NET METERING

CONTENTS 1. Definitions 2. Application 3. Exception 4. Subject to distributor’s licence 5. Existing agreements 5.1 Agreement shall conform 6. Subject to retail contract 7. Eligible generator 7.1 Eligible customer and eligible third party generator 8. Account billing 9. Cancellation of agreements Definitions 1. In this Regulation, “eligible customer” means a customer of a distributor who meets the criteria set out in section 7.1; “eligible electricity” means the electricity that meets the criteria, (a) set out in section 7 that may be conveyed into a distributor’s distribution system by an eligible generator, or (b) set out in section 7.1 that may be conveyed into a distributor’s distribution system by an eligible third party generator; “eligible generator” means a customer of a distributor who meets the criteria set out in section 7; “eligible third party generator” means a generator of electricity who meets the criteria set out in section 7.1. O. Reg. 327/09, s. 1; O. Reg. 24/17, s. 1; O. Reg. 386/22, s. 1. Application 2. (1) Subject to sections 3, 4 and 6, at the request of an eligible generator and in the circumstances and manner described in this Regulation, a distributor, (a) shall allow the eligible generator to convey eligible electricity into the distributor’s distribution system for a credit; and (b) shall bill the eligible generator on a net metering basis. O. Reg. 541/05, s. 2 (1); O. Reg. 24/17, s. 2 (1); O. Reg. 386/22, s. 2 (1). (2) Subject to sections 3, 4 and 6, at the request of an eligible customer and in the circumstances and manner described in this Regulation, a distributor, (a) shall allow an eligible third party generator with whom the eligible customer has entered into an agreement mentioned in clause 7.1 (1) (a) to convey eligible electricity on behalf of the eligible customer into the distributor’s distribution system for a credit on the eligible customer’s electricity bill; and (b) shall bill the eligible customer on a net metering basis. O. Reg. 386/22, s. 2 (2). (3) For the purposes of this Regulation, billing on a net metering basis is calculated in accordance with section 8 by, (a) in the case of billing an eligible generator in accordance with clause (1) (b), subtracting the value of the amount of eligible electricity conveyed into the distributor’s distribution system by the eligible generator from the value of the amount of electricity consumed from the system by the eligible generator; or (b) in the case of billing an eligible customer in accordance with clause (2) (b), subtracting the value of the amount of eligible electricity conveyed into the distributor’s distribution system by the eligible third party generator on behalf of the eligible customer from the value of the amount of electricity consumed from the system by the eligible customer. O. Reg. 386/22, s. 2 (3). Exception 3. (1) Subsections 2 (1) and (2) do not apply to the following types of distributors: 1. A distributor that distributes electricity solely in a community listed in Ontario Regulation 199/02 (Hydro One Inc.) made under the Electricity Act, 1998. 2. A distributor that distributes electricity solely in a settlement or reserve listed in Schedule 1 to Ontario Regulation 161/99 (Definitions and Exemptions) made under the Act. 3. A distributor that distributes electricity solely in a reserve listed in Schedule 2 to Ontario Regulation 161/99 (Definitions and Exemptions) made under the Act. O. Reg. 541/05, s. 3 (1); O. Reg. 386/22, s. 3 (1). (2) Nothing in subsection (1) prevents a distributor to which subsection (1) applies from entering into a net metering agreement with an eligible generator or eligible customer in the circumstances and manner described in this Regulation. O. Reg. 541/05, s. 3 (2); O. Reg. 386/22, s. 3 (2). Subject to distributor’s licence 4. The connection of an eligible generator or eligible customer to a distributor’s distribution system is subject to any conditions in the distributor’s licence governing the connection of generation facilities to its distribution system. O. Reg. 541/05, s. 4; O. Reg. 386/22, s. 4. Existing agreements 5. (1) If, on June 30, 2017, a customer has an existing agreement with a distributor that permits net metering, the existing net metering agreement continues in accordance with the terms set out in the agreement, (a) until the agreement expires; or (b) subject to subsection (2), for as long as the agreement is renewed. O. Reg. 24/17, s. 3. (2) An existing net metering agreement may be renewed as often as the parties agree to the renewal if, (a) both parties consent to the renewal; and (b) the agreement is renewed on terms that, (i) in the case of an agreement that existed on October 24, 2005, are substantially similar to the agreement as it existed on that day, and (ii) in the case of an agreement that was entered into after October 24, 2005 and before July 1, 2017, are substantially similar to the original agreement. O. Reg. 24/17, s. 3. (3) If a customer is an eligible generator who has an existing net metering agreement with a distributor and wishes to convey eligible electricity into the distributor’s distribution system for the purpose of being billed on a net metering basis in accordance with this Regulation rather than in accordance with the agreement, the customer may do so by cancelling the agreement in accordance with subsection 9 (1), and at the same time informing the distributor that the customer wishes to convey eligible electricity into the distributor’s distribution system for the purpose of being billed on a net metering basis under a new agreement. O. Reg. 24/17, s. 3. Agreement shall conform 5.1 Net metering agreements shall be made in accordance with this Regulation and shall conform with the provisions set out in this Regulation, except as provided by subsection 5 (1). O. Reg. 24/17, s. 3. Subject to retail contract 6. A customer who has a contract with a retailer of electricity with respect to which a service transaction request, as defined in the Retail Settlement Code, has been implemented may enter into an agreement with a distributor to be billed on a net metering basis if, (a) the customer is an eligible generator or eligible customer; (b) the customer is billed under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code; and (c) the retailer confirms to the distributor that the retailer and the customer have an agreement that allows, (i) if the customer is an eligible generator, the customer to convey eligible electricity into the distributor’s distribution system for the purpose of being billed on a net metering basis, or (ii) if the customer is an eligible customer, an eligible third party generator to convey eligible electricity on behalf of the customer into the distributor’s distribution system for the purpose of being billed on a net metering basis. O. Reg. 386/22, s. 5. Eligible generator 7. (1) A generator of electricity is an eligible generator if, (a) the generator generates the electricity primarily for the generator’s own use; (b) the generator generates the electricity solely from a renewable energy source; (c) the generator conveys the electricity that is generated directly from the point of generation to another point for the generator’s own consumption, without reliance on the distributor’s distribution system; (d) the generator conveys any electricity that is in excess of what is consumed by the generator into the distributor’s distribution system; (e) the generator is not a party to any contract or agreement, other than a net metering agreement to which this Regulation applies, that provides for the sale, in whole or in part, of the electricity that the generator conveys into the distributor’s distribution system; and (f) where the generator is a party to an agreement related to the renewable energy generation facility that was entered into on or after July 1, 2022, other than a net metering agreement, the generator confirms to the distributor that the information set out in subsection (4) has been disclosed to the generator. O. Reg. 541/05, s. 7 (1); O. Reg. 24/17, s. 5 (1); O. Reg. 386/22, s. 6 (1). (2) For the purposes of clause (1) (c), electricity is conveyed directly from the point of generation to another point for the generator’s own consumption regardless of whether it is stored by the generator in a storage device for any period of time. O. Reg. 24/17, s. 5 (2). (3) For the purposes of clause (1) (d), electricity conveyed into the distributor’s distribution system may include electricity that was stored by the generator in a storage device for any period of time, even if some or all of the stored electricity was not generated by the generator. O. Reg. 24/17, s. 5 (2). (4) The information referred to in clause (1) (f) is the following: 1. The name and contact information of any other parties to the agreement. 2. Whether the agreement is a lease, financing, hosting, licensing or other arrangement. 3. The term of the agreement. 4. The date on which the agreement begins to apply to the generator. 5. For the renewable energy generation facility, the rated maximum output capacity as stated on the nameplate of the machinery or equipment that is used to produce electricity. 6. Any insurance or warranty rights or obligations, including any obligation to pay a deductible, related to the renewable energy generation facility or related equipment, systems and technology and any limitations or exclusions in respect of coverage. 7. The terms of payment, including any terms related to deposits, interest or any other financial or legal obligations under the agreement that affect the terms of payment. 8. Any options or obligations to purchase the renewable energy generation facility or related equipment during or at the end of the term, including any relevant dates and costs associated with the options or obligations. 9. Any other costs for which the generator will be responsible, including costs related to administration and account billing, insurance or warranty rights, leasing, rental, installation, connection, ongoing operation, maintenance and removal of the renewable energy generation facility or related equipment, systems and technology. 10. Any right to terminate, suspend, amend, extend or renew the agreement. 11. Any penalties under the agreement and the circumstances in which the generator would be liable to pay the penalties. 12. Any right to transfer or assign the agreement. 13. Any authority to put a lien on the generator’s property and the circumstances that would give rise to such a right. 14. Any maintenance and operation obligations the generator has with respect to the renewable energy generation facility or related equipment, systems and technology. 15. An estimate of the annual energy production of the renewable energy generation facility measured in kilowatt hours. 16. An estimate of the annual electricity cost savings to the generator under the agreement. O. Reg. 386/22, s. 6 (2). (5) If confirmation that the information set out in subsection (4) has been disclosed to the generator is provided by the generator to a distributor in accordance with clause (1) (f), the information is deemed, for the purposes of this section, to have been disclosed. O. Reg. 386/22, s. 6 (2). Eligible customer and eligible third party generator 7.1 (1) A customer of a distributor is an eligible customer and a generator of electricity is an eligible third party generator if, (a) the customer and the generator have entered into an agreement for the purchase by the customer of electricity that is generated solely from a renewable energy generation facility that is owned or operated by the generator; (b) the generator generates the electricity primarily for the customer’s use; (c) the generator conveys the electricity that is generated directly from the point of generation to another point for the eligible customer’s consumption, without reliance on the distributor’s distribution system; (d) the generator conveys any electricity that is generated that is in excess of what is consumed by the customer into the distributor’s distribution system on behalf of the customer; and (e) neither the customer nor the generator is a party to any contract or agreement other than a net metering agreement or an agreement mentioned in clause (a) that provides for the sale, in whole or in part, of the electricity that the generator conveys into the distributor’s distribution system. O. Reg. 386/22, s. 7. (2) For the purposes of clause (1) (c), electricity is conveyed directly from the point of generation to another point for the eligible customer’s consumption regardless of whether it is stored by the generator in a storage device for any period of time. O. Reg. 386/22, s. 7. (3) For the purposes of clause (1) (d), electricity conveyed into the distributor’s distribution system may include electricity that was stored by the generator or customer in a storage device for any period of time, even if some or all of the stored electricity was not generated by the generator. O. Reg. 386/22, s. 7. Account billing 8. (1) A distributor shall calculate, for a billing period, the amount of the bill of an eligible generator or eligible customer who is billed on a net metering basis in the following manner: 1. In any billing period when, (D + E) ≤ C the distributor shall use the following formula: A = B + C – (D + E) 2. In any billing period when, (D + E) > C the distributor shall use the following formula: A = B O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (1). (2) For the purposes of this section, A is the amount of the eligible generator’s or eligible customer’s bill for the billing period, B is the total amount of those charges for the billing period that are not calculated on the basis of the eligible generator’s or eligible customer’s consumption of or demand for electricity, as calculated by the distributor in the manner applicable in billing a customer in the same rate class, C is the total amount of those charges for the electricity consumed from the distributor’s distribution system by the eligible generator or eligible customer during the billing period that are calculated on the basis of the eligible generator’s or eligible customer’s consumption of electricity or demand for electricity, including charges for the commodity of electricity, as calculated by the distributor in the manner applicable in billing a customer in the same rate class, D is the total monetary value of the eligible electricity conveyed into the distributor’s distribution system by the eligible generator or by the eligible third party generator on behalf of the eligible customer during the billing period, calculated on the same basis as the eligible generator’s or eligible customer’s consumption of electricity but not demand for electricity, including charges for the commodity of electricity, but without any adjustment for total losses as defined in the Retail Settlement Code, and E is the amount of any accumulated electricity credits, as calculated in accordance with subsection (7), that have not been depleted in a previous billing period. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (2-4). (3) For the purposes of B, C and D in subsection (2), an eligible generator’s or eligible customer’s consumption of electricity is to be measured in kilowatt hours. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (5). (4) In calculating the values of B and C in subsection (2) in the manner applicable in billing a customer in the same rate class, the distributor shall have no regard to the eligible generator or eligible third party generator generating eligible electricity or to the eligible generator or eligible customer being billed on a net metering basis. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (6). (5) If, where permitted, an eligible generator’s or eligible customer’s meter installation as defined in the Retail Settlement Code is a single-register meter, the distributor shall modify the calculation of C and D for the purposes of subsection (2) according to the following rules: 1. In any billing period when the kilowatt hour reading on the meter at the end of the period is greater than or equal to the kilowatt hour reading on the meter at the beginning of the period, the difference between the two readings is deemed to constitute the amount of electricity that the eligible generator or eligible customer consumed from the distributor’s distribution system for the purpose of calculating C, and a value of $0 is assigned to D. 2. In any billing period when the kilowatt hour reading on the meter at the end of the period is less than the kilowatt hour reading on the meter at the beginning of the period, the difference between the two readings is deemed to constitute the amount of eligible electricity conveyed into the distributor’s distribution system by the eligible generator or eligible third party generator for the purpose of calculating D, and a value of $0 is assigned to C. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (7-9). (6) If the eligible generator or eligible customer has a contract with a retailer of electricity with respect to which a service transaction request, as defined in the Retail Settlement Code, has been implemented, the distributor shall modify the calculation of C and D for the purposes of subsection (2) according to the following rules: 1. In any billing period when the portion of the bill covering competitive electricity services for the eligible generator or eligible customer constitutes a charge or is equal to $0, the amount of the charge or $0, as the case may be, shall be used as the charge for the commodity of electricity for the purpose of calculating C, and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating D. 2. In any billing period when the portion of the bill covering competitive electricity services for the eligible generator or eligible customer constitutes a credit, the amount of the credit shall be used as the charge for the commodity of electricity for the purpose of calculating D, and $0 shall be used as the charge for the commodity of electricity for the purpose of calculating C. 3. The competitive electricity services for the purposes of paragraphs 1 and 2 shall be as calculated by the retailer in accordance with the agreement between the retailer and the eligible generator or eligible customer and transmitted to the distributor for inclusion in the eligible generator’s or eligible customer’s bill under the bill-ready form of distributor-consolidated billing pursuant to the Retail Settlement Code. 4. For the purposes of this section, the calculation of competitive electricity services shall not include any charges arising from the application of Ontario Regulation 429/04 (Adjustments under Section 25.33 of the Act) made under the Electricity Act, 1998. O. Reg. 386/22, s. 8 (10). (7) Subject to subsection (8), electricity credits accumulate or are depleted on the basis of a running balance in accordance with the following rules: 1. In any billing period where the value of E + D – C is positive, E is assigned that value for the purposes of the next billing period. 2. In any other case, the value of E is deemed to be $0 for the purposes of the next billing period. O. Reg. 24/17, s. 6. (8) If accumulated electricity credits have been carried forward to a subsequent billing period in every billing period within the preceding 12-month period, the distributor shall, subject to subsection (9), reduce the value of any remaining accumulated electricity credits to $0, and E is deemed to be $0 for the purposes of the next billing period. O. Reg. 24/17, s. 6. (9) Subsection (8) applies only if the bill is based on an actual reading of the eligible generator’s or eligible customer’s meter. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (11). (10) For the purposes of subsection (9), the distributor may request that the eligible generator or eligible customer obtain and supply the meter reading following the procedures normally used for customer-supplied meter readings if, (a) the distributor would normally not have the eligible generator’s or eligible customer’s meter read for a billing period where an amount for accumulated electricity credits has been carried forward to a subsequent billing period in every billing period within the preceding 12-month period; and (b) the eligible generator or eligible customer can read the meter without the need of any apparatus. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (12, 13). (11) Despite subsection (9), if the eligible generator or eligible customer fails to promptly and diligently comply with the distributor’s request to read the meter, the distributor may reduce the value of any remaining accumulated electricity credits to $0, and, in that event, E is deemed to be $0 for the purposes of the next billing period. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (14). (12) The distributor shall reduce the value of any remaining accumulated electricity credits in the eligible generator’s or eligible customer’s account to $0, (a) on the issuance of the final bill to an eligible generator or eligible customer when the account is terminated; or (b) on the cancellation of the net metering agreement for any reason, except in the circumstances described in subsection 5 (3). O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (15, 16). (13) Any remaining accumulated electricity credits that are reduced to $0 in accordance with this section are conveyed to the account of the distributor. O. Reg. 24/17, s. 6. (14) In addition to any other amounts that may be billed to an eligible generator or eligible customer as specified in this section, a distributor may bill an eligible generator or eligible customer for incremental metering and other costs incurred in order to connect the eligible generator’s or eligible third party generator’s generation facilities to its distribution system in accordance with the Board’s Distribution System Code. O. Reg. 386/22, s. 8 (17). (15) Electricity credits shall not be paid, refunded or credited to an eligible generator or eligible customer other than in accordance with this section. O. Reg. 24/17, s. 6; O. Reg. 386/22, s. 8 (18). Cancellation of agreements 9. (1) A customer may cancel a net metering agreement with a distributor at any time by giving 90 days’ notice in writing to the distributor. O. Reg. 24/17, s. 6. (2) A customer who is an eligible generator or eligible customer and who has cancelled a net metering agreement under subsection (1) may not, for 12 months after the cancellation, be billed on a net metering basis, except in the circumstances described in subsection 5 (3). O. Reg. 386/22, s. 9. 10. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 541/05, s. 10.