ANNOUNCEMENTS: RATES

DISTRIBUTION RATES TASK FORCE SIXTH MEETING MINUTES March 31st, 1999

The progress of the other task forces (TF) were reviewed. In particular, the Implementation TF's suggested PBR implementation time line and processes were described. As well, that TF's current thinking on service quality standard enforcement and earnings-sharing were presented. Ramona Abi Rashed described the results of her continuing analysis on the impact of market based rate of return and taxation on revenue requirements. Three methods for unbundling current rates that the rates structure work group have come up with were discussed. The issue of maintaining rate class revenue neutrality in the rate unbundling method was emphasized. A discussion on wheeling suggested that wheeling customers will be synonymous with distribution service customers under open access conditions. Concerns with the allocation of line losses were also discussed including the allocation of line losses to customer classes and to individual identifiable customers.; The work group on distribution services still needs to examine approaches for establishing price floors. Ramona Abi Rashed will continue work on the ROR and tax impacts. The rate structure work group will address standby, co-generation and street lighting. Rick Stevens and Judy Kwik will use Milton data to compare two of the proposed rate unbundling methods.; April 30, starting at 9:30 a.m. at the OEB.