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
2
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)
3
ON Electricity Transmission System
4
Ontario Generating Capacity
Hydroelectric
26%
Renewable
0%
Nuclear
36%
Oil/Gas
17%
2005 by Fuel
(30 116 MW)
Coal
21%
5
Default Commodity Prices for
Low-volume Consumers
1999
May
2002
Nov
2002
April
2004
April
2005
Spring
2006
4.3
Hourly
Ontario
Energy
Price
4.3
4.7/5.5
5.0/5.8
TBD
Fixed
Spot
Fixed
Fixed
2 Tiered
Fixed
2 Tiered
Seasonal
Tiered
and
ToU
6
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
7
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
8
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:
– Summer residential:
– Commercial:
1000 kWh
600 kWh
750 kWh
9
Forecast Price / Demand January 2006
12,000
$160
Price
10,500
$140
9,000
$120
7,500
$100
6,000
$80
4,500
$60
3,000
$40
1,500
$20
0
Price ($/MWh)
Demand (MW)
Demand
$0
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Hour
10
Regulated Price Plan
8pm – 10pm
10pm – 7am
2.9¢
5pm – 8pm
6.5¢
9.3¢
11am – 5pm
7am – 11am
Winter Weekdays
11
Forecast Price / Demand July 2005
12,000
$160
Price
10,500
$140
9,000
$120
7,500
$100
6,000
$80
4,500
$60
3,000
$40
1,500
$20
0
Price ($/MWh)
Demand (MW)
Demand
$0
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Hour
12
Regulated Price Plan
5pm – 10pm
10pm – 7am
6.5¢
9.3¢
2.9¢
6.5¢
Noon – 5pm
7 am – noon
Summer Weekdays
13
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
14
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
15
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
16
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
17
Questions?
Laurie Reid
Ontario Energy Board
[email protected]
416-440-7623
www.oeb.gov.on.ca
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