On May 31, 2004, the Minister of Energy granted approval to all electricity distributors in Ontario to apply to the Board for an increase in their 2005 rates by way of the third instalment of their incremental market adjusted revenue requirement ("MARR"). This approval was conditional upon a commitment to reinvest in CDM an equivalent of that amount. Consequently, in 2005 distributors brought forward, and the Board approved, $163 million in CDM funding for distributors, an amount related to the third tranche of their MARR.
See also: CDM Reports, Plans & Applications
UPDATES
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Dec 15-09 |
The Board has posted the Board Staff Report on the third tranche Conservation and Demand Management (“CDM”) Spending Period: |
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The Ontario Energy Board has issued the requirements for 2008 Annual Reporting of Conservation and Demand Management (“CDM”) Initiatives: |
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Mar 3-08 |
The Ontario Energy Board has issued the requirements for 2007 Annual Reporting of Conservation and Demand Management (“CDM”) Initiatives: |
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Today the Ontario Energy Board (OEB) issued a Vary Order removing the requirement for electricity distributors to file quarterly reports with the Board on the progress of conservation and demand management plans. This Vary Order responds to feedback received from electricity distributors and seeks to reduce unnecessary regulatory burden. |
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Jun 5-07 |
On March 23, 2007, Toronto Hydro-Electric System Ltd. (EB-2007-0096) filed with the Ontario Energy Board a Supplementary 2007 Rate Adjustment Application for certain adjustments to distribution rates, to be effective May 1, 2007. Within the application Toronto Hydro has requested approval for recovery of historical Lost Revenue Adjustment Mechanism (LRAM) and Shared Savings Mechanism (SSM) amounts.
**Please note that the Board is considering the Smart Meter issues included in Toronto Hydro's application as part of a separate process: Smart Metering Initiative - Combined Proceeding |
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Today, the Board published on its website, the Chief Regulatory Auditor's report on the Review of 2005 Annual Reports by electricity distributors on their Conservation and Demand Management activities in relation to spending authorized under the third tranche of MARR. This is further to the letter from the Board dated May 12, 2006, which indicated that selective audits of the annual reports filed by the distributors would be conducted and that the results would be included in a report to be provided to all interested parties. In light of concerns expressed by distributors about the value of quarterly reporting, the Board is considering amending reporting requirements to annual reporting only. Please direct any questions or comments to the Market Operations Hotline at 416-440-7604 or by email at Market.Operations@ontarioenergyboard.ca by June 1, 2007. |
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The Ontario Energy Board has made minor revisions to the appendices for the annual reporting of Conservation and Demand Management initiatives issued March 1, 2007. The revised appendices will provide additional clarity on what information should be reported. The revisions are to Appendix A and Appendix B contained in the excel workbook of appendices. The revised appendices are available now
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The Ontario Energy Board has reviewed the requirements for the annual reporting of CDM initiatives and has adjusted the Reporting Requirements to improve the consistency and quality of reporting. The amended Reporting Requirements are available now.
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Pursuant to the Board's decision in RP-2005-0020/EB-2005-0523 the Board has revised the TRC Guide.
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Jul 12-06 |
Further to the Board's request for comment on the annual CDM reports, the following submissions were received. |
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The Board has initiated a public review of the annual CDM reports. The letter posted here details the process. |
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The Board has released the Guideline for Annual Reporting of CDM Initiatives. |
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Nov 18-05 |
Further to the Board's request for comment on the Draft Guideline for Annual Reporting of CDM Initiatives, the following submissions were received. |
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In support of cost effective conservation and demand management for the electricity sector, the Board has developed the Draft Guideline for Annual Reporting of CDM Initiatives. At this time, the Board is inviting comment from interested parties on the draft guideline. |
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In support of cost effective conservation and demand management for the electricity sector, the Board has developed the Total Resource Cost Guide (the Guide). Please click on the following links:
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Jul 25-05 |
Further to the Board’s request for comment on the Draft Guide for Total Resource Cost Analysis, the following submissions were received.
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Jul 6-05 |
In support of cost effective conservation and demand management for the electricity sector, the Board has developed the Guide to Total Resource Cost Analysis. At this time, the Board is inviting comment from interested parties on the document.
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Jun 17-05 |
In accordance with the Board’s Decision of February 18, 2005, Hydro One Networks Inc. has filed the “Avoided Cost Analysis for the Evaluation of CDM Measures”: |
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Apr 8-05 |
The Board has released a Conservation and Demand Management (CDM) web-based reporting tool to facilitate electricity distributors' quarterly filings. The first CDM filing for the period January 1, 2005 to March 31, 2005 is due April 30, 2005.
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On February 18, 2005, the OEB, by way of an oral decision, approved the CDM Plans of Hydro One Networks Inc. (HONI) and Hydro One Networks Brampton Inc. (Brampton). The oral hearing was held in Toronto on February 17 and 18, 2005. To view the transcripts of the hearing please click here. The CDM budget approved is $39.5 million in the case of HONI and $3.2 million in the case of Brampton. The approval was subject to the following 4 conditions:
To view the transcript of the Oral Decision: |
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Dec 23-04 |
On December 6, 2004, the Ontario Energy Board heard a motion brought by Pollution Probe. This motion requested that the Board establish a lost revenue adjustment mechanism (LRAM) and incentive mechanism or shared savings mechanism (SSM) with respect to expenditures on conservation and demand management (CDM) by local electricity distribution companies (LDCs) in 2005. The motion was supported by various LDCs, the Coalition of Large Distributors (CLD) and the Electricity Distributors Association (EDA), as well as various other parties, including the Green Energy Coalition and the Canadian Energy Efficiency Alliance. To read the transcript of the decision, click here. The decision of the Board was to adopt a voluntary LRAM for lost revenues incurred by LDCs as a result of CDM initiatives in 2005. The formula for LRAM will be determined by the 2006 Electricity Distribution Rate Panel (RP-2004-0188). The decision of the Board also adopted an incentive mechanism or SSM for the LDC. The application of a SSM will only apply to funds spent on customer based initiatives. Board staff prepared the “Draft Guidelines for Electricity Distributors Wishing to Apply for SSM Incentive for 2005 Implementation of CDM Plans”. To read the Draft Guidelines, click here. These Draft Guidelines consist of a general outline of the process and will be refined and/or updated by the Board in the future. At this time the Board is inviting comments on the Draft Guidelines. |
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Dec 10-04 |
Today the Ontario Energy Board issued its Decision approving applications from six of the province’s largest local electricity distribution companies for their third installment (“tranche”) of incremental Market Adjusted Revenue Requirement (MARR) related to conservation and demand management (CDM) initiatives. The application amounts total more than $70 million: $8.2 million for Enersource, $5.2 million for Hamilton, $9.3 million for Hydro Ottawa, $6.4 million for PowerStream, $39.8 million for Toronto Hydro and $3.5 million for Veridian. Collectively the six utilities, known as the Coalition of Large Distributors (CLD), provide services to over 1.5 million customers or 40% of all Ontario electricity customers. The Board reviewed 10 key issues raised by intervenors or applicants, which included cost/benefit analysis, LDCs’ rate base, MARR, incremental expenses, operating vs. capital expenses, program modifications, smart meters, program balance, low-income consumers and LED traffic lights. The Board decision also required the applicants to implement reporting & monitoring mechanisms. In addition, the OEB approved applications from Milton Hydro and Brantford Power for their third tranche of incremental MARR related to CDM initiatives. The budget for these initiatives total more than $760,000 for Milton and $1.3 million for Brantford. In the cases of Milton and Brantford, the Board reviewed issues that included cost/benefit analysis, rate base, tax effect, incremental expense, operating vs. capital expenses, program modifications, smart meters, LED traffic lights and program balance. While all plans have been approved, the Board requires that Brantford re-examine calculations related to its distribution system upgrade project. In making its Decision, the Board recommended that all above utilities voluntarily investigate possible initiatives to assist low-income consumers. The Board requires utilities to report on their CDM programs quarterly and annually, providing results to the Board. In addition, the Board will conduct annual hearings to fully review CDM initiatives. To read the transcript of the Decision click here. |
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Nov 4-04 |
On October 28, 2004, the Board issued Procedural Order No. 2 setting the process and date for a Motions Day to be convened on Monday, December 6, 2004 at the Board's offices. |
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Nov 1-04 |
The Board has amended the Accounting Procedures Handbook and the Uniform System of Accounts to establish account 1565, Conservation and Demand Management Expenditures and Recoveries. |
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Oct 10-04 |
On October 5, 2004, the Board issued a procedural order to electricity distributors regarding distributor conservation and demand management activities and deferral accounts, and the procedure to be used for approval of expenditures related to these activities. |
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Aug 30-04 |
The Board today issued an information bulletin to electricity distributors on distributor conservation and demand management activities and on the process for distributors to apply for deferral accounts. |