payment charge of $1.52 is based only on the $30.44 outstanding arrears after the due date.

      The late payment charge shown in Bill 2 is calculated as 5% of the amount charged for the electricity consumed and other services such as the water heater rental exclusive of any arrears, i.e. 5% of ($243.96 - 31.96) = $10.60.

  4. Security Deposit Policy - Section II Clause 18
      A security deposit policy that is established by the Supply Authority should consider the following aspects:

      • A deposit may be required from any customer before the provision of service or before reconnecting a service.

      • The Supply Authority may require an individual customer to give a security deposit when, in the opinion of the Supply Authority, the customer can not demonstrate a satisfactory payment record, as defined by the Supply Authority, or the collection of future charges can not be reasonably assured.

      • Every customer who is requested to give a security deposit should be given, upon request, a written explanation of the reasons for such a deposit.

      • If deemed advisable, a deposit in guarantee of a temporary service may be collected.

      • The level of a security deposit is at the discretion of the Supply Authority.

      • The security deposit is not to be applied to the arrears of an active account.

      • For an individual residential customer, the retention period of a security deposit normally should be no more than two years unless, in the opinion of the Supply Authority, the customer does not have a satisfactory payment record and the customer is provided, upon request, with a written explanation of the reason the payment record is not satisfactory, or when the account is terminated.

      • For a non residential customer, the retention period of a security deposit should be at the discretion of the Supply Authority, or when the account is terminated.

      • The form of the security is at the discretion of the Supply Authority and could include cash, letters of credit, GIC's, etc.

      • The Supply Authority shall apply appropriate interest to the cash deposit.


  5. Proration of Accounts - Section II Clause 19
      The following are examples of prorating an account billed on either energy consumption alone (Example A) or on both energy consumption and demand (Example B). Energy consumption is prorated by revising the length of the energy blocks in proportion to the number of days in the actual billing period to the number of days in the normal billing period. Demand is prorated by revising the first demand block and the billing demand upward or downward in proportion to the number of days in the actual billing period.


      Example A - Residential, Small Commercial and Small General Service
      (under 50 kW).

        Monthly retail rate:
          First 250 kWh @ 11.4¢/kWh
          Balance kWh @ 7.4¢/kWh


      Assuming a normal billing period = 30 days (a)
      Actual billing period = 21 days (b)
      Actual consumption = 850 kWh (c)


      Prorating length of first energy block according to actual billing period:

        First 250 kWh x 21/30 [b/a] = 175 kWh (d)


      Calculation of energy consumption at balance block rate = actual consumption less consumption at first energy block rate:

        850 kWh - 175 kWh [c-d] = 675 kWh (e)


      Calculation of the bill:

      First 175 kWh @ 11.4¢/kWh =$19.95
      Next 675 kWh @ 7.4¢/kWh =$49.95
       $69.90


      Example B - Non time of use General Service over 50 kW

        Monthly retail rate:
          First 50 kW @ No Charge
          Balance kW @ $5.30/kW

          First 250 kWh @ 11.4¢/kWh
          Next 12,250 kWh @ 8.1¢/kWh
          Balance kWh @ 5.8¢/kWh


      Transformer ownership allowance @ $0.60/kW
      Assuming a normal billing period = 30 days (a)
      Actual billing period = 6 days (b)
      Actual demand = 70 kW (c)
      Actual consumption = 5,600 kWh (d)


      Prorating length of first and second energy blocks according to actual billing period:
        First 250 kWh x 6¸30 [b¸a] = 50 kWh (e)
        Next 12,250 kwh x 6¸30 = 2,450 kWh (f)


      Calculation of energy consumption at balance block rate:
        5,600 kWh (d) - 2,500 kWh [d-(e+f)] = 3,100 kWh (g)


      Prorating of billing demand:
        70 kW (c) x 6¸30 = 14 kW (h)


      Calculation of demand at first and balance demand blocks:
        First 50 kW x 6¸30 = 10 kW (i)
        Balance 14 kW (h) - 10 kW (i) = 4 kW (j)


      Calculation of Bill:

      First 50 kWh (e) @ 11.4?/kWh =5.70
      Next 2,450 kWh (f) @ 8.1?/kWh =198.45
      Next 3,100 kWh (g) @ 5.8?/kWh =179.80
        
      First 10 kW (i) @ No charge    
      Next 4 kW (j) @ $ 5.30/kW =21.20
       405.15
      Transformer ownership allowance    
      14 kW @ $ 0.60/kW =(8.40)
       396.75




  6. Billing demand adjustment to reflect power factor
      Where metering is installed that indicates both maximum kilovolt-ampere (kVA) and maximum kilowatt (kW) demand, billing must take into account both of these readings. The billing demand will be based on the higher of the measured kilowatt demand or 90% of the measured kilovolt-ampere demand. The following example shows how this is done.

      Maximum kilovolt-ampere measured demand = 900

      kVA measured demand x 0.90 = (900 x .9) = 810

      Maximum kilowatt measured demand = 750

      The billing demand will be based on the higher of 810 or 750, i.e. 810 billed kW.

      Note, if it was assumed that the metered peak kVA demand and the metered peak kW demand occured at the same time, then the power factor at that time was kW / kVA = 750 / 900 = 0.833


  7. Transformer Losses - Section IV Clause 7 and Allowance for Non Supply Authority Owned Stepdown Facilities - Section IV Clause 8
      The following examples illustrate situations where adjustments for transformer losses and/or transformer ownership allowance are required to the billing consumption and demand.

      For those installations with transformation owned by the Supply Authority and secondary metering, no adjustments are necessary and therefore no examples have been included.

      In the following examples, nominal stepdown losses are assumed to be 1 per cent. When calculating losses for rate setting, this is the percentage used and these nominal losses are included in the rates to all customers. If a loss percentage other than 1 per cent is used, it should be based on information from the transformer manufacturer.


      ExampleMetering TypeStepdown Facility OwnershipHandling of Stepdown Losses
      aPrimaryNon Supply Authority OwnedLosses assumed to be 1%
      bPrimarySupply Authority OwnedLosses assumed to be 1%
      cPrimarySupply Authority OwnedLosses significantly less than 1%
      dPrimaryNo transformationLosses assumed to be 1%
      eSecondaryNon Supply Authority OwnedLosses less than or equal to 1%
      fSecondaryNon Supply Authority OwnedLosses significantly more than 1% (based on transformer manufacturer information)


    7a) Transformer losses and allowance for non Supply Authority owned stepdown facilities when the metering is high voltage or primary side and losses are 1 per cent.

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369


      Adjusted quantities for billing (with assumed losses of 1%)
        kWH 125,680 x 0.99 = 124,423
        kW 369 x 0.99 = 365.3


      Typical bill calculation:

      250 kWH @ $0.1209 = $30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 111,923 @ $0.0567 =6,346.03
        
      First 50 kW @ no charge = 0.00
      Next 315.3 kW @ $5.25 =1,655.32
        
      Allowance for non Supply 
      Authority owned stepdown 
      facilities 
      365.3 kW @ $0.60 per kW =(219.18)
        
      Total customer billing =$8,764.21


    7b) Transformer losses for Supply Authority owned stepdown facilities when the metering is high voltage or primary side and losses are 1 per cent.

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369


      Adjusted quantities for billing (with assumed losses of 1%)
        kWH 125,680 x 0.99 = 124,423
        kW 369 x 0.99 = 365.3



      Typical bill calculation:

      250 kWH @ $0.1209 =$30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 111,923 @ $0.0567 =6,346.03
        
      First 50 kW @ no charge =0
      Next 315.3 kW @ $5.25 =1,655.32
        
      Total customer billing =$8,983.39


    7c) Transformer losses for Supply Authority owned stepdown facilities when the metering is high voltage or primary side and losses are 0.5 per cent.

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369


      Adjusted quantities for billing (with losses of 0.5%)
        kWH 125,680 x 0.995 = 125,052
        kW 369 x 0.995 = 367.2


      Typical bill calculation:

      250 kWH @ $0.1209 = $30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 112,552 @ $0.0567 =6,381.70
        
      First 50 kW @ no charge = 0
      Next 317.2 kW @ $5.25 =1,665.30
        
      Total customer billing =$9,029.04


    7d) Transformer losses and allowance where no stepdown transformation facilities are involved when the metering is high voltage or primary side and losses are assumed to be 1 per cent.

      This application is treated in the same manner as example 7a) above.

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369


      Adjusted quantities for billing (with assumed losses of 1%)
        kWH 125,680 x 0.99 = 124,423
        kW 369 x 0.99 = 365.3



      Typical bill calculation:

      250 kWH @ $0.1209 = $30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 111,923 @ $0.0567 =6,346.03
        
      First 50 kW @ no charge = 0
      Next 315.3 kW @ $5.25 =1,655.32
      Allowance for non Supply 
      Authority owned stepdown 
      facilities 
      365.3 kW @ $0.60 per kW =-219.18
        
      Total customer billing =$8,764.21


    7e) Step down allowance for non Supply Authority owned stepdown facilities when the metering is low voltage or secondary side and losses are 1 per cent.

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369


      No adjustment required to get billing quantities


      Typical bill calculation:

      250 kWH @ $0.1209 =$30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 113,180 @ $0.0567 =6,417.31
        
      First 50 kW @ no charge =0
      Next 319 kW @ $5.25 =1,674.75
      Allowance for non Supply 
      Authority owned stepdown 
      facilities 
      369 kW @ $0.60 per kW =-221.40
        
      Total customer billing =$8,852.70


    7f) Transformer losses and allowance for non Supply Authority owned stepdown facilities when the metering is low voltage or secondary side and losses are significantly more than 1 per cent (in this example they are 2.5 per cent).

      Measured quantities (based on the meter readings and the metering multiplier)
        kWH 125,680
        kW 369



      Adjusted quantities for billing (losses of 2.5% are 1.5% above the nominal level included in the rate determination)
        kWH 125,680 x 1.015 = 127,565
        kW 369 x 1.015 = 374.5



      Typical bill calculation:

      250 kWH @ $0.1209 = $30.22
      Next 12,250 kWH @ $0.0777 =951.82
      Balance 115,065 @ $0.0567 =6,524.19
        
      First 50 kW @ no charge = 0
      Next 324.5 kW @ $5.25 =1,703.62
      Allowance for non Supply 
      Authority owned stepdown 
      facilities 
      374.5 kW @ $0.60 per kW =-224.70
        
      Total customer billing =$8,985.15




  8. Transformer losses and allowances in the absence of measured quantities
      Determination of energy consumption and demand to which transformer losses and ownership allowance applies in absence of any measured quantities - Section IV Clause 8.

      Where metering is in place on the secondary side of a two-level transformation, non Supply Authority owned distribution system, only the losses on the first stage of transformation (up to 1%) are included in the rates. Therefore, the losses on the second stage of transformation need to be recovered and may be billed to the owner of the distribution system at the applicable general service or commercial/industrial rates. In determining the second stage demand losses the load factor is assumed to be the same as that of the load factor of the end-use customer(s). A sampling procedure may be used to obtain an estimate of losses especially where the transformer's manufacturer data is unavailable. If the Supply Authority and the owner cannot reach an agreement on the losses, the Supply Authority may use an estimate it feels is fair as long as it can justify the estimate. Alternatively, if the Supply Authority chooses to it can provide the metering to determine the monthly losses since it receives the revenue from the metering.

      In the case of the transformer ownership allowance, if an agreement cannot be reached on the applicable load, the customer may provide Industry Canada approved metering that is acceptable to the Supply Authority to determine monthly quantities. If the customer is not prepared to provide metering, the Supply Authority may use an estimated load it feels is fair but must be prepared to provide a defense for the load determination.

      Where an agreement on either the transformer losses or transformer ownership allowance quantities cannot be reached, a 50/50 cost sharing arrangement is reasonable.








GLOSSARY DEFINITIONS


  1. Actual costs
      "Actual costs" must include a full recovery of incremental costs and may include a contribution to fixed costs.

  2. Back-up power
      "Back-up Power" means electrical service that is available to supply energy that may be required from time to time for applications whose normal source of energy supply is not from the Supply Authority's electrical system.

  3. Billing demand
      "Billing demand" is the value to which the demand rate is applied.

  4. Contract
      "Contract", whether written or implied, means a contract for the supply of electric service or energy.

  5. Customer
      "Customer" means the person or persons contracting for the supply of electric service or energy from the Supply Authority.

  6. Due date
      "Due date" means the last day on which a bill is payable without the application of a late payment charge.

  7. Electric service
      "Electric service" means the connection of the Supply Authority's distribution system to the customer's facilities to enable the customer to take a supply of electric energy.

  8. Emergency service
      "Emergency service" means electrical service that may be required in an emergency to operate electrical equipment whose normal source of energy supply is from the Supply Authority's electrical system.

  9. Energy
      "Energy" means electrical energy and includes both demand (kilowatt) and energy (kilowatthour) as appropriate.

  10. Late payment charge
      A "late payment charge" is a one time charge, currently fixed at 5%, applied only to the amount of the bill outstanding on the due date exclusive of previous arrears and applicable taxes.

  11. Measured demand
      "Measured demand" is the demand measured by a demand meter in kilovoltamperes or kilowatts (modified by the meter multiplier as appropriate) which provides the demand quantity required to determine the billing demand.

  12. Municipal corporation
      "Municipal corporation" includes all levels of municipal government within the boundary of the Supply Authority.

  13. Point of delivery
      "Point of delivery" is the interface between facilities and equipment owned by the Supply Authority and those owned by the customer.

  14. Restricted hour service
      "Restricted hour service" means electrical service that is restricted in its application to time periods as stipulated by the Supply Authority.

  15. Specific service charges
      "Specific service charges" are charges for services outside of the Supply Authority's standard of service exclusive of energy and rental rates and excluding services charged at actual costs.

  16. Standard of service
      "Standard of service" of the Supply Authority includes all services with costs that are covered through its electricity rates and for which separate charges are not made directly to individual customers.

  17. Supply
      "Supply" includes the delivery, dealing in, and sale of electricity and other services.

  18. Supply Authority
      "Supply Authority" refers to a municipal electric utility, operated by a commission, a committee of council or the trustees of a police village.

  19. Supply voltage
      "Supply voltage" is the voltage at the point of delivery.

  20. Utilization voltage
      "Utilization voltage" is the highest voltage at which the customer distributes power on its property.





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