TRANSITION - GENERATION CORPORATION DESIGNATED RATE OPTIONS

1. (1) In this Regulation, “baseline period” means the period from July 1, 1999 to June 30, 2000; “designated rate option” means Surplus Power, Real Time Pricing Rate Experiment I, Real Time Pricing Rate Experiment II or Load Retention and Expansion Power; “designated rate option consumer” means a consumer who purchased electricity under a designated rate option during the baseline period; “non-standard price” means a price other than the price for firm electricity at time-of-use rates or discount demand service electricity at time-of-use rates; “open access date” means the day subsection 26 (1) of the Act comes into force; “transitional licence” means, with respect to the Generation Corporation, the transitional generation licence issued to the Generation Corporation on May 1, 1999 by the Ontario Energy Board under the Ontario Energy Board Act, 1998. O. Reg. 318/00, s. 1 (1). (2) For the purposes of this Regulation, a person who uses electricity at two or more different locations shall be deemed to be a separate consumer in respect of each location. O. Reg. 318/00, s. 1 (2). 2. (1) The Generation Corporation shall offer to sell electricity to designated rate option consumers in accordance with this section at a price equivalent to the price that the consumer would have paid under the designated rate option during the baseline period. O. Reg. 318/00, s. 2 (1). (2) This section only applies to electricity that, if it had been sold to the consumer during the baseline period, would have been sold at a non-standard price under the designated rate option. O. Reg. 318/00, s. 2 (2). (3) The amount of electricity that a designated rate option consumer is entitled to purchase under this section in each time period established by the Generation Corporation under subsection (4) is, (a) during the 12-month period that begins on the open access date, 75 per cent of the amount of electricity that the consumer purchased during that time period in the baseline period at a non-standard price under the designated rate option; (b) during the 12-month period that begins on the first anniversary of the open access date, 50 per cent of the amount of electricity that the consumer purchased during that time period in the baseline period at a non-standard price under the designated rate option; (c) during the 12-month period that begins on the second anniversary of the open access date, 25 per cent of the amount of electricity that the consumer purchased during that time period in the baseline period at a non-standard price under the designated rate option; and (d) during the 12-month period that begins on the third anniversary of the open access date, 25 per cent of the amount of electricity that the consumer purchased during that time period in the baseline period at a non-standard price under the designated rate option. O. Reg. 318/00, s. 2 (3). (4) The Generation Corporation may establish time periods for the purpose of subsection (3), having regard to the consumer’s pattern of electricity usage during the baseline period. O. Reg. 318/00, s. 2 (4). (5) This section does not apply to electricity purchased on or after the fourth anniversary of the open access date. O. Reg. 318/00, s. 2 (5). (6) Despite clauses (3) (c) and (d), this section does not apply to, (a) electricity purchased on or after the second anniversary of the open access date, if the Minister determines that the Generation Corporation completed the transfer of effective control referred to in clause 1 (a) (ii) of Part 4 of its transitional licence before that anniversary; or (b) electricity purchased on or after the third anniversary of the open access date, if the Minister determines that the Generation Corporation completed the transfer of effective control referred to in clause 1 (a) (ii) of Part 4 of its transitional licence before that anniversary. O. Reg. 318/00, s. 2 (6). (7) An offer to sell electricity under subsection (1) shall establish a reasonable period that ends before the open access date during which the consumer may accept the offer. O. Reg. 318/00, s. 2 (7). 3. The Generation Corporation shall pay all costs associated with delivering electricity sold under section 2 to the consumer, other than the costs of distributing the electricity. O. Reg. 318/00, s. 3. 4. A consumer who purchases electricity from the Generation Corporation under section 2 shall be deemed to have assigned to the Generation Corporation any rebate that the consumer qualifies for in respect of that electricity in connection with the rebate that the Generation Corporation is required to pay to the IMO under Part 3 of the Generation Corporation’s transitional licence. O. Reg. 318/00, s. 4. 5. (1) A consumer who agrees to purchase electricity from the Generation Corporation under section 2 may terminate the agreement by giving the notice required in the agreement or, if there is no provision in the agreement for giving notice to terminate the agreement, by giving the Generation Corporation 60 days’ written notice of the termination. O. Reg. 318/00, s. 5 (1). (2) Section 2 no longer applies to a consumer if the consumer terminates an agreement under subsection (1). O. Reg. 318/00, s. 5 (2). 6. (1) A consumer shall not, directly or indirectly, assign, offer for sale or resell any electricity it purchases from the Generation Corporation under section 2. O. Reg. 318/00, s. 6 (1). (2) A consumer shall not, directly or indirectly, assign, transfer or sell any right that the consumer has under section 2. O. Reg. 318/00, s. 6 (2). 7. If this Regulation conflicts with a provision in an agreement, this Regulation prevails. O. Reg. 318/00, s. 7.