Cost Allocation Review

Case number
EB-2005-0317
Launched
Sector
Electricity
Status
Archived
Details

This initiative examined the principles, methodologies, filing requirements and model design in respect of new cost allocation studies for electricity distributors. It also reviewed the need for, and implications of, introducing new rate classifications for scattered unmetered loads, embedded distributors, larger General Service (“GS”) customers, and eliminating the legacy rate classification identified as “Time of Use”.

The review was conducted in three phases:

The OEB announced in October 2002 the formation of a Cost Allocation Working Group. The 2002-03 Cost Allocation Working Group primarily focused on the collection of appropriate load data for the development of future cost allocation studies. A report was issued in September of 2003. The Board subsequently issued directions. For more information visit the 2002-03 Cost Allocation (Load Data) Working Group page.

On November 28, 2007 the Board issued its report entitled "Application of Cost Allocation for Electricity Distributors". The Report outlines the Board’s expectations about how electricity distributors are to allocate the costs of providing distribution service to different customer classes.

Background Material:

  • Report to Board Staff (October 2000) - Note: The discussion of general principals in the above report may still prove helpful to parties, but certain details and model references may no longer be applicable.

Updates

Date Issue / Document
November 28, 2007

The Board issued its report entitled "Application of Cost Allocation for Electricity Distributors" (the Report). The Report outlines the Board’s expectations about how electricity distributors are to allocate the costs of providing distribution service to different customer classes.

July 24, 2007

The Board has posted on comments it has received on the Board Staff Discussion Paper (EB-2007-0667) on the implications arising from a review of the electricity distributors' cost allocation filings.

June 28, 2007

The Board has released the Board Staff Discussion Paper on the implications arising from a review of the electricity distributors' cost allocation filings. The report focuses on the key results arising from the review of the cost allocation filings by 68 electricity distributors.

January 12, 2007

The Board has posted an addendum to Appendix 1.1 Filing Summary for the Cost Allocation Informational filing (EB-2005-0317).

December 8, 2006

The Board has posted version 1.2 of the Cost Allocation spreadsheet model and “Instructions for CA Model version 1.2”. An easy series of steps will revise version 1.1 to 1.2 without the need to re-input data for those distributors that have used the earlier version.

November 24, 2006

The Board has posted version 1.1 of the Cost Allocation spreadsheet model and "Instructions for CA Model version 1.1". An easy series of steps will revise version 1.0 to 1.1 without the need to re-input data for those distributors that have used the earlier version.

November 15, 2006

The Board has posted its "Cost Allocation Informational Filing Guidelines for Electricity Distributors", the associated filing Model and accompanying instructions and examples on its web site for downloading by the distributors.

September 29, 2006

The Board has issued a report setting out its Directions on cost allocation methodology for electricity distributors.

August 28, 2006

The Board has received the following Stakeholder comments on the Aug 21, 2006 letter asking for further comments on Cost Allocation Review issues.

August 21, 2006

The Board posted a letter requesting further comments on select issues associated with the common cost allocation methodology.

August 15, 2006

The Board has received the following Stakeholder comments on the July 18, 2006 Staff Proposal regarding Principles and Methodologies for the Cost Allocation Review.

June 28, 2006

The Board has issued for comment the document "Cost Allocation Review: Staff Proposal on Principles and Methodologies".

June 8, 2006

The Board has received the following Stakeholder comments on the May 26, 2006 Staff Proposal regarding Rate Classification and Associated Load Data Requirements.

May 26, 2006

The Board has issued a Board Staff Proposal regarding Rate Classifications and Associated Load Data Requirements for the Cost Allocation Review.

March 7, 2006

The Board has issued a letter reviewing the major steps each electricity distributor must undertake to obtain the load data inputs required for its upcoming cost allocation study.

September 16, 2005

Staff’s discussion paper on the Cost Allocation Review for electricity distributors.

July 21, 2005

July 20th stakeholder “kick-off” meeting:

June 24, 2005

The Board issued a “kick-off” letter outlining the scope, process, timing and objective of the review. Eligibility for stakeholder cost awards is also discussed.

March 9, 2005

The Chair issued a letter to all licensed electricity distributors and electricity stakeholders providing details on future rate setting initiatives.

November 10, 2003

The Board issued Load Data Collection Directions. An accompanying letter deals with the appropriate sharing of load data for cost allocation purposes.

September 23, 2003

The 2002-3 Cost Allocation Working Group issued its Reports. The Report focuses on load data collection.