Evaluation of Incremental Capital Module (ICM) Policy

The Ontario Energy Board (OEB) is launching a consultation to support a review and evaluation of its Incremental Capital Module (ICM) policy. The review will be informed by previous ICM applications, as well as ICM-related comments received from stakeholders during the OEB’s consultation to review and update the Handbook to Electricity Distributor and Transmitter Consolidations.

Background

The OEB issued its Report of the Board – New Policy Options for the Funding of Capital Investments: The Advanced Capital Module (2014) and the Report of the Board – New Policy Options for the Funding of Capital Investments: Supplemental Report (2016). On February 10, 2022, the OEB also issued a letter that provided an update on the ICM policy for electricity distributors during extended rebasing deferral periods arising from utility consolidations. Collectively, these reports and letter outline, among other things, the OEB’s current ICM policy that allows for distributors to apply for funding of significant capital investments between cost-of-service applications, provided certain criteria are met.

Cost Award Matters and Filing Instructions

Cost awards will be available to eligible participants under section 30 of the Ontario Energy Board Act, 1998 for participation in the consultation. Costs awarded will be recovered from all rate-regulated electricity distributors.

Information regarding cost awards and instructions for filing materials with the OEB is included in Appendix A to this letter.