O. Reg. 194/04: ASSESSMENT OF EXPENSES AND EXPENDITURES FOR THE 2005 FISCAL YEAR

Ontario Energy Board Act, 1998
Loi de 1998 sur la Commission de l’énergie de l’Ontario

ONTARIO REGULATION 194/04

No Amendments

ASSESSMENT OF EXPENSES AND EXPENDITURES FOR THE 2005 FISCAL YEAR

Note: This Regulation was revoked on September 1, 2005. See: O. Reg. 194/04, s. 13.

This Regulation is made in English only.

Definitions and interpretation

1. (1) In this Regulation,

“assessment” means an assessment under subsection 26 (1) of the Act;

“distribute”, with respect to electricity, has the same meaning as in Part V of the Act;

“expenditures” means expenses incurred and expenditures made by the Board in the exercise of its powers and duties under the Act or any other Act;

“transmit”, with respect to electricity, has the same meaning as in Part V of the Act. O. Reg. 194/04, s. 1 (1).

(2) For the purpose of this Regulation, the net Board expenditures for a period shall be determined in accordance with the following formula:

A = B – (C + D)

where,

A = the net Board expenditures for the period,

B = the total amount of expenditures made by the Board in the period, including expenditures made in respect of persons who are not liable to pay an assessment,

C = the total amount of fees paid to the Board under section 12.1 of the Act in the period, including fees paid by persons who are not liable to pay an assessment,

D = the total amount of costs paid to the Board under section 30 of the Act in the period, including costs paid by persons who are not liable to pay an assessment.

O. Reg. 194/04, s. 1 (2).

(3) Where this Regulation requires the Board’s management committee to apportion an amount among the classes of persons who are liable to pay an assessment, the management committee shall consider the following factors for each class:

1. The expenditures made by the Board in respect of that class, compared to the expenditures made by the Board in respect of the other classes.

2. The fees paid to the Board under section 12.1 of the Act by members of that class, compared to the fees paid to the Board under section 12.1 of the Act by members of the other classes.

3. The costs paid to the Board under section 30 of the Act by members of that class, compared to the costs paid to the Board under section 30 of the Act by members of the other classes.

4. Such other factors as the Board’s management committee considers relevant to the apportionment. O. Reg. 194/04, s. 1 (3).

(4) For the purposes of subsection (3),

(a) the expenditures made by the Board in respect of the class described in paragraph 2 of subsection 3 (1) shall be deemed to include expenditures made in respect of the Independent Electricity Market Operator;

(b) the fees paid to the Board under section 12.1 of the Act by members of the class described in paragraph 2 of subsection 3 (1) shall be deemed to include fees paid by the Independent Electricity Market Operator; and

(c) the costs paid to the Board under section 30 of the Act by members of the class described in paragraph 2 of subsection 3 (1) shall be deemed to include costs paid by the Independent Electricity Market Operator. O. Reg. 194/04, s. 1 (4).

Frequency of assessments

2. From April 1, 2004 to March 31, 2005, the Board’s management committee shall make assessments for each of the following three periods set out below:

1. April 1, 2004 to July 31, 2004.

2. August 1, 2004 to November 30, 2004.

3. December 1, 2004 to March 31, 2005. O. Reg. 194/04, s. 2.

Liability to pay

3. (1) The following classes of persons are liable to pay assessments for the period from April 1, 2004 to March 31, 2005:

1. Persons that, on April 1, 2004, were licensed to own or operate distribution systems within the meaning of Part V of the Act.

2. Persons that, on April 1, 2004, were licensed to own or operate transmission systems within the meaning of Part V of the Act.

3. Gas transmitters, gas distributors and storage companies that, on April 1, 2004, were subject to orders under section 36 of the Act. O. Reg. 194/04, s. 3 (1).

(2) For the purposes of paragraph 2 of subsection (1), a licence to direct the operation of a transmission system is not a licence to operate the transmission system. O. Reg. 194/04, s. 3 (2).

Interim apportionment among classes

4. (1) The Board’s management committee shall estimate the net Board expenditures for the period from April 1, 2004 to March 31, 2005. O. Reg. 194/04, s. 4 (1).

(2) The Board’s management committee shall apportion the amount of the estimate among the classes of persons who are liable to pay assessments. O. Reg. 194/04, s. 4 (2).

Calculation of individual amounts: electricity distributors

5. The Board’s management committee shall determine the amount of the assessment for each of the three assessments for the period from April 1, 2004 to March 31, 2005 for which each person who is a member of the class described in paragraph 1 of subsection 3 (1) is liable in accordance with the following formula:

E = ((F ÷ G) × H) ÷ 3

where, subject to section 9,

E = the amount of each assessment for which the person is liable,

F = the annual revenue received by the person for the distributing of electricity in accordance with an order under section 78 of the Act, with the annual revenue determined for the 12 months ending on the last day of the person’s fiscal year ending in 2003,

G = the total annual revenue received by all members of the class described in paragraph 1 of subsection 3 (1) for the distributing of electricity in accordance with orders under section 78 of the Act, with the annual revenue for each member determined for the 12 months ending on the last day of the member’s fiscal year ending in 2003,

H = the amount apportioned under section 4 to the class described in paragraph 1 of subsection 3 (1), adjusted in accordance with section 8.

O. Reg. 194/04, s. 5.

Calculation of individual amounts: electricity transmitters

6. The Board’s management committee shall determine the amount of the assessment for each of the three assessments for the period from April 1, 2004 to March 31, 2005 for which each person who is a member of the class described in paragraph 2 of subsection 3 (1) is liable in accordance with the following formula:

J = ((K ÷ L) × M) ÷ 3

where, subject to section 9,

J = the amount of each assessment for which the person is liable,

K = the annual revenue received by the person for the transmitting of electricity in accordance with an order under section 78 of the Act, with the annual revenue determined for the 12 months ending on the last day of the person’s fiscal year ending in 2003,

L = the total annual revenue received by all members of the class described in paragraph 2 of subsection 3 (1) for the transmitting of electricity in accordance with orders under section 78 of the Act, with the annual revenue for each member determined for the 12 months ending on the last day of the member’s fiscal year ending in 2003,

M = the amount apportioned under section 4 to the class described in paragraph 2 of subsection 3 (1), adjusted in accordance with section 8.

O. Reg. 194/04, s. 6.

Calculation of individual amounts: gas transmitters, distributors and storage companies

7. (1) The Board’s management committee shall determine the amount of the assessment for each of the three assessments for the period from April 1, 2004 to March 31, 2005 for which each person who is a member of the class described in paragraph 3 of subsection 3 (1) is liable in accordance with the following formula:

N = (((P × (Q ÷ R)) + ((1 – P) × (S ÷ T))) × U) ÷ 3

where, subject to section 9,

N = the amount of each assessment for which the person is liable,

P = a number between zero and 1, inclusive, selected by the Board’s management committee in accordance with subsections (2) and (3),

Q = the number of meters used by the person to measure gas distributed in accordance with an order under section 36 of the Act, determined as of the last day of the person’s fiscal year that ended in 2003,

R = the total number of meters used by all members of the class described in paragraph 3 of subsection 3 (1) to measure gas distributed in accordance with orders under section 36 of the Act, with the number of meters used by each member determined as of the last day of the member’s fiscal year that ended in 2003,

S = the annual revenue received by the person for the transmission, distribution and storage of gas in accordance with an order under section 36 of the Act, with the annual revenue determined for the 12 months ending on the last day of the person’s fiscal year ending in 2003,

T = the annual revenue received by all members of the class described in paragraph 3 of subsection 3 (1) for the transmission, distribution and storage of gas in accordance with orders under section 36 of the Act, with the annual revenue for each member determined for the 12 months ending on the last day of the member’s fiscal year ending in 2003,

U = the amount apportioned under section 4 to the class described in paragraph 3 of subsection 3 (1), adjusted in accordance with section 8.

O. Reg. 194/04, s. 7 (1).

(2) For the purposes of the definition of “P” in subsection (1), the Board’s management committee shall select a number between zero and 1, inclusive, that in the opinion of the management committee will result in an equitable apportionment of liability for the assessment among the members of the class described in paragraph 3 of subsection 3 (1). O. Reg. 194/04, s. 7 (2).

(3) The number selected under subsection (2) shall be used for all members of the class described in paragraph 3 of subsection 3 (1). O. Reg. 194/04, s. 7 (3).

Adjustment of amount apportioned

8. The amount apportioned under section 4 to a class described in subsection 3 (1) shall be adjusted by,

(a) adding the amount, if any, by which the amount apportioned to the class under section 11 of Ontario Regulation 425/03 (Assessment of Board Expenses and Expenditures for the 2003-2004 Fiscal Year) under the Act exceeds the amount apportioned to the class in 2003 under section 4 of that regulation; and

(b) deducting the amount, if any, by which the amount apportioned to the class in 2003 under section 4 of Ontario Regulation 425/03 (Assessment of Board Expenses and Expenditures for the 2003-2004 Fiscal Year) under the Act exceeds the amount apportioned to the class under section 11 of that regulation. O. Reg. 194/04, s. 8.

Calculations involving revenue or number of meters

9. (1) For the purposes of any calculation made under section 5, 6 or 7 that involves the revenue received or the number of meters used by a person, the Board’s management committee may use a figure determined by the committee for the revenue or number of meters if,

(a) the person did not exist in 2003 or did not have a fiscal year that ended in 2003; or

(b) the revenue received or number of meters used by the person has significantly changed, as a result of an amalgamation, acquisition, sale or similar transaction that involved the person, since the beginning of the person’s fiscal year that ended in 2003. O. Reg. 194/04, s. 9 (1).

(2) The management committee shall determine the figure in a manner that, in the opinion of the management committee, will result in an equitable apportionment of liability for the assessment among the members of the classes described in subsection 3 (1). O. Reg. 194/04, s. 9 (2).

Notice of assessment

10. (1) The Board’s management committee shall cause notice to be given to every person who is a member of a class described in subsection 3 (1) of the amount of the assessment for which the person is liable. O. Reg. 194/04, s. 10 (1).

(2) The Board’s management committee shall cause the notice to be given not later than six weeks before the date each assessment is to be paid, as set out in subsection (3). O. Reg. 194/04, s. 10 (2).

(3) The person shall pay the amount of the assessment not later than the following dates:

1. September 1, 2004, for the assessment for the period from April 1, 2004 to July 31, 2004.

2. October 1, 2004, for the assessment for the period from August 1, 2004 to November 30, 2004.

3. January 1, 2005, for the assessment for the period from December 1, 2004 to March 31, 2005. O. Reg. 194/04, s. 10 (3).

(4) Notice under subsection (1) is sufficiently given if,

(a) it is delivered personally to the person;

(b) it is sent by registered mail to the person at the latest postal address for the person that appears in the Board’s records;

(c) it is faxed to the person at the latest fax number for the person that appears in the Board’s records; or

(d) it is sent by electronic mail to the person at the latest electronic mail address for the person that appears in the Board’s records. O. Reg. 194/04, s. 10 (4).

Final calculations

11. (1) After March 31, 2005, the Board’s management committee shall determine the actual net Board expenditures for the period from April 1, 2004 to March 31, 2005. O. Reg. 194/04, s. 11 (1).

(2) The management committee shall apportion the amount of the actual net Board expenditures among the classes of persons who are liable to pay assessments. O. Reg. 194/04, s. 11 (2).

Provision of information

12. The Board’s management committee may require any member of a class described in subsection 3 (1) to provide the management committee with information that it considers necessary for the purpose of administering this Regulation, within the time specified by the management committee and in the form or format it specifies. O. Reg. 194/04, s. 12.

13. This Regulation is revoked on September 1, 2005. O. Reg. 194/04, s. 13.