Beginning January 1, 2001, hydro-electric generating station owners and water power leaseholders have been required to pay taxes and charges calculated on their hydro-electric generating station's gross revenue. These taxes and charges under section 92.1 of the Electricity Act, 1998 are known as the Gross Revenue Charge (GRC).
There are three parts to the GRC:
- The GRC Property Tax payable to the Minister of Finance,
- The GRC Property Charge payable to the Ontario Electricity Financial Corporation, and
- The GRC Water Rental Charge payable to the Minister of Finance.
Who Should Be Registered
- Hydro-electric generating station owners
- Water power leaseholders
Reporting & Remitting
The GRC Annual Return is due on or before March 16th of the following year to which the Annual Return relates.
Hydro-electric generating station owners and water power leaseholders are required to make their GRC instalment payments on either a monthly or quarterly basis.
Additional Information
The GRC regulation (O. Reg. 124/02) defined gross revenue for the period January 1, 2001, to December 31 ,2008. The amount can be calculated by multiplying the station's annual generation for the year by a price of $40,000 per gigawatt hour.
For additional information about the GRC, refer to Ontario Tax Bulletin EA 1-2002 - Taxes and Charges on the Gross Revenues of Hydro-electric Generating Stations.
