SMART METERS: COST RECOVERY

Cost recovery, general 1. (1) In relation to the acquisition of smart meters, a distributor may recover its costs relating to functionality that does not exceed the minimum functionality adopted in Ontario Regulation 425/06 (Criteria and Requirements for Meters and Metering Equipment, Systems and Technology) made under the Electricity Act, 1998, subject to final approval by the Board and the Board’s review and determination that the agreement entered into for the acquisition is economically prudent and cost effective. O. Reg. 234/08, s. 1 (1). (1.01) In determining whether an agreement referred to in subsection (1) is economically prudent and cost effective, the Board’s review shall take into consideration, but not be limited to, (a) all costs associated with the agreement; and (b) the costs of the agreement relative to any agreements entered into by the distributor and other distributors for comparable acquisitions. O. Reg. 234/08, s. 1 (1). (1.1) Subject to final approval of the Board, a distributor may recover the costs it prudently incurred to comply with the enrolment requirements and technical interface requirements of the Smart Metering Entity. O. Reg. 441/07, s. 1; O. Reg. 234/08, s. 1 (2). (2) In relation to the acquisition of smart meters, a distributor may not recover its costs relating to functionality that exceeds the minimum functionality adopted in Ontario Regulation 425/06 (Criteria and Requirements for Meters and Metering Equipment, Systems and Technology) made under the Electricity Act, 1998 unless the costs are approved by the Board. O. Reg. 426/06, s. 1 (2); O. Reg. 234/08, s. 1 (3). (3) In reaching a decision under subsection (2), the Board may consider the matters that it considers appropriate, including evidence that the functionality that exceeds the minimum functionality adopted in Ontario Regulation 425/06 (Criteria and Requirements for Meters and Metering Equipment, Systems and Technology) made under the Electricity Act, 1998 benefits the distributor’s consumers. O. Reg. 426/06, s. 1 (3). (4) In this section, “smart meters” includes smart meters, metering equipment, systems and technology and any associated equipment, systems and technologies. O. Reg. 234/08, s. 1 (4). Cost recovery, meter data functions 2. (1) No distributor shall recover any costs associated with meter data functions to be performed by the Smart Metering Entity. O. Reg. 426/06, s. 2 (1). (2) Despite subsection (1), distributors may recover costs associated with functions related to meter data that are contemplated to be performed by distributors by the criteria and requirements adopted in Ontario Regulation 425/06 (Criteria and Requirements for Meters and Metering Equipment, Systems and Technology) made under the Electricity Act, 1998. O. Reg. 426/06, s. 2 (2). (3) Subsection (1) does not prevent distributors from recovering costs that are approved by the Board pursuant to section 1 that are associated with functions related to meter data that relate to a distributor’s operation of its distribution system, but only if those functions are not meter data functions to be performed by the Smart Metering Entity. O. Reg. 426/06, s. 2 (3). (4) Subsection (1) does not apply to distributors with service areas identified as priority installations in Ontario Regulation 428/06 (Priority Installations) made under the Electricity Act, 1998. O. Reg. 426/06, s. 2 (4). (4.1) Subsection (1) does not prevent a distributor from recovering costs, if approved by the Board, that the distributor incurred as a result of supporting the IESO with finalizing the design of the requirements and processes for the interface and integration of the Smart Metering Entity’s system with the distributor’s billing and metering systems. O. Reg. 392/07, s. 1. (4.2) The distributor’s cost recovery under subsection (4.1) is subject to the Board receiving confirmation from the IESO that the distributor supported the IESO as described in subsection (4.1) and that the distributor was one of the first five distributors whose billing and metering systems were integrated with the Smart Metering Entity’s system. O. Reg. 392/07, s. 1. (5) In this section, “meter data functions” means those functions for which the Smart Metering Entity has the exclusive authority to carry out pursuant to Ontario Regulation 393/07 (Smart Metering Entity) made under the Electricity Act, 1998. O. Reg. 426/06, s. 2 (5); O. Reg. 234/08, s. 2. Cost recovery, replaced meter assets 3. (1) Subject to Board order, to ensure that distributors are not financially disadvantaged by the implementation of the smart metering initiative, distributors may recover the costs associated with meters owned before, on or after January 1, 2006 being replaced because of the smart metering initiative if, (a) the meter being replaced was not acquired in contravention of section 53.18 of the Electricity Act, 1998; and (b) the meter is replaced with a smart meter authorized for installation under the Electricity Act, 1998. O. Reg. 441/07, s. 2. (2) The Board shall determine the period of time over which the costs referred to in subsection (1) may be recovered, in order to protect the interests of consumers with respect to prices. O. Reg. 441/07, s. 2.