The Handbook provides guidance to electricity distribution utilities on accounting procedures and requirements as well as setting out a uniform accounting system.
Accounting Procedures Handbook and Related FAQs
In 1999, the OEB developed and approved the Accounting Procedures Handbook for Electricity Distributors (APH), which includes guidance on financial and regulatory accounting procedures and requirements and the Uniform System of Accounts (“USoA”). This 2012 revision of the APH recognizes the requirement for most Ontario electricity distributors to adopt International Financial Reporting Standards (“IFRS”) as of January 1, 2012. This updated APH supersedes the previous version.
- Cover letter - Accounting Procedures Handbook (Mar 28, 2012) (pdf)
- Accounting Procedures Handbook for Electricity Distributors (Effective Jan 1, 2012)
The OEB has issued an accounting guidance (similar to FAQs) that addresses various matters associated with the APH on March 31, 2015.
- Accounting Procedures Handbook Accounting Guidance March 2015
- Accounts Opened Between the APH Update Issued December 2011 and March 31, 2015
APH - Archived Documents
This legacy 2007 Accounting Procedures Handbook for electricity distributors was subsequently revised by the OEB.
Account 1588/1589 Guidance
Date | Issue/Document |
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June 12, 2024 | A draft update to the Accounting Guidance Related to Commodity Pass-Through Accounts 1588 & 1589, resulting from the Independent Electricity System Operator's (IESO) Market Renewal Program (MRP). |
May 23, 2023 | Update to Accounting Procedures Handbook Update - Accounting Guidance related to Accounts 1588 RSVA Power, and 1589 RSVA Global Adjustment issued in February 2019 resulting from the implementation of a new optional ultra-low overnight (ULO) price plan: |
February 21, 2019 | Accounting guidance related to Accounts 1588 RSVA Power, and 1589 RSVA Global Adjustment to standardize accounting procedures: |
July 20, 2019 | A letter to advise electricity distributors of the OEB’s initiative to standardize the accounting processes used by distributors relating to RPP wholesale settlements and accounting procedures (including the treatment of unbilled revenue) to improve the accuracy of accounts 1588 - RSVA Power and 1589 - Global Adjustment (the commodity pass-through variance accounts). |
APH - Frequently Asked Questions - Archived Documents
Accounting Guidance and Guidelines
CBR Guidance
Date | Issue/Document |
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July 25, 2016 | Accounting guidance on Capacity Based Recovery (Previously called Capacity Based Demand Responses) |
March 29, 2016 | The OEB has provided further guidance on the treatment of CBDR charges and new guidance on a one-time credit under the charge type 9920 Adjustment Account Credit arising from the IESO’s settlement dispute process: |
Pole Attachment Revenue Variance Account Related Guidance and Guidelines
Date | Issue/Document |
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December 16, 2021 | Further accounting guidance issued regarding pole attachment charges: |
July 20, 2018 | Accounting guidance regarding the establishment of a variance account in connection with the implementation of the new wireline pole attachment charge, as advised in the OEB Report on Wireline Pole Attachment Charges issued on March 22, 2018. |
Other Active Related Documents
Date | Issue/Document |
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December 4, 2019 | Accounting guidance related to the changes under the ORECA and provide accounting guidance on the RPP Settlement and Final RPP Variance Settlement. |
October 31, 2019 | The OEB letter provides notice of OEB's approach to addressing accounting or other errors in respect of certain electricity distributor variance accounts through retroactive adjustments in appropriate cases. |
July 25, 2019 | Accounting direction regarding the impacts of the Bill C-97 CCA rule changes and future legislative or regulatory changes to tax rates or CCA rules. |
May 15, 2019 | Accounting guidance issued for the new IESO charge type 2148 Class B Global Adjustment Prior Period Correction Settlement Amount. |
November 29, 2018 | Accounting guidance on RCVA accounts (Account 1518, 1548 and a new 1508 sub-account). |
March 23, 2018 | The OEB has updated accounting guidance on the appropriate accounting treatment with respect to changes to the Smart Metering Entity Charge, which were announced on March 1, 2018. |
May 21, 2017 | The OEB has established a new requirement intended to address issues with account balances in distributors’ RSVA Power (1588) and Global Adjustment (1589) variance accounts that result from the RPP settlement claims process with the IESO. |
February 9, 2016 | The OEB has established a deferral account for electricity distributors and transmitters to record any material differences between OEB cost assessments currently built into rates, and cost assessments that will result from the application of the new cost assessment model effective April 1, 2016. |
Archive - Smart Meter Related Guidance
Date | Issue/Document |
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January 16, 2007 | The OEB has approved the use of a new account to record the stranded costs associated with conventional or accumulation meters removed at the time of installation of smart meters. Distributors will report the stranded meter costs in a new sub-account: Smart Meter Capital and Recovery Offset Variance Account 1555, sub-account Stranded Meter Costs. |
June 13, 2006 | The OEB has identified the USoA accounts approved for smart meters and low voltage or wheeling charges arising from the OEB's 2006 EDR decision on common or generic issues (RP-2005-0020/EB-2005-0529). |
Other Archived Documents
Date | Issue/Document |
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October 31, 2017 | Accounting guidance issued related to the implementation of the Fair Hydro Act, 2017. |
July 18, 2017 | Accounting guidance on a new sub-account of the LRAM Variance Account (Account 1568-0001). |
April 23, 2010 | The OEB has authorized Account 1521, Special Purpose Charge Assessment Variance Account for Ministry of Energy and Infrastructure Conservation and Renewable Energy Program Costs. |
September 15, 2009 | This document sets out a regulatory framework for the regulatory and accounting requirements for electricity distributors that own and operate distributor-owned generation facilities. |
February 15, 2005 | Accounting guidance regarding: |
December 20, 2004 | The OEB has established a deferral account for all electricity distributors to record the OEB costs assessments for the OEB's fiscal year 2004 and subsequent fiscal year(s) in order that these costs may be given consideration for rate recovery in the future. |
October 29, 2004 | OEB letter to provide LDCs with information concerning the deferral account established to record the costs of their conservation and demand management activities and investment expenditures, and related revenues (i.e., the third tranche of market adjusted revenue requirement or MARR). The OEB has authorized Account 1565, Conservation and Demand Management Expenditures and Recoveries for the purposes of this initiative. |
Accounting Orders
Related Documents
Date | Issue/Document |
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October 31, 2024 | Accounting Orders for the establishment of new accounts in respect of the deemed long-term debt rate (DLTDR) and return on equity (ROE). |
July 26, 2024 | Accounting Order for the establishment of a new account in respect of the deemed short-term debt rate (DSTDR). |
February 12, 2024 | Accounting Orders for the establishment of two deferral accounts intended to facilitate the implementation of the changes to the LEAP EFA by electricity and gas distributors. |
November 2, 2023 | Accounting order for the establishment of a deferral account to record incremental cloud computing arrangement implementation costs. |
October 31, 2023 | Accounting Order for the establishment of the Getting Ontario Connected Act Variance Account to track incremental costs of locates in 2023 and future years arising from the implementation of recent provincial legislation: Bill 93 (the Getting Ontario Connected Act, 2022). |
March 2, 2023 | Accounting order issued for the establishment of a generic deferral account for distributors to track the revenue requirement impacts of their material costs of implementing the ULO option. |
July 7, 2022 | Accounting order issued for the establishment of a generic deferral account for rate regulated distributors to record the incremental impacts associated with carrying out activities pertaining to designated broadband projects. |
November 1, 2021 | Accounting order issued for the establishment of a generic deferral account for rate regulated distributors to record the incremental costs directly attributable to the implementation of the Green Button initiative, in a manner that accords with the requirements set out in the Green Button Regulation. |
May 28, 2021 | Accounting order issued for the establishment of a new deferral account for electricity distributors involved in the IESO's Local Initiatives Program (LIP) to track incremental costs. |
February 10, 2021 | Accounting order issued for rate-regulated electricity distributors to establish a new deferral account called Accounts Receivable for Financial Assistance and to provide supplementary accounting guidance for the Ontario Electricity Rebate (OER). |
September 16, 2020 | Accounting order issued for the establishment of a deferral account for rate-regulated electricity distributors to record incremental costs directly attributable to the customer choice initiative. |
Covid-19 Emergency Related Documents
Related Documents
Date | Issue/Document |
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June 17, 2021 | The report of regulatory treatment on impacts arising from Covid-19 Emergency. |
December 23, 2020 | Accounting guidance issued to electricity distributors regarding the recovery of the Global Adjustment (GA) charges that were previously deferred for the months of April, May and June 2020 for Class A customers and Class B customers that are not on the Regulated Price Plan (RPP). |
August 14, 2020 | Accounting order issued to establish a new sub-account: Impacts Arising from the COVID-19 Emergency, Sub-account Bad Debt. |
August 6, 2020 | Accounting order for the establishment of a sub-account named "Impacts Arising from the COVID-19 Emergency - Sub-account Forgone Revenues from Postponing Rate Implementation. |
May 26, 2020 | Accounting Guidance on the implementation of the May 1, 2020 Emergency Order under which a portion of the Global Adjustment (GA) is being deferred for Class A customers and Class B customers that are not on the Regulated Price Plan (RPP). |
April 29, 2020 | Accounting order to establish a deferral account to record impacts arising from the COVID-19 emergency for OPG and electricity transmitters. |
April 2, 2020 | Further clarification and guidance provided relating to the impacts of the emergency TOU prices on RPP settlements to address distributors’ inquiries since the issuance of the March 24, 2020 letter. |
March 25, 2020 | Accounting order issued for the establishment of Account 1509, Impacts Arising from the COVID-19 Emergency and three sub-accounts for electricity distributors. Natural gas distributors may establish new sub-accounts under Account 179. |
IFRS Related Consultation and Guidance
Beginning in December 2008, the OEB initiated a series of consultations to develop policy and provide guidance regarding the transition to IFRS. The adoption of International Financial Reporting Standards (IFRS) January 1, 2012 (with comparative figures for 2010) raises certain regulatory accounting issues. These are discussed here.
Related Documents
Date | Issue/Document |
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June 13, 2011 | The OEB issued an Addendum to Report of the OEB: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment. The Addendum sets out regulatory policy for the transition to IFRS for utility rates rebased using a cost of service methodology and subsequently set using an incentive rate-setting mechanism. |
November 8, 2010 | The OEB issued an amendment to its Report on Transition to IFRS (originally issued Jul 28-09) to reflect the Canadian Accounting Standards Board pronouncement allowing the option to delay transition to IFRS to January 1, 2012.
Note: Amendment made only in Appendix B of original Report of the OEB of July 28, 2009.
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July 8, 2010 | The OEB has issued a depreciation study prepared by Kinectrics Inc. to assist electricity distributors in Ontario in their transition to International Financial Reporting Standards. |
July 28, 2009 | OEB Report on transition to International Financial Reporting Standards (IFRS) in recognition of the fact that Canadian Generally Accepted Accounting Principles will transition to IFRS applicable to most utilities regulated by the OEB effective January 1, 2011. |
Archived Documents
Date | Issue/Document |
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June 25, 2013 | OEB letter to inform electricity distributors of accounting policy changes to Accounts 1575 and 1576 with respect to the disposition of these account balances effective for the 2014 cost of service rate applications and subsequent rate years. |
July 17, 2012 | Accounting guidance permitting electricity distributors electing to remain on CGAAP in 2012 to implement regulatory accounting changes for depreciation expense and capitalization policies effective on January 1, 2012. These changes are mandatory in 2013 for all distributors that have not yet made these changes. Account 1576 is created for distributors to record the financial differences arising from these accounting changes. |
April 30, 2012 | The OEB issued a letter providing guidance for all electricity utilities regarding the impact of the decision by the Canadian Accounting Standards Board (the “AcSB”) to defer the mandatory changeover to International Financial Reporting Standards (“IFRS”) to January 1, 2013. |
March 31, 2011 | The OEB posted a staff Discussion Paper on the Transition to IFRS – Implementation in an IRM Environment. |
March 15, 2011 | OEB letter further amending Section 9.1.2 of its Report on Transition to IFRS (originally issued Jul-28-09) to advise electricity distributors regarding the use of IFRS in filing cost of service applications for rates for 2012. |
April 30, 2010 | OEB draft report of Kinectrics Inc., Asset Amortization Study for the Ontario Energy Board, in relation to electricity distributors for comment to assist Kinectrics Inc. in finalizing their report. |
February 24, 2010 | OEB letter clarifying “Accounting for Overhead Costs Associated with Capital Work” to assist utilities with their transition to IFRS. |
Other Accounting Guidance Related Letters
Archive
Date | Issue/Document |
---|---|
June 29, 2017 | Accounting Guidance on the implementation of the Fair Hydro Act, 2017. |
February 9, 2017 | OEB letter to provide direction to licensees regarding implementation issues related to the Ontario Rebate for Electricity Consumers Act (2016). |
February 20, 2006 | The OEB has established the rate of interest to be used for calculating carry charges in the deferral account (1508 - Other Regulatory Assets - Sub-account Pension Contributions) in 2005. |
Archive - WMS Charge Type Listing
Date | Issue/Document |
---|---|
June 4, 2015 | The OEB has updated the list of Independent Electricity System Operator (IESO) wholesale market service (WMS) charge codes that apply to Account 4708, WMS – Charges. |
December 23, 2008 | The OEB has updated the list of Independent Electricity System Operator (IESO) wholesale market service (WMS) charge codes that apply to Account 4708, WMS – Charges. |
June 1, 2006 | The OEB has approved Account 4708, Charges WMS, for the classification and recording of two new WMS charge types (186 and 1188) resulting from the Day-Ahead Commitment Process (DACP) in the IESO-administered wholesale market, effective June 1, 2006. Charge types 703 Rural and Remote Settlement Credit and 704 Credit OPA Administration Credit have been removed. |
December 2, 2005 | OEB letter re. the revisions made to the classifications of the Independent Electricity System Operator (IESO) WMS (Wholesale Market Services) charge types in the Uniform System of Accounts (USoA) accounts.
The revised classifications for recording WMS charges in accounts 4708, Charges WMS and 4712, WMS Charges – One-Time, will be effective from January 1, 2006. These changes will also impact the account balances related to the RSVA-WMS accounts 1580 and 1582.
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