Share on LinkedInShare on LinkedIn

ARTICLE · 25 JUNE 2015

OEB Reduces Working Capital Allowance For LDCs

Aird & Berlis LLP
Explore more from Aird & Berlis LLP

A recent letter from the OEB updated the policy for calculating the allowance for working capital in electricity distributors' rate applications.

CanadaEnergy and Natural Resources
David Stevens
David Stevens
Author LinkedIn connections

A recent letter from the OEB updated the policy for calculating the allowance for working capital in electricity distributors' rate applications. Effective immediately, the assumed (default) allowance for working capital is set at 7.5% of the sum of the cost of power and operations & maintenance costs. This is a significant decrease from the prior default level of 13%.

Under the new policy, the default allowance for working capital of 7.5% will be deemed to apply, unless a distributor requests approval of a distributor-specific working capital allowance, supported by appropriate evidence. That evidence would likely include a lead-lag study, indicating an actual working capital cost that is different from (higher than) the default allowance.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Powering Up: Grid Access, Strategic Screening And Canada’s Emerging Data Centre Regimes

Canada is rapidly becoming a key destination for data centre investment, fueled by artificial intelligence and cloud computing growth. However, this expansion places unprecedented demands on electricity grids, water resources, and local communities. As federal and provincial governments introduce new frameworks to manage these resource challenges, developers and investors must navigate an increasingly complex landscape where power strategy...
CanadaEnergy and Natural Resources
McMillan LLP
McMillan LLP
Article

Data Centre West 2026: Alberta's Digital Infrastructure Moment Has Arrived

Alberta's data centre sector has evolved from speculative interest into billions in committed investment, supported by a new regulatory framework and hyperscale commitments from Meta and AWS. However, grid capacity constraints, power procurement challenges, unresolved federal copyright issues affecting AI training workloads, and community concerns about environmental impacts present significant obstacles that require continued collaboration between industry, government, and regulators.
CanadaEnergy and Natural Resources
Bennett Jones LLP
Bennett Jones LLP
Article

Government Of Canada Makes Significant Changes To Energy Project Approvals Process

On September 3, the Government of Canada published amendments removing seven types of energy projects from the Physical Activities Regulations (the Project List) under the Impact Assessment Act (IAA). As a result, these types of projects will no longer be subject to the IAA but will continue to be regulated by the Canada Energy Regulator Act (CER Act) or applicable provincial environmental assessment regimes.
CanadaEnergy and Natural Resources
Torys
Torys
Article

Government Of Canada Reduces The Scope Of The Project List Under The Impact Assessment Act

The Government of Canada has amended the Physical Activities Regulations, removing certain intraprovincial energy projects and facilities regulated by the Canada Energy Regulator from the federal Impact Assessment Act's Project List. This regulatory change eliminates automatic federal oversight for fossil fuel-fired power plants and specific oil sands facilities, while transferring assessment responsibilities for interprovincial pipelines and transmission lines to the Canada Energy Regulator, potentially re
CanadaEnergy and Natural Resources
Bennett Jones LLP
Bennett Jones LLP
Article

AI Data Centres In Canada: Legal And Regulatory Considerations For Developers And Investors Looking To Build

Developing AI data centres in Canada requires navigating complex corporate structuring, financing arrangements, regulatory approvals, energy supply agreements, real estate considerations, environmental permitting, and stakeholder engagement across multiple jurisdictions. This comprehensive guide examines the legal and regulatory frameworks governing the physical infrastructure side of data centre development, from site selection and power procurement to Indigenous consultation and municipal approvals.
CanadaEnergy and Natural Resources
MLT Aikins LLP
MLT Aikins LLP
Article

New Churchill Falls Agreement: Key Terms For Newfoundland And Labrador, Québec And Canadian Power Markets

Newfoundland and Labrador's House of Assembly has approved a landmark definitive cooperation and implementation agreement that would replace the 1969 Churchill Falls Power Contract, pair the redevelopment of Churchill Falls with the Gull Island project, and establish new transmission pathways through Québec. The agreement faces political uncertainty in Québec ahead of the October 2026 provincial election...
CanadaEnergy and Natural Resources
Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
Article

Canada’s 2026 AI Strategy: What Businesses Need To Know

Canada's National Artificial Intelligence Strategy marks a significant shift in federal AI policy, moving away from standalone legislation toward a comprehensive framework that emphasizes privacy reform, data sovereignty, and business adoption. The Strategy outlines six interconnected pillars designed to position Canada as a global AI leader while addressing regulatory gaps through existing legal frameworks and new policy tools.
CanadaTechnology
Aird & Berlis LLP
Aird & Berlis LLP
Article

Expanding Into Canada: The Comprehensive And Progressive Agreement For Trans-Pacific Partnership Considerations

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) represents a transformative opportunity for Canada-Japan trade relations, with Japanese foreign direct investment in Canada reaching $54.8 billion as of 2025. This free trade agreement between Canada and 11 Pacific economies eliminates customs duties and streamlines market entry processes, creating significant advantages for international businesses seeking to expand into the Canadian market.
CanadaInternational Law
Aird & Berlis LLP
Aird & Berlis LLP
Article

Powering Intelligence: Secured Lending In The AI Infrastructure Economy

As artificial intelligence adoption surges across Canadian enterprises—from 6.1% to 19.2% in just two years—the infrastructure demands are creating unprecedented opportunities in AI data centre development. Meta's $13-billion Alberta facility signals Canada's emergence as a major player, but what legal and commercial complexities must lenders, sponsors and investors navigate in this capital-intensive asset class?
CanadaFinance and Banking
Aird & Berlis LLP
Aird & Berlis LLP
Article

Suspending A Suspension: FIFA's Disciplinary Committee Suspends Implementation Of Folarin Balogun's Red Card

FIFA's Disciplinary Committee suspended the implementation of U.S. Men's National Team player Folarin Balogun's one-match suspension following a controversial red card, allowing him to play in a crucial World Cup Round of 16 match. The decision has sparked intense debate about FIFA's disciplinary framework, the scope of its discretion under the FIFA Disciplinary Code, and the administration of justice in high-profile international competitions.
United StatesMedia, Telecoms, IT, Entertainment
Aird & Berlis LLP
Aird & Berlis LLP