2019 electricity distribution rate applications

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On October 13, 2016, the OEB issued the Handbook for Utility Rate Applications to provide guidance to utilities and stakeholders on applications to the OEB for approval of rates. The Rate Handbook outlines the key principles and expectations the OEB will apply when reviewing rate applications under the OEB’s renewed regulatory framework, Report of the Board: A Renewed Regulatory Framework for Electricity (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 7, 2017 the OEB issued a letter identifying a preliminary list of electricity distributors (the Rebasing List) that are scheduled to file a cost of service application in respect of their 2019 rates assuming they opt for the Price Cap IR method. 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 2019 rates, and by which cost of service applications for 2019 rates are expected to be filed. The following table summarizes these deadlines.

Action

OEB Deadline
Notification from any distributor on the 2019 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 2019 rates March 1, 2018
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 2019 rates March 1, 2018
Notification from any distributor that is not included on the 2019 Rebasing List but that plans to file a cost of service application for 2019 rates under the Price Cap IR method (early rebasing) March 1, 2018
Deadline for cost of service applications for January 1, 2019 rates including those distributors that wish to convert from May 1 rates to January 1 rates April 27, 2018
Deadline for cost of service  applications for May 1, 2019 rates August 31, 2018

 

The following table identifies all 69 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 2019 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 of Application 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.

 

APPLICATION 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

Click the column header to sort the table by DistributorProcess, Application Received or Updated on. Click the column again to switch between ascending/descending order. To filter results, start typing in the search field below. As you type the table will re-sort to only show rows that match what you type (e.g. typing 'Niagara' will show only the rows for Canadian Niagara Power Inc., Niagara Peninsula Energy Inc. and Niagara-on-the-Lake Hydro Inc.).

 

ASSOCIATED DECISIONS

Date

Issue/document

Dec 20-18

The OEB has issued its Decision and Order in the matter of the Rural or Remote Electricity Rate Protection charge and Wholesale Market Service Charge effective January 1, 2019.

Jun 21-18

The OEB has issued its Decision and Order in the matter of Distribution Rate Protection effective July 1, 2018.

Dec 20-17

The OEB has issued its Decision and Order in the matter of the Rural or Remote Electricity Rate Protection charge and Wholesale Market Service Charge effective January 1, 2018.

 

UPDATES

Date

Issue/document

Nov 23-18

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 2019, to be 1.5%. The derivation of this is shown in the following table. The OEB will adjust the price escalator in each applicable electricity distributor's 2019 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 2019. The 2019 IPI may also be used for adjusting rates in some Custom IR applications, depending on the plan design approved by the OEB.

Click here to view the table

 

Sources:

Data accessed August 30, 2018

Nov 22-18

The OEB has issued a letter which sets out the Cost of Capital Parameter Updates for Cost of Service Applications with Rates effective in 2019.

Aug 22-18 The OEB has posted the 2019 Revenue to Cost Ratio Adjustment Model. The model can be found under the July 12, 2018 update below.
Jul 24-18

The OEB held its orientation session on July 19th for electricity distributors that will file a cost of service or custom IR application for 2019 – January 2020.

Jul 23-18

The OEB has posted the GA Analysis Work Form Webinar and IRM Process Orientation Webinar slide presentations.

Jul 12-18

The OEB has issued updated versions of Chapters 1, 2, 3 and 5 of the Filing Requirements for Electricity Distribution Rate Applications for 2019 rates. 

Jul 12-18

The OEB has issued updated versions of the Chapter 2 Appendices and Models; Chapter 3 Models and Work Forms; and Chapter 5 Appendix, to be used for 2019 Rate Applications. The models are considered final. Queries regarding the models should be sent to ratemodels@oeb.ca.
 
Cost of Service Models:

 

IRM Models:

Dec 7-17

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 their 2019 rates assuming they opt for the Price Cap IR method. This letter also out the deadlines by which notice must be given to the OEB in respect of various other matters relating to the setting of 2019 rates, and by which cost of service applications for 2019 rates are expected to be filed.

 

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