On October 18, 2012, the Ontario Energy Board released its Report, Renewed Regulatory Framework for Electricity Distributors: A Performance-Based Approach (RRFE).
This renewed regulatory approach recognizes the need for significant investment in the sector while acknowledging that concerns over bill increases are leading to a sharper focus on the total cost to consumers.
The RRFE is first and foremost a regulatory framework that will guide the Board in setting rates for electricity distributors, and ultimately for transmitters. The framework represents a continuing evolution in our focus as regulator. It starts to move that focus from costs and cost recovery to focusing on long-term value for money. The Board recognizes that delivering long-term value for the money consumers spend on electricity is essential to delivering a sustainable energy sector.
The Board’s Report lays out the direction for the new framework and includes a chapter detailing implementation and transition plans. The Board expects the necessary regulatory instruments to be developed by spring 2013, and largely implemented in time for setting May 2014 distribution rates.
- Rate Design for Electricity Distributors (EB-2012-0410)
The Board has initiated a project to complete the work begun in EB-2010-0060 on revenue decoupling for electricity and natural gas distributors.
- Distribution Network Investment Planning (EB-2010-0377)
The Board initiated a consultation process to address how the Board might ensure that distributor investment plans are demonstrably economically efficient and cost-effective and paced so as to match required expenditures with fair and reasonable rate adjustments and predictable changes to the elements of customer bills affected by the plans.
- Approaches to Mitigation for Electricity Transmitters and Distributors (EB-2010-0378)
The Board initiated a consultation process to provide utilities and the Board with a range of approaches and supporting tools to help mitigate the effects of unavoidable and significant rate and/or bill impacts.
- Defining and Measuring Performance of Electricity Transmitters and Distributors (EB-2010-0379)
The Board initiated a consultation process to address how the Board might create conditions which will foster the cost-effective and efficient implementation of Board-approved network investment plans by transmitters and distributors through the establishment of appropriate standards for performance and efficiency, the provision of appropriate incentives, and the review of utility performance.
- Developing Guidance for the Implementation of Smart Grid in Ontario (EB-2011-0004)
The Board has initiated a consultation process to examine issues associated with the implementation of Smart Grid.
- Regional Planning for Electricity Infrastructure (EB-2011-0043)
The Board has initiated a consultation aimed at promoting the cost-effective development of electricity infrastructure through coordinated planning on a regional basis between licensed distributors and transmitters.
- Policy Options for Funding Capital Investments (EB-2014-0219)
The Board has initiated a consultation to consider revised approaches to the funding of capital investments by utilities.