Cost of Capital Review

Case number
EB-2009-0084
Launched
Sector
Electricity
Natural Gas
Status
Archived
Details

On March 16, 2009, the Ontario Energy Board initiated a consultative process to help it to determine whether current economic and financial market conditions warrant an adjustment to any of the Cost of Capital parameter values (i.e., the Return on Equity, Long Term Debt rate, and/or Short Term Debt rate) set out in the Board’s letter of February 24, 2009.

On June 18, 2009, the Board issued its determination on the cost of capital parameter values for 2009 rates and advised stakeholders that it is proceeding with a review of its policy regarding the cost of capital.

Updates

Date Issue / Document
January 14, 2016

Review of the Existing Methodology of the Cost of Capital for Ontario’s Regulated Utilities

March 3, 2011

The Board has issued a letter which sets out the Cost of Capital Parameter Updates for Cost of Service Applications effective May 1, 2011.

November 15, 2010

The Board has issued a letter which sets out the Cost of Capital Parameter Updates for 2011 Cost of Service Applications effective January 1, 2011.

February 24, 2010

The Board has issued a letter which sets out the Cost of Capital Parameter Updates for 2010 Cost of Service Applications.

December 11, 2009

The Board issued its Report of the Board on the Cost of Capital for Ontario's Regulated Utilities.

November 2, 2009

Final written comments received from interested stakeholders in response to the Board letters dated October 5 & 23, 2009:

October 5, 2009

The Board issued a letter to participants in this consultation advising them that subsequent to the stakeholder conference, participants are invited to provide final written comments to the Board:

September 16, 2009

The Board has posted a draft agenda and the presentations filed by participants for the Stakeholder Conference to be held the week of September 21st.

September 10, 2009

Written comments received from interested stakeholders on the issues list posted on July 30, 2009:

August 20, 2009

The Board issued its response to a letter it received on August 13, 2009 from Mr. Robert Warren, sent on behalf of the Consumers Council of Canada, the Vulnerable Energy Consumers Coalition and the London Property Management Association, in which a number of questions are listed concerning the Board’s cost of capital consultation process:

August 11, 2009

The Board has issued a letter setting out important information in relation to the stakeholder conference to be held in Toronto the week of September 21, 2009. 

July 30, 2009

The Board has issued its issues list in relation to this consultation.  As previously communicated, the Board will hold a stakeholder conference during the week of September 21, 2009 to provide a forum for discussion on the issues identified by the Board. Written comments on the substantive matters contained in the Board’s issues list will inform the stakeholder conference.

June 18, 2009

The Board has issued a letter setting out its determination on the cost of capital parameter values for 2009 rates.

The letter also notifies interested stakeholders that the Board is proceeding with a review of its policy regarding the cost of capital.