2021 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 November 13, 2019 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 2021 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 2021 rates, and by which cost of service applications for 2021 rates are expected to be filed. The following table summarizes these deadlines.

Action

OEB Deadline
Notification from any distributor on the 2021 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 2021 rates January 31, 2020
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 2021 rates January 31, 2020
Notification from any distributor that is not included on the 2021 Rebasing List but that plans to file a cost of service application for 2021 rates under the Price Cap IR method (early rebasing) January 31, 2020
Deadline for cost of service applications for January 1, 2021 rates including those distributors that wish to convert from May 1 rates to January 1 rates April 30, 2020
Deadline for cost of service applications for May 1, 2021 rates August 31, 2020

 

The following table identifies all 62 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 2021 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: Distributors filing under the Annual Incentive Rate-setting Index method
Case Management Letter: Pursuant to powers granted in Section 6 of the Ontario Energy Board Act, 1998, an employee of the OEB (Delegated Authority) may make a decision on the application without holding a hearing. Certain mechanistic Price Cap IR and Annual IR applications are adjudicated by a Delegated Authority. 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 Distributor, Process, Application Received or Updated on. Click the column again to switch between ascending/descending order.

 

ASSOCIATED DECISIONS

Date

Issue/document

Jun 25-20

The OEB has issued its Decision and Order in the matter of Distribution Rate Protection effective July 1, 2020.

 

UPDATES

Date

Issue/document

Aug 6-20

The OEB has issued the COVID-19 Forgone Revenue Rate Rider Model and associated accounting guidance to assist those distributors that wish to seek recovery of forgone revenue arising as a result of the postponed implementation of 2020 rates due to the COVID-19 emergency. The OEB also issued an Accounting Order accompanying this guidance, which establishes a new sub-account, Impacts Arising from the COVID-19 Emergency Account, Sub-account Forgone Revenues from Postponing Rate Implementation.

Jul 14-20

The OEB has issued a letter which sets out the IRM tranche assignments for Incentive Rate-setting Applications for the 2021 rate year.

Jul 2-20

The OEB has posted the presentation from the June 25, 2020 seminar for all electricity distributors regarding accounting matters.

Jun 25-20

The OEB has posted materials from the June 23, 2020 Orientation session for Electricity Distributors rebasing rates in 2021 and 2022.

May 14-20

The OEB has posted updated Filing Requirements for 2021 Rate Applications

May 14-20

The OEB has posted updated versions of Chapter 2 appendices and various models to be used for 2021 Rate Applications. The Benchmarking Spreadsheet Forecast Model applicable to 2021 Rate Applications will be posted once available.
 
Queries regarding the models should be sent to ratemodels@oeb.ca.
 
Cost of Service Models:

 
Applicable to both Cost of Service and IRM:

 

Incentive Rate-setting Mechanism (IRM) Models:

Nov 13-19

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 2021 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 2021 rates, and by which cost of service applications for 2021 rates are expected to be filed.