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AR 256/2017 RATE CAP (CITY OF MEDICINE HAT) REGULATION

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ALBERTA REGULATION 256/2017

An Act to Cap Regulated Electricity Rates

RATE CAP (CITY OF MEDICINE HAT) REGULATION

Table of Contents

                1      Interpretation and application

                2      Beginning date, specified rate classes
and applicable rate per kWh for the
purposes of section 3(b) of the Act

                3      Determination of reference, reimbursement
and billing rates

                4      Determination of payments

                5      Deferral account

                6      Approval of deferral account statement

                7      Payment

                8      Final review and disposition of
deferral account

                9      Coming into force

Interpretation and application

1(1)  In this Regulation,

                               (a)    “Act” means An Act to Cap Regulated Electricity Rates;

                              (b)    “approved deferral account statement” means a deferral account statement that has been approved by the Market Surveillance Administrator under section 6;

                               (c)    “billing rate” means the rate determined in accordance with section 3(3);


                              (d)    “business day” means a day other than a Saturday or a holiday as defined in the Interpretation Act;

                               (e)    “Bylaw No. 2244” means the City of Medicine Hat Bylaw No. 2244;

                               (f)    “City of Medicine Hat’s Electric Utility” means the City of Medicine Hat, or a subsidiary of the City of Medicine Hat, in its capacity as the owner and operator of an electric distribution system operated in the service area of the City of Medicine Hat;

                               (g)    “City of Medicine Hat’s Electric Utility’s regular rate” means the applicable rate per kWh determined in accordance with a method established by the council of the City of Medicine Hat in Bylaw No. 2244, as referred to in section 3(a) of the Act;

                              (h)    “customer” means

                                        (i)    a consumer as defined in Bylaw No. 2244

                                              (A)    who is in a specified rate class referred to in section 2(2)(a), (b), (f), (i), (j) or (n), and

                                              (B)    who has not elected the Energy Supply Pricing [Firm] contract option described in Bylaw No. 2244,

                                           and

                                      (ii)    a consumer as defined in Bylaw No. 2244

                                              (A)    who is in a specified rate class referred to in section 2(2)(c), (d), (e), (g), (h), (k), (l), (m), (o) or (p),

                                              (B)    who has not elected the Energy Supply Pricing [Firm] contract option described in Bylaw No. 2244, and

                                              (C)    whose annual consumption of electric energy measured at the point of supply, based on the reasonable forecast of the City of Medicine Hat’s Electric Utility, is expected to be less than 250 megawatt hours;

                               (i)    “deferral account” means the deferral account established under section 5;

                               (j)    “deferral account statement” means a deferral account statement required to be submitted under this Regulation;

                              (k)    “final consumption data” means the actual consumption data in kWh used by the City of Medicine Hat Electric Utility to issue bills to customers;

                               (l)    “Medicine Hat rate cap reference rate” means the rate determined in accordance with section 3(1);

                             (m)    “point of supply” means Point of Supply as defined in Bylaw No. 2244;

                              (n)    “reimbursement rate” means the rate determined in accordance with section 3(2);

                              (o)    “service area of the City of Medicine Hat” means the service area of the City of Medicine Hat as defined in section 1(4) of the Electric Utilities Act;

                              (p)    “specified rate class” means a rate class specified under section 2(2).

(2)  The definition of “customer” in subsection (1)(h) applies to the word “customer” in the Act where the word is used in respect of customers of the City of Medicine Hat or a subsidiary of the City of Medicine Hat.

(3)  This Regulation applies to the City of Medicine Hat’s Electric Utility.

Beginning date, specified rate classes and applicable rate
per kWh for the purposes of section 3(b) of the Act

2(1)  The period referred to in section 3 of the Act begins on January 1, 2018.

(2)  The following consumer classes as described in Bylaw No. 2244 are specified as rate classes for the purposes of section 3 of the Act:

                               (a)    E.1.1 Residential Services;

                              (b)    E.2.1 Farm Services;

                               (c)    E.3.1 Small Commercial;

                              (d)    E.3.3 Medium Commercial;

                               (e)    E.3.2 and E.3.4 Temporary Services during Construction;

                               (f)    E.3.5 and E.3.6 Irrigation Services;

                               (g)    E.6.1 Unmetered Services;

                              (h)    E.7 Rental Lighting;

                               (i)    N.1.1 Residential Services;

                               (j)    N.2.1 Farm Services;

                              (k)    N.3.1 Small Commercial;

                               (l)    N.3.3 Medium Commercial;

                             (m)    N.3.2 and N.3.4 Temporary Services during Construction;

                              (n)    N.3.5 and N.3.6 Irrigation Services;

                              (o)    N.6.1 Unmetered Services;

                              (p)    N.7 Rental Lighting.

(3)  The billing rate per kWh for a specified rate class for a calendar month is the City of Medicine Hat’s Electric Utility’s applicable rate per kWh for that specified rate class for that calendar month for the purposes of section 3(b) of the Act.

Determination of reference, reimbursement
and billing rates

3(1)  The Medicine Hat rate cap reference rate per kWh for a calendar month is the average of the residential rates for owners whose regulated rate tariffs are approved by the Commission under section 103(2) of the Electric Utilities Act for that calendar month as posted by the Commission on its internet page under the Regulated Rate Option Regulation.

(2)  The reimbursement rate per kWh for the City of Medicine Hat’s Electric Utility for a specified rate class for a calendar month is determined as follows:

                               (a)    if the Medicine Hat rate cap reference rate for the calendar month is greater than 6.8 cents per kWh and the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is greater than the Medicine Hat rate cap reference rate, the reimbursement rate for the City of Medicine Hat’s Electric Utility for that specified rate class for the calendar month is the Medicine Hat rate cap reference rate minus 6.8 cents per kWh;

                              (b)    if the Medicine Hat rate cap reference rate for the calendar month is greater than 6.8 cents per kWh and the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is greater than 6.8 cents per kWh but is not greater than the Medicine Hat rate cap reference rate, the reimbursement rate for the City of Medicine Hat’s Electric Utility for that specified rate class for the calendar month is the City of Medicine Hat’s Electric Utility’s regular rate minus 6.8 cents per kWh;

                               (c)    if the Medicine Hat rate cap reference rate for the calendar month or the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is less than or equal to 6.8 cents per kWh, the reimbursement rate for the City of Medicine Hat’s Electric Utility for that specified rate class for the calendar month is 0.

(3)  The billing rate per kWh for the City of Medicine Hat’s Electric Utility for a specified rate class for a calendar month is determined as follows:

                               (a)    if the Medicine Hat rate cap reference rate for the calendar month is greater than 6.8 cents per kWh and the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is greater than the Medicine Hat rate cap reference rate, the City of Medicine Hat’s Electric Utility billing rate per kWh for that specified rate class for the calendar month is the City of Medicine Hat’s Electric Utility’s regular rate minus the reimbursement rate;

                              (b)    if the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is greater than 6.8 cents per kWh but is less than the Medicine Hat rate cap reference rate for the calendar month, the City of Medicine Hat’s Electric Utility billing rate per kWh for that specified rate class for the calendar month is equal to 6.8 cents per kWh;

                               (c)    if the Medicine Hat rate cap reference rate for the calendar month or the City of Medicine Hat’s Electric Utility’s regular rate for that specified rate class for the calendar month is less than or equal to 6.8 cents per kWh, the City of Medicine Hat’s Electric Utility’s billing rate per kWh for that specified rate class for the calendar month is equal to the City of Medicine Hat’s Electric Utility’s regular rate.

(4)  The City of Medicine Hat’s Electric Utility shall

                               (a)    post on an easily accessible internet page the City of Medicine Hat’s Electric Utility’s billing rate for January 2018 and each subsequent calendar month to and including May 2021 within 5 business days after the commencement of the calendar month,

                              (b)    ensure that there is a link on the internet page to a historic file of the City of Medicine Hat’s Electric Utility’s previous billing rates, if any, for the most recent 12 months, and

                               (c)    ensure that the address of the internet page is shown on the bill of each customer to whom the billing rate applies, with directions that current and historical billing rates may be found on the internet page.

(5)  The Commission shall

                               (a)    calculate the Medicine Hat rate cap reference rate for a calendar month, and

                              (b)    post the Medicine Hat rate cap reference rate for a calendar month on the Commission’s internet page on the first day of the calendar month.

(6)  A Medicine Hat rate cap reference rate posted for a calendar month under subsection (5) is final and not subject to change except that the Commission may correct an error made in calculating the Medicine Hat rate cap reference rate.

Determination of payments

4(1)  In respect of a month during which the City determines electric energy charges in accordance with section 3(b) of the Act, the City of Medicine Hat’s Electric Utility may be paid the full difference between

                               (a)    the amount the City of Medicine Hat’s Electric Utility would charge if the City of Medicine Hat’s Electric Utility determined the electric energy charges for the month in accordance with section 3(a) of the Act, and

                              (b)    the amount the City of Medicine Hat’s Electric Utility charges when the City of Medicine Hat’s Electric Utility determines the electric energy charge in accordance with section 3(b) of the Act.

(2)  The amount payable to the City of Medicine Hat’s Electric Utility in respect of a month must

                               (a)    be determined using final consumption data used by the City of Medicine Hat’s Electric Utility for billing purposes, and

                              (b)    be finally reviewed and either confirmed or varied by the Market Surveillance Administrator under section 8.

Deferral account

5(1)  The City of Medicine Hat’s Electric Utility shall establish a deferral account for the purpose of the administration of payments under section 4 of the Act.

(2)  Within one month after the end of each calendar month during the period beginning on January 1, 2018 and ending on May 31, 2021 that the Medicine Hat rate cap reference rate is higher than 6.8 cents per kWh and the reimbursement rate for one or more specified rate classes is a positive amount the City of Medicine Hat’s Electric Utility shall provide to the Market Surveillance Administrator

                               (a)    the final consumption data in kWh of customers in each specified rate class for the most recent 6 months for which that information is available, and

                              (b)    a completed deferral account statement for the calendar month, in the form prescribed by the Minister, for the Market Surveillance Administrator’s approval.

(3)  The City of Medicine Hat’s Electric Utility shall show the following in the City of Medicine Hat’s Electric Utility’s deferral account statement for a calendar month:

                               (a)    the City of Medicine Hat’s Electric Utility’s regular rate per kWh for the month for each specified rate class;

                              (b)    the final consumption in kWh for customers in each specified rate class;

                               (c)    the Medicine Hat rate cap reference rate;

                              (d)    the reimbursement rate for each specified rate class;

                               (e)    the billing rate for each specified rate class;

                               (f)    zero in respect of each specified rate class for which the City of Medicine Hat’s Electric Utility’s regular rate per kWh does not exceed 6.8 cents per kWh;

                               (g)    the amount determined by the following formula in respect of each specified rate class for which the City of Medicine Hat’s Electric Utility’s regular rate per kWh exceeds 6.8 cents per kWh:

a = arr x c

where

                                              a        is the amount to be shown in respect of that specified rate class;

                                              arr     is the reimbursement rate for that specified rate class;

                                               c       is the final consumption in kWh for that month for customers in that specified rate class;

                              (h)    the total of the amounts shown under clauses (f) and (g), including any applicable goods and services tax imposed under Part IX of the Excise Tax Act (Canada) on those amounts.

Approval of deferral account statement

6(1)  The Market Surveillance Administrator may determine the process by which it approves a deferral account statement.

(2)  In considering whether to approve a deferral account statement, the Market Surveillance Administrator shall confirm the calculation of amounts in the deferral account statement.

(3)  The City of Medicine Hat’s Electric Utility shall

                               (a)    provide to the Market Surveillance Administrator any records or other information the Market Surveillance Administrator may require to confirm the information and amounts set out in deferral account statements submitted by the City of Medicine Hat’s Electric Utility, and

                              (b)    retain records sufficient to enable the Market Surveillance Administrator to audit the deferral account statements submitted by the City of Medicine Hat’s Electric Utility.

(4)  The City of Medicine Hat’s Electric Utility shall submit a corrected deferral account statement for the Market Surveillance Administrator’s approval under this section if

                               (a)    the Market Surveillance Administrator determines that there is an error in a deferral account statement or that there has been a change in information set out in a deferral account statement and the Market Surveillance Administrator requires the City of Medicine Hat’s Electric Utility to submit a corrected deferral account statement, or

                              (b)    the City of Medicine Hat’s Electric Utility determines that there is a material error in a deferral account statement or that there has been a material change in information set out in a deferral account statement.

(5)  The Market Surveillance Administrator must determine whether to approve a deferral account statement within 10 business days after receiving it.

(6)  The City of Medicine Hat’s Electric Utility shall submit a deferral account statement to the Minister within 5 business days after the deferral account statement is approved by the Market Surveillance Administrator.

(7)  On request of the Minister, the Market Surveillance Administrator shall review an approved deferral account statement in detail to confirm the accuracy of any of the information or amounts set out in the deferral account statement.

Payment

7(1)  The amount of a deferral account balance that is payable to the City of Medicine Hat’s Electric Utility as shown in an approved deferral account statement shall be paid within 30 days after the Minister receives the approved deferral account statement.

(2)  The City of Medicine Hat’s Electric Utility shall pay a deferral account balance that is repayable to the Government of Alberta as shown in an approved deferral account statement within 30 days after the deferral account statement is approved by the Market Surveillance Administrator.

Final review and disposition of deferral account

8(1)  The City of Medicine Hat’s Electric Utility shall apply to the Market Surveillance Administrator for a final review and disposition of the City of Medicine Hat’s Electric Utility’s deferral account within 6 months after May 31, 2021.

(2)  In conducting a final review and disposition of the City of Medicine Hat’s Electric Utility’s deferral account the Market Surveillance Administrator shall review the deferral account statements submitted by the City of Medicine Hat’s Electric Utility in respect of the period beginning on January 1, 2018, and ending on May 31, 2021, to confirm the information and amounts set out in the deferral account statements and determine whether

                               (a)    an amount remains owing to the City of Medicine Hat’s Electric Utility under section 4(1) of this Regulation, or

                              (b)    the City of Medicine Hat’s Electric Utility has been overpaid an amount under section 4(1) of this Regulation.

(3)  The City shall provide to the Market Surveillance Administrator any records or other information the Market Surveillance Administrator may require to confirm the information and amounts set out in deferral account statements submitted by the City of Medicine Hat’s Electric Utility.

(4)  If, on a final review, the Market Surveillance Administrator determines that an amount is owing to the City of Medicine Hat’s Electric Utility under section 4(1), the amount shall be paid to the City of Medicine Hat’s Electric Utility within 30 days after the date of the Market Surveillance Administrator’s determination.

(5)  If, on a final review, Market Surveillance Administrator determines that the City of Medicine Hat’s Electric Utility has been overpaid under section 4(1), the City of Medicine Hat’s Electric Utility shall repay the amount to the Minister within 30 days after the date of the Market Surveillance Administrator’s determination.

Coming into force

9   This Regulation comes into force on the coming into force of section 3 of An Act to Cap Regulated Electricity Rates.