Getting Involved In OEBs Review of Hydro Ones Rate Application OEB - - PowerPoint PPT Presentation

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Getting Involved In OEBs Review of Hydro Ones Rate Application OEB Community Meeting Leamington June 15, 2017 Every Voice Matters The OEB wants to hear from you to ensure we take your concerns into account as we make a decision

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Getting Involved In OEB’s Review of Hydro One’s Rate Application

OEB Community Meeting – Leamington

June 15, 2017

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SLIDE 2

June-15-17 Ontario Energy Board 2

Every Voice Matters

  • The OEB wants to hear from you to ensure we take your concerns

into account as we make a decision about this application.

  • OEB Community Meetings are held to give you an opportunity to:
  • Learn more about your utility’s costs and rate application
  • Find out how to get involved in the OEB’s process
  • Provide your comments to us about your utility’s application.
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SLIDE 3

June-15-17 Ontario Energy Board 3

OEB – Regulating Ontario’s Energy Sector

  • The OEB is Ontario's independent energy regulator. We work to ensure a

sustainable, reliable energy sector that helps consumers get value from their natural gas and electricity services – for today and tomorrow.

Consumer Protection (Set and Enforce Rules) Consumer Engagement and Information License Energy Companies Rate Review and Decisions (Supply & Delivery) Energy Support Programs (OESP, LEAP)

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SLIDE 4

June-15-17 Ontario Energy Board 4

Ontario’s Fair Hydro Plan

  • The Fair Hydro Act, 2017 came into effect on June 1, 2017.
  • This Act, together with proposed new regulations, will enable the government

to move forward with initiatives that it has stated will:

  • Lower electricity bills by 25% on average for all residential customers and

hundreds of small business and farms

  • Hold increases to the rate of inflation for four years
  • Provide additional electricity bill relief for:
  • residential customers in rural and remote areas
  • on-reserve First Nations residential customers
  • Fund electricity-related programs such as OESP through taxes
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Reviewing Distribution Rates

June-15-17 Ontario Energy Board 5 Commodity Delivery

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The Fair Hydro Act – Bill drops 25% on average

Commodity Distribution Transmission Regulatory Tax 8% Rebate Total Bill

As of January 1, 2017 – R2 Class

(Before any components of the FHP are applied)

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SLIDE 7

The Fair Hydro Act – Bill drops 25% on average

Commodity Distribution Transmission Regulatory Tax 8% Rebate Total Bill

  • Implementation of 8% Rebate
  • Removal of OESP Charge
  • Reduction in Commodity Prices

With the implementation of additional FHP components, you will see further reductions

Applied As of May 1, 2017 – R2 Class

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SLIDE 8

The Fair Hydro Act – Bill drops 25% on average

Commodity Distribution Transmission Regulatory Tax 8% Rebate Total Bill

As of May 1, 2017 – R2 Class

  • Implementation of 8% Rebate
  • Removal of OESP Charge
  • Reduction in Commodity Prices

With the implementation of additional FHP components, you will see further reductions

  • Reduction in Commodity on July 1st
  • Reduction in Distribution Charges
  • Reduction in Regulatory Charges
  • As a result, your taxes and total bill will

decrease

Applied

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SLIDE 9

Hydro One’s Rate Application

June-15-17 Ontario Energy Board 9

$51.02 $53.81 $56.28 $58.59 $60.54 $62.77 2017 2018 2019 2020 2021 2022

Base Distribution Charge - R1 Customer at 750 kWh

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June-15-17 Ontario Energy Board 10

Ontario’s Fair Hydro Plan

  • The OEB will continue to rigorously review all rate applications

to help control costs.

  • As indicated in the Minister’s April 10, 2017 letter to the OEB:

“ The proposed [Fair Hydro] Plan is not intended to limit the OEB’s mandate to set just and reasonable rates or payment amounts. The government fully expects that the OEB will continue exercising its mandate in the public interest as it does today.”

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Rigorous Rate Reviews Control Costs

  • OEB’s process limits rate increases.
  • Utilities must apply to the OEB to change their rates and prove increases

are justified.

  • Utilities must show that they are doing everything possible to be more efficient and

keep improving.

  • Since 2009, the OEB has reviewed more than 130 major rate applications and

reduced requested rate increases by an average of about 40 per cent.

  • Overall, the OEB has kept the annual growth in average distribution rates close to

the rate of inflation during the same period.

June-15-17 Ontario Energy Board 11

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The OEB Sets Distribution Rates

  • The OEB reviews the “rates” that a local utility can

charge customers

  • A rate is an amount that recovers:
  • a utility's costs of providing distribution service

(such as operations, maintenance, administrative expense, capital projects)

  • a fair return on equity

June-15-17 Ontario Energy Board 12

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Delivering Value – Ensuring Reliability

The OEB’s job is to align various objectives to ensure reliability

June-15-17 Ontario Energy Board 13

Prices, reliability and quality of service Financially viable energy sector

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Be heard in the OEB’s Process

June-15-17 Ontario Energy Board 14

  • 3. OE

B Re vie ws a ll I nfo rma tio n

  • 2. Custo me r

I nput

Write a L e tte r Inte rve no r Co nta c t the OE B Co mmunity Me e ting Po ste d o n OE B We b site & Se nt to Pa rtic ipa nts

  • 4. De c isio n
  • 1. Applic a tio n

Custo me r No tific a tio n

So c ia l Me d ia We b site Ne wspa pe r No tic e

NEWS

Bill Inse rts

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SLIDE 15

Be heard in the OEB’s Process

June-15-17 Ontario Energy Board 15

  • 3. OE

B Re vie ws a ll I nfo rma tio n

  • 1. Applic a tio n

Custo me r No tific a tio n

  • 2. Custo me r

I nput

  • 3. OE

B Re vie ws a ll I nfo rma tio n

  • 4. De c isio n

Oral or written Number of activities at each stage Various Representatives Timeline: ~ 9 months Occurs every 5 years

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What Can You Do?

  • OEB wants to hear from you. We encourage you to:
  • Ask questions
  • Provide comments (via post or email)
  • Attend or listen in on the hearings
  • Follow the proceedings
  • Your voice helps the OEB do our job:

Ensuring utilities deliver value by focusing on what matters most to you

June-15-17 Ontario Energy Board 16

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OEB Hearings

  • Open to all
  • Evidence is public
  • All written hearing materials posted on OEB website
  • All oral hearings open to the public and broadcast

through OEB’s website

June-15-17 Ontario Energy Board 17

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Contact OEB to Learn More

June-15-17 Ontario Energy Board 18

www.oeb.ca

Visit our website

416-314-2455 Toll Free 1-877-632-2727

Twitter: @OntEnergyBoard Ontario Energy Board, 2300 Yonge Street, Suite 2701, Toronto, Ontario M4P 1E4

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Your Voice Matters – Thank You

June-15-17 Ontario Energy Board 19