HOW GENERATORS ARE PAID

Ontario's electricity sector represents a combination of both market prices and regulated rates, providing both stability and incentives to energy consumers to more closely manage their electricity use.

Ontario Power Generation (OPG) Prescribed Units: These are baseload generating stations owned by Ontario Power Generation that provide electricity consistently throughout the day or night. Examples include: the Pickering and Darlington nuclear units and the Beck hydroelectric facilities at Niagara Falls.

Effective December 1, 2008; the payment amounts for the prescribed nuclear facilities are $52.98/MWh plus the deferral/variance account payment rider of ($3.23/MWh) and the interim period shortfall payment rider of ($1.99/MWh). The payment amounts for the prescribed hydro electric facilities are $36.66/MWh plus the interim period shortfall payment rider of $2.18/MWh.

For the period April 1, 2008 to November 30, 2008, the payment amounts for the prescribed hydroelectric facilities are $36.66/MWh for output up to 1,900 MWh in any hour and the market price for production over 1,900 MWh in any hour. Effective December 1, 2008, the rate of $36.66/MWh applies to the average hourly net energy production in any given month for each hour of that month. Net energy production over the hourly volume will receive the wholesale price. Where net energy production from the regulated hydroelectric facilities is less than the hourly volume, OPG will pay the difference between the hourly volume and the actual net energy production at the wholesale price.

OPG Non-Prescribed Units: The Ontario government has established a set price of on 85 per cent of the output from OPGs coal-fired and smaller hydroelectric operations. Monies collected above this amount will be refunded to customers paying wholesale prices in the form of the OPG Rebate.

The set price of 4.8 ¢/kWh is in place until April 30, 2009.

The exact date the credit appears on the wholesale ratepayer's bill will depend on their local utility's billing cycle. These consumers should contact their local utility for more information.

Competitive Units: Some of Ontario's private generators as well as electricity importers compete to supply electricity and receive market prices for electricity they provide the system.

Contracted Suppliers: New electricity suppliers that start up operations in Ontario as a result of the Ontario Government's Requests for Proposals (RFPs) for clean or renewable energy production and demand side management measures, and a number of other private generators, will also offer into the wholesale market. They will receive basic investment guarantees, but will need to participate in the market in order to ensure a full return on investment.

Non-Utility Generators (NUGs): These privately-owned generators signed contracts with the former Ontario Hydro that are still in force today and administered by the Ontario Electricity Financial Corporation.