Ontario Energy Board Can Ok Low-income Rates Court Ruling Important For Electricity, Gas Sectors

摘要

On May 16, 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.rnThe court held that the Ontario Energy Board (OEB) does have the authority to set lower rates for distributing gas to low-income consumers, even though such a program would necessarily result in higher prices for the majority of residential consumers and it would be a departure from the traditional rate-making model based upon cost causality and cost of service.rnAlthough the case related specifically to the OEB's jurisdiction to set gas distribution rates, the court's findings would likely apply equally to the board's jurisdiction to set electricity distribution and transmission rates in Ontario.