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Bill 210 and You
The Electricity, Pricing, Conservation and Supply Act, 2002
Questions and Answers About Bill 210
In mid November 2002, Premier Ernie Eves unveiled a proposed Action Plan to Lower Electricity Rates. The Action Plan has now been written into legislation and on December 9th, 2002 Bill 210, The Electricity, Pricing, Conservation and Supply Act, 2002 received Royal Assent. Bill 210 defines a number of new changes to the evolving electric industry in the Province of Ontario.
Once Bill 210 was passed in December, a number of key issues needed to be examined and rules written by the Ministry of Energy. The Ministry continues to release rules, clarification and interpretation to participants in the electricity market. As your local electrical utility, we are participants together with the Ontario Energy Board, the Independent Market Operator , Retailers, etc. We all need to be clear on the new rules as they are issued in order to implement the changes in accordance with the regulations.
As your local utility, we take action based on final rules. Rest assured, as the rules are written, released and documented - we put them into action. We are committed to ensuring our customers get every advantage from Bill 210.
Here's a summary of some Bill 210 Highlights:
The legislation impacts consumers by:
- Lowering and freezing the price of the electricity commodity at 4.3 cents per kilowatt hour retroactive to December 1, 2002, for families, small businesses, and other designated groups such as universities, schools, hospitals, condominiums, apartment buildings, group homes, seniors homes and charities.
- Providing refunds of the difference between what these customers paid since May 1, 2002, and what they would have paid at a frozen price of 4.3 cents per kilowatt hour.
- Capping at current levels, the price consumers are paying for the delivery of electricity.
- Directing that until March 31, 2003, no one in Ontario will have their power cut off because of failure to pay their hydro bill, retroactive to November 11, 2002.
- Having municipal councils decide by resolution if they want the local distribution company to stay the course, or to move to non-profit status.
- Offering measures, including tax incentives and tax holidays, to promote conservation, encourage alternative fuels and support clean energy production.
Want to know more detail?
Check out all of Bill 210 -Ontario Legislature Website: www.ontla.on.ca
Our Customers are asking a lot of questions and we want to provide good answers. The following is a summary of questions and answers. As we learn more about the various aspects of the Bill 210 we will keep you posted!
When did Bill 210 become law?
Bill 210 was passed at the Legislative Assembly of Ontario with the 3rd and Final Reading and Royal Assent on December 9, 2002.
What is a Rate Freeze?
A Rate Freeze means that customers will pay a fixed price per kilowatt hour of power used. The rate freeze is set at 4.3 cents/kWh, for "low volume and designated customers" regardless of what the actual market price of the power is.
What is a Low Volume Customer?
All residential and small business customers using less than 150,000 kilowatt hours per year qualify as low volume customers.
What is a Designated Customer?
Bill 210 and the associated Regulations provide a long list of classifications of "Designated Consumers". The list includes municipalities, universities, colleges, schools, hospitals and charitable organizations. A consumer that meets the criteria is a Designated Customer.
How can I figure out if I meet the government's definition of a "Designated Customer" to get the 4.3 cent fixed commodity price on my bill?
The good news is all residential customers and small business customers qualify for the fixed prices as
a designated customer and will see a fixed 4.3 cent price for commodity on their hydro bills going forward.
Initially the Ministry of Energy specified two groups, "Low Volume and Designated Consumers". The low-volume,
residential or small business consumers including farmers, are those customers using less than 150,000
kilowatt-hours annually. If you are classed as a Small General Service (GS<50kW) account you qualify.
The next group has been dubbed the "MUSH" group. It includes Municipalities, Universities and Colleges,
School Boards including private schools, Hospitals including mental health facilities and nursing and
retirement homes. The legislation also included Registered Charities as designated consumers.
Additional defining regulations issued December 24, 2002 took a broad stroke in prescribing more
"designated consumers", if they were not already covered in the groups noted above. In fact the
regulation listed about forty additional consumer groups.
To assist our customers, the following is a summary of the portions of Bill 210 and the Regulations that
deal with definitions of Designated Consumers. Customers are advised that the following is for information
and illustrative purposes only. Final reliance should be given to the actual Bill and Regulations as published
by the provincial government.
Definitions for "Designated Consumers":
Sourced from Bill 210
Electricity Pricing, Conservation and Supply Act, 2002; Section
56:
Designated consumer" means a consumer that:
(a) is a municipality as defined in the Municipal Act, including
a regional and district municipality and the County of Oxford,
(b) is a university or college of applied arts and technology
or other post-secondary education institution that receives regular
and ongoing operating funds from Ontario for the purpose of providing
post-secondary education,
(c) is a board or private school, both as defined in the Education
Act,
(d) is a hospital as defined in the Public Hospitals Act, a private
hospital operated under the authority of a license issued under
the Private Hospitals Act, an institution as defined in the Mental
Hospitals Act, a nursing home within the meaning of the Nursing
Homes Act or a home within the meaning of the Homes for the Aged
and Rest Homes Act,
(e) is a registered charity as defined in subsection 248(1) of
the Income Tax Act (Canada) that has a registration number issued
by the Canada Customs and Revenue Agency,
(f) is a consumer prescribed by the regulations or a member of
a class of consumers prescribed by the regulations;
Sourced from:
Ontario Regulation 339/02 as amended by O.Reg. 433/02
The following consumers are prescribed for the purpose of clause
(f) of the definition of "designated consumer" in section 56 of
the Act:
1. A consumer who has a demand of 50 kilowatts or less.
2. A consumer who has an account with a distributor, if the account
relates to,
i. a dwelling,
ii. a property as defined in the Condominium Act, 1998,
iii. a residential complex as defined in the Tenant Protection
Act, 1997, or
iv. a property that includes one or more dwellings and that is
owned or leased by a co-operative as defined in the Co-operative
Corporations Act.
3. McMichael Canadian Art Foundation.
4. Ontario Heritage Foundation.
5. The Centennial Centre of Science and Technology.
6. A consumer who has an account with a distributor, if the account
relates only to one of the following:
i. A hospital within the meaning of the Community Psychiatric
Hospitals Act.
ii. A psychiatric facility within the meaning of the Mental Health
Act.
iii. A cancer centre established by Cancer Care Ontario under
the Cancer Act.
iv. A commercially operated residence for seniors or retired persons,
or any other similar commercially operated residence, where attainment
of a mature age is a factor in being accepted for occupancy.
v. A nursing station, health centre, clinic or other facility
that receives funding through the Ministry of Health and Long-Term
Cares Under-serviced Area Program.
vi. A facility owned or leased by a person who receives funding
from the Ministry of Health and Long-Term Care for one or more
of the following health care support services that are provided
to or are available to residents of the facility:
a) A residential treatment services program.
b) A withdrawal management services program.
c) A dedicated supportive housing project.
vii. An approved charitable institution within the meaning of
the Charitable Institutions Act.
viii. A home for special care within the meaning of the Homes
for Special Care Act.
ix. A community care access corporation within the meaning of
the Community Care Access Corporations Act, 2001.
x. Cancer Care Ontario.
xi. A service provider within the meaning of the Long-Term Care
Act, 1994.
xii. A board of health within the meaning of the Health Protection
and Promotion Act.
xiii. A community health centre within the meaning of Ontario
Regulation 396/93 under the Pay Equity Act.
xiv. A comprehensive health organization within the meaning of
Ontario Regulation 396/93 under the Pay Equity Act.
xv. A district health council established under the Ministry of
Health and Long-Term Care Act.
xvi. A facility owned by Canadian Blood Services.
xvii. An independent health facility operated under the authority
of a licence issued under the Independent Health Facilities Act.
xviii. An organization that receives funding under the Ministry
of Health and Long-Term Care Act.
xvix. A place where emergency hostel services are provided under
the Ontario Works Act, 1997.
xx. A domiciliary hostel that receives funding under the Ministry
of Community and Social Services Act.
xxi. A place where a resource centre program that receives funding
under the Day Nurseries Act is provided.
xxii. A place where a recreational program that receives funding
under the Day Nurseries Act is provided.
xxiii. A facility designated by the regulations under the Developmental
Services Act as a facility to which that Act applies, other than
a facility listed in Schedule 1 to Regulation 272 of the Revised
Regulations of Ontario, 1990 made under that Act.
xxiv. A residence licensed as a children's residence under the
Child and Family Services Act.
xxv. A facility where child development services, child treatment
services, child welfare services, community support services or
young offenders services, within the meaning of the Child and
Family Services Act, are provided.
xxvi. A facility where child and family intervention services,
within the meaning of Regulation 70 of the Revised Regulations
of Ontario, 1990 made under the Child and Family Services Act,
are provided.
xxvii. A place where an emergency shelter service or homelessness
prevention program that receives funding under the Ministry of
Community and Social Services Act is provided.
xxviii. A day nursery as defined in the Day Nurseries Act.
xxix. A sheltered workshop that receives funding under the Developmental
Services Act or the Ministry of Community and Social Services
Act.
xxx. A place where a supported employment program that receives
funding under the Developmental Services Act or the Ministry of
Community and Social Services Act is provided.
xxxi. A place where an adults, community support service that
receives funding under the Developmental Services Act is provided.
xxxii. A place where an employment preparation, training and job
placement program that receives funding under the Developmental
Services Act is provided.
xxxiii. A place where a violence against women program that receives
funding under the Ministry of Community and Social Services Act
is provided.
xxxiv. A place where an aboriginal healing and wellness program
that receives funding under the Aboriginal Healing and Wellness
Strategy is provided.
xxxv. An Ontario Early Years Centre or a satellite program of
an Ontario Early Years Centre that receives funding under the
Ministry of Community and Social Services Act.
xxxvi. A district social services administration board established
under the District Social Services Administration Boards Act.
xxxvii. A place where an employment supports program that receives
funding under the Ontario Disability Support Program Act, 1997
is provided.
xxxviii. A place where Rehabilitation Services for the Disabled
that receive funding under the Ministry of Community and Social
Services Act are provided.
xxxix. A place where interpreter services programs or intervener
services programs that receive funding under the Ministry of Community
and Social Services Act are provided.
xl. A place where a discharge planning for ex-offenders program
that receives funding under the Ministry of Community and Social
Services Act is provided.
Sourced from:
Regulation 126/03 (To Be Printed The Ontario Gazette:
April 26, 2003) Extended Definition to include consumers up to
250,000kWh.
6.1 A consumer who annually uses at least 150,000 but not more
than 250,000 kilowatt hours of electricity and who is not otherwise
eligible for treatment as a designated consumer under the Act
or this Regulation.
Sourced from:
Regulation 99/03 (Printed in The Ontario Gazette: April 12, 2003)
Extended Definition to include Farmers that meet the following
criteria.
7. A consumer who has an account with a distributor if,
i. the consumer carries on a farming business within the meaning
of the Farm Registration and Farm Organizations Funding Act, 1993,
ii. as of March 31, 2003, either the consumer held a valid registration
number assigned under the Farm Registration and Farm Organizations
Funding Act, 1993 or the consumer's obligation to file a farming
business registration form was waived pursuant to an order made
under subsection 22 (6) of that Act, and
iii. the consumer is not otherwise eligible for treatment as a
designated consumer under any provision of the Act or other provision
of this Regulation with respect to its farming business.
When will I see the 4.3 cents/kWh reflected
on my hydro bill?
The legislation was passed on December 9, 2002. As your local utility,
it takes some time after the legislation passed. All bills for reading
dates after December 1st, 2002 will be billed at the fixed commodity
rate.
I received the $75.00 rebate from the Ontario
Government. Is this all I will get?
You will be credited the difference between what you paid since
May 1, 2002 and what you would have paid for power at a frozen price
of 4.3 cents per kilowatt hour.
A first installment in the form of a $75.00 cheque was sent to
customers in mid December 2002. The remainder, if any, will be
credited through your hydro bill sometime in April or May.
Those customers on equal billing were provided with a credit on
their account in place of the initial installment cheque, and
they too will see a final credit, if due, on their hydro bill
sometime in March or April. If the calculated credit is less than
the $75.00 installment cheque or the amount already credited to
your account for EPP customers, no further adjustment of any kind
will be calculated.
How are you calculating the Commodity Refund?
We look at the Commodity Refund Process as a 2 Phase process. Phase
1 of the process was initiated in December 2002 when eligible
customers were issued a $75.00 refund cheque or credit.
Phase 2 has been calculated on your
account and will show on eligible customers' hydro bills. If a
customer is eligible for more than the initial $75.00 refund,
the balance will show as a credit on their first hydro bill issued
after March 24, 2003. The Phase 2 refunds will be issued over
the next sixty days.
The Phase 2 Calculation
- First we added up your actual Commodity charges billed at open market prices, after May 1, 2002 (date of market opening) through to December 1, 2002.
- We then took the total loss adjusted kilowatt hours (kWh's) billed for that same time period and re-calculated the Commodity charges at 4.3 cents/kWh.
- Finally we took the difference between those two amounts and subtracted the $75.00 cheque or credit you already received in December.
- Any difference - in your favour - will be shown on your bill. If the difference is less than the $75.00 you already received, no adjustment will be made.
Will every low volume and residential customer get a Phase 2 Credit?
No. We will perform the Phase 2 calculation on every eligible customer
account, but approximately 50% of our customers will not receive
a Phase 2 Credit. The initial $75.00 cheque or credit that was issued
in December fully compensated half of our customers. Remember, this
credit is the difference between what you were billed per kWh of
Commodity after May 1st to December 1st versus what that Commodity
would have cost, if it had been billed at a fixed rate of 4.3 cents/kWh.
How long will the Rate Freeze be in effect?
The provincial government has announced the rate freeze will remain
in place until 2006 or until the supply of power for the province
is stabilized.
I have a fixed contract with a Retailer. What happens to my contract?
You are still a customer of the Retailer you signed the contract
with, however if you signed a fixed price contract for more than
4.3 cents prior to December 9, 2002 your price will still be lowered
to the 4.3 cents. However, if you choose to sign a contract after
December 9th, 2002 or if you renew your commodity contract after
that date, you will then be required to pay the price quoted in
the contract.
What other websites can I look at for further information and updates?
Check out the following:
Home | Corporate Overview |
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