Payments in lieu of additional municipal and school taxes (PILs) are made by Hydro One Inc. and each of its subsidiaries, Ontario Power Generation Inc. and each of its subsidiaries and every municipal electricity utility for the lands they own containing generating station buildings or structures or transformer station buildings or structures. These payments are applied to retire the stranded debt associated with the restructuring of Ontario Hydro.
If a generating station building or structure owned by one of the corporations on January 1, 2000, is subsequently disposed of, the PILs continue to apply to any subsequent owner. Hydro-electric generating stations and wind turbine towers are not subject to the PILs. Hydro-electric generating stations are subject to the Gross Revenue Charge.
Who is responsible for the reporting and remitting PILs?
Hydro One Inc. and every municipal electricity utility are required to make:
- an interim payment, equal to 50% of the amount payable for the immediately preceding year, by April 16; and
- a final payment, equal to the total amount payable for the current year, minus the interim payment, by October 16, along with the annual return.
Ontario Power Generation Inc. makes monthly payments by the 16th of each month:
- for the first nine months, the amount of the monthly payment is 1/12 of the amount payable for the immediately preceding year;
- for the remaining three months, the payment is equal to 1/3 of the total amount payable for the year, minus the payments made in the first nine months. The annual return is due on October 16.
