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The Ontario Energy Board (OEB) is initiating a consultation to engage interested stakeholders in a review of electricity distributors’ spending patterns. It’s intended that this spending pattern analysis (SPA) consultation will result in improvements to the OEB’s regulatory oversight of spending trends and capitalization policies in Ontario’s electricity sector. The SPA consultation is part of the OEB’s commitment to refining cost assessment models and strengthening regulatory frameworks.
The Ontario Energy Board (OEB) is initiating a consultation to engage interested stakeholders in a review of electricity distributors’ spending patterns. It’s intended that this spending pattern analysis (SPA) consultation will result in improvements to the OEB’s regulatory oversight of spending trends and capitalization policies in Ontario’s electricity sector. The SPA consultation is part of the OEB’s commitment to refining cost assessment models and strengthening regulatory frameworks.
The OEB’s June 2023 Report to the Minister of Energy, Improving Distribution Sector Resilience, Responsiveness and Cost Efficiency, proposed the “Enabling of Capacity Through Cost Efficiency” as a desired regulatory outcome in the OEB’s broader review of its incentive rate-setting mechanisms. It also identified the analysis of distributors’ spending patterns as an opportunity to enable this outcome.
The OEB has retained the Pacific Economics Group Research, LLC (PEG), to conduct research, administer surveys, and facilitate discussions. Working under the oversight of OEB staff, PEG will engage with stakeholders for review and feedback.
The OEB has launched a consultation to engage stakeholders in assessing how the Renewed Regulatory Framework for Electricity (RRFE) structure for multi-year planning and rates affects utility spending patterns and the capitalization of assets. This analysis aims to enhance the OEB’s regulatory oversight of spending trends and capitalization policies in Ontario’s electricity sector. This review reflects the OEB’s commitment to improving cost assessment models and strengthening regulatory frameworks.
Spending Pattern Analysis is currently at this stage
OEB outlines the scope of the SPA project and how stakeholders will be solicited for input, have the opportunity to review a draft report of our findings and provide feedback that will help complete the final report.
Stakeholder Engagement - Information Gathering (April - July 2025)
this is an upcoming stage for Spending Pattern Analysis
OEB and PEG engage electricity and gas utilities and other industry stakeholders through an information meeting, surveys, solicitation of written comments to the overall consultation process and targeted follow-up interviews to capture first-hand insights.
Draft Report (July 2025)
this is an upcoming stage for Spending Pattern Analysis
OEB undertakes internal review of draft report prepared by PEG.
