2007 electricity distribution rate decisions

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The Ontario Energy Board has initiated a process to update approved rates for electricity distributors, with the intent that these new distribution rates will be effective on May 1, 2007. On December 20, 2006, the Board issued the Report of the Board on Cost of Capital and 2nd Generation Incentive Regulation for Ontario’s Electricity Distributors (pdf). This report sets out the Board’s approach to how distributors will be compensated for the cost of debt and equity and how rates can be determined in a streamlined process. It also presents the associated guidelines for distributors to use to prepare their rate applications.

Electricity distributors were due to file their applications by January 26, 2007 applications for distribution rates effective May 1, 2007.

QUICK LINKS

The following is a list of key documents related to the 2007 electricity distribution rate (EDR) application process:

The key standard documents of a distributor's application for May 1, 2007 electricity distribution rates are made available in the table listed on this page.  These key documents include:

  • The Application as filed by the distributor, including the covering letter, summary of the application and the rate application model.  This application is provided as an Adobe Acrobat PDF file.
  • The Smart Meter rate rider application filed by a distributor in accordance with the Addendum on Smart Meters issued by the Board on January 29, 2007.  This smart meter rate application is an amendment to the rate application originally filed by the distributor.
  • The Notice of Application issued by the Board and to be published by the applicant distributor. The Notice of Application is a notice to affected ratepayers and other stakeholders of the application, its nature, and the impact on affected customers. The Notice also allows for submissions and/or participation in the Board's proceeding to consider the application.
  • The Decision and Rate Order issued by the Board when it has adjudicated on the application, and has considered the application and all submissions filed on the record.

 

APPLICATION DOCUMENTS

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UPDATES

Date

Issue/Document

Mar 20, 2007

The Board has determined that the annual percent change in the Implicit Price Index for National Gross Domestic Product (GDP-IPI) for Final Domestic Demand of 1.9% for 2006 over 2005, as published by Statistics Canada on March 2, 2007, (ref: http://www.statcan.ca/english/freepub/13-010-XIE/2006004/tables/table07.htm ) will be used as the price escalator in the Incentive Regulatory Mechanism for adjusting electricity distribution rates for implementation May 1, 2007.  This is in accordance with the methodology documented in the The Report of the Board on Cost of Capital and 2nd Generation Incentive Regulation for Ontario's Electricity Distributors, issued December 20, 2006.  This final price escalator value, less expected productivity improvements of 1.0%, will be reflected in adjusted distribution rates approved by the Board in Decisions on rate applications currently before the Board and for other rates established pursuant to the above-mentioned Report of the Board.

Jan 26, 2007

The Board has made available a list of frequently asked questions (FAQs - revised Feb 16, 2007) to assist electricity distributors in filing applications for 2007 electricity distribution rates and in how the Board will process these applications. These Q&As may be updated periodically.

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