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Posted in: Ratemaking | Ontario | Facilities

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OEB Approves Hydro One's Transmission Revenue Requirement, With Some Changes By David Stevens Oct 02, 2017 On September 28, 2017, the Ontario Energy Board (OEB) released its Decision on Hydro One’s transmission revenue requirement for 2017 and 2018. For the most part, the OEB accepted Hydro One’s forecasts and requests, although there are a number of areas where there are differences.

Posted in: Climate Change / Renewables | Consumer Protection | Ratemaking | Ontario

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Proposed Legislation Would Require Cap and Trade Costs to Be Identified on Ontario Gas Bills By David Stevens Sep 28, 2017 The Transparency in Gas Pricing Act, 2017 passed second reading on September 21, 2017, and has been referred to the Ontario Legislature’s Standing Committee on Finance and Economic Affairs. This proposed legislation, which is sponsored by an opposition party MP, would require that every gas...

Posted in: Ontario | Climate Change / Renewables | Ratemaking | Energy Policy

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OEB Approves Gas Utilities’ 2017 Cap and Trade Compliance Plans By Dennis M. O'Leary Sep 27, 2017 On September 21, 2017, the Ontario Energy Board issued its public and confidential decisions approving the 2017 Cap and Trade Compliance Plans filed by the three Gas Utilities subject to certain minor administrative adjustments. The Board approved the total estimated cost consequences for rate ma...

Posted in: Practice & Procedure | Ratemaking

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OEB Allows Correction of Error From 2011 Rates Proceeding By Fred D. Cass Sep 22, 2017 On September 21, 2017, the Ontario Energy Board issued a decision in which it ordered Natural Resource Gas Limited (NRG) to correct the reference prices used in NRG’s Purchased Gas Transportation Variance Account (PGTVA) for fiscal years 2011 to 2015. NRG records in the PGTVA, on a monthly ...

Posted in: Ratemaking | Ontario

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OEB Releases Final Report on the Treatment of Pension Costs By David Stevens and Dillon Collett Sep 21, 2017 The Ontario Energy Board (OEB) released its Final Report on the Regulatory Treatment of Pension and Other Post-employment Benefits Costs (the Report) on September 14, 2017. The Report establishes the use of the accrual accounting method as the default method that rate-regulated entities must use ...

Posted in: Ratemaking | Practice & Procedure

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Alberta Utilities Commission Comments on Arguments About Information Asymmetry By Fred D. Cass Sep 08, 2017 On August 29, 2017, the Alberta Utilities Commission (AUC) issued a decision on an application by ATCO Pipelines for approval of its 2017-2018 general rate application. The decision addressed many issues, including points of dispute with regard to rate base and operating costs and numerous issues...

Posted in: Ratemaking | Practice & Procedure

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OEB Requires More Detail Regarding Operational Concerns Identified in Settlement Proposal By Fred D. Cass Sep 07, 2017 The OEB issued a decision on August 24, 2017 in which it directed the parties to a Settlement Proposal to make best efforts to revise the Settlement Proposal to provide more information on the nature of operational concerns referred to in it. The decision arose out of a rates application filed by...

Posted in: Ontario | Practice & Procedure | Ratemaking | Energy Policy | Consumer Protection

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Selected Ontario Utilities to Test New Electricity Pricing Options By David Stevens Aug 30, 2017 On August 24, 2017, the Ontario Energy Board (OEB) announced that three Ontario electricity distributors will be implementing new electricity commodity pricing options for consumers who use the “Regulated Price Plan” (RPP). Among other things, the new pricing options will include “enhanced” Time-...

Posted in: Energy Policy | Ratemaking | Alberta

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Alberta Utilities Commission Comments on Deemed and Actual Equity Ratios By Fred D. Cass Aug 03, 2017 On November 30, 2016, ENMAX Power Corporation applied to the Alberta Utilities Commission (AUC) for approval of a deemed equity ratio of 37 per cent for its distribution and transmission functions for 2016 and 2017. In its earlier generic cost of capital decision (Decision 20622-D01-2016), the AU...

Posted in: Utility Mergers | Practice & Procedure | Ontario | Ratemaking

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OEB Adjourns Consideration of Application for Approval to Purchase Orillia Power By Fred D. Cass Aug 02, 2017 On October 11, 2016, Hydro One applied to the Ontario Energy Board for approval to purchase all of the shares of an electricity distributor, Orillia Power Distribution Corporation. In its application (under OEB docket number EB-2016-0276), Hydro One proposed a 1% rate reduction in 2016 base elect...

Posted in: Consumer Protection | Ontario | Ratemaking | Energy Policy

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OEB Announces New Electricity Prices to Reflect the Fair Hydro Plan By David Stevens Jun 23, 2017 On June 22, 2017, the Ontario Energy Board announced new electricity prices that are intended to implement the promised 25% bill reduction from the Ontario Government’s Fair Hydro Plan.1 For most consumers, the impact will be seen in the form of reduced Regulated Price Plan (RPP) electricit...

Posted in: Ontario | Ratemaking | Consumer Protection | Energy Policy

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Regulations Published to Implement Ontario's Fair Hydro Plan By David Stevens Jun 22, 2017 On May 31, 2017, the Ontario Government passed Bill 132, which is intended to implement the Government’s promised Fair Hydro Plan (discussed in earlier posts, here, here and here). The main part of Bill 132 is the Ontario Fair Hydro Plan Act, 2017, which is included as Schedule I and is ref...

Posted in: Consumer Protection | Ratemaking | Ontario

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OEB Expands Rate Review to Include Energy Retailer Service Charges By Stephanie D’Amico and David Stevens Jun 12, 2017 On May 31, 2017, the Ontario Energy Board (OEB) released a letter stating its intention to review and update Energy Retailer Service Charges for both electricity and natural gas distributors. The review is the second phase of a larger initiative undertaken by the OEB to reevaluate misce...

Posted in: Ratemaking | Ontario

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OEB Releases Report on Regulatory Treatment of Pension Costs By Gaurav Gopinath and David Stevens Jun 08, 2017 On May 18, 2017, pursuant to the consultation process initiated two years ago, the Ontario Energy Board (OEB) released its Report on the Regulatory Treatment of Pension and Other Post-employment Benefits (OPEBs) Costs (“the Report”) discussing the method by which r...

Posted in: Energy Policy | Ontario | Ratemaking | Consumer Protection

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Ontario’s Financial Accountability Office Finds That “Fair Hydro Plan” Has a Net Cost of $21 Billion By David Stevens May 25, 2017 On May 24, 2017, Ontario’s Financial Accountability Office (FAO) published its Assessment of the Fiscal Impact of the Province’s Fair Hydro Plan. This Assessment reviews how Ontario’s Fair Hydro Plan (FHP) will impact electricity ratepayers and provincial finances. As set out in...

Posted in: Consumer Protection | Energy Policy | Ontario | Ratemaking

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Recently-Posted OEB Report Supports Elimination of Distribution Charges for On-Reserve First Nations Customers By David Stevens Apr 27, 2017 As we discussed in an earlier post, one element of the Ontario Government’s Fair Hydro Plan proposes the creation of a First Nations On-Reserve Delivery Credit, which will eliminate the delivery charge for all on-reserve First Nations households. An Ontario Energy Board (OEB) Report to the ...

Posted in: Energy Policy | Ontario | Ratemaking | Consumer Protection

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Ontario's Electricity Rates to Go Down in Advance of Implementing the "Fair Hydro Plan" By David Stevens Apr 21, 2017 On April 20, 2017, the Ontario Energy Board (OEB) announced that the electricity supply cost (Regulated Price Plan or RPP) for residential and small business customers will be reduced starting on May 1. As explained in the OEB's Regulated Price Plan Price Report, the reduction in RPP results from...

Posted in: Energy Policy | Ontario | Ratemaking | Consumer Protection

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Regulatory Changes to Support Ontario's Fair Hydro Plan Posted for Comment By David Stevens Mar 30, 2017 Earlier this month, the Ontario Ministry of Energy posted two notices about regulatory amendments being proposed to implement the Fair Hydro Plan announced by Premier Wynne. As we discussed earlier, the Fair Hydro Plan aims to reduce Ontario electricity bills by 25% through a series of measures, ...

Posted in: Ontario | Practice & Procedure | Ratemaking

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Motion Dismissed When Two-Person OEB Panel Does Not Reach Unanimous Decision By David Stevens Mar 28, 2017 On March 23, 2017, the Ontario Energy Board (OEB) released its Decision and Order in a Review Motion that the OEB itself had commenced, indicating that the hearing panel could not reach a unanimous decision. Essentially, the Decision and Order indicated that because the motion was heard by a two-...

Posted in: Energy Policy | Ontario | Ratemaking

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Ontario Announces Fair Hydro Plan to Reduce Electricity Bills By David Stevens Mar 06, 2017 On March 2, 2017, Premier Wynne announced the Fair Hydro Plan that is intended to reduce residential electricity bills in Ontario by 17%. Ontario's government says that when these savings are combined with the removal of the Ontario portion of HST on electricity bills (discussed in an earlier pos...

Posted in: Energy Policy | Ontario | Ratemaking

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Report Finds That Ontario's Time-Of-Use Pricing Shifts Electricity Consumption By David Stevens Feb 28, 2017 A February 2017 report titled "The Impact of Time-Of-Use Rates in Ontario," authored by the Brattle Group (with contributions from Mountain Economic Consulting and eMeter), looks at the impacts of the implementation of time-of-use (TOU) pricing in Ontario. The report (which can be found here) is ...

Posted in: Ontario | Practice & Procedure | Ratemaking | Consumer Protection

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Ontario's Minister of Energy Asks LDCs to Stop Winter Disconnections By David Stevens Feb 17, 2017 On February 16, 2017, Glenn Thibeault (Ontario's Minister of Energy) sent a letter to Ontario's local electricity distribution companies (LDCs) requesting that they voluntarily stop disconnecting customers during the winter season. According to news reports (see here, for example), the Minister h...

Posted in: Energy Policy | Ontario | Ratemaking | Consumer Protection

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Implementation Details for Ontario's 8% Electricity Rebate Announced By David Stevens Feb 13, 2017 On February 9, 2017, the Ontario Energy Board issued a letter titled Implementation of the Ontario Rebate for Electricity Consumers. As we described in an earlier post, starting on January 1, 2017, the Ontario Rebate for Electricity Consumers (OREC) provides an 8% rebate (equal to the provincial ...

Posted in: Energy Policy | Ontario | Ratemaking | Facilities

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Ontario Announces Expanded Natural Gas Grant Program By David Stevens Jan 31, 2017 On January 30, 2017, Ontario's Minister of Infrastructure announced that the Province will provide $100 million for a Natural Gas Grant Program. The stated purpose of the program is to support the building of new natural gas infrastructure for communities without service, including those in rural...
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