2020 electricity distribution rate applications

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.

• Decision and Order

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.

• Cover letter
• Decision and Rate Order

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

• Decision and Order

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.

• Decision and Order

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.

• Forgone Revenue Guidance
• COVID-19 Forgone Revenue Rate Rider Model (.xlsb) - updated Aug 21-20
• Accounting Order

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.

• Letter
• Letter re: Initial Implementation Guidance to Incentive Rate-setting Decisions for May 1, 2020 Rates for Postponing Distributors - issued Apr 17-20

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

• Letter

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.

• Letter
• Cost of Capital Parameter Updates (May 1, 2010 to Jan 1, 2020)

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:
     

• GDP-IPI (FDD): Statistics Canada, Table 380-0066 - Price Indexes, gross domestic product, quarterly (2012 = 100 unless otherwise noted) - 2019 Q2, issued August 31, 2019, (data accessed September 13, 2019)
• Average Weekly Earnings (AWE): 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), issued March 31, 2019, (data accessed September 13, 2019)

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.

• GA and 1595 Presentation
• CDM and LRAM Changes Presentation
• Q&As - posted Aug 7-19

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.

• Agenda and Presentations
• Q&As

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:

• 2020 COS Checklist
• Chapter 2 Appendices (2020 Cost of Service Applications) (.xlsm) 
• Income Tax/PILs Workform (.xlsm)
• Cost Allocation Model (.xlsm)
• Deferral and Variance Account (Continuity Schedule) Workform (.xlsm) - posted Aug 14-19
• Pole Attachment Workform (.xlsx)
• Cost Allocation Model (.xlsm) - posted Aug 1-19
  • Outline of changes made to Cost Allocation Model (.pdf) - posted Aug 1-19

Applicable to both Cost of Service and IRM:

• Lost Revenue Adjustment Mechanism Variance Account (LRAMVA) Workform (.xlsx)
• GA Analysis Workform (.xlsb)
• GA Analysis Workform Instructions (.docx)
• Capital Module Applicable to ACM and ICM (.xlsm) - posted Aug 1-19

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.

• Cover Letter for Addendum to Chapters 1, 2, 3 and 5
• Addendum to Chapters 1, 2, 3 and 5

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:

• Chapter 5 Appendix (2020 Cost of Service Applications) (.xlsm)
• Revenue Requirement Work Form (RRWF) (.xlsm)
• 2020 RTSR Workform for Electricity Distributors (.xlsm) - updated Aug 8-19
• Tariff Schedule and Bill Impacts Model (.xlsm)
• Benchmarking Spreadsheet Forecast Model (.xlsx) - posted Nov 7-19

IRM Models:

• 2020 IRM Checklist (.xlsx) - posted Jul 16-19
• 2020 IRM Rate Generator (.xlsb) - updated Aug 8-19
• 2020 Revenue to Cost Ratio Adjustment Model (.xlsm)

Applicable to both Cost of Service and IRM:

• Account 1595 Analysis Workform (.xlsb)

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.

• Letter