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Powerbytes- Industry News |
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 Implementing The Smart Meter Network
Much of the residential smart meter roll-out is on-schedule for completion across Ontario in 2010. But for many LDCs there still remain a large number of small commercial customers (less than 50 kW) that require a smart meter installation. The underlying premise behind the provincial mandate to install these meters is to educate customers on their consumption habits and implement new rate structures that will encourage load shifting, and the conservation of energy.
Rodan offers a smart meter installation service for LDCs commercial customers and has most recently signed with Oakville Hydro to install over 4000 meters in their service area. Using the Workforce Management System, Rodan provides a completely paperless system for logging and locating each individual meter.
As long standing professionals in the metering business, Rodan's service focuses on safety and includes: removal of the existing meter, installation of the smart meter, initialization of wireless communication. and the data download from the Workforce Management System. Since replacement requires an approximate five minute outage, Rodan handles the notification of LDC customers and operates a call centre for installation appointments and for any follow-up requests.
Completing the smart meter deployment doesn't have to be a struggle with limited resources. Rodan offers a safety-first, experienced and professional service, allowing LDCs to meet their smart meter installation commitments for 2010.
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Energy & HST
As part of the implementation of the HST on July 1st, Ontario will impose restrictions on input tax credits for HST incurred on energy and a limited range of other inputs. The imposed restrictions will eliminate recovery of the provincial component of the HST., i.e. corporate tax payers will not be able to recover eight of the thirteen per cent HST in Ontario on certain energy consumption in their facilities that was previously fully exempt from the PST.
The restrictions on input tax credits for energy will include electricity, gas, combustibles and steam energy. However, the restrictions will not extend to HST incurred on energy used in producing goods for sale, nor for designing or producing equipment for producing goods for sale (i.e. these processes will not be subject to the HST.) Energy used for air conditioning, lighting, heating or ventilation of a production site will generally be subject to the restrictions (i.e. subject to the HST). The restrictions are only to apply to large businesses (over $10 millions in taxable sales per year) and financial institutions.
To simplify compliance, the Ministry has provided proxies that may be used to determine the portion of specified energy considered to be used directly in the production of tangible personal property for resale, or considered to be used directly in eligible activities. The production proxies are determined by the most significant activity of a business and are based on 24 identified codes from the North American Industry Classification System for 2007, but there are no guarantees that these estimates will reflect the reality. To avoid over-taxation on a significant operating cost it is necessary to have accurate data of what is actually occurring. For information on how to accurately allocate a facility's electricity costs see- Sub-metering Your Process Makes Economic Sense below.
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Sub-Metering Your Process Makes Economic Sense
Understanding where electricity consumption occurs in a facility has always been important for operating cost allocation and specific product profitability.
With the introduction of the HST in July, knowing where and when electricity is being used will be more important than ever. Since electricity used in producing goods for sale; for designing or producing equipment for producing goods for sale; or for scientific research and experimental development will not be subject to the HST it is important to be able to accurately measure how much electricity is being used for these processes. To simplify compliance, the government is proposing a proxy to estimate the amount consumed by these activities but there are no guarantees that these estimates will reflect the reality. To avoid over-taxation on a significant operating cost it is necessary to have accurate data of what is actually occurring.
Sub-metering at specific points in a facility can provide the detailed information necessary to avoid incorrect or inaccurate taxation of a facility's electricity breakdown. By breaking out the individual consumption of areas within a process, it makes cost allocation to each area easier and accurate, gives product profitability for each area, and gives the accounting department the numbers it needs to verify whether the company is being fairly taxed on its electricity consumption.
Add to this the opportunity sub-metering opens up for energy conservation and demand response savings and there are multiple reasons for actively managing and measuring electricity costs in a plant.
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Code Amendments to DSC & ARC
The OEB has issued a Notice of Amendment to Codes involving the Distribution System Code and Affiliates Relationship Code for Electricity Distributors and Transmitters to reflect the ability of electricity distributors to own and operate renewable and other generation facilities as well as energy storage facilities. Under the Proposed Amendments distributors should be required to treat their own generation facilities in the same manner as they would treat generation facilities owned by third parties, including in relation to the connection process. The approach reflected the Board's view that a level playing field for all generators and generation proponents, regardless of ownership, is consistent with the requirement to provide non-discriminatory access, will ensure the timely connection of all generation facilities and will support the Board's new objective of promoting the connection of renewable generation. For full details see http://www.oeb.gov.on.ca/OEB/_Documents/EB-2009-0411/notice_amendcodes_20100311.pdf
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