Energy Regulatory Update (Q3, 2023)

Ontario Energy Board

The OEB released several notable decisions over the past few months, including:

• Granting substantially reduced Incremental Capital Module (ICM) funding for Elexicon Energy related to a proposed community-wide smart grid project, and denying various exemptions to the Distribution System Code and ICM funding to construct new feeders for a planned Whitby area sub-division.
• Approving the partial Settlement Proposal in Phase 1 of the Enbridge Gas 2024-2028 rates application (An 18-day oral hearing was held in the summer regarding the unsettled Phase 1 issues).
• Disallowing approximately 9% of the amount Synergy North sought to recover retroactively related to certain previously disposed commodity pass-through accounts.
• Approval of the Settlement Proposal regarding IESO’s 2023-2025 Fees.

The OEB launched a number of consultations that will:

• Review and update the OEB’s Handbook to Electricity Distributor and Transmission Consolidations (MAADs Handbook).
• Develop a Benefit-Cost Analysis (BCA) framework for addressing electricity system needs. 
• Rationalize the regulatory requirements for very small electricity distributors (<5000 customers) cost of service applications.
• Develop a policy on standby rates.

OEB Staff issued a Bulletin providing guidance to electricity distributors regarding the residential customer Basic Connections, and Distribution Service Code requirements in relation to subdivision connections and service upgrades.

The OEB issued a letter summarizing its recent guidance and resources available to electricity distributors regarding planning for electric vehicle (EV) integration.

Last quarter, the OEB completed implementing recommendations made by the Regional Planning Process Advisory Group’s Report to the OEB, by:

• Issuing final amendments to the Transmission System Code and Distribution System Code, meant to ensure that cost-effective investments are made when major transmission assets reach end of life and need to be replaced.
• Amending the IESO’s license to implement changes to the regional planning process, such that when there is a material change as part of Regional Infrastructure Plan process, there is a return to the IRPP process (on an expedited basis).

The OEB also issued the 2024 Inflation Parameters. 

As the November 1, 2023 Green Button implementation deadline approaches for electricity and natural gas distributors, OEB Staff provided guidance regarding terms and conditions between distributors and authorized third-parties.

An update was provided regarding the Non-RPP Class B Pilot Program. No draft or final applications were received and as a result the OEB is developing new options to assess alternatives to the commodity pricing structure.

The OEB also released its Report to the Ontario’s Electrification and Energy Transmission Panel.

Two more Assurances of Voluntary Compliance (AVC) were accepted from electricity distributors (Grandbridge, Entegrus) related to billing errors that resulted in the overcharging of customers through the fixed monthly service charge. The OEB also accepted AVCs from a commercial property owner who had been acting as a unit sub-meter provider without a license, and an electricity storage facility (who had been operating without a storage license).