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Cost Allocation Review (EB-2005-0317)

This initiative will examine the principles, methodologies, filing requirements and model design in respect of new cost allocation studies for electricity distributors. It will also review the need for, and implications of, introducing new rate classifications for scattered unmetered loads, embedded distributors, larger General Service (“GS”) customers, and eliminating the legacy rate classification identified as “Time of Use”.

The review will be conducted in three phases:

In 2006, following stakeholder consultations, the Board will issue a Report adopting common cost allocation principles and methodologies for the OEB cost allocation review. Select rate design priorities will also be addressed in the Report.

Distributors will be required to file updated cost allocation information that will be used by the Board to consider the need for adjustments in the current share of distribution costs paid by various classes of ratepayers. Changes to current monthly service charges and select rate classifications will also be considered by the Board following the analysis of the filings.

The Board will review the results from the updated cost allocation studies filed by the distributors. After considering the filing results and the overall regulatory context, the Board will decide upon the priorities for, and timing of, adjustments to future rates. Certain distributors may then be directed by the Board to address specified matters in future rate applications.

The OEB announced in October 2002 the formation of a Cost Allocation Working Group. The 2002-03 Cost Allocation Working Group primarily focused on the collection of appropriate load data for the development of future cost allocation studies. A report was issued in September of 2003. The Board subsequently issued directions. For more information visit the 2003-03 Cost Allocation (Load Data) Working Group page.


DOCUMENTS

Date

Documents

Dec 8-06

The Board has posted version 1.2 of the Cost Allocation spreadsheet model and “Instructions for CA Model version 1.2”. An easy series of steps will revise version 1.1 to 1.2 without the need to re-input data for those distributors that have used the earlier version.

Nov 24-06

The Board has posted version 1.1 of the Cost Allocation spreadsheet model and “Instructions for CA Model version 1.1”. An easy series of steps will revise version 1.0 to 1.1 without the need to re-input data for those distributors that have used the earlier version.

Nov 15-06

The Board has posted its “Cost Allocation Informational Filing Guidelines for Electricity Distributors”, the associated filing Model and accompanying instructions and examples on its web site for downloading by the distributors. In accordance with a Board Report (EB-2005-0317) dated September 29, 2006, distributors are required to submit their cost allocation filings in accordance with a schedule outlined in the guidelines, as amended by the transmittal letter for the first group of distributors.

Sep 29-06

The Board has issued a report setting out its Directions on cost allocation methodology for electricity distributors.

Aug 28-06

The Board has received the following Stakeholder comments on the Aug 21, 2006 letter asking for further comments on Cost Allocation Review issues.

APPrO • Submission
ECMI • Submission
FOCA • Submission
Green Energy Coalition “GEC” • Submission
Hydro One • Submission
Hydro Ottawa • Submission
VECC • Submission

Aug-21-06

Today the Board posted a letter to all participants in the Cost Allocation Review of electricity rates (EB-2005-0317) requesting further comments on select issues associated with the common cost allocation methodology. Comments are requested by August 30th, 2006.

Aug 15-06

The Board has issued its Cost Awards Decision in respect of Phases 1and 2 of the Cost Allocation Review process.

Aug 15-06

The Board has received the following Stakeholder comments on the July 18, 2006 Staff Proposal regarding Principles and Methodologies for the Cost Allocation Review.

Association of Major Power Consumers in Ontario "AMPCO” • Submission
APPrO • Submission
CCTA • Submission
Energy Cost Management Inc. “ECMI” • Submission
Enersource • Submission
Enwin Power • Submission
Green Energy Coalition “GEC” • Submission
Hydro One Networks • Submission
London Property Management Association “LPMA” • Submission
School Energy Coalition “SEC” • Submission
Vulnerable Energy Consumers Coalition “VECC” • Submission
Veridian • Submission
Waterloo North Hydro • Submission

Jun 28-06

Today the Board has issued for comment the document “Cost Allocation Review: Staff Proposal on Principles and Methodologies”. Interested parties are invited to submit written comments to the Board by July 18, 2006.

Jun 20-06

Further comment from APPrO on Cost Allocation Load Data Requirements:

Jun 8-06

The Board has received the following Stakeholder comments on the May 26, 2006 Staff Proposal regarding Rate Classification and Associated Load Data Requirements.

APPrO • Submission
Brantford Power • Submission
CCTA • Submission
Canadian Advantage • Submission
ECMI • Submission
Hydro One Networks • Submission
Hydro One Remote • Submission
Hydro Ottawa • Submission
Thunder Bay Hydro • Submission
Toronto Hydro • Submission
Waterloo North Hydro • Submission

May 26-06

The Board has issued a Board Staff Proposal regarding Rate Classifications and Associated Load Data Requirements for the Cost Allocation Review. Interested parties are invited to make written comments to the Board by June 6, 2006.

Mar 7-06

The Board has issued today a letter reviewing the major steps each electricity distributor must undertake to obtain the load data inputs required for its upcoming cost allocation study. This communication also includes a Board Load Data Preparation Questionnaire that all LDCs are requested to complete and submit to the Board by March 21, 2006.

Feb 23-06

The Board has issued a notice of hearing for Phase 1 and 2 cost awards in the Cost Allocation Review initiative.

Jan 18-06

Nov 21-05

Nov 2-05

Oct 7-05

The Board has issued its decision in respect of stakeholder cost eligibility in the Cost Allocation Review initiative.

Sep 23-05

Stakeholder comments on the planned scope of consultations for the Cost Allocation Review.

Association of Major Power Consumers in Ontario "AMPCO” • Letter
• Submission
Energy Cost Management Inc. “ECMI” • Submission
Enersource Hydro Mississauga • Submission
Hydro One Networks’ • Submission
PowerStream Inc. • Submission
Vulnerable Energy Consumers Coalition “VECC” • Submission
York Region • Submission

Sep 16-05

Staff’s discussion paper on the Cost Allocation Review for electricity distributors.

Jul 21-05

July 20th stakeholder “kick-off” meeting:

Jul 20-05

The Board letter to licensed electricity distributors and electricity stakeholders regarding comments on cost eligibility.

Jul 20-05

Requests for cost eligibility:

Advocacy Centre for Tenants Ontario “ACTO” • Letter
Association of Major Power Consumers in Ontario “AMPCO” • Letter
• Attachment
Building Owners and Managers Association Of The Greater Toronto Area “BOMA” • Letter
Canadian Manufacturers & Exporters “CME” • Letter
• Request
Consumer Counsel of Canada “CCC” • Letter
Energy Probe Research Foundation • Request
Green Energy Coalition “GEC” • Letter
London Property Management Association “LPMA” • Request
School Energy Coalition “SEC” • Review
Vulnerable Energy Consumers Coalition “VECC” • Request

Jul 13-05

The timing of the submissions on the planned scope of the consultation has been extended.

Jun 24-05

The Board issued a “kick-off” letter outlining the scope, process, timing and objective of the review. Eligibility for stakeholder cost awards is also discussed.

Mar 9-05

The Chair issued a letter to all licensed electricity distributors and electricity stakeholders providing details on future rate setting initiatives.

Nov 10-03

The Board issued Load Data Collection Directions. An accompanying letter deals with the appropriate sharing of load data for cost allocation purposes.

Sep 23-03

 

The 2002-3 Cost Allocation Working Group issued its Reports. The Report focuses on load data collection.



Consultation Process - Next Steps

  • Phase 3 (Implementation Issues):
    • Technical advisory team meetings commence February 12, 2006.
    • 3rd Technical Workshop (Implementation Issues) scheduled March 29-30, 2006.


Contact

For more information please contact John Vrantsidis at 416-440-8122 or by e-mail at CAreview@oeb.gov.on.ca

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