04/03/2009

The Energy Minister extended the deadline for public sector Regulated Price Plan (RPP) eligibility.
Minister of Energy and Infrastructure George Smitherman has extended the deadline from May 1 by six months to November 1, 2009 for municipalities, universities, schools and hospitals (MUSH) and other designated institutional customers to move from the Regulated Price Plan (RPP) to market pricing.

The Regulated Price Plan (RPP) is an electricity pricing structure designed to ensure consumers pay what it costs to supply their electricity while smoothing the daily price variations that occur in the market. When the Ontario Energy Board (OEB) sets prices, it adjusts for past differences between what consumers have paid and what it will cost to supply them over a 12-month forecast of future electricity costs. RPP prices are reviewed and adjusted twice a year in the spring (May 1) and in the fall (Nov. 1).

Consumers who currently buy their electricity from a retailer and are paying their contract price are not affected by changes in the RPP.

In a letter to the Electricity Distributors Association (EDA), Minister Smitherman noted that while most of the large MUSH sector customers have now moved off the RPP, the amended regulation will allow more time for smaller, designated customers to understand the change. Previously, the only way to leave the RPP was to sign a retail contract or install an interval meter and pursue the spot market. The proposed regulation will allow institutional customers, with and without an interval meter, to voluntarily exit the RPP and purchase electricity on the spot market. Those without an interval meter would pay the weighed average hourly spot market price.

The Regulation has also been amended to enhance the flexibility for voluntary exit from the RPP to market pricing by removing the requirement for customers to have an interval meter. Over the next seven months, the IESO will continue to work with AMO, municipalities and local distribution companies in a continuous effort to prepare all remaining customers for the November 1, 2009 transition. 

AMO’s subsidiary, Local Authority Services Limited (LAS) continues to offer electricity and natural gas procurement and now offers an interval meter procurement service as well. 

For more information about the IESO effort, please contact IESO Customer Relations at customer.relations@ieso.ca or 1-888-448-7777.

For more information about the proposed RPP Change, please contact George Nutter, Senior Advisor, Ministry of Energy and Infrastructure: 416-326-9602.