Regulated Price Plan (RP-2004-0205) - Final RPP Variance Settlement
Amount
On April 1, 2005, the Board’s Regulated Price Plan (the “RPP”
or "price plan") came into effect. As of July 1, 2005,
a consumer who leaves the RPP will either pay or receive a “final
RPP variance settlement amount”. This amount will reflect
the consumer’s share of any accumulated variance between
the actual price paid to generators and the forecast price
paid by price
plan consumers. If consumers have been paying more for electricity
than was paid to generators, this amount will be a credit.
If consumers
have been paying less, it will be a charge. The variance account
that tracks the difference is held by the Ontario Power Authority
(the “OPA”).
The “final RPP variance settlement amount” applies
to a price plan consumer who: (1) cancels their account and
moves outside of the Province of Ontario; (2) switches to
a retailer; or (3) elects the spot market pricing option; or (4) No longer remain eligible for the Regulated Price Plan.
This amount will be referred to as “RPP settlement” on
the electricity bills of applicable consumers and will be
calculated by the consumer’s distributor. The distributor
will multiply the applicable “final RPP variance settlement
factor” by the individual consumer’s consumption
over the most recent 12 months.
In calculating the final RPP variance settlement amount
for consumers leaving the price plan, distributors will use
the final RPP variance settlement factor that is in effect
(posted on this Web page) on the date of the consumer’s
final meter read. Therefore, due to the time lag between
a meter read and billing, the factor used in the calculation
may be different from the value that appears on this Web
page when the consumer receives their bill. A Compliance
Bulletin discusses this matter in further detail. |
What does the current “Final
RPP Variance Settlement Factor” mean
to a residential consumer that leaves the Regulated Price
Plan?
An RPP consumer using an average of 1,000 kWh
per month would have
to pay $15.88 if they left the
RPP. [1,000
(kWh/month) x 12 (months) = 12,000 kWh x $0.001323 per kWh = $15.88]
An RPP consumer using an average
of 750 kWh per
month would have to pay $11.91 if
they left the RPP. [750 (kWh/month) x 12 (months)
= 9,000 kWh x $0.001323 per kWh = $11.91]
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The table below shows the current “final RPP variance settlement
factor”. The information on this Web page will be updated
by the OEB on a monthly basis. It will be used for billing
purposes by electricity distributors and retailers (using retailer-consolidated
billing) for consumers who left the price plan. When the OPA has
paid more to generators than has been paid by consumers, the RPP
settlement is a charge and these values will not
be shown in brackets in the table below. It will be a credit
to consumers when these values are shown in brackets.
The Board has calculated the “final RPP variance settlement
factor” by dividing the balance in the OPA’s variance
account by the total consumption of all price plan consumers over
the most recent 12 months. An estimate of the “OPG
Rebate” currently attributable to price plan consumers
has been taken into account in this calculation by subtracting it
from the OPA variance account balance to arrive at a “net”
variance account balance.
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| Final
RPP Variance Settlement Factor (posted on December 15, 2006)4
(To see previous Settlement
Factors, click
here) |
| Net Variance Account Balance
(accumulated OPA variance account balance less the estimated
“OPG Rebate”)3 |
$ |
$96,572,484 |
| Total RPP consumption for most recent
12 months (December 2005 to November 2006) |
kWh |
72,981,751,963 |
| Final RPP Variance Settlement
Factor 1 |
$/kWh
————————
cents/kWh |
0.001323
————————
0.1323
———————— |
| Note:
(1) The "final RPP variance settlement factor" is shown in both cents/kWh and $/kWh to accommodate different billing systems. Both are links to a CSV file that distributors and retailers can automatically download into their billing systems.
(2) When values are shown in brackets
the RPP settlement is a credit.
(3) The “OPG Rebate” is the difference, if any, between the revenue limit for some OPG generators and the price they would have received in the IESO wholesale spot market. It applies to electricity consumption between May 1, 2006 and May 31, 2007 . It is also referred to as the "Ontario Non-Prescribed Asset (ONPA) Rebate”. As a price plan consumer, you do not see the “OPG Rebate” on your bill because an estimate of this rebate is already included in the “Electricity” line of your bill.
(4) As at November 30, 2006. |
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CONTACT
For general information about the price plan,
click
here.
If you have questions regarding implementation issues, please
e-mail the details to the Market Operations hotline at the following
address
market.operations@oeb.gov.on.ca
or by phone at 416-440-7604. For information regarding policy matters
related to RPP, please contact Chris Cincar at 416-440-7696, Russell
Chute at 416-440-7682 or by e-mail RPP@oeb.gov.on.ca.
The Board’s toll free number is 1-877-632-2727. |
