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.
March 27, 2025 – the OEB issued its Decision and Order (EB-2024-0063)
March 6, 2024 - The OEB has commenced a generic proceeding regarding cost of capital and other matters (EB-2024-0063)
| 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) |
|---|---|---|---|---|---|
| Final Jan 1, 2025 | 9.00% | 4.51% | 3.91% | 6.28% | Decision and Order (Mar 27, 2025) |
| Interim Jan 1, 2025 | 9.25% | 4.66% | 5.04% | 6.51% | Letter (Oct 31, 2024) |
| Jan 1, 2024 | 9.21% | 4.58% | 6.23% | 6.50% | Letter (Oct 31, 2023) |
| Jan 1, 2023 | 9.36% | 4.88% | 4.79% | 6.67% | Letter (Oct 20, 2022) |
| Jan 1, 2022 | 8.66% | 3.49% | 1.17% | 5.47% |
|
| Jan 1, 2021 | 8.34% | 2.85% | 1.75% | 5.00% | Nov 9, 2020 |
| 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 |
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:
Decision and Order, Generic Proceeding - Cost of Capital and Other Matters (EB-2024-0063), March 27, 2025