2017 electricity distribution rate applications

The OEB issued its Decision and Order on the Green Energy Plan Electricity Rate Protection Benefit and Charge (Ontario Regulation 330/09), effective May 1, 2017.

• Decision and Order

The OEB has issued an Order for OESP Credits to all licensed electricity distributors.

• Order for OESP Credits (pdf)

The OEB has issued a Decision and Order that rescinds the OESP charge as of May 1, 2017 and until further notice.

• Decision and Order

Dec 21-16

The OEB has issued an Order for OESP Credits. The OESP credits will remain at the current level for January 1, 2017.

• Order for OESP Credits
• OESP Credits

Dec 15-16

The OEB has issued a Decision and Order setting regulatory charges effective January 1, 2017, including the charge for the Ontario Electricity Support Program.

• Decision and Order 

The OEB has issued a letter re: Review of Fixed Monthly Charge for microFIT Generator Service Classification.

• Letter

Oct 27-16

The OEB has issued a letter which sets out the Cost of Capital Parameter Updates for Cost of Service Applications with Rates effective in 2017.

• Letter
• Cost of Capital Parameter Updates (May 1, 2010 to Jan 1, 2017)

Oct 27-16

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 2017, to be 1.9%. The derivation of this is shown in the following table. The OEB will adjust the price escalator in each applicable electricity distributor's 2017 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 2017.
Click here for table

Sources:

• GDP-IPI (FDD): Statistics Canada, Table 380-0066 - Price Indexes, gross domestic product, quarterly (2007 = 100 unless otherwise noted) - 2015 Q2, issued August 31, 2016
• Average Weekly Earnings: Statistics Canada, Table 281-0027 - Average weekly earnings (SEPH), by type of employee for selected industries classified using the North American Industry Classification System (NAICS), annual (current dollars), industrial aggregate excluding unclassified businesses

Data accessed August 31, 2016

Aug 23-16

The OEB has posted an updated version of the Tariff Schedule and Bill Impacts Model (Version 1.02) below (under the Jul 8-16 entry). This model is applicable to 2017 cost of service applications. The model fixes the following:

• Treatment of classes coming after Standby Rate or microFIT class specification
• Several corrections on sheet 5, allowing for 20 extra scenarios and fixing some errors in reading rates from Tab 4.2-TS Tariff Schedule
• Ensured that the bill impacts calculations align with those used in the IRM model
• Corrected range on drop-down list on sheet 1 so that all distributors are listed.

Users are reminded to follow the posted instructions. Also, entries on the model should be keyed – rates entered as numbers, rather than linking cells to other models.

Enquires should be addressed through the OEB’s Industry Relations Enquiry form.

Aug 4-16

The OEB has issued updated Revenue Requirement Work Form (RRWF) and the Lost Revenue Adjustment Mechanism Variance Account (LRAM) models. These models reflect feedback received at and subsequent to the July 28, 2016 Orientation session. The updated models can be accessed through the links on the Jul-8-16 entry below.

The RRWF has been updated to correct certain cell formulae on Sheet 11 – Cost Allocation pertaining to row 51. The corrections affect presentation of certain information, but do not affect the calculations of the revenue requirement through to rates on the RRWF. For utility staff who have already populated Version 7.01 of the RRWF, you may wish to contact OEB staff to make the necessary changes.

For the LRAMVA, Tab 3: Distribution Rates has been updated for the example rate years, and a comment added to indicate that LDCs can adjust the rate class-specific LRAMVA threshold amounts to align with any approved amounts that may be found in a Settlement Agreement.

Jul  26-16

The OEB is holding an orientation session on July 28th for electricity distributors that will file a cost of service or custom IR application for 2017 – January 2018. The session materials are below:

• Agenda
• Presentations

Jul 26-16

The OEB has posted the 2017 Revenue to Cost Ratio Adjustment Model.

• 2017 Revenue to Cost Ratio Adjustment Model (.xlsm)

Jul 25-16

The OEB has posted an update to the Income Tax/PILs Work Form applicable for 2017 Cost of Service applications. This corrects calculations of CEC. The OEB has also posted the Checklist applicable to 2017 Cost of Service applications. The OEB has also posted an updated version of the LRAMVA Work Form to correct certain formulae and to provide additional guidance on how the spreadsheets should be filled out. Links to these spreadsheets are posted under the Jul 8-16 entry below.

Jul 21-16

The OEB has posted the following updated models related to 2017 Cost of Service applications: RRWF Version 7.01, PILs Model Version 1.01, Chapter 2 Appendices Version 2.301, Deferral and Variance Account (DVA) Continuity Model Version 2.8, Cost Allocation Model Version 3.4. These correct minor errors based on testing and feedback received. For the Chapter 2 Appendices, only Appendix 2-IB has been updated. The updated models are accessible through the links under the Jul 8-16 entry.

Jul 21-16

The OEB has posted the 2017 IRM Rate Generator Model.

• 2017 IRM Rate Generator – version 1.3 (.xlsm) - updated on August 25, 2016
• 2017 IRM Webinar - held on July 26, 2016

Jul 14-16

The OEB has issued updated versions of Chapters 1, 2 and 3 of the Filing Requirements for Electricity Distribution Rate Applications for 2017 rates.

• Cover Letter for Chapters 1, 2 and 3 Updates (Jul 14-16)
• Cover Letter for Chapter 5 Updates (Mar 28-13)
• Filing Requirements for Electricity Distribution Rate Applications:
  • Chapter 1 - Overview (Jul 14-16)
  • Chapter 2 - Cost of Service Rate Applications Based on a Forward Test Year (Jul 14-16)
  • Chapter 3 - Incentive Regulation (Jul 14-16)
  • Chapter 5 - Consolidated Distribution System Plan Filing Requirements (Mar 28-13)

Jul 8-16

The OEB has issued versions of the Chapter 2 Appendices and various Models to be used for 2017 Cost of Service Applications. The models are considered final. Queries regarding the models should be sent using the Industry Relations Enquiry form.

Cost of Service Models:

• Benchmarking Spreadsheet Forecast Model 1.2 - posted on August 16, 2016
  • User’s Guide to the Forecast Model - posted on August 16, 2016
• Chapter 2 Appendices (2017 Cost of Service Applications) (.xlsm) - updated on July 21, 2016 
• Revenue Requirement Work Form – Version 7.02 (.xlsm) - updated on August 4, 2016
• Income Tax/PILs Work Form – Version 1.02 (.xlsm) - updated on July 25, 2016
• 2017 RTSR Work Form for Electricity Distributors – Version 1.1 (.xlsm) - updated on July 11, 2016
• Deferral and Variance Account (Continuity Schedule) Work Form – Version 2.7 (.xlsm) - updated on July 21, 2016
• Lost Revenue Adjustment Mechanism Variance Account (LRAMVA) Work Form – Version 1.02 (.xlsx) - updated on August 4, 2016
• Capital Module Applicable to ACM and ICM – Version 3.01 (.xlsm)
• Cost Allocation Model – Version 3.4a (.xlsm) - updated on August 16, 2016
• Tariff Schedule and Bill Impacts Model – Version 1.02 (2017 Cost of Service Applications) (.xlsm) – updated on August 23, 2016
  •   Instructions on the Use of the Tariff Schedule and Bill Impacts Model – posted on August 12, 2016
• Checklist (2017 Cost of Service Applications) (.xlsx) – posted on July 25, 2016 

May 19-16

The OEB has issued a Report that updates the policy related to the Lost Revenue Adjustment Mechanism Variance Account (LRAMVA) calculation and the application of peak demand savings from Conservation and Demand Management (CDM) Programs.

• Letter
• Report of the OEB - Updated Policy for the Lost Revenue Adjustment Mechanism Calculation: Lost Revenues and CDM Program Peak Demand Savings

Dec 29-15

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 2017 and 2018 rates under the Price Cap Incentive Rate-setting method. This letter also sets out the deadlines by which notice must be given to the OEB in respect of various matters relating to the setting of 2017 rates, and by which cost of service applications for 2017 rates are expected to be filed.

• Letter