Ontario Energy Board accepts Assurance of Voluntary Compliance from Fort Frances Power Corporation

The Ontario Energy Board (OEB) has accepted an Assurance of Voluntary Compliance (AVC) from licensed electricity distributor Fort Frances Power Corporation (Fort Frances Power), which serves about 3,700 customers in the Town of Fort Frances.

Under the terms of this AVC, Fort Frances Power acknowledges that a billing system error which persisted for several years resulted in some customers being overcharged. Specifically, a portion of bills issued by Fort Frances Power reflected an incorrect proration of OEB-approved fixed monthly charges. Fort Frances Power implemented system changes to correct this issue effective April 1, 2023.

Under the terms of this AVC, Fort Frances Power will contribute $582 to the Low-income Energy Assistance Program (LEAP) to help customers in need in its service territory. The amount is equivalent to four years of overcharges. The OEB accepted this approach in this case, rather than requiring Fort Frances Power to provide a credit to customers, given that a four-year credit would be small (about $0.14 per residential customer) and that some of those affected by the billing system error are no longer customers of Fort Frances Power. Fort Frances Power will notify current customers of this AVC and of the contribution to LEAP in a form approved by the OEB.

Fort Frances Power will also pay an administrative monetary penalty of $750.

Fort Frances Power self-reported the issue to the OEB in March 2023 after seeing that another distributor had provided an AVC to the OEB in respect of a similar proration error.

An AVC is a binding commitment by a regulated entity to take measures to rectify or prevent non-compliance. Failure to abide by the terms of an AVC can lead to enforcement action being taken by the OEB.

“All licensed electricity distributors must be rigorous in applying OEB-approved rates and calculating accurate billing amounts for their customers. Billing accuracy is foundational to customer trust and the OEB is assured that Fort Frances Power has fixed this billing issue.”

– Brian Hewson, Vice-President, Consumer Protection & Industry Performance

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About the Ontario Energy Board

The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of consumers and supports the collective advancement of the people of Ontario. Its goal is to deliver public value through prudent regulation and independent adjudicative decision-making which contributes to Ontario’s economic, social and environmental development.


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