Rate Design for Recovery of Electricity Distribution Costs (EB-2007-0031)

One of the rate-setting initiatives set out in the Ontario Energy Board's business plan is a comprehensive electricity distribution rate design review. This review is intended to consider the need for, and approaches to, changes to distribution rate design in light of industry changes and emerging issues. These include the commercialization of electricity distributors, developments in metering and increased distributed generation and conservation and demand management activities, among others.

This project is intended to culminate in issuance by the Board, in 2008, of a policy framework for electricity distribution rate design. Models of options would then be undertaken in 2009. Any rate design changes resulting from this work would, in turn, be used in setting rates in the future.

The steps in the consultation leading up to the determination of that policy framework may evolve over time. Currently, the expectation is as follows:

Board staff will meet with interested parties for a series of consultation meetings in relation to their comments on the staff Discussion Paper and other issues;
Board staff will commission a consultant to provide expert advice on rate design matters that are in scope for this project, including a consideration of relevant experience in other jurisdictions; and
The consultant's information and the input from the consultation meetings will result in a further staff Discussion Paper containing rate design recommendations. That paper will be issued for review and comment by interested parties.

Consultation Meetings

Date	Document
Jan 16-08	Agenda Presentations Summary of Issues Update of Environmental Scan Meeting Notes
Dec 12-07	Presentations: Jurisdictional Review Summary of Issues and Options Agenda Stakeholder provided comment on billing Meeting Notes
Oct 17-07	Presentations: Context of the Rate Design Review Electricity Distributor Rate Design - Phase 2 Agenda Meeting Notes
Oct 5-07	The Board invited stakeholders to a consultation meeting on October 17. Letter

Documents

Date	Document

Jun 6-08	Comments received on the staff discussion paper: AMPCO BOMA CME Coalition of Large Distributors ECMI EDA EECI FOCA GEC HONI LPMA Rogers SEC VECC
Mar 31-08	The Board invites comments on a staff discussion paper on rate design issues and options. Letter including filing instructions and cost eligibility Executive Summary Staff Discussion Paper (revised June 6, 2008) Survey of Other Jurisdictions Errata sheet to March 28
Jan 29-08	The Board notified participants in the Distributed Generation – Rates and Connection, Rate Design for Electricity Distributors, and Transmission Connection Cost Responsibility Review consultations of its intention to launch a consultation on distribution connection cost responsibility in 2008 and of the implications of this new initiative for the scope of the existing consultations. Streamlining of Issues
May 18-07	The Board posted submissions received from stakeholders in response to the Staff Discussion Paper on Rate Design for Electricity Distributors. BOMA Coalition of Large Distributors ECMI Electricity Distributors Association Energy Probe FOCA Green Energy Coalition Grimsby Power Incorporated Hydro One Networks LIEN London Hydro London Property Management Association Ontario Power Authority Pollution Probe Power Workers' Union Rogers Cable School Energy Coalition VECC Waterloo North Hydro
Mar 30-07	The Board invites stakeholders to participate in a multi-year key initiative on Rate Design for Electricity Distributors. The first stage is a Staff Discussion Paper for comment. Board letter - Participation and Comment Submissions Staff Discussion Paper

Cost Eligibility and Awards

Date	Document

Aug 12-08	Cost eligibility for LIEN: Letter
Aug 7-08	The Board issued a decision in the award of costs to eligible parties for Phase 2 of the project. Decision and Order on Cost Awards
Jul 7-08	The Board issued a Notice of Written Hearing regarding cost awards for eligible parties for phase 2. Notice of Written Hearing
Apr 9-08	The Board has determined that CME is eligible for an award of costs in this consultation, subject to any objections that may be received from licensed electricity distributors. Determination of the Board Canadian Manufacturers & Exporters
Nov 28-07	The Board has issued Decisions on: Cost Awards for stage 1 of the consultations Cost Eligibility for AMPCO
Nov 1-07	Letter to distributors on request for cost eligibility by AMPCO. Letter
Nov 1-07	The Board released a decision on the Cost Eligibility of OSEA. Decision
Oct 12-07	The Board informed stakeholders that costs will be available for the Phase 2 consultation process. Letter
Oct 2-07	Notice of Written Hearing on Cost Awards for Phase 1. Notice
Oct 2-07	Letter to Distributors on cost eligibility for OSEA. Letter
Aug 14-07	Today, the Board issued a follow up to its July 3rd, 2007 decision on cost eligibility for stakeholders of the Rate Design for Electricity Distributors project. Decision on cost eligibility
Jul 3-07	The Board's Decision on cost award eligibility. Decision
Apr 13-07	The Board has posted requests for cost eligibility in relation to the Rate Design for Electricity Distributors initiative. AMPCO Building Owners and Managers Association of Greater Toronto Canadian Manufactures & Exporters Consumer Council of Canada Electricity Distributors Association Energy Probe Research Foundation Federation of Ontario Cottagers' Association Inc. Green Energy Coalition London Property Management Association Low-Income Energy Network Low-Income Energy Network (July 25, 2008) Mindscape Innovations Ontario Sustainable Energy Association Pollution Probe School Energy Coalition Vulnerable Energy Consumers Coalition

CONTACT

For more information please contact Laurie Reid at 416-440-7623 or by e-mail at laurie.reid@oeb.gov.on.ca.