Review of Electricity Deferral and Variance Account Balances
The Board is required under section 78 of the Ontario Energy Board Act, 1998 (the “Act”) to periodically review the electricity distributors’ variance and deferral accounts (the “Accounts”). Specifically, the Act requires that the Board periodically makes orders determining whether and how amounts recorded in the Accounts should be reflected in rates. The Account associated with the commodity of electricity (the “Commodity Account”) is to be reviewed quarterly and the remaining Accounts are to be reviewed annually.
The Board issued guidelines on September 28, 2005, outlining the review process that the Board would follow. On February 19, 2008, the Board issued a letter announcing an initiative to re-examine the review and disposition process of the Commodity Account, and the possibility of extending this initiative to Accounts similar in nature.