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:
- Phase 1: OEB cost allocation principles and methodologies
- Phase 2: Priority rate design and rate classification matters
- Phase 3: OEB model design, data inputs and filing requirements
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.