2025 electricity distribution rate applications

 

On October 13, 2016, the OEB issued the Handbook for Utility Rate Applications to provide guidance to utilities and stakeholders on applications to the OEB for approval of rates. The Rate Handbook outlines the key principles and expectations the OEB will apply when reviewing rate applications under the OEB’s renewed regulatory framework, Report of the Board: A Renewed Regulatory Framework for Electricity (the RRFE Report). Three alternative rate-setting methods are available to electricity distributors: Price Cap Incentive Rate-setting (Price Cap IR); Custom Incentive Rate-setting (Custom IR); and Annual Incentive Rate-setting Index (Annual IR Index).

On December 15, 2023, the OEB issued a letter identifying a preliminary list of electricity distributors (the Rebasing List) that are scheduled to file a cost of service application in respect of their 2025 rates assuming they opt for the Price Cap IR method. This letter also sets out the deadlines by which notice must be given to the OEB in respect of various other matters relating to the setting of 2025 rates, and by which cost of service applications for 2025 rates are expected to be filed. The following table summarizes these deadlines.

ActionOEB Deadline
Notification from any distributor on the 2025 Rebasing List that will be selecting either the Custom IR, or Annual IR Index method (therefore will not be filing a Price Cap IR rate application) for 2025 ratesJanuary 26, 2024
Notification from any distributor that is currently on Annual IR Index but that plans to file a cost of service rate application under the Price Cap IR method or a Custom IR application for 2025 ratesJanuary 26, 2024
Notification from any distributor that is not included on the 2025 Rebasing List but that plans to file a cost of service application for 2025 rates under the Price Cap IR method (early rebasing)January 26, 2024
Notification from any distributor on the 2025 Rebasing List that plans to submit a request to defer rebasingJanuary 26, 2024
Notification from any distributor that plans to file a cost a service application for 2025 rates and that wishes to convert its rate year from May 1 to January 1January 26, 2024
Deadline for cost of service applications for January 1, 2025 rates including those distributors that wish to convert from May 1 rates to January 1 ratesApril 30, 2024
Deadline for cost of service applications for May 1, 2025 rates and for Custom IR annual update applicationsAugust 30, 2024

 

The following table identifies all 58 rate regulated electricity distributors in Ontario. The table contains links to select documents of a distributor’s rate application. These documents include:

  • Key correspondence regarding the status of an application, including the choice of rate-setting method for 2025 rates. For applications to be decided under Delegated Authority, case management letters are used to communicate case steps and dates rather than a letter of direction and procedural order.
  • The Notice of Application issued by the OEB and to be published by the distributor, if applicable. The purpose of the Notice is to inform affected ratepayers and other stakeholders of the application, its nature and the impact on affected customers.
  • The Decision issued by the OEB when it has made determinations on the application and the subsequent Rate Order and Tariff of Rates and Charges that reflects the Decision.

 

APPLICATION DOCUMENTS

This table provides a list of select documents related to each application. To view all publicly available documents for the application, click the case number associated with that particular distributor.

DEFINITIONS:

Cost of Service: Distributors rebasing under the Price Cap Incentive Rate-setting method        
Price Cap IR: Distributors not rebasing under the Price Cap Incentive Rate-setting method        
Custom IR: Distributors filing under the Custom Incentive Rate-setting method        
Annual IR: Distributors filing under the Annual Incentive Rate-setting Index method        
Case Management Letter: Pursuant to powers granted in Section 6 of the Ontario Energy Board Act, 1998, an employee of the OEB (Delegated Authority) may make a decision on the application without holding a hearing. Certain mechanistic Price Cap IR and Annual IR applications are adjudicated by a Delegated Authority. For these applications, there are normally no formal hearings and thus, no publication requirements of a formal Notice of Application. The process and timelines associated with the assessment of the applications by OEB staff are communicated to distributors by way of Case Management letters.        
NoA: Notice of Application

Click the column header to sort the table by Distributor, Process, Application Received or Updated on. Click the column again to switch between ascending/descending order. To filter results, start typing in the search field below. As you type the table will re-sort to only show rows that match what you type (e.g. typing 'Niagara' will show only the rows for Canadian Niagara Power Inc., Niagara Peninsula Energy Inc. and Niagara-on-the-Lake Hydro Inc.).

 

ASSOCIATED DECISIONS

DateIssue/document
September 26, 2024

The OEB has issued its Decision and Order updating the retail service charges (EB-2024-0226) and its Decision and Order updating the distribution pole attachment charge (EB-2024-0227), effective January 1, 2025.

May 30, 2024

The OEB has issued its Decision and Rate Order in the matter of Distribution Rate Protection (DRP) effective July 1, 2024.

 

UPDATES

DateIssue/document
November 19, 2024

The OEB has issued a letter re: Review of Fixed Monthly Charge for microFIT Generator Service Classification.

November 1, 2024

The OEB has issued a letter which provides the calculations for 2025 preliminary Uniform Transmission Rates and facilitates their implementation in applicable 2025 electricity distributor rate applications.

October 31, 2024

The OEB has issued a letter which sets out the Cost of Capital Parameter Updates for cost-based rates applications that have an effective date commencing in 2025.

June 20, 2024

The OEB has issued a letter on the inflation factors to be used to set rates for certain electricity transmitters and electricity and natural gas distributors for 2025.

June 18, 2024

The OEB has posted an updated version of Chapter 3 of the Filing Requirements for 2025 Rate Applications.

June 18, 2024

The OEB has issued the tranche assignments which outline the filing dates for 2025 Incentive Rate-setting Mechanism (IRM) applications.

June 12, 2024

The OEB has posted the slide deck used for the Cost of Service Orientation for 2025 and 2026 Filers.

April 11, 2024

The OEB has posted updated versions of various models to be used for 2025 Rate Applications.    

Queries regarding the models should be sent to ratemodels@oeb.ca.

Cost of Service Models:

Applicable to both Cost of Service and Incentive Rate-setting Mechanism (IRM):

Incentive Rate-setting Mechanism (IRM) Models:

April 11, 2024

The OEB has issued a letter regarding a change to the OEB's approach to the 2025 Filing Requirements, as well as piloting a budget for intervenors in cost of service for utilities with less than 30,000 customers.

March 28, 2024

The OEB has issued a letter re: Very Small Utilities Working Group Report to the OEB

The OEB considers the following samples developed by the Working Group to be suitable for a cost of service application for very small utilities (<5,000 customers).

December 15, 2023

The OEB has issued a letter that sets out a preliminary schedule of cost of service filers for the 2025 to 2028 rate years and establishes important filing and notification deadlines.

 

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