Hydro-electric generating station owners and water power leaseholders pay taxes and charges calculated on their hydro-electric generating station's gross revenue. These taxes and charges are known as the gross revenue charge.
There are three parts to the gross revenue charge:
- the property tax portion payable to the Minister of Finance
- the property tax portion payable to the Ontario Electricity Financial Corporation, and
- the water rental charge portion payable to the Minister of Finance.
Gross revenue charge amount
Property tax rates
The rates for both property tax portions increase based on the station’s annual generation of electricity as follows:
| Total Annual Generation | GRC Rate |
|---|---|
| Up to and including 50 gigawatt hours (gWh) | 2.5% |
| Greater than 50 and up to and including 400 gWh | 4.5% |
| Greater than 400 up to and including 700 gWh | 6.0% |
| Greater than 700 gWh | 26.5% |
Every station owner receives the lower rates on the first 700 gigawatt hours of annual generation for each station.
Water rental charge rate
The water rental charge rate is fixed at 9.5 per cent of a station's gross revenue from annual generation.
Gross revenue is the amount calculated by multiplying the station's annual generation of electricity for the year by a price of $40,000 per gigawatt hour.
Station owner, leaseholder
You need to register with the province if you are a:
- hydro-electric generating station owner
- water power leaseholder.
Filing an annual return
Each year the Ministry of Finance will mail you a personalized return that you need to complete.
You can file your return:
- by mail to: Ministry of Finance, 33 King Street West, PO Box 620, Oshawa ON L1H 8E9
- in person at any Ministry of Finance tax office (in the drop boxes provided) or at a ServiceOntario location
How to complete your gross revenue charge annual return and schedules
Gross revenue charge instalment instructions
Due dates
Completed gross revenue charge annual returns are to be sent to the Ministry of Finance by March 16 of the following year to which the annual return relates.
Hydro-electric generating station owners and water power leaseholders whose total amounts payable for the previous year is $1,000 or more are required to make their gross revenue charge instalment payments on either a monthly or quarterly basis.
Read more about the taxes and charges on the gross revenues of hydro-electric generating stations
