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Introductions

Introductions. Take-home messages. Course outline. Introduction About the OEB GEA, Directive and CDM Code; roles and responsibilities of the OEB Mechanisms for decision-making Interaction with the OPA Reporting to the OEB. Introduction to the Ontario Energy Board and its role in CDM.

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Introductions

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  1. Introductions

  2. Take-home messages

  3. Course outline • Introduction • About the OEB • GEA, Directive and CDM Code; roles and responsibilities of the OEB • Mechanisms for decision-making • Interaction with the OPA • Reporting to the OEB

  4. Introduction to the Ontario Energy Board and its role in CDM

  5. What can the OEB provide an LDC? • Licence • Approved rates • Recovery of lost revenues from CDM • CDM incentives • A rate of return on rate base

  6. What can the OEB not provide an LDC? • A guarantee you will achieve your CDM targets, recover all your lost CDM revenues, earn CDM incentives • A substitute for good CDM program design

  7. About the OEB

  8. What is the OEB? • A quasi-judicial body that makes independent decisions that can be overturned in court on points of law • An independent, self-financing Crown corporation • A regulator of Ontario’s electricity and natural gas sectors in the public interest

  9. Mandate of OEB • Determined by provincial government • Embodied in legislation and regulations • OEB may obtain: • Government direction through Directives from the Minister of Energy • Suggested guidance through letters from the Minister of Energy

  10. Example of Directive • Minister’s Directive to the OEB on CDM, March 31, 2010see handout

  11. Example of Minister’s letter (suggested guidance) • Minister’s letter to the OEB on low-income work, July 5, 2010 see handout

  12. EXERCISE #1: Spot the differences

  13. EXERCISE #1: Spot the differences • Individually, read the Minister’s Directive and the Minister’s letter to the OEB. • Note any differences in language, style, etc. between the Directive and the letter. • We will discuss your findings as a group.

  14. How OEB fits into government structure • Accountable to the Minister of Energy for Board’s fiscal management and business operations, fulfilling mandate • Conducts itself according to the management principles of the Ontario government

  15. General regulatory functions • Issuance of codes, rules and guidelines and setting regulatory policy • Licensing and oversight of market participants (generators, marketers, retailers) • Monitoring and enforcing compliance with regulations • Approving MAADs

  16. Relationships with market participants Source: http://www.oeb.gov.on.ca/OEB/Consumers/OEB+and+You/About+the+OEB

  17. Gas distributor regulatory functions • Approving natural gas commodity price • Approving and setting distribution and transmission rates • Approving facilities, including pipelines, gas storage • Setting DSM framework and deciding on approvals (DSM Plan, DSMVA, LRAM, SSM)

  18. Gas guiding objectives (OEB Act) • Facilitate competition in gas sales to users • Protect consumers regarding price, reliability, quality of service • Facilitate expansion of transmission and distribution, and development & safe operation of gas storage • Promote energy conservation and efficiency • Facilitate maintenance of financially viable gas industry for transmission and distribution and storage of gas • Promote communication with gas industry and the education of consumers

  19. Electricity distributor regulatory functions • Approving commodity pricing for certain consumers (RPP, TOU) • Approving and setting distribution and transmission rates • Approving facilities, including transmission facilities • Setting CDM framework and deciding on approvals

  20. Electricity guiding objectives (OEB Act) • Protect consumer interests regarding price, adequacy, reliability and quality of service • Promote economic efficiency and cost effectiveness in generation, transmission, distribution, sale and demand for electricity and facilitate maintenance of financially viable electricity • Promote electricity CDM [new role for CDM in core business of LDCs] • Facilitate implementation of a smart grid in ON • Promote use and generation of electricity from renewable energy sources

  21. Electricity Codes • Affiliate Relationships Code for Distributors and Transmitters • Distribution System Code • Electricity Retailer Code of Conduct • Retail Settlement Code • Smart Sub-Metering Code • Standard Supply Service Code • Transmission System Code

  22. …and CDM Code

  23. Electricity Guidelines • 2005 Distribution Rate Adjustment Filing Guidelines • Authorized Electronic Business Transaction Standards • Directive for the Disclosure of Information to Consumers by Electricity Retailers • Electricity Distribution Rate Handbook • Electricity Distributor Recovery of Regulatory Assets (Phase 1, 2)

  24. Electricity Guidelines cont. • Electricity Distribution Retail Transmission Service Rates • MAADs Forms • Ontario Price Credit • Smart Meter Funding and Cost Recovery • Filing Requirements: Distribution System Plans, for Service Area Amendment Applications, for Transmission and Distribution Applications, for Transmission and Distribution Rate Applications and Leave to Construct Projects, CDM

  25. Mechanisms for conducting regulatory functions • Oral and written public hearings (Board Members) • Administrative approvals (Board Staff) • Working groups • Written consultations

  26. OEB vision • Board envisions a viable and efficient energy sector with informed consumers, and works towards this vision through regulation that is effective, fair, and transparent

  27. Delivery • Board reviews and processes hundreds of applications annually, ranging from routine licensing requests to complex rate-change applications

  28. OEB Management Committee • Consists of Chair and two Vice-Chairs • Oversees the management and operations of the OEB

  29. Board Members • Make decisions on rates and policy through consultations and hearings • Make decisions on CDM • The Board will form a Board panel for a particular hearing • This panel will make the decision • A Board policy decision is typically made by the Board with advice from Board Staff

  30. Board Staff • Provide technical advice and administrative assistance to the Board • Typically facilitate Board consultations

  31. Business areas of the OEB

  32. Applications and regulatory audit • Responsible for oversight of energy market licencees and rate regulated utilities • Applications unit advises the Board on utility applications for rates and facilities approvals, and licence applications • Regulatory Audit unit monitors financial performance of gas and electricity utilities, and provides accounting, financial, technical advice • Conservation & Reporting group will handle CDM Code implementation

  33. Regulatory policy and compliance • Develops policy options and recommendations related to natural gas and electricity sector • Conducts research on emerging energy issues • Undertakes strategic regulatory planning • Ensures electricity and natural gas industries comply with OEB licences, rules and regulators • Assists industry stakeholders with regulatory issues • Rates, Conservation & Policy Evaluation group deals with CDM policy

  34. Legal Services • Legal services and Board Secretary’s office • Under leadership of General Counsel, provides legal advice to Board members and staff on all aspects of Board’s authority and responsibilities

  35. Board Secretary’s Office • Legal services and Board Secretary’s office • Performs all hearings-related and registrar functions including making logistical arrangements for hearings, maintaining public record, and issuing regulatory documents • Provides case administration services to assist hearing panels and Board staff • Manages the Information Resources Centre and the Public File Room • CDM filings are addressed to Board Secretary

  36. Responsible for full service communications and public affairs support to OEB Board members and staff • Provides communications planning, stakeholder and media relations, web site management, internal communications, correspondence management, consumer information • Responds to inquiries/complaints from public and licencees • Communications and Consumer Relations (CCR) Department

  37. Provides range of strategic planning, financial, IT and administrative support to the Board • Three groups within department: IT, Finance, Planning and Administration • Planning and Business Services Department

  38. Provides strategic direction with respect to human resource initiatives and activities within the Board, including strategic planning and policy formulation • Human resources

  39. Golden anniversary • HAPPY 50th ANNIVERSARY, OEB! • 1960-2010

  40. Golden anniversary • Interactive timeline showing key milestones in evolution of Ontario’s energy sector: http://www.oeb.gov.on.ca/html/OEB50th/timeline.htm

  41. EXERCISE #2: Adminis-Trivia

  42. EXERCISE #2: Adminis-Trivia • Divide into 2 teams. • Select a team name and a team captain. • The team that answers the most questions correctly will win the game.

  43. GEA, Directive and CDM Code: roles and responsibilities of the OEB

  44. OEB, government and CDM

  45. Legislation (GEA) Green Energy Act • Passed on May 14th, 2009 • Repeals: • Energy Conservation Leadership Act, 2006 • Energy Efficiency Act, 1990 • Amends several other Acts

  46. Legislation (GEA) GEA and CDM • Made CDM a core business (condition of licence) of LDCs with regulatory oversight by OEB • Gives LDCs and OEB broader role in renewables, conservation, and smart metering • LDCs can be generators

  47. Legislation (GEA) LDC-owned generation • GEA allows distributors to own and operate a generation facility if it is a: • Renewable energy generation facility ≤10 MW • Cogeneration facility • Energy storage facility • OEB licenses the generator

  48. Legislation (GEA) GEA and renewable energy • Transmitter and distributor obligation to connect a renewable energy generation facility • Priority connection access granted to renewables • Streamlines approval process for renewables • Does not include federal approvals

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