March 4th, 1999

The TF discussed transition costs. The requirement for asset valuation was raised as an issue because utilities were not clear whether or not, or why, it is necessary. An urgent need for direction on asset valuation was identified. Al Clark led the TF through Waterloo North’s estimated transition costs. The working group on services discussed their separation of distribution services into monopoly distribution services, fringe services and contestable services. The working group on rate structure provided illustrative rates for various rate structures and for different ways of presenting line losses on the bill. This group also presented their analysis on the effect of market-based ROE and taxation on service revenue. Further, the group presented a pricing methodology for large user rates. 


The services group was asked to provide more detail on distribution maintenance services. They have also been asked to obtain transition costs from some of the small utilities. Ed Jambor, the chair of the rate structure group was asked to present their thoughts to date to the remaining TF’s to obtain input from them. The rate structure group will continue their discussions on rate structure. They were also asked to expand their analysis on the impact of moving to market-based ROE and the effect of taxation. 

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