Prescribed interest rates

Applicable to the approved regulatory accounts of natural gas utilities, electricity distributors and other rate-regulated entities

On November 28, 2006, the Ontario Energy Board approved a methodology to prescribe interest rates for the approved regulatory accounts under the Uniform System of Accounts for natural gas utilities and electricity distributors (EB-2006-0117). The prescribed interest rates also apply to the regulatory accounts of other rate or payment regulated entities when authorized by the Board to use these rates.

The prescribed interest rate for Board-approved deferral and variance accounts is equal to the Bankers' Acceptances three-month rate, as published on the Bank of Canada's website, plus a spread of 25 basis points.

The prescribed interest rate for the construction work in progress (CWIP) account is equal to the FTSE TMX Canada (formerly DEX) Mid Term Bond Index All Corporate yield. The Ontario Energy Board under a licence obtains this yield rate from PC Bond Analytics, a business unit of FTSE. 

These prescribed rates are reviewed and updated each quarter. However, no change is made to the prescribed interest rate where the difference between the updated current quarter's Bankers’ Acceptances three-month rate (plus a 25 basis points spread) or the FTSE TMX Canada (formerly DEX) Mid Term Bond Index All Corporate yield, and the previous quarter's OEB-prescribed interest rate is less than 25 basis points. That is, the previous quarter's OEB-prescribed interest rate is continued for the current quarter.

For each quarter commencing Q2 2006, the prescribed interest rates are shown in the table below.

Quarter by year1

Approved deferral and variance accounts 
Prescribed interest rate (per the bankers' acceptances-3 months plus 0.25 spread)

CWIP account
prescribed interest rate (per the FTSE TMX Canada (formerly DEX) Mid Term Bond Index All Corporate yield 2)

Q3 2017

1.10 2.53
Q2 2017 1.10 2.81

Q1 2017

1.10

2.81

Q4 2016

1.10

2.46

Q3 2016

1.10

2.92

Q2 2016

1.10

2.92

Q1 2016

1.10

2.92

Q4 2015

1.10

2.55

Q3 2015

1.10

2.55

Q2 2015

1.10

2.28

Q1 2015

1.47

2.89

Q4 2014

1.47

3.17

Q3 2014

1.47

3.17

Q2 2014

1.47

3.17

Q1 2014

1.47

3.70

Q4 2013

1.47

3.70

Q3 2013

1.47

3.23 

Q2 2013

1.47

3.23

Q1 2013

1.47

3.23

Q4 2012

1.47 3.23

Q3 2012

1.47

3.51

Q2 2012

1.47

3.51

Q1 2012

1.47

3.92

Q4 2011

1.47

3.92

Q3 2011

1.47

4.29

Q2 2011

1.47

4.29

Q1 2011

1.47

4.29

Q4 2010

1.2

4.01

Q3 2010

0.89

4.66

Q2 2010

0.55

4.34

Q1 2010

0.55

4.34

Q4 2009

0.55

4.66

Q3 2009

0.55

5.67

Q2 2009

1.00

6.61

Q1 2009

2.45

6.61

Q4 2008

3.35

5.43

Q3 2008

3.35

5.43

Q2 2008

4.08

5.18

Q1 2008

5.14

5.18

Q4 2007

5.14

5.18

Q3 2007

4.59

5.18

Q2 2007

4.59

4.72

Q1 2007

4.59

4.72

Q4 2006

4.59

4.72

Q3 2006

4.59

5.05

Q2 2006

4.14

4.68

Footnotes:
1. Q1 is January to March, Q2 is April to June, Q3 is July to September, Q4 is October to December
2. Source of data for Q4-2007 and after: FTSE TMX Canada (formerly DEX) Mid Term Bond Index All Corporate.