Changes To OEB Cost Allocation Policy For Street Lighting

On June 12, 2015, the OEB issued a letter setting out a new policy for allocation of street lighting costs. The implication of the new policy is that the costs allocated to some street lighting customers will be significantly reduced (as will their rates). The policy change will primarily impact street lighting customers whose street lights have a high ratio of connections to the distribution system. Under the new policy, if street lights are generally connected individually or in small clusters of three or less to the distribution system, then the costs allocated will be reduced from the current approach. There will be little impact on street lighting customers where their street lights are connected in series, in a sort of "daisy-chain" configuration where there are many street lights per connection.