2017 electricity distribution rate applications

Jump to:

As set out in the Report of the Board: A Renewed Regulatory Framework for Electricity (pdf) (the "RRFE Report"), three alternative rate-setting methods are available to electricity distributors: Price Cap Incentive Rate-setting (Price Cap IR); Custom Incentive Rate-setting (Custom IR); and Annual Incentive Rate-setting Index (Annual IR Index).

On December 29, 2015 the OEB issued a letter identifying a preliminary list of electricity distributors (pdf) ("the Rebasing List") that are scheduled to file a cost of service application in respect of their 2017 and 2018 rates assuming they opt for the Price Cap IR method. In light of the imbalance in the number of distributors scheduled to file a cost of service application for 2017 rates (31) and for 2018 rates (4), the OEB is inviting electricity distributors that are scheduled to file a cost of service application for 2017 rates to submit expressions of interest for a deferral to rebase for 2018 rates. The OEB will establish the final list of rebasers for 2017 rates in due course. The OEB will address deferrals from 2018 to 2019 at a later time.

This letter also sets out the deadlines by which notice must be given to the OEB in respect of various other matters relating to the setting of 2017 rates, and by which cost of service applications for 2017 rates are expected to be filed. The following table summarizes these deadlines.

Action

OEB Deadline
Notification from any distributor on the 2017 Rebasing List that will be selecting either the Custom IR or Annual IR Index method and therefore will not be filing a cost of service rate application for 2017 rates February 26, 2016
Notification from any distributor that is currently on Annual IR Index but that plans to file a cost of service rate application under the Price Cap IR method or a Custom IR application for 2017 rates February 26, 2016
Letter from any distributor included on the 2017 Rebasing List that wishes to submit an expression of interest to defer rebasing beyond 2017 February 26, 2016
Notification from any distributor that is not included on the 2017 Rebasing List but that plans to file a cost of service application for 2017 rates under the Price Cap IR method (early rebasing) February 26, 2016
Deadline for cost of service (and Custom IR) applications for January 1, 2017 rates April 29, 2016
Deadline for cost of service (and Custom IR) applications for May 1, 2017 rates August 26, 2016

The following table identifies all 76 rate regulated electricity distributors in Ontario. The table contains links to select documents of a distributor’s rate application. These documents include:

  • Key correspondence regarding the status of an application, including the choice of rate-setting method for 2017 rates. For applications to be decided under Delegated Authority, case management letters are used to communicate case steps and dates rather than a letter of direction and procedural order.
  • The "Notice" issued by the OEB and to be published by the distributor, if applicable. The purpose of the Notice is to inform affected ratepayers and other stakeholders of the application, its nature and the impact on affected customers.
  • The Decision issued by the OEB when it has made determinations on the application and the subsequent Rate Order and Tariff of Rates and Charges that reflects the Decision

 

APPLICATIONS DOCUMENTS

This table provides a list of select documents related to each application. To view all publicly available documents for the application, click the case number associated with that particular distributor.

DEFINITIONS:

COS: Distributors rebasing under the Price Cap Incentive Rate-setting method
Price Cap IR: Distributors not rebasing under the Price Cap Incentive Rate-setting method
Custom IR: Distributors filing under the Custom Incentive Rate-setting method
Annual IR Index: Distributors filing under the Annual Incentive Rate-setting Index method
*DA – Delegated Authority: Pursuant to powers granted in Section 6 of the Ontario Energy Board Act, 1998, an employee of the OEB may make a decision on the application without holding a hearing. For these applications, there are normally no formal hearings and thus, no publication requirements of a formal Notice of Application. The process and timelines associated with the assessment of the applications by OEB staff are communicated to distributors by way of Case Management letters.
NoA: Notice of Application

 

ASSOCIATED DECISIONS

Date

Issue / Document

Jun 1-17

The OEB issued its Decision and Order on the Green Energy Plan Electricity Rate Protection Benefit and Charge (Ontario Regulation 330/09), effective May 1, 2017.

Apr 25-17

The OEB has issued an Order for OESP Credits to all licensed electricity distributors.

Mar 23-17

The OEB has issued a Decision and Order that rescinds the OESP charge as of May 1, 2017 and until further notice.

Dec 21-16

The OEB has issued an Order for OESP Credits. The OESP credits will remain at the current level for January 1, 2017.

Dec 15-16

The OEB has issued a Decision and Order setting regulatory charges effective January 1, 2017, including the charge for the Ontario Electricity Support Program.

 

 UPDATES

Date

Issue / Document

May 5-17

The OEB has issued a letter re: Review of Fixed Monthly Charge for microFIT Generator Service Classification.

Oct 27-16

The OEB has issued a letter which sets out the Cost of Capital Parameter Updates for Cost of Service Applications with Rates effective in 2017.

Oct 27-16

Consistent with the policy determinations set out in the Report of the Board on Rate Setting Parameters and Benchmarking under the Renewed Regulatory Framework for Ontario's Electricity Distributors (EB-2010-0379) (Issued November 21, 2013 and updated December 4, 2013), the OEB has calculated the value of the inflation factor for incentive rate setting under the Price Cap IR and Annual Index plans, for rate changes effective in 2017, to be 1.9%. The derivation of this is shown in the following table. The OEB will adjust the price escalator in each applicable electricity distributor's 2017 Incentive Regulation Mechanism model such that this inflationary adjustment is reflected in distribution rate changes resulting from Price Cap IR and Annual Index applications effective in 2017.
Click here for table

 

Sources:

Data accessed August 31, 2016

Aug 23-16

The OEB has posted an updated version of the Tariff Schedule and Bill Impacts Model (Version 1.02) below (under the Jul 8-16 entry). This model is applicable to 2017 cost of service applications. The model fixes the following:

  • Treatment of classes coming after Standby Rate or microFIT class specification
  • Several corrections on sheet 5, allowing for 20 extra scenarios and fixing some errors in reading rates from Tab 4.2-TS Tariff Schedule
  • Ensured that the bill impacts calculations align with those used in the IRM model
  • Corrected range on drop-down list on sheet 1 so that all distributors are listed.

Users are reminded to follow the posted instructions. Also, entries on the model should be keyed – rates entered as numbers, rather than linking cells to other models.

Enquires should be addressed through the OEB’s Industry Relations Enquiry form.

Aug 4-16

The OEB has issued updated Revenue Requirement Work Form (RRWF) and the Lost Revenue Adjustment Mechanism Variance Account (LRAM) models. These models reflect feedback received at and subsequent to the July 28, 2016 Orientation session. The updated models can be accessed through the links on the Jul-8-16 entry below.

The RRWF has been updated to correct certain cell formulae on Sheet 11 – Cost Allocation pertaining to row 51. The corrections affect presentation of certain information, but do not affect the calculations of the revenue requirement through to rates on the RRWF. For utility staff who have already populated Version 7.01 of the RRWF, you may wish to contact OEB staff to make the necessary changes.

For the LRAMVA, Tab 3: Distribution Rates has been updated for the example rate years, and a comment added to indicate that LDCs can adjust the rate class-specific LRAMVA threshold amounts to align with any approved amounts that may be found in a Settlement Agreement.

Jul  26-16

The OEB is holding an orientation session on July 28th for electricity distributors that will file a cost of service or custom IR application for 2017 – January 2018. The session materials are below:

Jul 26-16

The OEB has posted the 2017 Revenue to Cost Ratio Adjustment Model.

Jul 25-16

The OEB has posted an update to the Income Tax/PILs Work Form applicable for 2017 Cost of Service applications. This corrects calculations of CEC. The OEB has also posted the Checklist applicable to 2017 Cost of Service applications. The OEB has also posted an updated version of the LRAMVA Work Form to correct certain formulae and to provide additional guidance on how the spreadsheets should be filled out. Links to these spreadsheets are posted under the Jul 8-16 entry below.

Jul 21-16

The OEB has posted the following updated models related to 2017 Cost of Service applications: RRWF Version 7.01, PILs Model Version 1.01, Chapter 2 Appendices Version 2.301, Deferral and Variance Account (DVA) Continuity Model Version 2.8, Cost Allocation Model Version 3.4. These correct minor errors based on testing and feedback received. For the Chapter 2 Appendices, only Appendix 2-IB has been updated. The updated models are accessible through the links under the Jul 8-16 entry.

Jul 21-16

The OEB has posted the 2017 IRM Rate Generator Model.

Jul 14-16

The OEB has issued updated versions of Chapters 1, 2 and 3 of the Filing Requirements for Electricity Distribution Rate Applications for 2017 rates.

Jul 8-16

The OEB has issued versions of the Chapter 2 Appendices and various Models to be used for 2017 Cost of Service Applications. The models are considered final. Queries regarding the models should be sent using the Industry Relations Enquiry form.

Cost of Service Models:

May 19-16

The OEB has issued a Report that updates the policy related to the Lost Revenue Adjustment Mechanism Variance Account (LRAMVA) calculation and the application of peak demand savings from Conservation and Demand Management (CDM) Programs.

Dec 29-15

The OEB has issued a letter identifying a preliminary list of distributors that are scheduled to file a cost of service application in respect of 2017 and 2018 rates under the Price Cap Incentive Rate-setting method. This letter also sets out the deadlines by which notice must be given to the OEB in respect of various matters relating to the setting of 2017 rates, and by which cost of service applications for 2017 rates are expected to be filed.