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Ontario’s Renewable Energy Standard Offer Program
- LDC Information Package
Prepared with input and assistance of members of the OPA’s
Electricity Distributors Working Group
Last updated April 03, 2007
22
DisclaimerDisclaimerThis information package is intended only as a starting point toThis information package is intended only as a starting point toidentify metering, connection and settlement issues pertaining tidentify metering, connection and settlement issues pertaining to o Renewable Energy Standard Offer Program (RESOP) facilities. It Renewable Energy Standard Offer Program (RESOP) facilities. It provides high level outlines and simplifications of issues, procprovides high level outlines and simplifications of issues, processes esses and regulatory requirements. This package was prepared based and regulatory requirements. This package was prepared based upon information current at the time of preparation and no upon information current at the time of preparation and no representation or warranty is provided, nor shall any be impliedrepresentation or warranty is provided, nor shall any be implied that that such information continues to be accurate or current. such information continues to be accurate or current.
Though prepared for an LDC audience, some content may be of Though prepared for an LDC audience, some content may be of interest to project proponents; however, interested proponents minterest to project proponents; however, interested proponents must ust discuss their plans with their Local Distribution Company (LDC),discuss their plans with their Local Distribution Company (LDC),whose specific requirements and procedures may differ from the whose specific requirements and procedures may differ from the general information provided in this package. general information provided in this package.
If there is any conflict between this information package and eiIf there is any conflict between this information package and either ther the RESOP Rules or the RESOP Contract, the latter will prevail. the RESOP Rules or the RESOP Contract, the latter will prevail. Similarly, if there is any conflict between this information pacSimilarly, if there is any conflict between this information package kage and such applicable rules and regulations regarding connection oand such applicable rules and regulations regarding connection of f electricity generation facilities to a distribution system in Onelectricity generation facilities to a distribution system in Ontario, the tario, the latter shall take precedence.latter shall take precedence.
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Acknowledgements Acknowledgements The Renewable Energy Standard Offer Program (RESOP) policy The Renewable Energy Standard Offer Program (RESOP) policy was developed over a 2 year period, with program specifics was developed over a 2 year period, with program specifics developed in 2006 over several monthsdeveloped in 2006 over several monthsThe OPA chose solutions with the input of stakeholders, via seveThe OPA chose solutions with the input of stakeholders, via several ral specific working groups, and other consultation processesspecific working groups, and other consultation processesThe LDC RESOP Information Package is based both on the initial The LDC RESOP Information Package is based both on the initial prepre--launch work of the Electricity Distributors Working Group, and launch work of the Electricity Distributors Working Group, and on subsequent poston subsequent post--launch input by select LDCs and the OEBlaunch input by select LDCs and the OEBThe Electricity Distributors Working Group (ED WG) had members The Electricity Distributors Working Group (ED WG) had members from Hydro One, the IESO, various LDC volunteer representatives from Hydro One, the IESO, various LDC volunteer representatives on behalf of the Electricity Distributors Association, the Ontaron behalf of the Electricity Distributors Association, the Ontario io Ministry of Energy, and the OEBMinistry of Energy, and the OEBThe OPA would like to acknowledge the onThe OPA would like to acknowledge the on--going efforts and input going efforts and input of various LDCs who continued to consult with the OPA and OEB of various LDCs who continued to consult with the OPA and OEB after the launch of the RESOP, with particular thanks to: Grahaafter the launch of the RESOP, with particular thanks to: Graham m Henderson, Hydro One Distribution; Gerry Hilhorst, Waterloo NortHenderson, Hydro One Distribution; Gerry Hilhorst, Waterloo North h Hydro; Stephen Sottile, KEDL; and Darius Vaiciunas, Collus HydroHydro; Stephen Sottile, KEDL; and Darius Vaiciunas, Collus HydroThe OPA has developed this The OPA has developed this ““LDC Information PackageLDC Information Package”” for general for general overview and information exchange. It is an inoverview and information exchange. It is an in--progress, progress, ““living living documentdocument”” and so written feedback and suggestions are welcomeand so written feedback and suggestions are welcome
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Ontario Renewable Energy Policy and Ontario Renewable Energy Policy and Market Context (slides 5Market Context (slides 5--9)9)Background and Select RESOP Features Background and Select RESOP Features (slides 10(slides 10--23)23)OEB Code Changes OEB Code Changes –– past and future past and future (slides 24(slides 24--28) 28) Note: OEB is Note: OEB is ““lead lead agencyagency”” on issues relating to 24on issues relating to 24--2828Select Metering, Settlement and Payment Select Metering, Settlement and Payment Issues (slides 29Issues (slides 29--46) 46) Main Meter Configuration OptionsMain Meter Configuration Options(slides 47(slides 47--63)63)For more Information (slides 64For more Information (slides 64--65)65)
Table of ContentsTable of Contents
55
Source: OPA’s IPSP Scope and Overview, June 29, 2006
Ontario Renewable Energy Ontario Renewable Energy Policy and Market ContextPolicy and Market Context
66
Source: OPA’s IPSP Scope and Overview, June 29, 2006
Ontario Renewable Energy Ontario Renewable Energy Policy and Market Context (contPolicy and Market Context (cont’’d)d)
77
Ontario Renewable Energy Ontario Renewable Energy Policy and Market Context (contPolicy and Market Context (cont’’d)d)
Procurement Targets Procurement Targets -- 20152015
Generation StorageGeneration Storage
100%100%100100100100Micro CHP/Fuel CellsMicro CHP/Fuel Cells
100%100%50505050SolarSolar
Promising TechnologiesPromising Technologies
IGCCIGCC
58%58%58458442%42%4164161,0001,000Cogeneration/CHPCogeneration/CHP
41%41%2,2552,25559%59%3,2653,2655,5205,520Natural GasNatural Gas
26%26%52052074%74%1,5001,5002,0202,020NuclearNuclear
71%71%2,4872,48729%29%1,0031,0033,4903,490SubtotalSubtotal
98%98%2952952%2%55300300BiomassBiomass
61%61%1,5051,50539%39%9559552,4602,460WindWind
94%94%6876876%6%4343730730HydroelectricHydroelectric
Renewable EnergyRenewable Energy
99.5%99.5%2,5872,5870.5%0.5%13132,6002,600Conservation and Demand Conservation and Demand ManagementManagement
UnUn--CommittedCommittedNearNear--TermTerm
(MW) (%)(MW) (%)
CommittedCommittedNearNear--TermTerm
(MW) (%)(MW) (%)
NearNear--TermTermPotentialPotential
(MW)(MW)Resource TypeResource Type
88
Renewable Global Status Report 2006
Global Annual Investment in Renewable EnergyGlobal Annual Investment in Renewable Energy
Ontario Renewable Energy Policy Ontario Renewable Energy Policy and Market Context (contand Market Context (cont’’d) d) --
Opportunities in a Growing MarketOpportunities in a Growing Market
99
Climate Change Climate Change –– reducing GHG emissionsreducing GHG emissionsReduced environmental impacts (cleaner air, water, soil) = Reduced environmental impacts (cleaner air, water, soil) = less impact on human health and on ecosystemsless impact on human health and on ecosystemsDiversified fuel supply = domestic energy securityDiversified fuel supply = domestic energy securityElectricity rate stability: fixed prices mitigate against futureElectricity rate stability: fixed prices mitigate against futuremarket price increases due to reliance on fossil fuelsmarket price increases due to reliance on fossil fuelsDistributed generation can promote transmission and Distributed generation can promote transmission and distribution system reliabilitydistribution system reliabilityLocating generation close to load can reduce transmission Locating generation close to load can reduce transmission line losses and so reduce need for, or delay, costly Tx and/or line losses and so reduce need for, or delay, costly Tx and/or Dx infrastructure improvementsDx infrastructure improvementsNew project investment = local economic development, New project investment = local economic development, diversified tax base & highdiversified tax base & high--skill job creationskill job creationPositive investment climate can incent new domestic Positive investment climate can incent new domestic manufacturing plants, reducing costs for future projectsmanufacturing plants, reducing costs for future projects
Ontario Renewable Energy Ontario Renewable Energy Policy and Market Context (contPolicy and Market Context (cont’’d)d)Drivers: Why Renewable Energy?Drivers: Why Renewable Energy?
1010
Need to reduce barriers to small renewable generatorsNeed to reduce barriers to small renewable generatorsGovernment accepts joint OPA/OEB recommendations Government accepts joint OPA/OEB recommendations in March 2006 and directs implementationin March 2006 and directs implementationThe OPA role:The OPA role:
–– Eligibility CriteriaEligibility Criteria–– Pricing Methodology Pricing Methodology –– Contact Terms and ConditionsContact Terms and Conditions
The OEB role:The OEB role:–– Ensuring nonEnsuring non--discriminatory access to the discriminatory access to the
electricity systemelectricity system–– Required changes to Codes and connection Required changes to Codes and connection
requirementsrequirements
Background and Select RESOP Background and Select RESOP Features Features –– Program HistoryProgram History
1111
Keep it simpleKeep it simple
Remove barriers to Remove barriers to smaller renewable smaller renewable developersdevelopers
Balance new Balance new renewable generation renewable generation contribution and value contribution and value to ratepayersto ratepayers
Background and Background and Select RESOP Features Select RESOP Features ––
Guiding PrinciplesGuiding Principles
1212
Background and Select Background and Select RESOP Features RESOP Features ––
Who Will Be Eligible for the Program?Who Will Be Eligible for the Program?Fuel/Technology TypesFuel/Technology Types
–– Renewable energy projects : wind, thermal electric Renewable energy projects : wind, thermal electric solar, photovoltaic (PV), renewable biomass, biosolar, photovoltaic (PV), renewable biomass, bio--gas, gas, biobio--fuel, landfill gas, or waterpower.fuel, landfill gas, or waterpower.
Capacity RequirementsCapacity Requirements-- Installed generating capacity of no more than 10,000 Installed generating capacity of no more than 10,000 kW. Projects that began commercial operation after kW. Projects that began commercial operation after November 7, 1998.November 7, 1998.
See RESOP Rules for full detailsSee RESOP Rules for full details
1313
Transmission System Constraints acTransmission System Constraints account for capacity count for capacity limits on getting generation into the grid (similar limits on getting generation into the grid (similar approach as taken by Ministry of Energy in RES II approach as taken by Ministry of Energy in RES II RFP) RFP)
-- Some transmission areas and zones will experience Some transmission areas and zones will experience such Contract issuance restrictionssuch Contract issuance restrictions
-- Some exemptions to these restrictions (see Rules)Some exemptions to these restrictions (see Rules)
OPA will ensure that upOPA will ensure that up--toto--date information is available date information is available for generators and distributors; see for generators and distributors; see ““Transmission Transmission ConstraintsConstraints”” on RESOP microsite: on RESOP microsite: www.powerauthority.on.ca/sopwww.powerauthority.on.ca/sop
““Orange ZoneOrange Zone”” map: functional map shows the highmap: functional map shows the high--voltage transformer stations in Transmission System voltage transformer stations in Transmission System which cannot accept new power from LDC feeders which cannot accept new power from LDC feeders
-- Gx may ask LDCs if Gx may ask LDCs if ““theirtheir”” feeder connects to a HV feeder connects to a HV transformer station in transformer station in ““Orange ZoneOrange Zone””
Background and Select RESOP Features Background and Select RESOP Features ––Transmission Issues for Some ApplicantsTransmission Issues for Some Applicants
1414
Background and Select RESOP Background and Select RESOP Features Features –– Transmission Issues (ContTransmission Issues (Cont’’d)d)
1515
Transmission Issues Transmission Issues (Cont(Cont’’d) d) -- Some Tx Some Tx Dynamic Flow Dynamic Flow Constraints Within Constraints Within the Bruce Zone the Bruce Zone Portion of RESOP Portion of RESOP ““Orange ZoneOrange Zone””
1616
Background and Select RESOP Features Background and Select RESOP Features ––Application Eligibility RequirementsApplication Eligibility Requirements
Contract awarded after the Contract awarded after the following conditions met by following conditions met by applicant:applicant:–– Completed and current Connection Completed and current Connection
Impact Assessment (<6 mo.) for Impact Assessment (<6 mo.) for approx. size of Project, no larger than approx. size of Project, no larger than 10 MW Gross Nameplate Capacity10 MW Gross Nameplate Capacity
–– CIA not required by OPA if an InCIA not required by OPA if an In--Service Project or if 10 kW or underService Project or if 10 kW or under
–– Environmental Assessment underway Environmental Assessment underway (if applicable)(if applicable)
–– Demonstrated Site AccessDemonstrated Site Access–– Authorize OPA access to Gx meter Authorize OPA access to Gx meter
datadata–– Other electronic application Other electronic application
deliverablesdeliverables
1717
RESOP Contract TermRESOP Contract Term
–– Up to 20 years = securing financingUp to 20 years = securing financing
Third Anniversary RequirementsThird Anniversary Requirements
–– Projects must achieve Commercial Projects must achieve Commercial Operation within 3 years of ContractOperation within 3 years of Contract
–– Waterpower facilities: projects must Waterpower facilities: projects must obtain location approval/ priority permit obtain location approval/ priority permit within 3 yearswithin 3 years
Background and Select Background and Select RESOP Features RESOP Features –– Generator Generator Opportunity: Secure ContractOpportunity: Secure Contract
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Background and Select Background and Select RESOP Features RESOP Features ––
Opportunities: Program FlexibilityOpportunities: Program Flexibility
Project can be completed in two or more phasesProject can be completed in two or more phases
All phases of a Project must be inAll phases of a Project must be in--service within three service within three years (waterpower exceptions)years (waterpower exceptions)
Separate applications required for longer phaseSeparate applications required for longer phase--in in periods (waterpower exceptions)periods (waterpower exceptions)
Incremental Projects are eligible:Incremental Projects are eligible:–– Total nameplate capacity of initial facility plus RESOP project Total nameplate capacity of initial facility plus RESOP project
plus must not exceed 10,000 kW plus must not exceed 10,000 kW
–– Only the percentage capacity increase is eligible for RESOP Only the percentage capacity increase is eligible for RESOP paymentpayment
1919
Background and Select RESOP Features Background and Select RESOP Features –– Some Some Generator Issues, Steps and ResponsibilitiesGenerator Issues, Steps and Responsibilities
Generators responsible for project development and costs, Generators responsible for project development and costs, including successful completion of RESOP Applicationincluding successful completion of RESOP Application-- Gx determines Gx determines resource assessment, payback period and resource assessment, payback period and feasibility studies ex. RETScreen (feasibility studies ex. RETScreen (www.retscreen.cawww.retscreen.ca))Must contact Local Distribution Company re: CIA if new Must contact Local Distribution Company re: CIA if new project, and resolve all metering and connection issuesproject, and resolve all metering and connection issuesMust obtain municipal approvals for zoning and permitsMust obtain municipal approvals for zoning and permitsMust obtain relevant approvals from pertinent ministriesMust obtain relevant approvals from pertinent ministries–– Environment (screening and approvals)Environment (screening and approvals)–– Natural Resources (waterpower)Natural Resources (waterpower)
If successfully meet Third Anniversary Requirements, then If successfully meet Third Anniversary Requirements, then RESOP Contract Payment provides financing with 20 year RESOP Contract Payment provides financing with 20 year term with guaranteed priceterm with guaranteed price
2020
Background and Select RESOP Features Background and Select RESOP Features ––Contract Payments under the ProgramContract Payments under the Program
Until April 30/07, all except for Solar PV @ $0.11 / kWh Until April 30/07, all except for Solar PV @ $0.11 / kWh OnOn--Peak performance $0.0352 / kWh (Gx must apply for incentive)Peak performance $0.0352 / kWh (Gx must apply for incentive)–– Note that Note that ““OnOn--Peak HoursPeak Hours”” RESOP definition differs from RPP RESOP definition differs from RPP
definitiondefinitionEscalation for Inflation 20% of Base Rate indexed at CPIEscalation for Inflation 20% of Base Rate indexed at CPIEscalation on May 1Escalation on May 1st st annuallyannuallyPayments for Solar PV Projects @ $0.42 / kWh, regardless of datePayments for Solar PV Projects @ $0.42 / kWh, regardless of date–– $0.42 / kWh is fixed over time; PV not eligible for inflation $0.42 / kWh is fixed over time; PV not eligible for inflation
increases or peak performance under current Program Rulesincreases or peak performance under current Program RulesGenerator receives RESOP payment from LDC as per DSC and Generator receives RESOP payment from LDC as per DSC and typical utility practice (for example, see slide #45) typical utility practice (for example, see slide #45) Nominally, payment is made up of 2 componentsNominally, payment is made up of 2 components–– LDC pays HOEP LDC pays HOEP –– OPA pays (contract price OPA pays (contract price –– HOEP) via the LDC through the IESOHOEP) via the LDC through the IESO
Pricing Reviews Pricing Reviews –– Pricing will be reviewed for future applicants for contracts onlPricing will be reviewed for future applicants for contracts only (not y (not
retroactive to holders of executed contracts)retroactive to holders of executed contracts)
2121
Background and Select RESOP Features Background and Select RESOP Features ––Some Connection and Metering RequirementsSome Connection and Metering Requirements
Generator must connect within an eligible distribution Generator must connect within an eligible distribution system as defined by RESOP Rulessystem as defined by RESOP RulesMetering under the control of the LDC, and as per OEBMetering under the control of the LDC, and as per OEB’’s s Distribution System CodeDistribution System CodeHourly data required (by RESOP Rules) for all Gx larger Hourly data required (by RESOP Rules) for all Gx larger than 10 kWthan 10 kWNo hourly data required for microNo hourly data required for micro--scale generation scale generation (10kW and under), unless micro(10kW and under), unless micro--Gx locating behind load Gx locating behind load customer metercustomer meterGx has sole responsibility for coordinating metering Gx has sole responsibility for coordinating metering configuration and metering requirements with their LDCconfiguration and metering requirements with their LDCRESOP Contract Facility meters must be under the RESOP Contract Facility meters must be under the control of the applicable LDCcontrol of the applicable LDCGenerator pays for connection and meteringGenerator pays for connection and metering
2222
In terms of metering and settlement of micro-generators of 10 kW and under, Sections 6.1 and 6.3 of the Renewable Energy Standard Offer Program – Program Rules Version 2.0 (November 22, 2006) provide some guidance (note, these sections are not limited to micro-Gx).
Section 6.1 states (in part) that: …. Subject to Section 6.3 hereof, Contract Facilities that are less than or equal to 10 kW in Gross Nameplate Capacity will not require meters that provide hourly data until such time as the relevant LDC serving the Contract Facility requires the use of metering that provides hourly data.
Section 6.3 states: Where the Contract Facility is connected directly to a Load Customer as permitted in Section 6.2, both the Contract Facility’s meter and the Load Customer’s meter must provide hourly data, including Contract Facilities of 10 kW or less.
Background and Select RESOP Features Background and Select RESOP Features –– Some Some Connection and Metering Requirements (ContConnection and Metering Requirements (Cont’’d)d)
2323
Background and Select RESOP Features Background and Select RESOP Features –– Eligible Eligible Distribution System In Which RESOP Gx Can LocateDistribution System In Which RESOP Gx Can Locate
““Eligible distribution systemEligible distribution system”” eligibility factors:eligibility factors:-- Generator must connect to an eligible distribution system via aGenerator must connect to an eligible distribution system via asingle connection at a voltage of 50 kilovolts (kV) or lesssingle connection at a voltage of 50 kilovolts (kV) or less-- Eligible distribution systems are those that are both:Eligible distribution systems are those that are both:
-- OEBOEB--licensed and licensed and -- connected to the connected to the IESOIESO--Controlled GridControlled Grid
Note: an embedded LDC may be an eligible Dx system if its host Note: an embedded LDC may be an eligible Dx system if its host LDC is connected to the IESOLDC is connected to the IESO--Controlled GridControlled Grid
RESOP contracts are not available in Remote Communities or RESOP contracts are not available in Remote Communities or Cornwall Electric distribution service areaCornwall Electric distribution service area
LDCs which are exempt Section 26(1) of the Electricity Act whichLDCs which are exempt Section 26(1) of the Electricity Act whichgoverns the provision of nongoverns the provision of non--discriminatory access would not be discriminatory access would not be required to connect RESOP generatorsrequired to connect RESOP generators
2424
OEB Code Changes OEB Code Changes –– DSC DSC Amendments in support of RESOPAmendments in support of RESOP
Note:Note: OEB is OEB is ““ lead agencylead agency ”” on these issues on these issues
Metering to be as appropriate for RESOP Metering to be as appropriate for RESOP settlementsettlement
Standardized connection agreement for Standardized connection agreement for small and midsmall and mid--sized generation facilitiessized generation facilities
Distributors to provide contact and Distributors to provide contact and technical information to prospective technical information to prospective generatorsgenerators
2525
OEB Code Changes OEB Code Changes –– DSC DSC Amendments (contAmendments (cont’’d)d)
Note:Note: OEB is OEB is ““ lead agencylead agency ”” on these issues on these issues FirstFirst--comecome--firstfirst--served queuing for available Dx served queuing for available Dx capacitycapacity–– Queue position assigned at CIAQueue position assigned at CIA–– Position may be held for 12 monthsPosition may be held for 12 months–– Material change in the project will trigger need for a Material change in the project will trigger need for a
second CIA and reassignment of queue positionsecond CIA and reassignment of queue position–– Does not apply to microDoes not apply to micro--embedded generation or load embedded generation or load
displacement only generationdisplacement only generation
DSC Amendment includes a dispute resolution DSC Amendment includes a dispute resolution process (binding arbitration)process (binding arbitration)
2626
OEB Code Changes (ContOEB Code Changes (Cont’’d) d) ––RSC AmendmentsRSC Amendments
Note:Note: OEB is OEB is ““ lead agencylead agency ”” on these issues on these issues
Obliges electricity distributors to settle Obliges electricity distributors to settle contracts between generators and OPA in contracts between generators and OPA in accordance with the pricing provisions of accordance with the pricing provisions of the contractthe contractElectricity distributors will recover the Electricity distributors will recover the Market Price Variance associated with Market Price Variance associated with these payments through the use of these payments through the use of existing IESO settlement processesexisting IESO settlement processes
2727
OEB Code Changes OEB Code Changes –– Next StepsNext Steps
Note:Note: OEB is OEB is ““ lead agencylead agency ”” on these issues on these issues
The OEB Compliance Office intends to The OEB Compliance Office intends to issue clarifications on the following issues:issue clarifications on the following issues:A Compliance Bulletin to give clarity in A Compliance Bulletin to give clarity in
terms of metering terms of metering ““which is appropriate for which is appropriate for settlementsettlement”” for these two main RESOP Gx for these two main RESOP Gx connection types, and their variants:connection types, and their variants:–– Directly connected (i.e. in parallel) Directly connected (i.e. in parallel) –– Indirectly connected Generators (i.e. Indirectly connected Generators (i.e. ““in in
seriesseries”” or or ““behind the load customerbehind the load customer’’s meters meter””))
2828
OEB Code Changes OEB Code Changes –– Next Steps (ContNext Steps (Cont’’d)d)
Note:Note: OEB is OEB is ““ lead agencylead agency ”” on these issues on these issues
Generators to choose Connection Generators to choose Connection Location based on information from LDCLocation based on information from LDCLDCs will have discretion in terms of LDCs will have discretion in terms of whether RESOP Generators can be whether RESOP Generators can be treated as new accounts (criteria tba by treated as new accounts (criteria tba by OEB)OEB)LDCs to assign RESOP Gx to existing rate LDCs to assign RESOP Gx to existing rate class according to load characteristics and class according to load characteristics and other relevant factors (factors tba by OEB)other relevant factors (factors tba by OEB)
2929
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues --Contract Payment and GST treatment by LDCsContract Payment and GST treatment by LDCs
A generator with a RESOP Contract may be required to A generator with a RESOP Contract may be required to register, collect and remit GST applicable to Contract register, collect and remit GST applicable to Contract PaymentsPaymentsIt is the sole responsibility of the RESOP Generator to It is the sole responsibility of the RESOP Generator to determine their GST status and to complete any relevant determine their GST status and to complete any relevant submissionssubmissions-- If the Excise Tax Act applies to the Generator, it must If the Excise Tax Act applies to the Generator, it must provide the OPA with written notice of its GST registration provide the OPA with written notice of its GST registration number, and the OPA will inform the LDC. The CRA may number, and the OPA will inform the LDC. The CRA may require it to register with the CRArequire it to register with the CRA-- If the Excise Tax Act does not apply to the Generator, it If the Excise Tax Act does not apply to the Generator, it must inform the OPA of its GST status before it declares must inform the OPA of its GST status before it declares Commercial Operation, and the OPA will inform the LDCCommercial Operation, and the OPA will inform the LDCIt is recommended that all RESOP Generators obtain It is recommended that all RESOP Generators obtain independent GST, tax and legal advice pertaining to the independent GST, tax and legal advice pertaining to the RESOP ContractRESOP Contract
3030
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues --Contract Payment and GST treatment by LDCs Contract Payment and GST treatment by LDCs
(Cont(Cont’’d)d)As per Section 5.1(c) of the RESOP Contract, the OPA As per Section 5.1(c) of the RESOP Contract, the OPA has no obligation to make any Contract Payments if the has no obligation to make any Contract Payments if the generator does not first (1) provide notice in writing to generator does not first (1) provide notice in writing to the OPA of its GST status ,and (2) if a registrant, provide the OPA of its GST status ,and (2) if a registrant, provide its GST registration number to the OPAits GST registration number to the OPAThe LDCThe LDC’’s regulatory obligation is s regulatory obligation is settle with the settle with the generator in accordance with thegenerator in accordance with the RESOP ContractRESOP ContractIn order to receive RESOP Contract Payments from the In order to receive RESOP Contract Payments from the LDC, the Generator must first properly declare LDC, the Generator must first properly declare Commercial Operation with the OPACommercial Operation with the OPAThen the OPA must provide the LDC with the Then the OPA must provide the LDC with the GeneratorGenerator’’s selfs self--declared GST status (and if applicable, declared GST status (and if applicable, its GST registration number) so that the LDC can its GST registration number) so that the LDC can properly issue Contract Payment (and if applicable, remit properly issue Contract Payment (and if applicable, remit GST)GST)
3131
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues –– LDC Settlement SystemsLDC Settlement Systems
Setting up the LDC Billing System to Invoice, Setting up the LDC Billing System to Invoice, Track, and Record settlements for the RESOP Track, and Record settlements for the RESOP will involve some planning to manage 20 year will involve some planning to manage 20 year contracts.contracts.An LDC may choose to use combinations of An LDC may choose to use combinations of Rate Codes, Customer Classifications or Rate Codes, Customer Classifications or Customer Categories to track RESOP Customer Categories to track RESOP SettlementsSettlementsThe next set of slides provides an overview of The next set of slides provides an overview of scenarios related to RESOP Billing and Tracking scenarios related to RESOP Billing and Tracking to provide insight to an LDC when designing to provide insight to an LDC when designing their systems for RESOP Settlementstheir systems for RESOP Settlements
3232
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP SettlementsDiscussion of RESOP Settlements
The RESOP Requires the LDC to pay the Generator for the energy delivered to the Distribution System at the OPA Contract Price (CP).
Given that the contracts will have different start times and the OPA will be reviewing Contract Pricing on a regular basis, the CP tracking in a Settlements System will need to be specific to groups of Generation Facilities. For Example:
In Year 1 (up to April 30, 2007) :
Generator 1 will have the fixed price of 11 cents per kWh for all output.
Generator 2 will have the fixed price of 42 cents per kWh for all output.
Generator 3 will have the Performance Incentive and thereby is paid 11 cents for all output during off peak times, and 14.52 cents during peak times.
3333
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
The Base Rate of 11.00 cents per kWh is escalated at 20% of the annual CPI. Now the pricing for RESOP Generators would be as follows:
In Year 2 (from May 01, 2007 to April 30, 2008):
Generator 1 receives the fixed price of 11.04 cents per kWh for all output.
Generator 2 receives the fixed price of 42 cents per kWh for all output.
Generator 3 receives the Performance Incentive and thereby is paid 11.04 cents for all output during off peak times, and 14.56 cents during “On-Peak Hours” (as defined under RESOP).
3434
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
From a Billing and Payment Perspective, it is likely for a single non-PV generator to have a different rate each year of the 20 year contract due to the CPI increase calculations.
Given that an LDC must be able to track payments and credits on an ongoing basis, one option for keeping track of the various payments would be to establish a new rate tied to a rate change for each new contract rate.
Using the examples outlined, the LDC could set up 4 rates for year 1 (ending April 30/07):Rate A1 = (11 Cents for all output)Rate B1 = (42 Cents for all output)Rate C1 = (11 Cents for Off-Peak Output)Rate D1 = (14.52 Cents for On-Peak Output)
OR… the LDC can set up 3 rates for year 1:Rate A1 = (11 Cents for all output)Rate B1 = (42 Cents for all output)Rate C1 = (3.52 Cent Rider for On-Peak Output tied to Rate A)
3535
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
In this way - a Generator's Payments could be re-calculated by tying a specific rate to delivered output at any given time in a calendar year. This would provide an easy method of re-calculating costs during audit processes etc.
Since the RESOP rules state that the Solar PV rate will not be indexed, there would likely be no need to establish a rate B2.
Assuming the 4 Rate Option, the LDC would set up additional rates for year 2 (beginning May 1/07 ending April 30/08):
Rate A2 = (11.04 Cents for all output)Rate C2 = (11.04 Cents for Off-Peak Output)Rate D2 = (14.56 Cents for On-Peak Output)
3636
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Under the basic concepts of settlements, the LDC settles with all Generators at the HOEP, and collects from all Consumers at HOEP.This practice keeps the LDC indifferent to the supply and sale of electricity.
At the most basic of concepts, an LDC would purchase all power from the IESO at HOEP and sell all the power to the Consumers at HOEP.
3737
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Embedded Generators :
When some of the power is purchased from the IESO and some from an Embedded Generator, the balance remains intact if all Consumers pay at HOEP and all Generators are paid at HOEP.
The change here would simply be where the HOEP dollars flow to, some to the IESO, and some to the Embedded Generator.
Assuming that all power is sold to consumers at HOEP, this means that there are adjustments performed to settlements when other parties or rates are involved.
For example...
3838
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
RPP Split Rate:
An LDC collects from the Customer the RPP Split Rate for Energy Consumed, and settles with the IESO for the difference between the HOEP and the RPP Split Rate for that same unit of energy (using Form 1598).
This leaves the LDC with the HOEP equivalent value for every kWh sold.
Retailer Contracts:
An LDC collects from the Customer the Retailer Rate for energy consumed, and settles with the Retailer for the difference between HOEP and the Retailer Rate for that same unit of energy. (Retailer Settlements)
This leaves the LDC with the HOEP equivalent value for every kWh sold.
3939
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Generators Receiving Rates other than the HOEP:
Under the RESOP, Generators will be receiving contract rates which differ from the HOEP. Since the settlements processes noted above are in place to ensure the LDC always receives HOEP for energy sold to consumers, a similar process needs to be in place to ensure the LDC can pay the Generators the difference between HOEP and the Contract Rate.
The IESO settlements system (through Form 1598) will be used to manage the difference between HOEP and the RESOP Rate that the LDC must pay the Generator.
4040
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues -- Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
In an effort to centralize the reporting and tracking of the RESOP program, the IESO (as a tracking condition requested by the OPA) requires a variety of information, in addition to the variance between HOEP and RESOP dollars reported on the Form 1598.
Dollar Variance (Positive or Negative) between HOEP and RESOP energy Purchased from Generators.
Total kWh's related to the Dollars
Further to the basic requirements, the Dollars and kWh's need to be split out to On-Peak and Off-Peak periods in order to allow the OPA to track the costs and benefits related to the On-Peak Performance Incentive Payment.
This information is required to be further split out based on the four main renewable energy categories under the RESOP: Wind; Biomass; Small Hydro; Solar Photovoltaic
http://www.ieso.ca/imoweb/pubs/settlements/IMO_FORM_1598.xls
4141
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues –– Discussion of Discussion of RESOP Settlements (ContRESOP Settlements (Cont ’’d) d) –– Draft Form 1598 (current form at Draft Form 1598 (current form at
http://www.ieso.ca/imoweb/pubs/settlements/IMO_FORM _1598.xls)http://www.ieso.ca/imoweb/pubs/settlements/IMO_FORM _1598.xls)
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Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Given the additional tracking required, an LDC will need to identify the various forms of Generators in their CIS either as part of their Customer Category, or through the use of additional Rate Codes.
Setting up different categories of Generators would enable an LDC to attach the different rate codes to each Generator as required. Using the examples described in the General Notes, one could envision the following...
Year 1Wind Generator = Rate A1
Biomass = Rate A1 Biomass = Rate C1 & D1 (if they qualify for On-Peak Incentive)
Small Hydro = Rate A1 Small Hydro = Rate C1 & D1 (if they qualify for On-Peak Incentive)
Solar Photovoltaic = Rate B1
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Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
On-Peak vs Off-Peak - (Form 1598 Reporting)
When calculating Off-Peak dollars and kWh's - include the base rate dollar variance for Off-Peak kWh's only.- for a generator receiving the fixed rate without the On-Peak Performance Incentive, all their kWh’s would be treated as Off-Peak
When calculating On-Peak dollars and kWh's - include On-Peak kWh's and total Dollars (0.1452 X kWh's)- for a Generator receiving the On-Peak Performance Incentive, the full cost of the On-Peak kWh’s should be reported separate from Off-Peak
Note: The On-Peak Periods are defined in the RESOP as Business Days from 11:00 am to 7:00 pm, and Business Days have their own definition. The Off-Peak Periods are defined as All Other Hours
4444
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
A generator is essentially a manufacturer whose product is electricity. At times when the generators' production facility is not on-line, the facility requires energy to support what are referred to as “Parasitic” or “House Loads” or “Station Service”. This energy is purchased from other generators, and must be paid for. Therefore a generator can be both a consumer and a supplier at any given time.
As a result, it is necessary (in most cases) to measure the energy flow through the meter in both directions.
The settlement statement sent to the Generator would include both a charge for the energy purchased from other generators (when total Station Service is not self-supplied), and a payment for energy generated when they are on-line and producing electricity.
4545
Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Metering and Settlements of generation facilities will vary depending on the location and type of facility involved.
The simplest form of generation customer is a “stand-alone generation facility ”. A stand-alone generation facility may be “primary metered ” or “secondary metered ” (metered on the High Side, or Low Side of the Dx Transformer)
For Settlements, a Consumer is considered to have received power at the low side of the transformer, and a Generator is considered to have delivered power to the grid at the high side of the transformer.
Since a generator can be both a supplier and consumer of electricity at different times, and since it is most cost efficient to install only one meter, this means that the “consumed” value or the “delivered” value is adjusted accordingly, depending on which side of the transformer the meter is located.
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Select Metering, Settlement and Payment Issues Select Metering, Settlement and Payment Issues ––Discussion of RESOP Settlements (ContDiscussion of RESOP Settlements (Cont’’d)d)
Electricity Sales to a Consumer are measured by the meter and adjusted by the OEB approved Loss Factor and (if required) will receive the Primary Metering Discount of 1%.
Electricity Purchases from a Generator that is Primary Metered will not require adjustments.
Electricity Purchases from a Generator that is Secondary Metered would be subject to the 1% Primary Metering Discount (or Site Specific Loss Factor) as a default.
RSC Section 3.2A distributor shall calculate its weighted average supply facility loss factor by summing energy delivered at each of the supply facility points plus associated supply facility losses, including all supplies from the transmission system, supplies from all embedded generators and supplies from host distributors which sum shall be divided by the total energy delivered at all of the supply facility delivery points. Each of these supplies shall be adjusted for the ap propriate loss factor representing the energy losses between the meter point and the defined point of sale.
4747
Main Main Meter Configuration Options & Settlement – No Existing Load Customer
Stand-alone Generator Customer
~ m1Distribution
System
Secondary Metered:Settlements:
Energy delivered reduced by Site Specific Losses. Paid @ RESOP Rate
(kWh / (1+SSL)) x RESOP Rate
Energy consumed increased by LDC approved loss factor. Billed at HOEP.
(kWh x (1+LDCL)) x HOEP
~ m1Distribution
System
Primary Metered: Settlements:
Energy delivered- No adjustment required. Paid @ RESOP Rate.
kWh x RESOP Rate
Energy consumed increased by LDC approved loss factor less 1% for primary metering discount. Billed @ HOEP.
(kWh x (1+LDCL)) x .99 x HOEP
Deemed point of sale for RESOP
Arrows denote Measurement Direction
Transformer Location
Note: Load Customer (Station Service) is also required to pay for additional energy related charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges.
4848
Meter Configuration Options & Settlement Meter Configuration Options & Settlement -- Direct Connect Generator Direct Connect Generator Sharing a Secondary Transformer with a Separate LoadSharing a Secondary Transformer with a Separate Load
In some cases, a generator may choose to establish themselves on the site of an existing customer, and “share” a transformer. This may significantly reduce the costs of this type of connection (though other connection types may be more economic).
~ m1
DistributionSystemm2LOAD
Secondary Metered:
Secondary Metered:
Settlements - Generator:
Energy delivered reduced by Site Specific Losses (kWh / (1+SSL)) x RESOP Rate
Energy consumed increased by LDC approved loss factor (kWh x (1+LDCL)) x HOEP
Settlements - Load:
Energy consumed increased by LDC approved loss factor.
(kWh x (1+LDCL)) x HOEP or (kWh x (1+LDCL)) x R PP
In this example, the consumer and the generator are sharing a transformer. They are connected in parallel on the secondary side of the transformer. The LDC may choose to treat them as fully separated accounts.
The Load Customer’s metered value is calculated as a normal consumer with LDC approved losses applied to the metered consumption.
The Generator’s metered values are also adjusted: - Consumed Energy is adjusted using the LDC approved Total Loss Factor- Delivered Energy is adjusted to account for the Transformer Losses and SSL if necessary
4949
Meter Configuration Options & Settlement Meter Configuration Options & Settlement –– Direct Connect Generator Direct Connect Generator and Load Customer Each have a Separate Transformerand Load Customer Each have a Separate Transformer
These two examples depict how either Primary Metering or Secondary Metering configurations can account for a generator who locates on a load customer’s premises, where the generator connects to the grid in Parallel to the existing load customer without sharing the load customer’s transformer (i.e. the generator has a separate transformer)
~ m1
DistributionSystemm2LOAD
~ m1
DistributionSystemm2LOAD
Secondary Metered:
Primary Metered:
Primary Metered:
Primary Metered:
Settlements - Load:
Energy consumed increased by LDC approved loss factor.
(kWh x (1+LDCL)) x HOEP or (kWh x (1+LDCL)) x RPP
Settlements - Load:
Energy consumed increased by LDC approved loss factor less 1% Primary Metering Discount.
(kWh x (1+LDCL)) x .99 x HOEP or (kWh x (1+LDC L)) x .99 x RPP
Settlements - Generator:
Energy delivered no adjustment required kWh x RESOP Rate
Energy consumed increased by LDC approved loss factor less 1% Primary Metering discount. (kWh x (1+LDCL)) x .99 x HOEP
Settlements - Generator:
Energy delivered no adjustment required kWh x RESOP Rate
Energy consumed increased by LDC approved loss factor less 1% Primary Metering discount. (kWh x (1+LDCL)) x .99 x HOEP
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Meter Configuration Options & Settlement Meter Configuration Options & Settlement ––Generator Located Behind an Existing Load Customer Generator Located Behind an Existing Load Customer
(aka the (aka the ““Load Displacement OptionLoad Displacement Option””))
In some cases, a generator may establish themselves on the site of an existing customer, and wish to provide power directly to the customer, with only the excess generation reaching the grid. This is generally referred to as a “Load Displacement Generator”.
For proper RESOP settlements, the Generator’s meter must be downstream of the customer’s meter in order to ensure the generator receives appropriate RESOP payment on their full output (not just the excess reaching the grid).
Additionally, to properly calculate the RESOP payment, both the customer and generator meter may need to be able to measure energy flow in both directions.
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:
5151
Renewable Energy Standard Offer Program Settlements Renewable Energy Standard Offer Program Settlements ––Avoiding Any DoubleAvoiding Any Double --counting of the Power Outputcounting of the Power Output
Section 5.6 of the Renewable Energy Standard Offer Program - Program Rules, Version 2.0 (November 22, 2006) states:
“In accordance with the provisions of Section 6.4, where a Contract Facility is connected directly to a Load Customer and has its meter configured in a manner which reduces the amount payable by the Load Customer to the LDC for its metered consumption of Electricity because part or all of the Load Customer’s Electricity consumed is supplied from the Contract Facility, Contract Payments will be reduced by an amount equal to the Hourly Ontario Energy Price in respect of the Hourly Delivered Electricity consumed by the Load Customer . In the event that such reduction results in a negative Contract Payment, a corresponding amount shall be paid by the Generator to the OPA” (underlined emphasis added).
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:
5252
Renewable Energy Standard Offer Program Renewable Energy Standard Offer Program Settlements Settlements –– Use of two BiUse of two Bi--Directional Meters Directional Meters
May Be An Appropriate OptionMay Be An Appropriate Option
Why Might an LDC Insist on Two Bi-Directional Meters?
Using the diagram below, output of the Generation Facility is fully measured by the meter M1; however, the meter M2 only captures the amount of energy supplied from the grid when the Generator is producing less than the Load is consuming. Depending on the amount of energy consumed and the amount of energy generated at any given time, all four metered values may be required to establish proper settlement calculations.
Secondary Metered:
DistributionSystem
~ m1
LOAD
m2
5353
Main Meter Configuration Options Main Meter Configuration Options and Settlement and Settlement -- Load Displacement OptionLoad Displacement Option
Load Displacement Generator and Load Customer
Deemed point of sale for RESOP
Arrows denote Measurement Direction
Transformer Location
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:
Note: Load Customer is also required to pay for additional energy related charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges.
Settlements - Generator:
Energy delivered reduced by Site Specific Losses and contract payment reduced by HOEP
[(m1 Delivered x Site Specific Losses) x (Standard Offer Price)] minus [(m1 Delivered - M2 Delivered ) x HOEP]
Energy consumed increased by LDC approved loss factor m1 consumed
(kWh x (1+LDCL)) x HOEP
Settlements – Load :
Energy consumed increased by LDC approved loss factor(m2 consumed kWh - m1 consumed kWh) x (1+LDCL))] x (HOEP)
5454
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement -- Load Displacement Option (contLoad Displacement Option (cont’’d)d)
Example 1:
Generator Output of 1,500 kWh’s Load Consumption of 1,000 kWh’s
M1 Output = 1500M1 Input = 0M2 Output = 500M2 Input = 0
Load Consumption = 1500–500 = 1000
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:
Generator RESOP Settlement :
(1500 X RESOP Rate) – (1000 X HOEP)
For simplicity – loss calculations have been omitted
Customer Charge :
M2 Input = 0
1500 500
1000
0 0
0
5555
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement -- Load Displacement Option (contLoad Displacement Option (cont’’d)d)
Example 2:
Generator Output of 1,000 kWh’s Load Consumption of 1,000 kWh’s
M1 Output = 1000M1 Input = 0M2 Output = 0M2 Input = 0
Load Consumption = 1000 – 0 = 1000
Generator RESOP Settlement :
(1000 X RESOP Rate) – (1000 X HOEP)
For simplicity – loss calculations have been omitted
Customer Charge :
M2 Input = 0
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:1000 0
1000
0 0
0
5656
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement –– Load Displacement Option (contLoad Displacement Option (cont’’d)d)
Example 3:
Generator Output of 500 kWh’s Load Consumption of 1,000 kWh’s
M1 Output = 500M1 Input = 0M2 Output = 0M2 Input = 500
Load Consumption = 500 + 500 = 1000
Generator SOP Settlement :
(500 X RESOP Rate) – (500 X HOEP)
Customer Charge :
M2 Input = 500
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:500 0
500
0 500
500
5757
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement -- Load Displacement Option (contLoad Displacement Option (cont’’d)d)
Example 4:
Generator Output of 0 kWh’s Generator Consumption of 100 kWh’sLoad Consumption of 1,000 kWh’s
M1 Output = 0M1 Input = 100M2 Output = 0M2 Input = 1100
Load Consumption = 1100 - 100 = 1000
Generator RESOP Settlement:
(0 x RESOP Rate) - (0 x HOEP)
Customer Charge :
M2 Input – M1 Input = 1000
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:0 0
0
100 1100
1000
Generator Charge :
M1 Input = 100
5858
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement -- Load Displacement Option (contLoad Displacement Option (cont’’d)d)
Example 5:
Generator Output of 1,000 kWh’s Generator Consumption of 100 kWh’sLoad Consumption of 1,400 kWh’s
M1 Output = 1000M1 Input = 100M2 Output = 0M2 Input = 500
Load Consumption = (1000 - 300) + (500 - 100) = 1100
Generator RESOP Settlement :
(1000 x RESOP Rate) – (700 x HOEP)
Customer Charge :
M2 Input – M1 Input = 400
DistributionSystem
~ m1
LOAD
m2
Secondary Metered:1000 300
700
100 500
400
Generator Charge:
M1 Input = 100
5959
Main Meter Configuration Options and Settlement Main Meter Configuration Options and Settlement –– Net Metering Is Net Metering Is NotNot an Option for RESOPan Option for RESOP
~
m1
DistributionSystem
LOAD
Generator and Load Customer – Sharing One Meter (Simple Net Metering, not RESOP)
Deemed point of sale for RESOP
Arrows denote Measurement Direction
Transformer Location
~
m1
DistributionSystem
LOAD
Settlements :
Energy delivered with no adjustment for Losses. (O. Reg. 541/05, s. 8 (2) )
kWh x (RPP or HOEP) Rate
Energy consumed increased by LDC approved loss factor.
(kWh x (1+LDCL)) x (RPP or HOEP) Rate
Settlements :
Energy delivered with no adjustment for losses. (O. Reg. 541/05, s. 8 (2) )
kWh x (RPP or HOEP) Rate
Energy consumed increased by LDC approved loss factor less 1% for primary metering discount. Billed @ HOEP.
(kWh x (1+LDCL)) x .99 x (RPP or HOEP) Rate
Secondary Metered:
Primary Metered:
Note: Net Metering Regulations also require calculating credit to customer on Additional Charges: WMSC, DRC, Network Service, Line & Transformation, and Distribution Variable Charges.
6060
Service Entrance
To House Panel
In this Diagram the green arrows depict the normal flow of electricity from the service entrance through the meter and into the load panel
RESOP Settlement RESOP Settlement ––Examples of Physical MeteringExamples of Physical Metering
6161
Service Entrance
To House Panel
From Generator
In this Diagram we have added a second meter configured to measure the energy output of a micro-Generator of 10 kW or under
Tracing the red arrows one can see that the generator’s output is delivered (in parallel) to either the grid or to the consumer. This is not “Load Displacement”since all the energy consumed is separately metered and as such according to the rules of the RESOP, would not be required to be an hourly meter.
RESOP Settlement RESOP Settlement –– Examples of Physical Metering (ContExamples of Physical Metering (Cont’’d)d)
6262
Service Entrance
To House Panel
From Generator
Settlements would be based on the “Fixed” RESOP Price multiplied by the total energy registered through the generator meter.
If the micro-scale generator does not provide hourly data, it will not be possible to calculate the HOEP for the variance amount to be claimed through the IESO Form 1598
LDC to use Second Tier of RPP for Variance Calculation.
(RESOP Rate X Kwh)
* Minus *
(Tier2 X Kwh)
RESOP Settlement RESOP Settlement –– Examples of Physical Metering (ContExamples of Physical Metering (Cont’’d)d)
6363
Service Entrance
To House Panel
To Second
Load
In a parallel metering configuration, it could be possible for a customer to purposely or inadvertently connect a load to the generator side of the second meter.
If a load connects on the secondary side of a generator with a uni-directional meter, this would in essence provide “free” power from the LDC to the new load.
Similarly, if a uni-directional meter was…
…installed to measure the output of a parallel connection generator, then at times of low or no generation, it may be that station service would then be supplied by the LDC (i.e. a solar PV system at night). Again, the customer would in essence be able to get “free” power from the LDC. Thus, LDC’s may insist on a bi-directional meter to monitor the Generation.
RESOP Settlement RESOP Settlement –– Examples of Physical Metering (ContExamples of Physical Metering (Cont’’d)d)
6464
For Further InformationFor Further Information
OPA Renewable Energy Standard Offer Program OPA Renewable Energy Standard Offer Program Website: Website: www.powerauthority.on.ca/sopwww.powerauthority.on.ca/sopOEB Renewable Energy Standard Offer Program OEB Renewable Energy Standard Offer Program Websites:Websites:http://www.oeb.gov.on.ca/html/en/industryrelationshttp://www.oeb.gov.on.ca/html/en/industryrelations/ongoingprojects_standardofferprogram.htm/ongoingprojects_standardofferprogram.htm andandhttp://www.oeb.gov.on.ca/html/en/consumers/infochttp://www.oeb.gov.on.ca/html/en/consumers/infocentre/fsheetsentre/fsheets--elec/fs_sop_questionstoask.htmelec/fs_sop_questionstoask.htm andandhttp://www.oeb.gov.on.ca/html/en/consumers/infochttp://www.oeb.gov.on.ca/html/en/consumers/infocentre/fsheetsentre/fsheets--elec/fs_sop_gettingconnected.htmelec/fs_sop_gettingconnected.htmIESO Form 1598 (note the IESO Form 1598 (note the ““SOPSOP”” tab): tab): http://www.ieso.ca/imoweb/pubs/settlements/IMOhttp://www.ieso.ca/imoweb/pubs/settlements/IMO_FORM_1598.xls_FORM_1598.xls
6565
For Further Information For Further Information (cont(cont’’d)d)““Generation ConnectionGeneration Connection””; Hydro One: ; Hydro One: http://www.hydroonenetworks.com/en/customers/generatorhttp://www.hydroonenetworks.com/en/customers/generators/generation_connections/s/generation_connections/ and and ““Connecting New Generation to Hydro OneConnecting New Generation to Hydro One’’s Electricity s Electricity
SystemSystem””; Hydro One: ; Hydro One: http://www.hydroonenetworks.com/en/customers/generatorhttp://www.hydroonenetworks.com/en/customers/generators/generation_connections/distribution/default.asps/generation_connections/distribution/default.asp[[Note: the 2Note: the 2ndnd link provides sample CIA forms of potential link provides sample CIA forms of potential interest to LDCsinterest to LDCs]]““Guidelines for Applicants Connecting Distributed Guidelines for Applicants Connecting Distributed GenerationGeneration””; Cornerstone Hydro Electric Concepts (CHEC ; Cornerstone Hydro Electric Concepts (CHEC Group): Group):
http://www.collus.com/images/stories/Documents/CHEC_Ghttp://www.collus.com/images/stories/Documents/CHEC_Generation_Guide_Aug10_2006.pdfeneration_Guide_Aug10_2006.pdf““Guide for Distributed GeneratorsGuide for Distributed Generators””; Kingston Electricity ; Kingston Electricity Distribution Ltd. (KEDL): Distribution Ltd. (KEDL): http://http://www.utilitieskingston.com/electric/generation/index.htwww.utilitieskingston.com/electric/generation/index.htmlml