Regulatory Issues Log by xzz19988

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									                                                                                  Regulatory Issues Log


Issues included in this log are those items that require direction by the Ontario Energy Board.

 Ref.                                           Issue                                                                               Resolution                                       Status
 1.       Category: Validation, Estimation and Editing (VEE) Process                                     13 November 2006 – Response from the OEB:                                   OPEN
          Issue: Development of VEE Rules                                                                   1.   The IESO Working Group will develop the set of VEE rules.
          Issue initially identified during the public consultations regarding the draft                    2.   The OEB does not envision approving the VEE rules developed by
          MDM/R Functional Specification and subsequent written submissions.                                     the IESO Working Group. The Board would expect that, at a
                                                                                                                 minimum, the rules would comply with 5.3.2 and 5.3.3 of the
          The OEB’s Distribution System Code requires that metering data collected by an                         Distribution System Code.
          electricity distributor be subjected to a validating, estimating and editing (VEE)
          process if is to be used for settlement and billing purposes. Currently the Code                       Currently for interval meters, the DSC references the industry
          allows a distributor to establish its own VEE process for non-interval meters (for                     standards specified by the IESO in its VEE process for registered
          residential customers). A distributor’s VEE process for registered wholesale                           wholesale meters.
          meters shall consider the IESO’s VEE rules.
          With the introduction of smart meters, under Ontario Regulation 426/06, the                            The OEB may propose amendments to the Distribution System
          Smart Metering Entity (SME) will be responsible for performing the meter data                          Code to include an obligation on electricity distributors to use
          functions, which include the verification, validation and editing of meter data                        metered data that has been subjected to the SME’s VEE process
          received from distributors. Given that the SME will be tasked with the VEE                             for billing purposes of customers with smart meters. The OEB has
          process for the smart meters, many stakeholders raised the following questions                         identified reviewing the DSC for amendments necessary for the
          regarding the process for the development of the VEE rules.                                            Smart Meter Initiative as a task.
          A representation of the nature of the questions/comments raised by stakeholders                   3.   through 7. The IESO is developing the set of VEE rules.
          on this issue follows:
               1.   What entity will be responsible for the creation of the VEE rules?
               2.   Will the OEB have an oversight role on the VEE process?
               3.   Will the VEE rules be consistent/standard for all distributors across the
                    Province?
               4.   Will there be distributor involvement in the development of the VEE
                    specifications and automated VEE standards?
               5.   Will load profiles be used when insufficient data is available, and what
                    will be the details for these load profiles (e.g., how old, etc.)?
               6.   What kind of historical data and on what frequencies will distributors
                    be required to provide historical data to the MDM/R?
               7.   Will the process used by the SME for editing and estimating be
                    published?




Last Updated: 21-Dec-06                                                                    Page 1 of 5
                                                                               Regulatory Issues Log


 Ref.                                          Issue                                                                              Resolution                                       Status
 2.       Category: Time Based Pricing Structure for Regulated Price Plan (RPP)                        13 November 2006 – Response from the OEB:                                   OPEN
          Consumers with Smart Meters
                                                                                                           1.   Current requirements for RPP Time-of-Use prices are contained in
          Issue: Potential Price Structures for Time of Use (ToU) and Critical Peak                             the RPP Manual.
          Pricing (CPP)
                                                                                                           2.   The OEB has made no decision on the feasibility, timing or
          Issue identified during public consultations regarding the draft MDM/R                                structure for implementing Critical Peak Pricing. In developing
          Functional Specification and subsequent written submissions and by the IESO                           the RPP, the OEB pledged to investigate CPP pricing. The Board
          SMSIP Team in preparation of the MDM/R specification documents issued as                              is sponsoring a Time-of-Use Pilot in cooperation with Hydro
          part of the vendor procurement process.                                                               Ottawa to study ToU, CPP and CP Rebate pricing. The results of
                                                                                                                that study will be available in early 2007.
          The OEB’s Standard Supply Service Code sets the rates to be used for the RPP
          consumers. The current RPP includes time-of-use rates for RPP consumers with                     3.   The OEB has made no decision on the trigger for mandatory ToU
          smart meters. The expected types of pricing structures for the ToU and CPP                            RPP pricing. Local distribution companies have the option to
          need to be defined in order to assess the design requirements for the MDM/R and                       implement ToU RPP pricing for eligible time of use meters. The
          to input the effective pricing structure prior to going “live” with the MDM/R.                        OEB has identified reviewing the RSC for amendments necessary
                                                                                                                for the Smart Meter Initiative as a task.
          A representation of the nature of the questions/comments raised by stakeholders
          on this issue follows:                                                                           4.   See answer 2.
               1.   Are there any minimum requirements for framing the meter data into                     5.   There are no activities within the current OEB Business Plan to
                    time buckets?                                                                               alter RPP structures other than the one noted in #2 above.
               2.   Will CPP periods and rates be pre-defined by the OEB? Will CPP
                    rebates be applicable?
               3.   When does the OEB anticipate to declare mandatory Time of Use and
                    CPP pricing?
               4.   What does the OEB anticipate the mandatory price structure for Time
                    of Use and CPP to look like?
               5.   Does the OEB have any short to medium term plans to evolve the
                    initial mandatory rate structure for the RPP consumers with smart
                    meters including levying wholesale market hourly uplifts based on time
                    of use?




Last Updated: 21-Dec-06                                                                  Page 2 of 5
                                                                                   Regulatory Issues Log


 Ref.                                            Issue                                                                           Resolution                                        Status
 3.       Category: Information Flow Between Electricity Distributors and Retailers and                   13 November 2006 – Response from the OEB:                                OPEN
          Smart Metering Entity
                                                                                                          The Board may consider the nature and timing of smart meter data
          Issue: Impact on Current EBT Framework                                                          flow between retailers and local distribution companies in the context
                                                                                                          of the Retail Settlement Code in conjunction with the operation of the
          Issue initially identified during the public consultations regarding the draft                  SME. The OEB has identified reviewing the RSC for amendments
          MDM/R Functional Specification and subsequent written submissions.                              necessary for the Smart Meter Initiative as a task.
          The OEB’s Retail Settlement Code sets out the rules and procedures regarding
          the information flow between an electricity distributor and retailer where a
          competitive retailer provides service to a consumer. The Electronic Business
          Transaction System (EBT System) is the authorized computer based transaction
          mechanism used for carrying out most of the information flow between the
          electricity distributor and the retailer.
          What changes will be required to the OEB’s Retail Settlement Code to reflect
          changes to the current business processes associated with the EBT System and
          any new interactions between electricity distributors, retailers and the SME with
          the advent of the MDM/R?


 4.       Category: Regulation of Smart Metering Entity                                              13 November 2006 – Response from the OEB:                                     OPEN
          Issue: Cross-subsidization of MDM/R Services                                               The Ontario Energy Board Act, 1998 as amended by Bill 21 establishes the
                                                                                                     SME as a fully rate regulated entity once it is licensed. The OEB has
          Issue initially identified during the public consultations regarding the draft             identified a hearing to establish SME rates as a task for the Smart Meter
          MDM/R Functional Specification and subsequent written submissions.                         Initiative.
          Will services provided by the MDM/R be regulated to ensure there is no
          cross subsidization for those services?




Last Updated: 21-Dec-06                                                                    Page 3 of 5
                                                                                  Regulatory Issues Log


 Ref.                                           Issue                                                                            Resolution                                         Status
 5.       Category: Retail Settlement                                                                December 20, 2006 – Response from the OEB:                                     OPEN
          Issue: Determining Net System Load Shape
          Issue identified during the CIS Working Group meeting held on November 29,                 a) The Retail Settlement Code provides that the hourly usage data obtained
          2006.                                                                                      from an interval-metered consumer should be subtracted to leave the Net
                                                                                                     System Load Shape.
          The introduction of smart meters and the availability of actual hourly usage data          The Board has identified amendments to the Retail Settlement Code as a task
          for the residential class and small general service customers (where the metering          in the Smart Meter Initiative. The current plan is to begin consultations in
          of demand is not required) has raised the following questions related to the retail        April 2007 for final code amendments in July.
          settlement for LDCs:
                                                                                                     b)   See a) above.
               a)   How should hourly usage data from consumers with smart meters be
                                                                                                     c)   See a) above.
                    factored in the calculation of the net system load shape?

               b)   When does an LDC start factoring smart meter hourly usage data from
                    consumers with smart meters in determining net system load shape?
                    (e.g., triggered by event such a a consumer with a smart meter being
                    placed on RPP TOU pricing)

               c)   The LDCs’ Advanced Metering Infrastructure (AMI) will collect and
                    transmit their smart meter reads to the MDM/R. The MDM/R will
                    provide estimate and edit capability for any missing reads as part of the
                    VEE process. It is assumed that the impact on the NSLS calculation as
                    a result of missing hourly usage data on these missing smart meter
                    reads is not deemed material.

                    Given these factors, does the Retail Settlement Code need to be explicit
                    to allow for such variance in the calculation of the NSLS?




Last Updated: 21-Dec-06                                                                    Page 4 of 5
                                                                                 Regulatory Issues Log


 Ref.                                           Issue                                                                                  Resolution                                            Status
 6.       Category: Retail Settlement                                                               December 20, 2006 - Response from the OEB:                                               OPEN
          Issue: LDC Settlement with Retailers
                                                                                                        As noted in the question, the intent of the Retail Settlement Code is for the
          Issue identified during the CIS Working Group meeting held on November 29,                    Distributors to settle with retailers at the cost of procuring electricity for the
          2006.                                                                                         consumers served by the retailers. Retailer customers with interval meters
                                                                                                        are settled on the HOEP. Retailer consumers with non-interval meters are
          Currently LDCs settle with retailers on the costs related to the procurement of               settled on the WASP and the NSLS because that is the best information
          electricity for consumers served by the retailers. Retail consumers with non-                 available.
          interval meters are settled on the Weighted Average Hourly Spot Price (WASP)
          for electricity, for the billing period, weighted according to the hourly                 The Board has identified amendments to the Retail Settlement Code as a task
          consumptions estimated using the utility-specific NSLS. Retail customers with             in the Smart Meter Initiative. The current plan is to begin consultations in
          interval meters are settled on the Hourly Ontario Energy Price (HOEP – Spot               April 2007 for final code amendments in July.
          Market Price) based on their hourly usage.

          On what basis will retail consumers with smart meters be settled?



          Note:
          There was discussion on potential “cutover” issues related to the transition from
          legacy meters (non-interval) to the new smart meters that may impact settlement
          with retailers. This discussion centred around (1) the change in consumer usage
          profiles (NSLS) used by retailers to assess their volume and price risks for
          existing retailer contracts and (2) what are the information requirements for
          retailers as they develop new pricing structures for new retail contracts. These
          issues are dependent on the retailers identifying their business information
          requirements and assessing the most effective means of meeting them. The
          discussion is noted here as a placeholder until these “cutover issues” become
          more fully crystallized and to determine the appropriate forum to address them.




Last Updated: 21-Dec-06                                                                   Page 5 of 5

								
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