On July 16, 2015, the OEB issued a
letter explaining updated filing requirements for 2016
Incentive Rate Mechanism (IRM) Distribution Rate Applications. The
letter sets out how a number of previously-announced changes will
These are some of the significant items included in the update
The first step in the move to fully fixed residential
distribution rates (which we discussed in a previous
post) will be implemented in 2016 rate applications. The OEB
issued a separate
letter on July 16, 2015, explaining how this change
will be effected.
Distributors will be required to use the updated default
working capital allowance of 7.5% in place of the previous 13%,
unless the distributor requests approval for a different
distributor-specific allowance, which must be supported by a
lead-lag study or other appropriate evidence. This change was
discussed in a previous
The updated cost allocation policy for the street lighting
class (which we discussed in a previous
post) must be reflected in rate application
The Executive Summary section of each rate application must
include separate identification of all proposed changes that will
have a material impact on customers, including any changes that may
affect discrete groups of customers. Presumably this change was
prompted by the recent debates over whether proper notice was given
to cable and telecommunications carriers of changes to Toronto
Hydro and Hydro One pole attachment fees (this was discussed in
previous posts found
The changes to the filing requirements are effective
immediately, and apply to the 2016 IRM Rate Applications that are
to be filed by August 17, 2015 (for those distributors whose new
rates are effective as of January 1) or later in the Fall of 2015
(for those distributors whose new rates are effective as of May
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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In Bank of Montreal v Bumper Development Corporation Ltd, 2016 ABQB 363, the Alberta Court of Queen's Bench enforced the "immediate replacement" provision in the Canadian Association of Petroleum Landmen 2007 Operating Procedure...
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