2020 electricity distribution rate applications

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On October 13, 2016, the OEB issued the Handbook for Utility Rate Applications to provide guidance to utilities and stakeholders on applications to the OEB for approval of rates. The Rate Handbook outlines the key principles and expectations the OEB will apply when reviewing rate applications under the OEB’s renewed regulatory framework, Report of the Board: A Renewed Regulatory Framework for Electricity (the RRFE Report). Three alternative rate-setting methods are available to electricity distributors: Price Cap Incentive Rate-setting (Price Cap IR); Custom Incentive Rate-setting (Custom IR); and Annual Incentive Rate-setting Index (Annual IR Index).

On November 27, 2018 the OEB issued a letter identifying a preliminary list of electricity distributors (the Rebasing List) that are scheduled to file a cost of service application in respect of their 2020 rates assuming they opt for the Price Cap IR method. This letter also sets out the deadlines by which notice must be given to the OEB in respect of various other matters relating to the setting of 2020 rates, and by which cost of service applications for 2020 rates are expected to be filed. The following table summarizes these deadlines.

Action

OEB Deadline
Notification from any distributor on the 2020 Rebasing List that will be selecting either the Custom IR or Annual IR Index method and therefore will not be filing a cost of service rate application for 2020 rates March 1, 2019
Notification from any distributor that is currently on Annual IR Index but that plans to file a cost of service rate application under the Price Cap IR method or a Custom IR application for 2020 rates March 1, 2019
Notification from any distributor that is not included on the 2020 Rebasing List but that plans to file a cost of service application for 2020 rates under the Price Cap IR method (early rebasing) March 1, 2019
Deadline for cost of service applications for January 1, 2020 rates including those distributors that wish to convert from May 1 rates to January 1 rates April 26, 2019
Deadline for cost of service  applications for May 1, 2020 rates August 30, 2019

 

The following table identifies all 63 rate regulated electricity distributors in Ontario. The table contains links to select documents of a distributor’s rate application. These documents include:

  • Key correspondence regarding the status of an application, including the choice of rate-setting method for 2020 rates. For applications to be decided under Delegated Authority, case management letters are used to communicate case steps and dates rather than a letter of direction and procedural order.
  • The Notice of Application issued by the OEB and to be published by the distributor, if applicable. The purpose of the Notice is to inform affected ratepayers and other stakeholders of the application, its nature and the impact on affected customers.
  • The Decision issued by the OEB when it has made determinations on the application and the subsequent Rate Order and Tariff of Rates and Charges that reflects the Decision.

 

APPLICATION DOCUMENTS

This table provides a list of select documents related to each application. To view all publicly available documents for the application, click the case number associated with that particular distributor.

DEFINITIONS:

COS: Distributors rebasing under the Price Cap Incentive Rate-setting method
Price Cap IR: Distributors not rebasing under the Price Cap Incentive Rate-setting method
Custom IR: Distributors filing under the Custom Incentive Rate-setting method
Annual IR Index: Distributors filing under the Annual Incentive Rate-setting Index method
*DA – Delegated Authority: Pursuant to powers granted in Section 6 of the Ontario Energy Board Act, 1998, an employee of the OEB may make a decision on the application without holding a hearing. For these applications, there are normally no formal hearings and thus, no publication requirements of a formal Notice of Application. The process and timelines associated with the assessment of the applications by OEB staff are communicated to distributors by way of Case Management letters.
NoA: Notice of Application

Click the column header to sort the table by Distributor, Process, Application Received or Updated on. Click the column again to switch between ascending/descending order. To filter results, start typing in the search field below. As you type the table will re-sort to only show rows that match what you type (e.g. typing 'Niagara' will show only the rows for Canadian Niagara Power Inc., Niagara Peninsula Energy Inc. and Niagara-on-the-Lake Hydro Inc.).

 

ASSOCIATED DECISIONS

Date

Issue/document

Dec 17-19

The OEB has issued its Decision and Order in the matter of regulatory charges effective January 1, 2020, for the Wholesale Market Services rate and the Rural or Remote Electricity Rate Protection charge.

Nov 28-19

The OEB has issued its Decision and Rate Order in the matter of the inflationary adjustment effective January 1, 2020 for energy retailer service charges for electricity distributors. The generic pole attachment charge for wireline telecom attachments for electricity distributors will also be adjusted by inflation effective January 1, 2020.

Jun 20-19

The OEB has issued its Decision and Order in the matter of Distribution Rate Protection effective July 1, 2019.

Dec 20-18

The OEB has issued its Decision and Order in the matter of the Rural or Remote Electricity Rate Protection charge and Wholesale Market Service Charge effective January 1, 2019.

 

UPDATES

Date

Issue/document

Aug 6-20

The OEB has issued the COVID-19 Forgone Revenue Rate Rider Model and associated accounting guidance to assist those distributors that wish to seek recovery of forgone revenue arising as a result of the postponed implementation of 2020 rates due to the COVID-19 emergency. The OEB also issued an Accounting Order accompanying this guidance, which establishes a new sub-account, Impacts Arising from the COVID-19 Emergency Account, Sub-account Forgone Revenues from Postponing Rate Implementation.

Apr 16-20

The OEB today released IRM decisions for May 1, 2020 rates. In light of the COVID-19 emergency, the OEB is taking a unique approach and allowing distributors the option to postpone the implementation of the change in rates to November 1, 2020. Further details are set out in the OEB’s April 16, 2020 letter Approach to Incentive Rate-setting Decisions for May 1, 2020 Rates.

Feb 24-20

The OEB has issued a letter which updates the microFIT charge for 2020.

Oct 31-19

The OEB has issued a letter which sets out the Cost of Capital Parameter Updates for Cost of Service Applications with Rates effective in 2020.

Oct 31-19

Consistent with the policy determinations set out in the Report of the Board on Rate Setting Parameters and Benchmarking under the Renewed Regulatory Framework for Ontario's Electricity Distributors (EB-2010-0379) (Issued November 21, 2013 and updated December 4, 2013), the OEB has calculated the value of the inflation factor for incentive rate setting under the Price Cap IR and Annual Index plans, for rate changes effective in 2020, to be 2.0%. The derivation of this is shown in the following table. The OEB will adjust the price escalator in each applicable electricity distributor's 2020 Incentive Regulation Mechanism model such that this inflationary adjustment is reflected in distribution rate changes resulting from Price Cap IR and Annual Index applications effective in 2020.
Click here to view the table

 

Sources:
     

Jul 24-19

The OEB held a webinar on July 18 for electricity distributors related to the Global Adjustment Workform, Account 1595 Workform and CDM and LRAM changes.

Jul 18-19

The OEB held its orientation session on July 17 for electricity distributors that will file a cost of service or custom IR application for 2020 or 2021 rates.

Jul 15-19

The OEB has posted updated versions of certain models to be used for 2020 Rate Applications. The Benchmarking Spreadsheet Forecast Model and Capital Module Applicable to ACM and ICM applicable to 2020 Rate Applications will be posted once available.

 

Queries regarding the models should be sent to ratemodels@oeb.ca.

 

Cost of Service Models:

 

Applicable to both Cost of Service and IRM:

Jul 15-19

The OEB has issued an addendum to Chapters 1, 2, 3 and 5 of the Filing Requirements for Electricity Distribution Rate Applications for 2020 rates.

Jun 27-19

The OEB has posted updated versions of certain models to be used for 2020 Rate Applications. The majority of the remaining models applicable to 2020 Rate Applications will be posted shortly before the annual Cost of Service Orientation session being held in July.

 

Queries regarding the models should be sent to ratemodels@oeb.ca.

 

Cost of Service Models:

 

IRM Models:

 

Applicable to both Cost of Service and IRM:

Nov 27-18

The OEB has issued a letter identifying a preliminary list of distributors that are scheduled to file a cost of service application in respect of their 2020 rates assuming they opt for the Price Cap IR method. This letter also sets out the deadlines by which notice must be given to the OEB in respect of various other matters relating to the setting of 2020 rates, and by which cost of service applications for 2020 rates are expected to be filed.

 

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