The Task Force (TF) reviewed and discussed
the progress of other TFs as well as the Minutes of the January 27 meeting.
TF representatives discussed Prof. Cannonís report on ROE and capital structure.
TF members discussed the situation of
utilities and the transitionís potential impact on utility rates and ownership.
Some members estimated a potential distribution rate impact of 20 percent.
Alternative adjustment mechanisms were discussed with respect to impacts,
financial requirements, inter-utility equity and restructuring expectations.
The Rate Adjustment Working Group (WG) reported on their progress. The
WG noted the wide diversity across MEUs, lower costs do not necessarily
equate with efficiency, inappropriate frameworks might induce inappropriate
behavior, local distribution is a long term business, data reporting needs
to be consistent, and the framework needs to be based on the Ontario experience.
The TF discussed possible definitions of a large, medium and small utility.
The Rate Adjustment Mechanisms working
group will continue its review. The Groupings WG will begin their examination
of possible approaches as soon as the survey data is collected and formatted.
Both groups will report at the next TF meeting on their progress.