Cost of Capital (EB-2006-0088), 2nd Generation Incentive Regulation Mechanism (EB-2006-0089), Licence Amendment Proceeding (EB-2006-0087)
This project, part of the Board's multi-year electricity distribution rate setting plan (the "Plan"), developed a simple, practical and mechanistic incentive rate adjustment, including the cost of capital to be used, for the years 2007 to 2010.During the Plan, as several rate-related studies are carried out, rates have to be set on a regular basis for a portion of the distributor population. This project established the method of adjusting rates over the period of the Plan and:
- confirmed the cost of capital to be used in adjusting annual revenue requirements for 2007 and beyond; and
- established an incentive mechanism for the Plan period.
An overview of the Board's approach to this project is described in the "kick-off" letter issued in April, 2006.