Rate Protection and the Determination of Direct Benefits under Ontario Regulation 330/09

Case number
EB-2009-0349
Launched
Sector
Electricity
Status
Archived
Details

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 Board initiated 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
June 10, 2010

The Board has issued its Report entitled “Framework for Determining the Direct Benefits Accruing to Customers of a Distributor under Ontario Regulation 330/09”.

March 11, 2010

The Board posted further written comments received from interested stakeholders on the Staff Discussion Paper Proposed Framework for Determining the Direct Benefits Accruing to Customers of a Distributor under Ontario Regulation 330/09.

February 25, 2010

The Board has issued a letter setting out information in relation to a Stakeholder Meeting.

February 25, 2010

The Board has posted an agenda and the presentations filed by participants for the Stakeholder Meeting to be held on February 26th.

January 19, 2010

The Board posted written comments received from interested stakeholders on the Staff Discussion Paper:

December 14, 2009

The Board has issued a Staff Discussion Paper on the Proposed Framework for Determining the Direct Benefits Accruing to Customers of a Distributor under Ontario Regulation 330/09. The discussion paper sets out proposed types of direct benefits and a standard methodology for quantifying each of those direct benefits.

Also below is a chart that provides an overview of the relationship between: Regulation 330/09; recent code amendments related to Distribution Connection Cost Responsibility (DCCR); and this Direct Benefits consultation process.

September 25, 2009

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.