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 (OEB) 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 amounts regulated entities when authorized by the OEB to use these rates.
The prescribed interest rate for the OEB-approved deferral and variance accounts is equal to the Bankers' Acceptances three-month rate, as published originally on the Bank of Canada's website, plus a spread of 25 basis points. In January 2019 the Investment Industry Regulatory Organization of Canada (IIROC) began publishing transaction-based one- and three-month Bankers’ Acceptances rates. These rates are published on a delayed basis for informational purposes only and replace the Bankers’ Acceptances rates formerly published on the Bank of Canada website.
As of January 2023, the IIROC and the Mutual Fund Dealers Association of Canada have amalgamated to become the New Self-Regulatory Organization of Canada. As of June 2023, this organization has been renamed as the Canadian Investment Regulatory Organization.
The prescribed interest rate for the construction work in progress (CWIP) account is equal to the FTSE Canada (formerly DEX) Mid Term Bond Index All Corporate yield. The OEB, under contract, 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 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 Canada (formerly DEX) Mid Term Bond Index All Corporate Yield 2)|