Today, the OEB has issued updated Filing Requirements for OPG’s payment amounts applications. These updates include revisions to the 2011 guidelines, informed by stakeholder comments and discussions. The Filing Requirements aim to address the evolving regulatory landscape, incorporate lessons learned from past proceedings, and remain evergreen.
The draft update released by OEB staff on April 23, 2024, for stakeholder comment did not propose wholesale changes but rather more targeted revisions. These include:
- Aligning language and terminology for consistency with other OEB filing requirements
- Revising exhibit titles
- Removing references to specific years and specific facilities
- Renaming the Filing Guidelines to Filing Requirements
The above changes elicited broad support from stakeholders and have been incorporated into the updated Filing Requirements.
Other notable changes to the Filing Requirements include:
-
Updated cost thresholds for capital projects: These thresholds better reflect inflationary increases and enhance regulatory efficiency by focusing on more substantial projects while ensuring that evidence is available for a comprehensive review. Tier 1 Capital Projects are now set at $30 million, with corresponding adjustments to Tier 2 and 3 cost thresholds.
-
Term-over-term variance analysis: This will replace year-over-year variance analysis for capital costs and project operating, maintenance, and administration costs (OM&A). However, OPG is still required to provide a year-over-year variance analysis for base OM&A costs.
-
Historical Years: To ensure that the application evidence focuses on the most relevant data, the updated Filing Requirements require OPG to provide the five most recent historic years. If OPG is unable to provide certain historical data, it should clearly set out the reasons for this. Specific guidance has also been provided in the cover letter for the historical data applicable to the next OPG hydroelectric application.
-
Capitalization policies: The final Filing Requirements include the requirement for OPG to file a plan for transitioning away from capitalizing indirect overheads or provide a justification for maintaining its current practice. (At this time, OPG is required by regulation to do its financial reporting under United States Generally Accepted Accounting Principles.)
The OEB extends its gratitude to all stakeholders who participated in the consultation process.
The OEB thanks those who participated in the May 14, 2024 stakeholder session on proposed updates to the Filing Guidelines for Ontario Power Generation.
Dates for registered stakeholders to provide written comments:
- Written comments should be filed with the OEB by June 11, 2024
- Stakeholders also have the option to provide additional comments in response to any initial feedback by other stakeholders by June 25, 2024
Update on cost awards eligible activities
Cost awards will be available to eligible participants for participation in the initial stakeholder meeting to a maximum of actual meeting time plus two (2) hours for preparation and six (6) hours for subsequent review and written comments on the draft proposed Filing Requirements.
The time allotted for cost awards related to written comments was initially set at four (4) hours in the OEB’s invitation letter. This has been increased to six (6) hours to accommodate a second round of comments for any interested stakeholder.
For other matters related to cost award eligibility, please refer to the OEB’s invitation letter for more details.
How to File Materials
- All written materials sent to the OEB in response to this letter will be posted on the OEB’s website.
- All communications should be directed to the attention of the Registrar and be received by end of business, 4:45 p.m., on the required date.
Stakeholders are responsible for ensuring that any documents they file with the OEB do not include personal information (as that phrase is defined in the Freedom of Information and Protection of Privacy Act), unless filed in accordance with rule 9A of the OEB’s Rules of Practice and Procedure.
Please quote file number EB-2024-0136 for all materials filed and submit them in searchable/unrestricted PDF format with a digital signature through the OEB’s online filing portal.
OPG is the province’s largest electricity producer – its regulated generation facilities in Ontario consist of the Darlington Nuclear Generating Station and the Pickering Nuclear Generating Station and 54 regulated hydroelectric generating stations.
OPG’s payment amounts relate to generation from its nuclear and hydroelectric facilities. OPG’s payment amounts make up a portion of the electricity line, one of the line items on customers’ bills.
The OEB is authorized to set these payment amounts under Section 78.1 of the Ontario Energy Board Act, 1998. The form, methodology, assumptions and calculations to be used in determining these amounts, along with the rules that must by followed by the OEB are set out in O. Reg. 53/05.
The OEB publishes Filing Guidelines for OPG that are intended to establish regulatory predictability and assist OPG in ensuring that its payment amounts applications include the information the OEB needs. The Filing Guidelines also include the rules the OEB must follow in setting those payment amounts.
OEB Letter - Updated OPG Filing Requirements Issued September 17, 2024
