2006 Electricity Distribution Rate (EDR) Handbook Development

Case number
RP- 2004-0188
Launched
Sector
Electricity
Status
Archived
Details

The Board issued its Report and 2006 Electricity Distribution Handbook on May 11, 2005. This historical material related to the creation of the Report and the Handbook is available for reference purposes.

The Board initiated a process to establish approved rates for electricity distributors based on updated revenue requirements, with the intent that these new distribution rates would be effective on May 1, 2006. The Board commenced a policy development process to develop generic guidelines for the rate-setting methodology to be used in setting May 1, 2006 rates. The result of this policy process was the Distribution Rate Handbook which provided filing requirements for 2006 distribution rate applications.

 

Related Information

Date

Issue/Document

May 11-05

The Board has posted its Report and the final 2006 Electricity Distribution Rate Handbook.

Feb 7-05

The Board has issued Procedural Order No. 5 in respect to the 2006 EDR process..

Jan 28-05

The Board is posting a PDF copy of Exhibit D.6.3: C&C Utility Filing Information referenced in Volume 6 of the transcripts.

Jan 24-05

The Board is posting a PDF copy of Exhibit D.4.1: Update to Exhibit B.6, Table 3 referenced in Volume 4 of the transcript.

Jan 19-05

The Board has issued Procedural Order No. 4 in respect to the 2006 EDR process. P.O. No. 4 deals with the filing, subsequent to the completion of the oral process currently underway, of submissions and reply submissions on issues relating to the rate handbook.

Jan 19-05

The Board has issued a letter dealing with certain issues raised by parties regarding funding for stakeholder participation in the 2006 EDR process.

Jan 10-05

The Board has issued Procedural Order No. 3 in respect to the 2006 EDR process. P.O. No. 3 deals with the granting of extensions to evidence filing dates.

Jan 6-05

The Board has posted the presentation of the Board staff consultant, Robert Camfield of Laurits R. Christensen Associates, from the teleconferenced workshop on Comparators and Cohorts. The workshop was conducted to allow interested parties to understand and ask questions about the technical and practical aspects of the evidence filed by Mr. Camfield.

Dec 16-04

The presentation made by Board staff at the stakeholder consultation on December 15-16, 2004 is available. This presentation is to advise parties of the intended schedule of the 2006 EDR process in early 2005 and of how interested parties should prepare for participation in that process.

Nov 25-04

The Board has issued Procedural Order No. 2 in respect to the 2006 EDR process.

Oct 19-04

The Board has issued Procedural Order No. 1 in respect to the 2006 EDR process, dealing with the conduct of the stakeholder meeting scheduled for October 25-26, 2004 and the subsequent Issues Day to be held before the Board on Nov. 1-2, 2004.

Oct 15-04

The Board has published an Information Notice in newspapers in the province of Ontario to inform the general public of the 2006 Electricity Distribution Rate process. The Notice provides information about this project, and indicates how the public can provide input to the Board.

Oct 14-04

A letter has been received by the Board from the Conservation and Demand Side Management sub-group in response to a letter sent by Pollution Probe on September 29, 2004 to the Chair:

Oct 5-04

The Board has issued a response to a letter received from Pollution Probe regarding the promotion of electricity Demand Side Management in 2005 and 2006:

Pollution Probe letter dated September 29, 2004

Oct 5-04

Document sent by e-mail to all registered parties advising of a postponement to the dates for the stakeholder meeting of the Working Group's efforts from October 6 to October 25-26, 2004. The scheduled subsequent Issues Day is also postponed and is tentatively scheduled for November 1-2, 2004.

Oct 1-04

The Board has issued a supplementary letter on the funding request of the Canadian Energy Efficiency Alliance.

The following communique, which was distributed to registered parties following the Issues Conference, describes generically the process that the Board intends to pursue in the 2006 process. The Board will be flexible in it approach and dates mentioned are subject to change.

  • Communique sent to registered parties on September 21-04

Sep 28-04

The Board has issued its determination on the funding of eligible parties for participation in the 2006 EDR process.

Sep 3-04

Board staff have issued a discussion paper and agenda for use at the 2006 Electricity Distribution Rates Issues Conference. The paper provides a starting point on how each issue in the previously issued list might be incorporated in a new Handbook for 2006.

Aug 12-04

Letter sent to all electricity distribution utilities and other stakeholders announcing that an Issues Conference will be held on September 8 and (if necessary) 9, 2004 to consider an initial list of issues that should be dealt with by the process, scheduled for the fall of 2004 to establish the generic methodology for setting 2006 electricity distribution rates process. The venue for the Issues Conference will be communicated in due course. If necessary, an Issues Day will be held before a panel of the Board subsequently.

The following Issues List will be the subject of the Issues Conference and Issues Day, and

Jun 16-04

Letter sent to all electricity distribution utilities and other stakeholders inviting participation in a consultation to commence the 2006 EDR process and to solicit input on pertinent issues that should be set through the generic methodology process in 2004. Provided with the letter is preliminary issues list, identifying potential 2006 revenue requirement items that could be considered through the process.

 

The following documents were submitted by parties as final submissions on respect to matters to be considered by the Board in the 2006 Electricity Distribution Rate Handbook process.

Responding Submissions (Filed February 28, 2005)

Organization

Document

Aurora Hydro Connections, Brantford Power, and Scugog Hydro Energy Corp.

Barrie Hydro

Canadian Energy Efficiency Alliance

Coalition of Issue 3 Distributors

Enbridge Gas Distribution Inc.

Energy Cost Management Inc.

Energy Probe Research Foundation

Enersource Hydro Mississauga and PowerStream Inc.

Green Energy Coalition

Hydro One Networks

Hydro Ottawa

Industry Task Force on Distributed Generation

Pollution Probe

Rogers Cable Inc.

School Energy Coalition

Toronto Hydro

Vulnerable Energy Consumers Coalition

Woodstock Hydro

York Region


 

Written Submissions

Organization

Document

Association of Major Power Consumers in Ontario

Brantford Power, Aurora Hydro Connections and Scugog Hydro Energy Corp.

Canadian Energy Efficiency Alliance

Canadian Manufacturers and Exporters

Coalition of Issue 3 Distributors

Consumers Council of Canada

Electrical Safety Authority

Electricity Distributors Association

Enbridge Gas Distribution Inc.

Energy Cost Management Inc.

Energy Probe Research Foundation

Greater Sudbury Hydro Inc.

Green Energy Coalition

Hydro One Networks

Hydro Ottawa

Industry Task Force on Distributed Generation

London Hydro

London Property Management Association

Niagara Erie Public Power Alliance 
 

Pollution Probe

PowerStream Inc.

Power Workers' Union

Rogers Cable Inc.

School Energy Coalition

Toronto Hydro

Union Gas

Veridian Connections Inc.

Vulnerable Energy Consumers Coalition

Woodstock Hydro Services Inc.

During the oral examination conducted before the Board panel as part of the 2006 EDR process, several witnesses had undertakings in response to questions by the Board panel and staff. The following documents were submitted by these witnesses as their responses to these undertakings.

Party

Undertaking

Mr. Greg Matwichuck
  • Undertaking E.3.1: To provide particulars as to any regulatory agency in Canada that imposed a rate of Prime less 175 basis points for deferral accounts
Ms. Kathleen McShane

Mr. Robert Camfield

  • Undertaking E.6.1: To provide clarification of the composition of the data sets employed in the regression runs in Exhibit B.4.2
  • Undertaking E.6.2: To provide an answer to the Question: Beyond 2006, could SQIs be used as a cost driver for analytical Purposes
  • Undertaking E.6.3: For Mr. Camfield to fill in the Blanks of Section 14.1 of EDR Handbook

Dr. Mark Lowry

Mr. Tom Adams

  • Undertaking E.10.1: For Energy Probe to provide comments on Exhibit D.6.3
  • Undertaking E.10.2: To Provide for Friday, February 4th, 2005, Energy Probe's position on the content of Chapter 14 of the draft Rate Handbook

Mr. Peter Love and Mr. David Heeney

  • Undertaking E.11.1: To provide a copy of the list maintained by BC Hydro as to their assumptions and the TRCs for each of their individual programs
  • Undertaking E.11.2: To provide the complete document of the California Energy Policy Manual
  • Undertaking E.11.3: To provide the Internet URL of the Con Edison application and to provide a hard copy of that application, particularly as it reflects details of the incentives being requested there

Second Draft - January 10, 2005

 

Documents

Version 2 of Draft 2006 Electricity Distribution Rate Handbook

 

First Draft - December 13, 2004

 

Documents

Draft 2006 Electricity Distribution Rate Handbook (128 pages)

2006 Rate Application Model (76 pages)

The following documents were submitted by parties as evidence with respect to specific matters to be considered by the Board in the development of the Distribution Rate Handbook 

Reply Evidence (Filed January 10-18, 2005)

Appropriate Short Term Interest Rate Applicable to Construction Work in Progress and Deferral Accounts

Hydro One Networks (on behalf of the Coalition of Large Distributors)

Disposition of Tax Savings on Disallowed Expenses

Fraser Milner Casgrain, on behalf of the Coalition of Issue Three Distributors - K.C. McShane of Foster Associates Inc

Comparators and Cohorts

Hydro One Networks - Dr. Mark Lowry of Pacific Economics Group

Energy Probe - updated January 14, 2005

Rate Mitigation and Implementation

Hydro One Networks - PA Consulting Group

Conservation and Demand Management

Canadian Energy Efficiency Alliance

Hydro One Networks

 

Initial Evidence (Filed December 13, 2004)

Appropriate Short Term Interest Rate Applicable to Construction Work in Progress and Deferral Accounts

Vulnerable Energy Consumers Coaltion

Tax / PILs

Toronto Hydro

Disposition of Tax Savings on Disallowed Expenses

School Energy Coalition

Comparators and Cohorts

Board staff - Mr. Robert Camfield of Laurits R. Christensen Associates

Unmetered Scattered Load

Rogers Cable Communications Inc. and Energy Cost Management Inc.

Rate Mitigation and Implementation

Vulnerable Energy Consumers' Coalition

Conservation and Demand Management(Filed Dec. 20, 2004)

Board staff - Mr. A.J. Goulding of London Economics International

Energy Cost Management Inc.

Green Energy Coalition

Pollution Probe

The following are Letters of Comment filed with the Board by various persons and organizations. These Letters of Comment were considered by the Board while making its decisions regarding the 2006 Electricity Distribution Rate Handbook.

Organization

Submission

Mr. John Scheel

Letter

Power Workers Union

Letter

York Region

Letter

A stakeholder consultation was held on October 25-26, 2004. The working groups and sub-groups made presentations on the various Distribution Rate Handbook sections they had been working on.

An Issues Day before the Board was held on November 1-2, 2004. At the Issues Day, the working group representatives reported to the Board on the progress made by the groups, and the Board heard arguments regarding the scope of the issues that the Board must decide on, and the proposed path for resolution of contested issues.

Issues Day - November 1-2, 2004

The following presentation documents summarize the work, consensus and considerations of the Working Groups and associated sub-groups. They represent updates of material presented at the Stakeholder Consultation on October 25-26, 2004.

Rate Base and Revenue Requirement Working Group

Rate Design and Cost Allocation

Comparators and Cohorts

 

Stakeholder Consultation and Issues Day Material

The following presentation documents summarize the work, consensus and considerations of the Working Groups and associated sub-groups.

Rate Base and Revenue Requirement Working Group

Rate Design and Cost Allocation

Comparators and Cohorts (Updated Oct 22-04)

October 1, 2004

 

Requests for Funding

Association of Major Power Consumers in Ontario (AMPCO)

Funding Request

Canadian Manufacturers & Exporters (CME)

Funding Request

Consumers Council of Canada (CCC)

Funding Request

Energy Probe Research Foundation (Energy Probe)

Funding Request

Green Energy Coalition (GEC)

Funding Request

The Federation of Ontario Cottagers' (FOCA)

Funding Request

London Property Management Association (LMPA)

Funding Request

Pollution Probe

Funding Request

Power Workers' Union (PWU)

Letter
Funding Request

School Energy Coalition (SEC)

Funding Request
Budget

Vulnerable Energy Consumers Coalition (VECC)

Funding Request

Canadian Energy Efficiency Alliance (Alliance)

Funding Request

In preparation of the process for developing the generic rate-setting methodology for 2006 Electricity Distribution Rates, Board staff conducted a consultation with representatives from the Ontario electricity industry and stakeholders on July 6-7, 2004. The consultation was conducted to solicit input from these parties regarding issues that should be dealt with in the 2006 distribution rate-setting methodology.

Stakeholder Submissions:

Presentations:

July 6, 2004

Organization

Presentations

Board Staff

Opening Presentation

Toronto Hydro

Presentation
Handout

Brantford Hydro

Presentation

Energy Probe

Presentation

Thunder Bay Hydro

Presentation

RDII Utility Consulting

Presentation

Waterloo North Hydro

Presentation

Jim Richardson and the Alliance of LCDs

Presentation

Pollution Probe

Presentation

Chatham-Kent Hydro

Presentation

Ontario Energy Association

Presentation

Hydro One Networks

Presentation

Electricity Distributors Association / Barker, Dunn and Rossi

Presentation

Rogers Cable

Presentation

Hamilton Hydro and St. Catharines Hydro

Presentation

July 7, 2004

Post-Consultation Submission:

Board staff received submissions from the following parties subsequent to the July 6-7 Pre-consultation:

Organization

Submission

Aiken and Associates

Letter
Submission

Association of Major Power Consumers of Ontario (AMPCO)

Letter

Association of Municipalities of Ontario (AMO)

Letter

Aurora Hydro

Letter

Barrie Hydro

Letter
Submission

Bluewater Power

Letter

BOMA Toronto

Letter

Brantford Power

Letter

Canadian Niagara Power Inc.

Letter

Chatham-Kent Hydro and Middlesex Power Distribution Corporation

Submission

Consumers Council of Canada

Letter

Energy Cost Management Inc.

Submission

Econalysis Consulting

Letter

Electricity Distributors Association

Letter

Energy Probe

Submission

EnWin Powerlines

Letter

Guelph Hydro

Letter
Chart

Halton Hills Hydro

Letter

Hamilton Hydro and St. Catharines Hydro

Letter

Hydro One Networks

Letter
Submission

Newmarket Hydro

Letter

Niagara-on-the-Lake Hydro

Letter

North Bay Hydro

Letter

Ontario Energy Association

Updated Presentation

Pen West Utilities

Letter

PowerStream

Letter

Power Workers Union

Letter (July 12, 2004)
Submission (July 12, 2004)
Letter (July 14, 2004)
Submission (July 14, 2004)

RDII Utility Consulting

Letter
Submission
Prioritization Chart

Jim Richardson on Behalf of the Alliance of LDCs (Aurora, Innisfil, Newmarket, NorthBay, Orillia, Parry Sound and Tay LDCs)

Letter

Rogers Cable and the Canadian Cable Television Association

Letter

The School Energy Coalition

Letter
Submission

Toronto Hydro

Letter