As we described in an earlier
post, the Ontario Energy Board December 2015 Report on the Regulated Price Plan Roadmap
concluded that current Time of Use pricing is not providing
sufficient incentives for consumers to shift and/or reduce their
electricity consumption. In response, the OEB is taking steps to
consider alternative RPP approaches, starting with pilot projects
that will test a variety of strategies. The OEB's July 2016 Regulated Price Plan Roadmap: Guideline for Pilot
Projects on RPP Pricing (the Guideline) sets out the OEB's
objectives, identifies priority treatments for price (and
non-price) pilot projects, and lays out a framework for electricity
distributors to design, implement and evaluate these pilot
In July 2016, electricity distributors were invited to submit
preliminary applications for approval and funding of RPP pilot
projects that fit with the Guideline. As we
discussed in a prior post, the pilot projects will be
implemented by electricity distributors, who will be responsible
for implementation and for evaluation of impacts on peak demand,
total demand and consumer acceptance. The OEB expects that the
pilot projects will be operating in the field no later than May 1,
2017 and will be completed by December 1, 2018. The OEB will
evaluate the overall results of the pilot projects, and may make
successful options available to all RPP consumers.
It appears that seven preliminary applications
for approval and funding of RPP pilot projects have been made to
the OEB by electricity distributors. Presumably, the OEB's
response as to which of these proponents will be invited to submit
a full proposal will be available soon, so that implementation can
begin early in 2017.
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