FREQUENTLY ASKED QUESTIONS

1. Smart Meters and Ontarios Energy Plan Why is Ontario introducing Smart Meters and Time-Of-Use Rates? Why does our peak demand matter so much? How will Smart Meters help? 2. Smart MetersThe Basics What is a Smart Meter? Why is it important to know when electricity is used? Why would I want a Smart Meter? What are the benefits of Smart Meters for me? Will I receive a Smart Meter if I am currently with, or moving to, a retailer? Will I pay Time-Of-Use Rates? Will I be able to see the Time-Of-Use (TOU) Rates or my hourly consumption data on my meter? Do Smart Meters need to be activated to work? Will I see a Smart Meter charge on my bill? Are Smart Meters safe? What about RF emissions?

3. Time-Of-Use Pricing What are Time-Of-Use (TOU) Rates? What are the current TOU Prices for Smart Metering? What holidays are designated for the purposes of Smart Metering? When will I move to Time-of-Use Rates? Will my electricity bill automatically go down once I have a Smart Meter and Im on Time-Of-Use Rates? Will my electricity bill go up? TOU sounds complicated? Im a senior, disabled person, low-income, stay-at-home parent or a person reliant on medical equipment who is home during weekdays. Will I be disadvantaged by TOU Prices because of the power I use during the day?

4. The Meter Data Management/Repository (MDM/R) Where will all the Smart Meter data be stored? Is my usage information secure and will it remain confidential?

5. Conservation Strategies and Energy-Saving Tips How can I manage my electricity use and costs?

6. Time-Of-Use Implementation Why are different communities being switched to Time-Of-Use Rates months apart? I dont think these rates will work in my favour. Do I have another option?

1. Smart Meters and Ontarios Energy Plan. Q. A. Why is Ontario Introducing Smart Meters and Time-of-Use Rates? Ontario is introducing Smart Meters along with a Time-of-Use Electricity Price Structure to help you manage your electricity costs, while helping Ontario to build a more efficient, more environmentally sound electricity system. Heres more: Between now and 2025, Ontario will replace about 80% of its electricity system. There are several ways to do that: 1. 2. 3. Building new generating facilities; Refurbishing current facilities (where that makes economic sense), and; Investing in conservation and energy management tools so that we require less new electricity generating capacity. Smart Meters measure hourly electricity use, so prices can be set based on the time of day. That better matches the way prices work in the electricity market, and will encourage us to think more about how and when we use electricity. As we move consumption away from the more expensive (peak) times of the day, we can help Ontario reduce its peak demand, which can help limit the building and operation of peak generating facilities. Q. A. Why does our Peak Demand matter so much? Supplying electricity at peak times (those times when were all using a lot of electricity) has a range of impacts: It adds to our electricity costs because higher demand often means higher market prices; Its hard on the environment because more of the less attractive forms of generation must be run to meet them. It adds to the amount that Ontario needs to invest in the system because meeting the peaks means building even more new generating facilities, and more transmission and distribution infrastructure and that also adds to electricity costs. How will Smart Meters help? Smart Meters plus Time-Of-Use Rates will provide you with a consumption management tool. Smart metering can also help Ontario build an efficient, cost-effective and more environmentally sound electricity system: Smart metering can help reduce the total electricity capacity we need now, and the amount of new capacity we need to build for the future. Smart Meters provide you with a clear incentive to shift consumption away from the daily peaks. 3

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Smart metering can help Ontario to reduce its environmental footprint. By reducing our peak demand, well reduce our use of the less environmentally attractive resources that are called on when demand is high. A Smart Meter system will open up the opportunity for new kinds of conservation and demand management programs and tools in the future. In the future Smart Meters could allow the introduction of different time-based incentive programs, or the opportunity for you to control your energy use through energy management devices or smart appliances. A Smart Meter system will provide comprehensive, detailed information for electricity system planning. Smart Meter data will allow Ontario to identify where future generation, transmission and distribution investments are required.

2. Smart MetersThe Basics. Q. A. What is a Smart Meter? A Smart Meter is a meter that can record and automatically report electricity consumption information. In Ontario, our Smart Meters will record electricity consumption on an hourly basis, and, typically, report that information via a wireless technology. Conventional (our old electromechanical) meters only measure total electricity consumption from one reading to the next, and they have to be read manually in order to report that information. Smart Meters measure how much electricity is used and when and will automatically send that information to your utility, via wireless and other communication technologies. With that information and an understanding that electricity prices can vary throughout the day you will have a new way to manage costs. You might, for example, choose to reduce your electricity use during the higher rate periods (on and mid-peak) periods, and aim to shift some consumption to the off-peak hours when rates are lower. Q. A. Why is it important to know when electricity is used? Knowing when electricity is used allows for the introduction of Time-Of-Use (TOU) Electricity Rates and that will give you a new way to manage and potentially reduce costs. Previously we had very little incentive to manage our electricity use because electricity prices remained the same no matter what the time of day simply because the meters could not report when electricity was used. TOU rates will vary over the day the highest rate will be in place during times of peak demand (when we tend to use a lot of electricity) and the lowest rate during the off-peak periods. With TOU rates, your choices about how and when you use electricity can have a positive impact on your costs. 4

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Why would I want a Smart Meter? What are the benefits of Smart Meters for me? Here are two of the major new benefits that youll see as soon as Time-OfUse Rates are in effect: Youll be able to take new actions to manage your energy bill. With a Smart Meter and Time-Of-Use Rates, youll be able to take advantage of two costcutting strategies. These include: Reducing your electricity use during the higher rate (on-peak and midpeak) periods; and Shifting your electricity use to lower rate (off-peak) periods. Your electricity bills will reflect the readings taken by your Smart Meter over the previous period. That means your bills will be as up-to-date as possible. I already use off-peak electricity, why do I need a Smart Meter? With a Smart Meter and the implementation of TOU rates, you will pay less for the electricity you consume during off-peak periods. Your local electrical utility will have the data consumption required to bill you at off-peak rates. Will I receive a Smart Meter if I am currently with, or moving to, a retailer? Will I pay TOU rates? Yes, you will receive a Smart Meter. Your electricity rates, however, will be determined by the terms and conditions of the contract you choose to sign. Will I be able to see the Time-Of-Use (TOU) rates or my hourly consumption data on my meter? No. TOU rates and consumption data do not appear on the meter. Your Smart Meter will show your current meter reading, just as your old meter did. The TOU rate periods and costs will also be on your bill for easy reference, along with your total consumption during each period over the billing period. Do Smart Meters need to be activated to work? No. Once your new Smart Meter is installed, you dont need to take any further specific steps for the meter to work.

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Will I see a Smart Meter charge on my bill? There will not be a specific Smart Meter line item on your bill. The cost of the Smart Meter Initiative will be recovered through the electricity distribution rates paid by all customers in the same way that costs for existing meters and services are recovered today. Are Smart Meters safe? What about RF emissions? With regard to exposure to electromagnetic frequencies, the Ontario government in partnership with local electricity distributors, has taken significant efforts to ensure that Smart Meters will not only help households manage their electricity consumption, but are also safe and reliable. The government has established a regulation to outline the minimum standards for the Smart Meter system also referred to as the Advanced Metering Infrastructure (AMI). In this regulation, requirements have been included to ensure safety laws are adhered to: For greater certainty, the AMI shall meet all applicable Laws that are necessary for the measurement of data and/or the transmission of data to and from the consumers within the Province of Ontario, including Laws applicable to metering, safety and telecommunications. As such, Smart Meters are well within the safety guidelines for exposure to radio frequencies established by Health Canada. These safety guidelines are outlined in Limits of Human Exposure to Radiofrequency Electromagnetic Fields in the Frequency Range from 3 KHZ to 300 GHZ, also known as Safety Code 6. For more information about Safety Code 6, you may contact the Consumer and Clinical Radiation Protection Bureau, Health Canada, 775 Brookfield Road, Ottawa ON K1A 1C1, telephone (613) 954-6699. If you have access to the Internet, Industry Canada has compiled answers to frequently asked questions about radio frequency fields, which you may view at the following link: www.ic.gc.ca/epic/site/smt-gst.nsf/en/sf08792e.html

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3. TIME-OF-USE RATES (TOU) Q. A. What are Time-Of-Use (TOU) Rates? TOU Rates vary over the day better reflecting the way electricity prices work in the electricity market. Depending on our demand and the availability of supply, electricity market prices rise and fall over the day and tend to drop overnight. Thats why TOU rates vary depending on the time of day, the day of week (week or weekend, and holidays) and the season summer or winter. 6

With rates that vary, well all have an incentive to shift and/or reduce electricity consumption at times of peak demand. Here are the three TOU periods: On Peak the cost of energy and demand are highest Mid-Peak the cost of energy and demand are moderate. Off-Peak the cost of energy and demand are lowest.

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What are the current TOU Prices for smart metering? In Ontario, the Ontario Energy Board (OEB) is responsible for setting our electricity commodity prices including Time-Of-Use Rates for smart meters. Heres what the current periods look like: Summer (May 1st to October 31st) Day of Time Period Week Weekdays 7:00 am to 11:00 am Mid-Peak 11:00 am to 5:00 pm On-Peak 5:00 pm to 7:00 pm Mid-Peak 7:00 pm to 7:00 am Off-Peak Weekends Sat. 7 am to Monday 7 am Off-Peak Winter (November 1st to April 30th) Day of Time Period Week Weekdays 7:00 am to 11:00 am On-Peak 11:00 am to 5:00 pm Mid-Peak 5:00 pm to 7:00 pm On-Peak 7:00 pm to 7:00 am Off-Peak Weekends Sat. 7 am to Monday 7 am Off-Peak *The most current rates for these time periods can be found on our website under Customer Care and then Rates.

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What holidays are designated for the purposes of smart metering? The days considered holidays and so days when off-peak rates apply are for the most part statutory holidays when a majority of Ontarians are absent from work. Thats because on those days demand for electricity is much lower than a normal weekday. That is also why Easter Monday and Remembrance Day do not qualify for off-peak pricing. A list of holidays for 2012 is provided on the chart below.

2012 Holiday Schedule for Smart Meter (Time-of-Use) Prices Holiday New Years Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Christmas Day Boxing Day Q. A. Date January 1 February 20 April 6 May 21 July 1 August 6 September 3 October 8 December 25 December 26 Actual Day Sunday Monday Friday Monday Sunday Monday Monday Monday Tuesday Wednesday Day for Off-Peak TOU Pricing Monday Jan 2 Same Same Same Monday July 2 Same Same Same Same Same

When will I move to Time-Of-Use Rates? You will be notified by mail approximately two-weeks prior to receiving your first Time-Of-Use bill. Will my electricity bill automatically go down once I have a Smart Meter and Im on Time-Of-Use Rates? Not automatically. What Time-Of-Use Rates do is provide you with a new way to think about and manage electricity costs. Under TOU, there will be different rates for the electricity you use during the on-peak, mid-peak and off-peak hours. So, it will make sense to aim, for example, to schedule energy-intensive activities to the off-peaks (after 7 pm during the week, all weekends and on holidays). Will my electricity bill go up? That will depend, in part, on you. Once you are billed on a Time-Of-Use basis, depending how and when you use electricity, you may pay a bit more or less or see very little difference. With Smart Meters, those who work to conserve and shift their usage to off-peak, weekends or holidays may benefit the most. Currently those customers see no price advantage no matter what time of the day they use power. TOU sounds complicated? Its true that, at first, youll need to be more aware of how and when you use energy, but over time, it will simply become a habit. Smart metering will give you a tool and better information to help you make informed decisions about your electricity usage. With this information in hand, youll be able to develop the best strategies for you.

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Im a senior, disabled person, low-income, stay-at-home parent or a person reliant on medical equipment who is home during weekdays. Will I be disadvantaged by TOU Prices because of the power I use during the day? Time-Of-Use prices have not been designed to penalize consumers who for whatever reason have difficulty shifting consumption. Testing and piloting under Time-Of-Use Pricing to date has shown that for most customers, if they do not change their consumption patterns, then they will pay about the same price for electricity that they did under the current tiered pricing model. This is due in part to the fact that there are many more off-peak hours than there are on-peak in a given week (all hours of the weekend are off-peak). In the summer for instance, for every hour of the week that your fridge is running on-peak, there are more off-peak hours when youre paying significantly less than the current tiered rates. Key message: Remember too that there are almost 65% more off-peak hours in the week than there are mid-peak hours.

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In this way, the Time-Of-Use Prices tend to off-set one another so that customers are not penalized by this rate but are still given incentives to reduce or shift some of their discretionary consumption if they are able. Regarding electric heat: Similarly, in winter months, electric heaters run 24 hours a day. In fact to the extent night-time temperatures are often colder than during the day, there may even be some small advantage for electric heat consumers because heaters may run more frequently in the off-peak evening. 4. THE METER DATA MANAGEMENT/REPOSITORY (MDM/R) Q. A. Where will all the Smart Meter data be stored? An independent central meter data repository has been developed to store and process the hourly consumer consumption data transmitted daily by each of Ontarios Local Distribution Companies (LDCs). There are currently more than 90 LDCs in the province. Is my usage information secure and will it remain confidential? Yes. Ontarios electricity distribution companies are required, by law, to ensure that the Smart Meters and communication networks that are put into place are equipped with security features to prevent unauthorized access. They must also comply with federal laws regarding the privacy, protection and disclosure of personal information. Any data that is sent to the central data repository will be provided in such a way as to prevent identification of any individual customer. 9

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CONSERVATION STRATEGIES AND ENERGY-SAVING TIPS Q. A. How can I manage my electricity use and costs? There are lots of simple things that we can do to save electricity and reduce electricity costs. Your best strategy might combine some or all of the following: Shift some electricity use to off-peak periods. Under TOU rates, shifting activities that are energy-intensive to the lower rate mid-peak and off-peak hours will be to your advantage. Reduce electricity use across all periods of the day. Conservation always makes good sense. This includes activities like turning off lights and equipment that are not in use, and turning your air conditioner up a few degrees. Ensure youre not paying for nothing. Many electronic items including, for example, computers, TVs and cell phone chargers arent fully off unless you pull the plug, so try to plug them into a power bar that you can turn off. Opt for energy-efficient products, wherever you can. Energy Star appliances and compact fluorescent light bulbs (CFLs) use less power, reducing both your electricity consumption and your costs. Take advantage of conservation promotions. Many utilities, and the Ontario Power Authority (OPA), are creating programs that can help you conserve. Call your local utility.

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TIME-OF-USE RATE IMPLEMENTATION Q. Why are different communities being switched to Time-Of-Use Rates months apart? Each utility decides when it is able to start switching its customers to TimeOf-Use Rates. This depends on when they think they have enough meters installed to offer Time-Of-Use Rates, and when they have sufficiently tested the meter reading and data systems to ensure accurate customer billing. Ontarios electricity commodity rates are set by the Ontario Energy Board to be fair to customers using either TOU or the older two-tiered electricity prices. Q. I dont think these rates will work in my favour. Do I have another option? Time-Of-Use Rates will fully replace the two-tiered rate system that Ontario utilities have been using for their residential and small business customers.

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