Non-Wires Solutions (NWS) Guidelines Review

The OEB has replaced its CDM Guidelines with NWS Guidelines and is further reviewing to identify and remove barriers for distributors.

We issue rules and codes that energy companies must follow. The rules and codes define their responsibilities and obligations to consumers, other energy companies and energy-related agencies. We also provide guidelines to help energy companies understand the information we require before they make an application for a change to their rates or corporate structure or for approval to sell their assets or build new projects.

The Non-Wires Solutions (NWS) Guidelines replace the OEB’s Conservation and Demand Management (CDM) Guidelines and provide guidance on the role of non-wires solutions for rate-regulated electricity distributors, including the treatment of non-wires solutions in distribution rates.

The OEB is working to provide additional guidance and assistance in supporting NWS-related applications from distributors based on the OEB’s NWS Guidelines, including working with the IESO to identify and remove barriers to distributors seeking ratepayer funding to address distribution system needs, supplementing IESO CDM programs.

The OEB has replaced its CDM Guidelines with NWS Guidelines and is further reviewing to identify and remove barriers for distributors.

We issue rules and codes that energy companies must follow. The rules and codes define their responsibilities and obligations to consumers, other energy companies and energy-related agencies. We also provide guidelines to help energy companies understand the information we require before they make an application for a change to their rates or corporate structure or for approval to sell their assets or build new projects.

The Non-Wires Solutions (NWS) Guidelines replace the OEB’s Conservation and Demand Management (CDM) Guidelines and provide guidance on the role of non-wires solutions for rate-regulated electricity distributors, including the treatment of non-wires solutions in distribution rates.

The OEB is working to provide additional guidance and assistance in supporting NWS-related applications from distributors based on the OEB’s NWS Guidelines, including working with the IESO to identify and remove barriers to distributors seeking ratepayer funding to address distribution system needs, supplementing IESO CDM programs.

  • The OEB has issued the Non-Wires Solutions Guidelines for Electricity Distributors (NWS Guidelines).

    The NWS Guidelines replace the Conservation and Demand Management (CDM) Guidelines and provide OEB guidance on the role of non-wires solutions for rate-regulated electricity distributors. The change in name reflects the fact that non-wires solutions to address system needs can encompass a broader range of solutions than traditional conservation and demand management, including, but not limited to, third-party distributed energy resources such as energy storage and distributed generation.

    The NWS Guidelines consolidate developments relevant to distributor consideration of NWSs that have occurred since the 2021 CDM Guidelines were issued.

    The NWS Guidelines also include references to use of the OEB’s Benefit-Cost Analysis Framework for Addressing Electricity System Needs (BCA Framework) by distributors when assessing the economic feasibility of NWSs to address defined electricity system needs. The first phase of the BCA Framework is expected to be finalized and issued in spring 2024.

    The OEB is reviewing whether further changes to the NWS Guidelines are needed to reduce barriers to distributor conservation activities. The NWS Guidelines will be updated in the future as needed to account for relevant developments.

  • Update on analysis of barriers to CDM

    An IESO-distributor working group is currently exploring opportunities for collaboration when it comes to the delivery of CDM to provide further value to ratepayers and support both local and system reliability, and has held preliminary discussions with the OEB. Preliminary conversations have focused on the potential creation of a modified policy framework or application process to streamline the regulatory process for distributors seeking to access rate-based funding for CDM. The OEB will consider proposals arising from the working group and whether changes to the CDM Guidelines or other OEB actions would assist in reducing barriers to distributor CDM activities.

    The OEB is also considering how the implementation of the Framework for Energy Innovation (FEI) (following the release in January 2023 of the OEB’s Framework for Energy Innovation: Setting a Path Forward for DER Integration report) addresses barriers to distributor CDM activities, and whether additional barriers remain:

    • In March 2023, the OEB issued Filing Guidelines for Incentives for Electricity Distributors to Use Third-Party DERs as Non-Wires Alternatives, which identifies the information distributors should include in their applications for incentive mechanisms. This new filing guidance is intended to encourage the use of third-party Distributed Energy Resources (DERs) as non-wires alternatives, assist distributors in developing their incentive proposals and facilitate effective and timely regulatory review.
    • The OEB is moving forward to engage a consultant to develop draft Benefit-Cost Analysis guidance and tools for electricity distributed energy resources and other non-wires alternatives.
    • The OEB has a longer-term plan to expand the CDM Guidelines into “Consolidated guidance for non-wires alternatives,” incorporating FEI work to provide comprehensive guidance on the use of distributed energy resources and CDM, as non-wires alternatives by distributors.


    Going forward, the OEB will continue this work to identify and address barriers to distributor CDM activities. The OEB plans to conduct stakeholder engagement to give the public an opportunity to provide input on any proposed changes to CDM Guidelines or other initiatives to address identified barriers in the future.



Page last updated: 30 Aug 2024, 02:04 PM