2006 Electricity Distribution Rate (EDR) Handbook Development

Case number
RP- 2004-0188
Launched
Sector
Electricity
Status
Archived
Details

The Board issued its Report and 2006 Electricity Distribution Handbook on May 11, 2005. This historical material related to the creation of the Report and the Handbook is available for reference purposes.

The Board initiated a process to establish approved rates for electricity distributors based on updated revenue requirements, with the intent that these new distribution rates would be effective on May 1, 2006. The Board commenced a policy development process to develop generic guidelines for the rate-setting methodology to be used in setting May 1, 2006 rates. The result of this policy process was the Distribution Rate Handbook which provided filing requirements for 2006 distribution rate applications.

 

Related Information

General Updates
DateIssue/Document
May 11-05The Board has posted its Report and the final 2006 Electricity Distribution Rate Handbook.
Feb 7-05

The Board has issued Procedural Order No. 5 in respect to the 2006 EDR process..

Jan 28-05The Board is posting a PDF copy of Exhibit D.6.3: C&C Utility Filing Information referenced in Volume 6 of the transcripts.
Jan 24-05The Board is posting a PDF copy of Exhibit D.4.1: Update to Exhibit B.6, Table 3 referenced in Volume 4 of the transcript.
Jan 19-05

The Board has issued Procedural Order No. 4 in respect to the 2006 EDR process. P.O. No. 4 deals with the filing, subsequent to the completion of the oral process currently underway, of submissions and reply submissions on issues relating to the rate handbook.

Jan 19-05The Board has issued a letter dealing with certain issues raised by parties regarding funding for stakeholder participation in the 2006 EDR process.
Jan 10-05

The Board has issued Procedural Order No. 3 in respect to the 2006 EDR process. P.O. No. 3 deals with the granting of extensions to evidence filing dates.

Jan 6-05The Board has posted the presentation of the Board staff consultant, Robert Camfield of Laurits R. Christensen Associates, from the teleconferenced workshop on Comparators and Cohorts. The workshop was conducted to allow interested parties to understand and ask questions about the technical and practical aspects of the evidence filed by Mr. Camfield.
Dec 16-04The presentation made by Board staff at the stakeholder consultation on December 15-16, 2004 is available. This presentation is to advise parties of the intended schedule of the 2006 EDR process in early 2005 and of how interested parties should prepare for participation in that process.
Nov 25-04

The Board has issued Procedural Order No. 2 in respect to the 2006 EDR process.

Oct 19-04

The Board has issued Procedural Order No. 1 in respect to the 2006 EDR process, dealing with the conduct of the stakeholder meeting scheduled for October 25-26, 2004 and the subsequent Issues Day to be held before the Board on Nov. 1-2, 2004.

Oct 15-04

The Board has published an Information Notice in newspapers in the province of Ontario to inform the general public of the 2006 Electricity Distribution Rate process. The Notice provides information about this project, and indicates how the public can provide input to the Board.

Oct 14-04

A letter has been received by the Board from the Conservation and Demand Side Management sub-group in response to a letter sent by Pollution Probe on September 29, 2004 to the Chair:

Oct 5-04

The Board has issued a response to a letter received from Pollution Probe regarding the promotion of electricity Demand Side Management in 2005 and 2006:

Pollution Probe letter dated September 29, 2004

Oct 5-04

Document sent by e-mail to all registered parties advising of a postponement to the dates for the stakeholder meeting of the Working Group's efforts from October 6 to October 25-26, 2004. The scheduled subsequent Issues Day is also postponed and is tentatively scheduled for November 1-2, 2004.

Oct 1-04

The Board has issued a supplementary letter on the funding request of the Canadian Energy Efficiency Alliance.

The following communique, which was distributed to registered parties following the Issues Conference, describes generically the process that the Board intends to pursue in the 2006 process. The Board will be flexible in it approach and dates mentioned are subject to change.

  • Communique sent to registered parties on September 21-04
Sep 28-04

The Board has issued its determination on the funding of eligible parties for participation in the 2006 EDR process.

Sep 3-04

Board staff have issued a discussion paper and agenda for use at the 2006 Electricity Distribution Rates Issues Conference. The paper provides a starting point on how each issue in the previously issued list might be incorporated in a new Handbook for 2006.

Aug 12-04

Letter sent to all electricity distribution utilities and other stakeholders announcing that an Issues Conference will be held on September 8 and (if necessary) 9, 2004 to consider an initial list of issues that should be dealt with by the process, scheduled for the fall of 2004 to establish the generic methodology for setting 2006 electricity distribution rates process. The venue for the Issues Conference will be communicated in due course. If necessary, an Issues Day will be held before a panel of the Board subsequently.

The following Issues List will be the subject of the Issues Conference and Issues Day, and

Jun 16-04

Letter sent to all electricity distribution utilities and other stakeholders inviting participation in a consultation to commence the 2006 EDR process and to solicit input on pertinent issues that should be set through the generic methodology process in 2004. Provided with the letter is preliminary issues list, identifying potential 2006 revenue requirement items that could be considered through the process.

 

Written Submissions and Responding Submissions (February 2005)

The following documents were submitted by parties as final submissions on respect to matters to be considered by the Board in the 2006 Electricity Distribution Rate Handbook process.

Responding Submissions (Filed February 28, 2005)

OrganizationDocument
Aurora Hydro Connections, Brantford Power, and Scugog Hydro Energy Corp.
Barrie Hydro
Canadian Energy Efficiency Alliance
Coalition of Issue 3 Distributors
Enbridge Gas Distribution Inc.
Energy Cost Management Inc.
Energy Probe Research Foundation
Enersource Hydro Mississauga and PowerStream Inc.
Green Energy Coalition
Hydro One Networks
Hydro Ottawa
Industry Task Force on Distributed Generation
Pollution Probe
Rogers Cable Inc.
School Energy Coalition
Toronto Hydro
Vulnerable Energy Consumers Coalition
Woodstock Hydro
York Region


 

Written Submissions

OrganizationDocument
Association of Major Power Consumers in Ontario
Brantford Power, Aurora Hydro Connections and Scugog Hydro Energy Corp.
Canadian Energy Efficiency Alliance
Canadian Manufacturers and Exporters
Coalition of Issue 3 Distributors
Consumers Council of Canada
Electrical Safety Authority
Electricity Distributors Association
Enbridge Gas Distribution Inc.
Energy Cost Management Inc.
Energy Probe Research Foundation
Greater Sudbury Hydro Inc.
Green Energy Coalition
Hydro One Networks
Hydro Ottawa
Industry Task Force on Distributed Generation
London Hydro
London Property Management Association
Niagara Erie Public Power Alliance 
 
Pollution Probe
PowerStream Inc.
Power Workers' Union
Rogers Cable Inc.
School Energy Coalition
Toronto Hydro
Union Gas
Veridian Connections Inc.
Vulnerable Energy Consumers Coalition
Woodstock Hydro Services Inc.
Undertakings (February 2005)

During the oral examination conducted before the Board panel as part of the 2006 EDR process, several witnesses had undertakings in response to questions by the Board panel and staff. The following documents were submitted by these witnesses as their responses to these undertakings.

PartyUndertaking
Mr. Greg Matwichuck
  • Undertaking E.3.1: To provide particulars as to any regulatory agency in Canada that imposed a rate of Prime less 175 basis points for deferral accounts
Ms. Kathleen McShane
Mr. Robert Camfield
  • Undertaking E.6.1: To provide clarification of the composition of the data sets employed in the regression runs in Exhibit B.4.2
  • Undertaking E.6.2: To provide an answer to the Question: Beyond 2006, could SQIs be used as a cost driver for analytical Purposes
  • Undertaking E.6.3: For Mr. Camfield to fill in the Blanks of Section 14.1 of EDR Handbook
Dr. Mark Lowry
Mr. Tom Adams
  • Undertaking E.10.1: For Energy Probe to provide comments on Exhibit D.6.3
  • Undertaking E.10.2: To Provide for Friday, February 4th, 2005, Energy Probe's position on the content of Chapter 14 of the draft Rate Handbook
Mr. Peter Love and Mr. David Heeney
  • Undertaking E.11.1: To provide a copy of the list maintained by BC Hydro as to their assumptions and the TRCs for each of their individual programs
  • Undertaking E.11.2: To provide the complete document of the California Energy Policy Manual
  • Undertaking E.11.3: To provide the Internet URL of the Con Edison application and to provide a hard copy of that application, particularly as it reflects details of the incentives being requested there
Draft Electricity Distribution Rate Handbook (January 2005)

Second Draft - January 10, 2005

 Documents
Version 2 of Draft 2006 Electricity Distribution Rate Handbook

 

First Draft - December 13, 2004

 Documents
Draft 2006 Electricity Distribution Rate Handbook (128 pages)
2006 Rate Application Model (76 pages)
Evidence and Reply Evidence (January 2005)

The following documents were submitted by parties as evidence with respect to specific matters to be considered by the Board in the development of the Distribution Rate Handbook 

Reply Evidence (Filed January 10-18, 2005)

Appropriate Short Term Interest Rate Applicable to Construction Work in Progress and Deferral Accounts
Disposition of Tax Savings on Disallowed Expenses
Comparators and Cohorts
Rate Mitigation and Implementation
Conservation and Demand Management
Hydro One Networks (on behalf of the Coalition of Large Distributors)
Fraser Milner Casgrain, on behalf of the Coalition of Issue Three Distributors - K.C. McShane of Foster Associates Inc
Hydro One Networks - Dr. Mark Lowry of Pacific Economics Group
Energy Probe - updated January 14, 2005
Hydro One Networks - PA Consulting Group
Canadian Energy Efficiency Alliance
Hydro One Networks

 

Initial Evidence (Filed December 13, 2004)

Appropriate Short Term Interest Rate Applicable to Construction Work in Progress and Deferral Accounts
Tax / PILs
Disposition of Tax Savings on Disallowed Expenses
Comparators and Cohorts
Unmetered Scattered Load
Rate Mitigation and Implementation
Conservation and Demand Management(Filed Dec. 20, 2004)
Vulnerable Energy Consumers Coaltion
Toronto Hydro
School Energy Coalition
Board staff - Mr. Robert Camfield of Laurits R. Christensen Associates
Rogers Cable Communications Inc. and Energy Cost Management Inc.
Vulnerable Energy Consumers' Coalition
Board staff - Mr. A.J. Goulding of London Economics International
Energy Cost Management Inc.
Green Energy Coalition
Pollution Probe
Letters of Comment (December 2004)

The following are Letters of Comment filed with the Board by various persons and organizations. These Letters of Comment were considered by the Board while making its decisions regarding the 2006 Electricity Distribution Rate Handbook.

OrganizationSubmission
Mr. John ScheelLetter
Power Workers UnionLetter
York RegionLetter
Stakeholder Consultation and Issues Day (October-November 2004)

A stakeholder consultation was held on October 25-26, 2004. The working groups and sub-groups made presentations on the various Distribution Rate Handbook sections they had been working on.

An Issues Day before the Board was held on November 1-2, 2004. At the Issues Day, the working group representatives reported to the Board on the progress made by the groups, and the Board heard arguments regarding the scope of the issues that the Board must decide on, and the proposed path for resolution of contested issues.

Issues Day - November 1-2, 2004

The following presentation documents summarize the work, consensus and considerations of the Working Groups and associated sub-groups. They represent updates of material presented at the Stakeholder Consultation on October 25-26, 2004.

Rate Base and Revenue Requirement Working Group

Rate Design and Cost Allocation

Comparators and Cohorts

 

Stakeholder Consultation and Issues Day Material

The following presentation documents summarize the work, consensus and considerations of the Working Groups and associated sub-groups.

Rate Base and Revenue Requirement Working Group

Rate Design and Cost Allocation

Comparators and Cohorts (Updated Oct 22-04)

Funding Requests (October 2004)

October 1, 2004

 Requests for Funding
Association of Major Power Consumers in Ontario (AMPCO)Funding Request
Canadian Manufacturers & Exporters (CME)Funding Request
Consumers Council of Canada (CCC)Funding Request
Energy Probe Research Foundation (Energy Probe)Funding Request
Green Energy Coalition (GEC)Funding Request
The Federation of Ontario Cottagers' (FOCA)Funding Request
London Property Management Association (LMPA)Funding Request
Pollution ProbeFunding Request
Power Workers' Union (PWU)Letter
Funding Request
School Energy Coalition (SEC)Funding Request
Budget
Vulnerable Energy Consumers Coalition (VECC)Funding Request
Canadian Energy Efficiency Alliance (Alliance)Funding Request
Pre-Consultation (June-July 2004)

In preparation of the process for developing the generic rate-setting methodology for 2006 Electricity Distribution Rates, Board staff conducted a consultation with representatives from the Ontario electricity industry and stakeholders on July 6-7, 2004. The consultation was conducted to solicit input from these parties regarding issues that should be dealt with in the 2006 distribution rate-setting methodology.

Stakeholder Submissions:

Presentations:

July 6, 2004

OrganizationPresentations
Board StaffOpening Presentation
Toronto HydroPresentation
Handout
Brantford HydroPresentation
Energy ProbePresentation
Thunder Bay HydroPresentation
RDII Utility ConsultingPresentation
Waterloo North HydroPresentation
Jim Richardson and the Alliance of LCDsPresentation
Pollution ProbePresentation
Chatham-Kent HydroPresentation
Ontario Energy AssociationPresentation
Hydro One NetworksPresentation
Electricity Distributors Association / Barker, Dunn and RossiPresentation
Rogers CablePresentation
Hamilton Hydro and St. Catharines HydroPresentation

July 7, 2004

Post-Consultation Submission:

Board staff received submissions from the following parties subsequent to the July 6-7 Pre-consultation:

OrganizationSubmission
Aiken and AssociatesLetter
Submission
Association of Major Power Consumers of Ontario (AMPCO)Letter
Association of Municipalities of Ontario (AMO)Letter
Aurora HydroLetter
Barrie HydroLetter
Submission
Bluewater PowerLetter
BOMA TorontoLetter
Brantford PowerLetter
Canadian Niagara Power Inc.Letter
Chatham-Kent Hydro and Middlesex Power Distribution CorporationSubmission
Consumers Council of CanadaLetter
Energy Cost Management Inc.Submission
Econalysis ConsultingLetter
Electricity Distributors AssociationLetter
Energy ProbeSubmission
EnWin PowerlinesLetter
Guelph HydroLetter
Chart
Halton Hills HydroLetter
Hamilton Hydro and St. Catharines HydroLetter
Hydro One NetworksLetter
Submission
Newmarket HydroLetter
Niagara-on-the-Lake HydroLetter
North Bay HydroLetter
Ontario Energy AssociationUpdated Presentation
Pen West UtilitiesLetter
PowerStreamLetter
Power Workers UnionLetter (July 12, 2004)
Submission (July 12, 2004)
Letter (July 14, 2004)
Submission (July 14, 2004)
RDII Utility ConsultingLetter
Submission
Prioritization Chart
Jim Richardson on Behalf of the Alliance of LDCs (Aurora, Innisfil, Newmarket, NorthBay, Orillia, Parry Sound and Tay LDCs)Letter
Rogers Cable and the Canadian Cable Television AssociationLetter
The School Energy CoalitionLetter
Submission
Toronto HydroLetter