Advancing Performance-based Rate Regulation
The Ontario Energy Board (OEB) is conducting a consultation to advance its performance-based approach to rate regulation. The objective of this initiative is to develop ways to strengthen the link between what electricity distributors earn and the achievement of outcomes consumers value, such as cost-effectiveness, reliability and customer service.
This consultation is divided into two streams. One stream involves the development of Performance Incentive Mechanisms (PIMs) for electricity distributors. The other stream is considering whether a fundamental change to electricity distribution rate regulation is required.
The Ontario Energy Board (OEB) is conducting a consultation to advance its performance-based approach to rate regulation. The objective of this initiative is to develop ways to strengthen the link between what electricity distributors earn and the achievement of outcomes consumers value, such as cost-effectiveness, reliability and customer service.
This consultation is divided into two streams. One stream involves the development of Performance Incentive Mechanisms (PIMs) for electricity distributors. The other stream is considering whether a fundamental change to electricity distribution rate regulation is required.
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OEB Releases Discussion Paper on Performance Incentive Mechanisms
The OEB has released a Discussion Paper presenting draft performance incentive mechanisms for electricity distributors as part of its consultation to advance its performance-based approach to rate regulation. The OEB is hosting a stakeholder meeting on June 3, 2025, to seek feedback on the paper.
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OEB Receives Feedback on Advancing Performance-based Rate Regulation
The OEB has received the following stakeholder comments on how the OEB can advance its performance-based approach to rate regulation:
- Association of Major Power Consumers in Ontario
- Consumers Council of Canada
- Coalition of Large Distributors
- Electricity Distributors Association
- Energy Probe
- Environmental Defence
- HLPCA
- Hydro One Networks
- Industrial Gas Users Association
- Low-Income Energy Network
- Niagara-on-the-Lake Hydro
- Pollution Probe
- S&C Electric Canada
- School Energy Coalition
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The OEB Extends the Deadline for Written Comments
The OEB has extended the deadline for written comments to January 8, 2025.
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OEB Shares Materials for Consultation to Advance Performance-based Approach to Rate Regulation
The OEB is sharing materials in support of its upcoming stakeholder meeting to advance its performance-based approach to rate regulation. The materials include a review of utility remuneration in other jurisdictions and a presentation for the November 19, 2024, meeting.
- Report Back to The Minister: Utility Remuneration
- Jurisdictional Review of Utility Remuneration Models
- Stakeholder Meeting Presentation
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OEB announces stakeholder meeting
The OEB invites interested parties to a stakeholder meeting on November 19, 2024, to discuss the approach the OEB can take to advance its performance-based approach to rate-setting.
Consultation timeline
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September 2024: Report back on utility remuneration provided to the Minister of Energy and Electrification
Advancing Performance-based Rate Regulation has finished this stage -
October 2024: Stakeholder consultation initiated
Advancing Performance-based Rate Regulation has finished this stage -
November 19, 2024: Initial stakeholder meeting
Advancing Performance-based Rate Regulation has finished this stage -
January 8, 2025: Written comments on stakeholder meeting due
Advancing Performance-based Rate Regulation has finished this stage -
Spring 2025: Consideration of whether a fundamental change to rate regulation is required and release of a Staff Discussion Paper on proposed Performance Incentive Mechanisms (PIMs)
Advancing Performance-based Rate Regulation is currently at this stage -
Spring 2025: Stakeholder meeting on proposed PIMs
this is an upcoming stage for Advancing Performance-based Rate Regulation -
Fall 2025: Final report on the PIMs framework for electricity distributors and a separate report on whether to proceed with a fundamental change to rate regulation
this is an upcoming stage for Advancing Performance-based Rate Regulation
Key dates
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November 19 2024
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June 03 2025
Consultation Documents
Consultation Case details
We're listening
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Email Shona.Adamson@oeb.ca -
Senior Advisor, Energy Transition | Strategic Policy
Email Abdulla.Husain@oeb.ca