The Handbook provides guidance to electricity distribution utilities on accounting procedures and requirements as well as setting out a uniform accounting system.
Accounting Procedures Handbook
The Accounting Procedures Handbook, including Chapter II, the Uniform System of Accounts, was approved by the Board on November 10, 1999.
- Cover letter - Accounting Procedures Handbook (Mar 28, 2012) (pdf)
- Accounting Procedures Handbook and Uniform System of Accounts (revised Jul 31, 2007) (pdf)
The OEB has posted a separate document that contains a list of generic accounts that have been opened since the last update of the APH. This document will be updated at regulator intervals upon the establishment of new accounts or changes to existing accounts.
NOTE: Adoption of International Financial Reporting Standards (IFRS) January 1, 2012 (with comparitive figures for 2010) raises certain regulatory accounting issues. These are discussed here.
- Report of the Ontario Energy Board: Regulatory Treatment of Impacts Arising from the COVID-19 Emergency (Jun 17, 2021) (pdf)
- Guidance to electricity distributors regarding the recovery of the Global Adjustment charges that were previously deferred for the months of April, May and June 2020 (Dec 23, 2020) (pdf)
- Accounting Order for the Establishment of a Sub-account to Record Impacts Arising from the COVID-19 Emergency from Bad Debt (Aug 14, 2020) (pdf)
- Accounting Order for the Establishment of a Sub-account to Record Impacts Arising from the COVID-19 Emergency for Forgone Revenues from Postponing Rate Implementation (Aug 6, 2020) (pdf)
- Guidance to Electricity Distributors on Implementing the Emergency Order Regarding the Deferral of a Portion of the Global Adjustment (May 15, 2020; corrected May 26, 2020) (pdf)
- This version of the letter corrects a typographical error in the May 15, 2020 original version in relation to the description of how the invoiced Global Adjustment rate/kWh is to be calculated
- Accounting Order for the Establishment of Deferral Accounts to Record Impacts Arising from the COVID-19 Emergency for Ontario Power Generation Inc. and Electricity Transmitters (Apr 29, 2020) (pdf)
- Guidance to Electricity Distributors on the Regulated Price Plan Settlement with Respect to the Emergency Order (Apr 2, 2020) (pdf)
- Accounting Order for the Establishment of Deferral Accounts to Record Impacts Arising from the COVID-19 Emergency (Mar 25, 2020) (pdf)
- Accounting Order (001-2021) for the Establishment of an Accounts Receivable Account for Financial Assistance Provided to Customers (Feb 10, 2021) (pdf)
- Accounting Order for the Establishment of a Deferral Account to Record Impacts Arising from Implementing the Customer Choice Initiative (Sep 16, 2020) (pdf)
- Accounting Guidance for Changes to the Ontario Rebate for Electricity Consumers Act, 2016, RPP Settlement, and Resuming the Final RPP Variance Settlement (Dec 4, 2019) (pdf)
- Accounting Direction Regarding Bill C-97 and Other Changes in Regulatory or Legislated Tax Rules for Capital Cost Allowance (Jul 25, 2019) (pdf)
- Accounting Guidance for IESO Charge Type 2148 (May 15, 2019) (pdf)
- Accounting Guidance on Wireline Pole Attachment Charges (Jul 20, 2018) (pdf)
- Updated Guidance on Smart Metering Entity Charge (Mar 23, 2018) (pdf)
- Accounting Guidance related to Implementation of Fair Hydro Act, 2017 (Oct 31, 2017) (pdf)
- Updated Guidance on LRAM Variance Account 1568 – New Sub-Account 1568-0001 LRAMVA Demand Response (Jul 18, 2017) (pdf)
- Guidance on the Disposition of Accounts 1588 and 1589 (May 23, 2017) (pdf)
- Guidance on Wholesale Market Services Accounting for Capacity Based Demand Response (CBDR) and new IESO Charge Type 9920 (Mar 29, 2016) (pdf)
- New Charge Types for Recording in Account 4708 (Jun 4, 2015) (pdf)
- Accounting policy changes for Accounts 1575 and 1576 effective in the 2014 cost of service rate applications and subsequent rate years (Jun 25, 2013) (pdf)
- Regulatory accounting policy direction regarding changes to depreciation expense and capitalization policies in 2012 and 2013 under Canadian GAAP (Jul 17, 2012) (pdf)
- Variance Account 1521 and related accounts 4324 and 5681re: “Special Purpose Charge” Assessment (Apr 23, 2010) (pdf)
- 4708 account re IESO charge type classifications for reactive support and voltage control (Dec 23, 2008) (pdf)
- Stranded Meter Costs Related to the Installation of Smart Meters (Jan 16, 2007) (pdf)
- Accounts for Smart Meters and Low Voltage Charges (Jun 13, 2006) (pdf)
- 4708 account re IESO charge type classifications for Day-Ahead Commitment Process (Jun 1, 2006) (pdf)
- 1508 Sub-account re interest rate for pension contributions in 2005 (Feb 20, 2006) (pdf)
- 4708 and 4712 accounts re IESO charge type reclassifications (Dec 2, 2005) (pdf)
- 1508 and 1588 Sub-accounts (Feb 15, 2005) (pdf)
- 1508 Sub-account (Dec 20, 2004) (pdf)
- Account 1565 (Oct 29, 2004) (pdf)
From time to time the OEB issues accounting guidance that addresses various matters associated with the APH. To date, this guidance has been labeled as Frequently Asked Questions. As of March 2015, this guidance has been renamed as simply “Guidance” as it may contain clarifications of accounting matters that may arise from other sources other than frequently asked questions.
- October 31, 2019 - Adjustments to Correct for Errors in Electricity Distributor “Pass-Through” Variance Accounts After Disposition (pdf)
- February 21, 2019 - Accounting Guidance related to Accounts 1588 RSVA Power and 1589 RSVA Global Adjustment
- July 2016 - Accounting Guidance on Capacity Based Recovery (pdf)
- March 2015 (pdf)
- In addition, the OEB has posted a separate document that contains a list of generic accounts that have been opened since the last update of the APH (pdf) (issued December 2011). This document will be updated at regulator intervals upon the establishment of new accounts or changes to existing accounts.
Other Accounting Guidance related Letters
The OEB has issued a letter to advise electricity distributors that the OEB is undertaking an initiative to standardize the accounting processes used by distributors relating to RPP wholesale settlements and accounting procedures (including the treatment of unbilled revenue) to improve the accuracy of accounts 1588 - RSVA Power and 1589 - Global Adjustment (the commodity pass-through variance accounts).
The OEB has issued a letter containing guidance to licensed distributors, unit sub-meter providers, retailers and other interested parties on the implementation of the Fair Hydro Act, 2017.
The OEB has issued a letter providing direction to licensees regarding implementation issues related to the Ontario Rebate for Electricity Consumers Act (2016).
IFRS Related Consultation and Guidance
Note: view the IFRS consultation webpage for more information.
The OEB issued a letter providing guidance for all electricity utilities regarding the impact of the decision by the Canadian Accounting Standards Board (the “AcSB”) to defer the mandatory changeover to International Financial Reporting Standards (“IFRS”) to January 1, 2013.
The OEB issued an Addendum to Report of the Board: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment. The Addendum sets out regulatory policy for the transition to IFRS for utility rates rebased using a cost of service methodology and subsequently set using an incentive rate-setting mechanism.
The OEB posted a staff Discussion Paper on the Transition to IFRS – Implementation in an IRM Environment.
The OEB issued a letter further amending Section 9.1.2 of its Report on Transition to IFRS (originally issued Jul-28-09) to advise electricity distributors regarding the use of IFRS in filing cost of service applications for rates for 2012.
The OEB issued an amendment to its Report on Transition to IFRS (originally issued Jul 28-09) to reflect the Canadian Accounting Standards Board pronouncement allowing the option to delay transition to IFRS to January 1, 2012.
The Board has issued a depreciation study prepared by Kinectrics Inc. to assist electricity distributors in Ontario in their transition to International Financial Reporting Standards.
The OEB issued the draft report of Kinectrics Inc., Asset Amortization Study for the Ontario Energy Board, in relation to electricity distributors for comment to assist Kinectrics Inc. in finalizing their report.
The OEB issued a letter clarifying “Accounting for Overhead Costs Associated with Capital Work” to assist utilities with their transition to IFRS.
The OEB issued its report on Transition to International Financial Reporting Standards (IFRS) in recognition of the fact that Canadian Generally Accepted Accounting Principles will transition to IFRS applicable to most utilities regulated by the Board effective January 1, 2011
Accounting Procedures Handbook - frequently asked questions
- July 2012 (pdf)
- December 2010 (pdf)
- October 2009 (pdf)
- August 2008 (pdf)
- July 2007 (pdf)
- December 2005 (pdf)
- April 2004 (pdf)
- December 2003 (pdf)
- April 2003 (pdf)
- April 2002 (pdf)
- December 2001 (pdf)
- February 2001 (pdf)
- June 2000 (pdf)
- March 2000 (pdf)
- Guidelines for Regulatory and Accounting Treatments for Distributor-Owned Generation Facilities (G-2009-0300) (pdf) (Issued September 15, 2009)
- Cover Letter (pdf) (Issued September 15, 2009)