Ontario Energy Board accepts Assurance of Voluntary Compliance from Enova Power Corporation

The Ontario Energy Board (OEB) has accepted an Assurance of Voluntary Compliance (AVC) from Enova Power Corp. (Enova), the OEB-licensed electricity distributor that continues the operations of Kitchener-Wilmot Hydro Inc. and Waterloo North Hydro Inc. (Waterloo North) since their amalgamation in the fall of 2022. The AVC follows an inspection into Waterloo North’s accounting and settlement related to electricity commodity costs for the period 2015 to 2020, prior to the amalgamation.

The OEB initiated an inspection in February 2022 after Waterloo North raised the issue of its accounting for commodity costs in its 2021 rate proceeding. The inspection found that Waterloo North accounted for and settled certain amounts with the Independent Electricity System Operator (IESO) in a manner that did not comply with the requirements of the Electricity Act, 1998 and related regulations. As a result, Waterloo North under-remitted about $3.3 million to the IESO from 2015 to 2020. Related accounting errors that resulted in Waterloo Hydro over-charging customers about $1.6 million in total from 2015 to 2018 were addressed in Waterloo Hydro’s application for 2023 rates, and this amount is being returned to Waterloo Hydro customers.

Under the terms of the AVC, Enova will make a one-time payment to the IESO consisting of the principal amount of the under-remittance plus interest and will pay a $3,000 administrative penalty to the OEB, which Enova agrees it will not seek to recover in any current or future rate application.

Through the AVC, Enova acknowledges its responsibility to ensure that its accounting and settlement for electricity commodity costs comply with applicable legal and regulatory requirements.

An AVC is a binding commitment by a regulated entity to take measures to rectify or prevent non-compliance. Failure to abide by the terms of an AVC can lead to enforcement action being taken by the OEB.

“Distributors must ensure that their accounting complies with applicable legal and regulatory obligations so that billing and settlement with customers and the IESO are accurate. With Enova’s assurance that it understands its responsibility to correctly account for and settle electricity commodity costs, consumers are better protected.

– Brian Hewson, Vice-President, Consumer Protection & Industry Performance

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About the Ontario Energy Board

The OEB is the independent regulator of Ontario’s electricity and natural gas sectors. It protects the interests of consumers and supports the collective advancement of the people of Ontario. Its goal is to deliver public value through prudent regulation and independent adjudicative decision-making which contributes to Ontario’s economic, social and environmental development.


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