OEB Issues Decision on 2008 Electricity Distribution Rate

Tag : Energy Power Meter
Today the Ontario Energy Board (the Board) issued itsDecision on an application by Brantford Power Inc (Brantford) for2008 electricity distribution rates. New rates will take effect thedate the final Rate Order is issued.
Distribution rates are set to recover the cost to deliverelectricity to consumers and reflect an individual utility's costof service. Utilities apply to have their proposed rates to deliverelectricity reviewed by the Board through a public process todetermine what costs can be passed on to consumers. Distributionrates are reflected in the "Delivery" line of consumers'bills.
In 2008, distribution rates will be set using two differentmethodologies. Most utilities will have their rates set usingincentive regulation guidelines which provide a standard rateadjustment that accounts for inflation and productivityimprovements. Others will have their rates set by way of a cost ofservice review, in which the utility applies for rates based on thecosts it incurs to deliver electricity.
For the rate year which starts on May 1, 2008 , 21 utilities are having their 2008 rates set by way of a cost ofservice rate review. 60 utilities are having their 2008 rates setusing the Board's incentive regulation guidelines. Brantford hadits rates set by way of a cost of service review.
The Board directed Brantford to file a draft rate order, reflectingthe findings in this Decision, and a schedule of proposed finaldistribution rates for 2008.
Bill impacts resulting from 2008 distribution rate decisions willbe announced in the coming weeks after the utilities have submitteddraft rate schedules to the Board reflecting today's decision. TheBoard will announce the rate impacts when it approves and issuesfinal rate orders to the utilities.
A table of the estimated bill impacts on residential consumers willbe available once any potential adjustments to the RPP aredetermined and as specific rate orders for individual utilities areissued by the Board.