Published: September 2016
Content last reviewed: September 2016
Effective January 1, 2001, the existing property taxes and water rental charges paid by hydro-electric generating station owners and water power lease holders were replaced with the taxes and charges on the gross revenues of hydro-electric generating stations. These taxes and charges under section 92.1 of the Electricity Act, 1998 represent separate components of what is known as the Gross Revenue Charge (GRC). For information about the Gross Revenue Charge, refer to Ontario Tax Bulletin EA 1-2002 - Taxes and Charges on the Gross Revenues of Hydro-Electric Generating Stations.
The GRC regulation (O. Reg. 124/02) defined gross revenue for the period January 1, 2001, to December 31, 2008, to be the amount determined by multiplying the station's annual generation for the year by a price of $40,000 per gigawatt hour.
The GRC regulation has been amended by O. Reg. 09/10 to set the price at $40,000 per gigawatt hour in order that the same calculation of gross revenue continues to apply through 2009 and subsequent years.
The GRC regulation requires owners of hydro-electric generating stations and water power lease holders to pay monthly instalments on or before the 16th day of each month if the total amounts payable for all their stations under section 92.1 of the Act for the immediately preceding year is $10,000 or more. If the total amounts payable for the immediately preceding year is less than $10,000, persons may pay quarterly instalments on the 16th day of March, June, September and December.
The GRC regulation has been amended to no longer require persons to pay instalments for 2010 or a subsequent year, if their total amounts payable for all their stations under section 92.1 of the Act for the immediately preceding year is less than $1,000.
Hydro-electric generating station owners and water power lease holders that are not required to pay instalments in a year are required to pay their total amounts payable under section 92.1 of the Act, upon delivery of their Annual GRC Return, which is due on or before March 16 of the following year.
If this bulletin does not completely address your particular situation, refer to the Electricity Act, 1998 and related regulations, visit our website at ontario.ca/finance or contact:
Ministry of Finance
Account Management and Collections Branch
33 King Street West
PO Box 625
Oshawa ON L1H 8H9