Consultation on the Deferral Account – Impacts Arising from the COVID-19 Emergency

Case number

EB-2020-0133

Launched

May 14, 2020

Sector

Electricity

Natural Gas

Other

Status

Active

Details

The OEB has commenced a consultation on a deferral account (the Account), established in relation to the impacts arising from the COVID-19 emergency, approved for all rate-regulated utilities in the electricity and natural gas sectors and Ontario Power Generation Inc. (collectively, the Utilities).

On authorization of the Account through the issuance of an Accounting Order on March 25, 2020, the OEB acknowledged that Utilities may incur incremental costs as a result of the ongoing COVID-19 emergency, the severity and duration of which is uncertain at this time. The objective of the consultation is to assist the OEB in the development of new accounting guidance related to the Account and filing requirements, where appropriate, for the review and disposition of the Account, giving due regard to bill impacts on customers.

Further detailed accounting guidance, including policy direction, will be required to be issued by the OEB on key issues in order for Utilities to be able to assess the need for, and if necessary, properly make applications for review and disposition of the Account balance in due course such as:

Rules on the operations of the three sub-accounts
The nature of the costs/revenue to be recorded
Timing of recovery (including the nature of any near term relief, if needed)
How materiality will be assessed
Whether any additional revenues or offsetting cost savings need to be considered
Rate impacts and rate mitigation consideration

Related information:

Reports

Report of the OEB: Regulatory Treatment of Impacts Arising from the COVID-19 Emergency

Issued

June 17, 2021

Updates

Date	Issue / Document
June 17, 2021	The OEB has issued the Report of the Ontario Energy Board: Regulatory Treatment of Impacts Arising from the COVID-19 Emergency which establishes guidelines for the COVID-19 deferral account. Letter Report
April 13, 2021	The OEB has issued a letter regarding the applicability of the COVID-19 deferral account guidelines to certain utilities. Letter
February 12, 2021	The OEB has posted reply stakeholder comments in relation to the Staff Proposal for this consultation, as per the OEB’s January 7, 2021 letter. Building Owners and Managers Association Canadian Manufacturers & Exporters Consumers Council of Canada Electricity Distributors Association EPCOR Natural Gas Limited Partnership Industrial Gas Users Association / Association of Major Power Consumers in Ontario London Property Management Association Ontario Energy Association / Coalition of Large Distributors Ontario Power Generation Inc. School Energy Coalition Society of United Professionals
January 25, 2021	The OEB has posted stakeholder comments in relation to the Staff Proposal for this consultation, as per the OEB’s December 16, 2020 letter. Building Owners and Managers Association Canadian Manufacturers & Exporters Consumers Council of Canada Electricity Distributors Association Energy Probe Research Foundation EPCOR Natural Gas Limited Partnership Federation of Rental-housing Providers of Ontario Industrial Gas Users Association / Association of Major Power Consumers in Ontario Kitchener-Wilmot Hydro Inc. London Property Management Association Milton Hydro Distribution Inc. Ontario Energy Association / Coalition of Large Distributors Ontario Power Generation Inc. Pollution Probe Power Workers’ Union School Energy Coalition Society of United Professionals Vulnerable Energy Consumers Coalition Wataynikaneyap Power LP
January 20, 2021	As per the January 14, 2021 webinar, the OEB has posted a response to a stakeholder request for further information, prepared by London Economics International LLC. Response to stakeholder request for further information
January 14, 2021	The OEB has posted materials from the January 14, 2021 stakeholder webinar. Agenda LEI Presentation OEB Staff Presentation
January 7, 2021	The OEB has issued a letter to provide details on the January 14, 2021 consultation webinar, as well as other matters. Letter
December 29, 2020	The OEB has posted stakeholder comments in relation to the consultation, as per the OEB’s December 16, 2020 letter. Ontario Energy Association / Coalition of Large Distributors School Energy Coalition
December 16, 2020	The OEB has posted a series of reports related to the COVID-19 pandemic prepared by London Economics International LLC, as well as a Staff Proposal. Cover Letter Staff Proposal COVID-19 Impact Study A Report on Regulatory Principles, Policies and Accounting Treatments Applied in Other Jurisdictions in Response to COVID-19 A Report on Gains and Losses from Differences in Load and Production A Report on the OEB’s Cost of Capital Parameters and the Impacts of COVID-19
November 19, 2020	The OEB has issued a letter to provide the scope of work with respect to expert reports. Letter
October 15, 2020	The OEB has posted a stakeholder comment in relation to the consultation, as per the OEB’s September 24, 2020 letter. Ontario Energy Association / Coalition of Large Distributors
September 24, 2020	The OEB has issued a letter to provide an update on the next steps in the consultation. Letter
September 24, 2020	The OEB has posted an additional stakeholder comment in relation to the form of consultation to be adopted, as per the OEB’s August 14, 2020 letter. Industrial Gas Users Association / Association of Major Power Consumers in Ontario
August 17, 2020	The OEB has posted a stakeholder comment in relation to the form of consultation to be adopted, as per the OEB’s August 14, 2020 letter. Pollution Probe
August 14, 2020	The OEB has issued a letter to provide the Final Issues List for the consultation. Letter
July 17, 2020	The OEB has issued a letter to provide an update on the next steps in the consultation. Letter
July 16, 2020	The OEB has posted an additional reply stakeholder comment in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. Electricity Distributors Association
July 10, 2020	The OEB has posted an additional reply stakeholder comment in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. Canadian Manufacturers & Exporters
July 9, 2020	The OEB has posted an additional reply stakeholder comment in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. Consumers Council of Canada
June 26, 2020	The OEB has posted an additional reply stakeholder comment in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. Association of Major Power Consumers in Ontario
June 25, 2020	The OEB has posted additional reply stakeholder comments in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. London Property Management Association Vulnerable Energy Consumers Coalition
June 18, 2020	The OEB has posted reply stakeholder comments in relation to the Draft Issues List for this consultation, as per the OEB’s June 4, 2020 letter. Building Owners and Managers Association Electricity Distributors Association Industrial Gas Users Association / Association of Major Power Consumers in Ontario London Property Management Association Ontario Energy Association / Coalition of Large Distributors Ontario Power Generation Inc. Pollution Probe School Energy Coalition Prescribed Interest Rates Society of United Professionals
June 11, 2020	The OEB has posted stakeholder comments in relation to the Draft Issues List for this consultation, as per the OEB’s May 14, 2020 letter. Association of Power Producers of Ontario Building Owners and Managers Association Canadian Manufacturers & Exporters Consumers Council of Canada Electricity Distributors Association Energy Probe Research Foundation EPCOR Natural Gas Limited Partnership Federation of Rental-housing Providers of Ontario Hydro One Networks Inc. Industrial Gas Users Association / Association of Major Power Consumers in Ontario London Property Management Association NextBridge Infrastructure Ontario Energy Association / Coalition of Large Distributors Ontario Power Generation Inc. Pollution Probe Power Workers’ Union School Energy Coalition Society of United Professionals Vulnerable Energy Consumers Coalition Wataynikaneyap Power LP
June 4, 2020	The OEB has issued a letter to provide clarifications on matters discussed at the preliminary stakeholder meeting and to outline the next steps in the consultation process. Letter
May 28, 2020	The OEB has posted materials from the May 28, 2020 Preliminary Stakeholder Meeting. Revised Agenda OEB Staff Presentation Webinar Recording
May 14, 2020	The OEB has commenced a consultation on a deferral account, established in relation to the impacts arising from the COVID-19 emergency, approved for all rate-regulated utilities in the electricity and natural gas sectors and Ontario Power Generation Inc. The OEB has also posted the presentation, Q&A’s and recording for the OEB’s April 8, 2020 webinar on “Review of OEB COVID-19 Guidance”. Invitation Letter Presentation Q&As Webinar Recording

Cost Award Matters

Date	Issue / Document
May 27, 2020	The OEB has issued a Decision on Cost Award Eligibility. Decision on Cost Award Eligibility
May 22, 2020	The OEB has posted requests for cost eligibility received in relation to participation in this consultation. Association of Major Power Consumers in Ontario Association of Power Producers of Ontario Building Owners and Managers Association Canadian Manufacturers & Exporters Consumers Council of Canada Energy Probe Research Foundation Federation of Rental-housing Providers of Ontario Industrial Gas Users Association London Property Management Association Pollution Probe School Energy Coalition Vulnerable Energy Consumers Coalition

Date

Issue / Document

May 27, 2020

The OEB has issued a Decision on Cost Award Eligibility.

Decision on Cost Award Eligibility

May 22, 2020

The OEB has posted requests for cost eligibility received in relation to participation in this consultation.