DISTRIBUTION
RATES TASK FORCE
FOURTH MEETING
MINUTES
March 4th, 1999
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OVERVIEW:
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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.
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ASSIGNMENTS:
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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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