CAP MECHANISM
TASK FORCE
SECOND MEETING
MINUTES
January 26th,
1999
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OVERVIEW:
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The Task Force (TF) reviewed and discussed
the progress of other TFs as well as the Minutes of the January 11 meeting.
TF representatives indicated their concern that the Minutes implied a commitment
to supply particular data rather then an agreement to review and supply
what is feasible for the required analysis. Servco reported that they did
not have the Statistics Canada data; the MEA supplied the lineperson rates
data; Toronoto Hydro discussed the expedited supply of their data; and,
Kitchener Wilmot Hydro noted that they had provided their capital data.
The TF then spent considerable time reviewing and modifying the data survey
request - several labor items were deleted while several others (e.g.,
contributed capital and losses) were added. Significant time was spent
finalizing the data request. Servco noted their inability to supply any
data before 1998. The co-chairs expressed concern with this situation and
its implications. The MEA noted the possibility of employing CEA or Handy-Whitman
data as input price indexes for some items. The TF examined the specification
of output and noted its preference for a measure based primarily on connected
services by class. The TF reviewed potential PBR frameworks and several
members expressed their preference for a price cap approach. Finally, some
TF members noted the competitive implications of this process on market
valuations and sales of utilities.
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ASSIGNMENTS:
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TF agreed that OEB would put out amended
CAP Mechanism PBR data request by January 29. TF agreed to make best efforts
to compile and supply data in the 2/10 to 2/17 time frame, if not sooner.
Servco agreed to review what data they could supply.
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