Definition: Expansion Deposit Refund
(DSC clause 3.2.23)
Once facilities are energized, we shall perform annually assessment and return the percentage of expansion deposit in proportion to the actual demand. We shall be allowed to retain the remaining portion of expansion deposit if the forecasted demand has not been materialized at the end of the customer connection horizon.
Our Current Process and Practice
Forecasted demand was calculated and used in final economic evaluation. Actual demand is calculated as mean value of non-loss adjusted peak demand for twelve consecutive bill cycles starting from the date of connection (Milestone 3) or the end date of bill cycle used for last expansion deposit refund assessment.
Expansion deposit refund percentage is calculated as:
Refund Percentage % = (Actual Demand/Forecasted) * 100%
If expansion deposit is in the form of cash, expansion deposit refund amount is determined by:
Expansion Deposit Refund Amount = Refund Percentage x Expansion Deposit on File (including HST) + Accumulated Interest
Accumulated interest is compounded monthly on expansion deposit commencing on the receipt of total deposit till the date of refund assessment. Interest rate is set by Bank of Canada at Prime Business Rate less 2 percent. No interest will be refunded if deposit is made in other form.