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Regulated Price Plan

Final RPP Variance Settlement Amount

On April 1, 2005, the OEB’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 Independent Electricity System Operator (the “IESO”).

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; (3) elects the spot market pricing option; or (4) no longer remains 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. If the consumer was on RPP prices for a continuous 12-month period prior to exiting the RPP, the distributor will multiply the applicable “final RPP variance settlement factor” by the individual consumer’s consumption over the most recent 12 months. If the consumer was on RPP pricing for less than 12 months prior to exiting RPP, they will receive a pro-rated settlement based on their actual consumption for that less-than-12-month period multiplied by the applicable settlement factor.

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.

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 IESO 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 OEB has calculated the “final RPP variance settlement factor” by dividing the balance in the IESO’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 IESO variance account balance to arrive at a “net” variance account balance.

Final RPP Variance Settlement Factor (posted on June 15, 2016)4

(To see previous Settlement Factors, click here)

Net Variance Account Balance (accumulated IESO variance account balance less the estimated “OPG Rebate”)3

$

$105,222,713

Total RPP consumption for most recent 12 months (June 2015 to May 2016)

kWh

57,442,522,749

Final RPP Variance Settlement Factor 1

$/kWh
————————
cents/kWh

0.001832
————————
0.1832
————————

XML version

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 an XLSX file that distributors and retailers can automatically download into their billing systems. This data is also available as an XML file.  The current variance file can be accessed through the XML link above, and the folder directory can be accessed from the following location: http://www.ontarioenergyboard.ca/documents/rpp_variance

(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 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. The "OPG Rebate" ceased on April 30, 2009.

(4) As at May 31, 2016.

 

 


CONTACT

For general information about the price plan, click here.

For further information contact the OEB’s Industry Relations email IndustryRelations@ontarioenergyboard.ca, or by phone at 416-440-7604. The OEB’s toll-free number is 1-888-632-6273.

 

 

Page last updated 2016-06-15

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