TORONTO, Sept. 11 /CNW/ - Today the Ontario Energy Board (the Board)
issued a Decision and Order approving certain aspects of Toronto
Hydro-Electric System Limited's (Toronto Hydro) Lost Revenue Adjustment
Mechanism (LRAM) and Shared Savings Mechanism (SSM) application.
LRAM ensures utilities receive revenue on energy volumes they would have
sold if they had not implemented conservation and demand management (CDM)
programs. SSM is a financial incentive for utilities to implement effective
Toronto Hydro applied for approval and recovery of a LRAM amount of
$3,111,432, and a pre-tax SSM amount of $7,290,767 which includes payments in
lieu of taxes (PILS).
In its Decision, the Board determined the SSM amount claimed should not
include PILS, and ordered Toronto Hydro to resubmit its claim to reflect this
The LRAM amount Toronto Hydro applied for did not include the impact of
"free riders" - customers who adopt energy efficiency measures whether a CDM
program exists or not. The Board found that Toronto Hydro should not be
compensated for revenue reduction that did not result from its CDM programs,
and directed the company to reduce its claim for LRAM in accordance with the
free ridership rates reflected in the Decision.
The Board ordered Toronto Hydro to file revised 2005/2006 LRAM and SSM
amounts based on the Board's findings in this Decision by September 25, 2007.
The adjusted amounts approved in this Decision are to be collected by way of a
rate rider which is designed to recover the outstanding amounts over a six
month period, concluding April 30, 2008.
The impact of the Decision on residential consumers will be less than 1%
on the total bill.
The Decision also addressed Toronto Hydro's Summer Challenge Program and
the Thermostat, Aerator, Pipewrap, Showerhead (TAPS) programs, as well as
social housing free ridership rates, custom projects and CDM programs
involving affiliates, and verification of CDM results.
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers served by responsive regulatory processes that
are effective, fair and transparent.
For more information on the Board, please visit our Web site at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.
For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)