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ARTICLE · 13 AUGUST 2015

OEB Issues Updated Filing Requirements For Electricity Rate Applications

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On July 16, 2015, the OEB issued a letter explaining updated filing requirements for 2016 Incentive Rate Mechanism (IRM) Distribution Rate Applications.

CanadaEnergy and Natural Resources
David Stevens
David Stevens
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On July 16, 2015, the OEB issued a letter explaining updated filing requirements for 2016 Incentive Rate Mechanism (IRM) Distribution Rate Applications. The letter sets out how a number of previously-announced changes will be implemented.

These are some of the significant items included in the update filing requirements:

  • The first step in the move to fully fixed residential distribution rates (which we discussed in a previous post) will be implemented in 2016 rate applications. The OEB issued a separate letter on July 16, 2015, explaining how this change will be effected.
  • Distributors will be required to use the updated default working capital allowance of 7.5% in place of the previous 13%, unless the distributor requests approval for a different distributor-specific allowance, which must be supported by a lead-lag study or other appropriate evidence. This change was discussed in a previous post.

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