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ARTICLE · 29 MAY 2008

Ontario Energy Board Can Depart From Traditional Rate Making Principles

Blake, Cassels & Graydon LLP
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On May 16, 2008, the Ontario Divisional Court issued a decision which should be of great interest to companies involved in the distribution of natural gas and electricity who must obtain regulatory approval for their distribution rates.

CanadaEnergy and Natural Resources
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Energy - Regulatory, May 2008

On May 16, 2008, the Ontario Divisional Court issued a decision which should be of great interest to companies involved in the distribution of natural gas and electricity who must obtain regulatory approval for their distribution rates.

The court held that the Ontario Energy Board (the OEB) does have the authority to set lower rates for the distribution of natural gas to low income consumers even though such a program would necessarily result in higher prices for the majority of residential consumers, and even though it would be a departure from the traditional model of rate making based on cost causality and cost of service.

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