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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.
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.
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.
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 is currently at 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)
this is an upcoming stage for Advancing Performance-based Rate Regulation
Summer 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