Final Variance Settlement Discussion Questions

The following scenarios involve the calculation of the Customer Final Variance Settlement when a customer leaves the RPP. These scenarios are presented to the EBT Working Group for discussion purposes in order to determine if the final variance has any impact on EBT transactions.

Answers provided in bold in Antique Olive font

Customer Final Variance Settlement will come into effect on July 1, 2005. We need to agree on a process for retailers to inform LDC’s when a customer is moving to RLI during the interim period between July 1 and October 11 when v3.1 is implemented.

The following questions may have an impact on GI736.

Customer is moving from LDC A to LDC B. Retailer sends enroll request for the pending/active account to LDC B.

  • Should LDC B calculate the final variance in this case?
  • How would LDC B know if the customer was with the retailer while at LDC A or if the customer is just now going from RPP to RLI, in which case the final variance should be calculated?
  • Is there a need for the LDC to know the contract date?

Possible Scenario:

  • Customer enrolled with a retailer while at LDC A, final variance was calculated by LDC A.
  • Within a few months, customer moves to LDC B and is set up on RPP.
  • Retailer sends enrol with a billing method of ‘DistributorBillReadyRLI’.
  • LDC B’s system would then trigger calculation of the final variance.
  • Is this an issue, or could the customer get charged the final variance more than once over the life of the contract because they moved?
  • It is possible that the customer may be billed at the RPP for several months during the transition from LDC A to LDC B. Does the final variance apply in this case?

There are three situations that trigger the calculation and settlement of the RPP balance: (1) a move out of Province; (2) signing a Post-dec 9/02 contract with a retailer; and, (3) election to take the spot price. In the above scenario, for LDCA none of these criteria are met, therefore no RPP balance is calculated. LDCB also would not calculate the RPP balance because the contract must have been pre-Dec9/02.

Customer is enrolled with an RCB retailer, contract signed prior to Dec 9, 2002. Customer moves from LDC A to LDC B.

  • LDC B sets up customer’s account on RPP
  • Retailer sends enrol to LDC B, billing method is ‘RetailerBillReady’
  • The enroll process triggers the calculation of the final variance, as LDC B would have no way of knowing whether the retailer would have set the customer up on RPP or RLI. (Is this currently communicated on the CSV file for RCB customers?)
  • Is it possible we need enumerated values for Billing Method to cover this? (‘RetailerBillReadyRLI’ and ‘RetailerBillReadyRPP’)
  • The new LDC does not know if the customer was previously with a retailer at the old LDC, or what the retailer billing method would have been while at the previous LDC. The previous LDC may have already calculated the final variance if the customer left the RPP. Customer could get charged the final variance more than once over the life of the contract
  • Does LDC need to know the contract date?

As above, LDCB would not calculate the RPP balance because the contract is pre-Dec9/02 which it would know from GI 726 or (after Oct 17/05) the “RetailerBill ReadyRLI” specification.

Customer is currently enrolled with an RCB retailer and is billed the RPP because they are low volume or a designate.

  • When the contract is renewed or if the customer chooses to go to RLI, who calculates the variance, the LDC or the RCB Retailer?
  • According to RSC section 1.9.3, section 3.7 of the SSS code applies to the RCB retailers as well as the LDCs
  • Retailer would have to use Usage transactions sent by LDC to calculate the final variance
  • Would retailer have to carry a final variance account and report the final variance amounts?
  • What happens if we have to cancel/rebill the customer’s last SSS bill that has the final variance, can this adjustment be sent on the IBR and what charge category would be used?

This is not fully resolved. The classification of consumers remains a Distributor obligation. When Distributors reclassify, these cases will have to be worked out case-by-case.

Non-EBT related Questions

Customer currently on RPP (non-interval)

  • Volume goes up therefore no longer eligible for RPP, must go back to spot market price (WAHSP)
  • Do we calculate the final variance settlement amount?
  • Is there a difference between opting out of RPP and no longer eligible for RPP?
  • Section 3.2 of the SSS code states that the consumer can only choose to opt out if they have an interval/TOU meter capable of collecting hourly reads. There is no mention of the group that falls between RPP (low volume) and Interval metered consumers.