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Rate Options for Smaller Customers. Laurie Reid Ontario Energy Board October 28, 2005. Outline. Electricity in Ontario Electricity Commodity Charges and Smart Meters Customer Impacts. Electricity Market in Ontario. A set of provincially-owned companies/agencies

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Rate options for smaller customers

Rate Options for Smaller Customers

Laurie Reid

Ontario Energy Board

October 28, 2005


Outline
Outline

  • Electricity in Ontario

  • Electricity Commodity Charges and Smart Meters

  • Customer Impacts


Electricity market in ontario
Electricity Market in Ontario

  • A set of provincially-owned companies/agencies

    • Ontario Power Generation (70% of generation)

    • Hydro One (97% of transmission + 30% of distribution)

    • Independent Electricity System Operator

    • Ontario Power Authority

      • Responsible for planning, power plant procurement, conservation

  • Other players

    • 90+ Municipally owned distribution companies

    • Some private generators (mostly under contract to the province)

    • Ontario Energy Board

      • Regulates IESO, Tx & Dx

      • Policy development (when asked by government)



Ontario generating capacity
Ontario Generating Capacity

2005 by Fuel (30 116 MW)


Default commodity prices for low volume consumers
Default Commodity Prices for Low-volume Consumers


Smaller customers
Smaller Customers

  • Low-volume uses less than 250,000 kWh per year

  • Designated consumer:

    • Municipality

    • College

    • School

    • Hospital

    • Charity

    • Named in regulation

  • After April 1, 2008: less than 50kW


Simplified bill for low volume consumers
Simplified Bill for Low-volume Consumers

Your Electricity Charges

  • Electricity

    • Usage @ 5.000 cents/KWH

    • Usage @ 5.800 cents.KWH

  • Delivery

  • Regulatory

  • Debt Retirement Charge

  • Your Total Electricity Charges

  • GST


Regulated price plan
Regulated Price Plan

  • For low-volume and designated consumers

  • Set by Ontario Energy Board based on forecasts of

    • Prices and demand

    • Provincial benefit (nuclear and large hydro assets @ 4.5¢)

    • OPG rebate (price cap on assets @ 4.7¢ until April 06)

  • Variance held by Ontario Power Authority

  • Recovered from / returned to consumers

    • following year or

    • on exit from program

  • Thresholds

    • Winter residential: 1000 kWh

    • Summer residential: 600 kWh

    • Commercial: 750 kWh



8pm – 10pm

10pm – 7am

5pm – 8pm

11am – 5pm

7am – 11am

Winter Weekdays

Regulated Price Plan

2.9¢

6.5¢

9.3¢



Regulated price plan1

5pm – 10pm

10pm – 7am

Noon – 5pm

7 am – noon

Summer Weekdays

Regulated Price Plan

2.9¢

6.5¢

9.3¢

6.5¢


Smart meter policy background
Smart Meter Policy Background

  • The Government of Ontario policy targets:

    • 800,000 smart electricity meters by 2007

    • All Ontario customers by 2010

  • Government objective – manage electricity demand to:

    • make more efficient use of the current supply

    • reduce reliance on external sources

  • Proposed plan follows consultation process – considered several alternative options with stakeholders


Key elements of proposed plan
Key Elements of Proposed Plan

  • Minimum system requirements

  • Distributors responsible for meters and last mile

  • Capital and operating costs to be included in delivery rates

  • Regulated Price Plan

  • www.oeb.gov.on.ca


Proposed smart meter system
Proposed Smart Meter System

Key requirements

  • Capable of two-way communication

  • Hourly consumption data without the need to remove the meter or visit the site

  • Daily feedback to customers

  • Open communication and data interfaces


Customer impact
Customer Impact

  • Electricity pricing that varies by time of use

  • Daily access to consumption data

  • Smart meter and RPP – incentive & ability to control energy costs by:

    • moving use to off-peak periods (i.e. running dishwasher at night)

    • lowering energy use during peak periods (i.e. setting air conditioning a few degrees warmer during the afternoon)

  • Tools to understand energy use and the ability to change patterns

  • Enabling technology, catalyst for change


Questions
Questions?

Laurie Reid

Ontario Energy Board

[email protected]

416-440-7623

www.oeb.gov.on.ca


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