The OEB determines the values for the Return on Equity (ROE) and the deemed Long-Term (LT) and Short-Term (ST) debt rates for use in cost of service and custom incentive rate-setting (custom IR) applications. The ROE and the LT and ST debt rates are collectively referred to as the cost of capital parameters.
Sector
General Regulatory
Last revised
October 31, 2019
|
Rates effective |
Return on equity (ROE) |
Deemed long-term debt rate |
Deemed short-term debt rate |
Weighted average cost of capital (WACC)* |
Letter (issuance date) |
|---|---|---|---|---|---|
| Jan 1, 2020 | 8.52% | 3.21% | 2.75% | 5.32% | Oct 31, 2019 |
| Jan 1, 2019 | 8.98% | 4.13% | 2.82% | 6.02% | Nov 22, 2018 |
| Jan 1, 2018 | 9.00% | 4.16% | 2.29% | 6.02% | Nov 23, 2017 |
| Jan 1, 2017 | 8.78% | 3.72% | 1.76% | 5.67% | Oct 27, 2016 |
| Jan 1, 2016 | 9.19% | 4.54% | 1.65% | 6.28% | Oct 15, 2015 |
| Jan 1, 2015 | 9.30% | 4.77% | 2.16% | 6.48% | Nov 20, 2014 |
| Jan 1, 2014 | 9.36% | 4.88% | 2.11% | 6.56% | Nov 25, 2013 |
| May 1, 2013 | 8.98% | 4.12% | 2.07% | 5.98% | Feb 14, 2013 |
| Jan 1, 2013 | 8.93% | 4.03% | 2.08% | 5.91% | Nov 15, 2012 |
| May 1, 2012 | 9.12% | 4.41% | 2.08% | 6.20% | Mar 2, 2012 |
| Jan 1, 2012 | 9.42% | 5.01% | 2.08% | 6.66% | Nov 10, 2011 |
| May 1, 2011 | 9.58% | 5.32% | 2.46% | 6.91% | Mar 3, 2011 |
| Jan 1, 2011 | 9.66% | 5.48% | 2.43% | 7.03% | Nov 15, 2010 |
| May 1, 2010 | 9.85% | 5.87% | 2.07% | 7.31% | Feb 24, 2010 |
*Assuming a deemed capital structure of 40% equity, 56% long-term debt and 4% short-term debt
Related documents
Report of the Board on the Cost of Capital for Ontario’s Regulated Utilities (EB-2009-0084) (pdf) December 11, 2009
Review of the Existing Methodology of the Cost of Capital for Ontario’s Regulated Utilities January 14, 2016: