TORONTO, Jan. 8 /CNW/ - Today the Ontario Energy Board (the Board) issued
a Decision and Order approving changes to the 2007 electricity distribution
rates for PUC Distribution Inc. (PUC).
In its application for 2007 distribution rates, PUC sought and received
rate adjustments using the Board's incentive regulation guideline. The
guideline provided for a modest increase due to inflation less an adjustment
to encourage utilities to find efficiencies in their operations.
In the current application, PUC sought to correct what it considered to
be an anomaly in its 2007 rates process which resulted in its Payments in Lieu
of Taxes (PILs) expense provision being unreasonably low.
In its Decision, the Board found that PUC's request to adjust its 2007
rates to reflect the elimination of historical loss carry-forwards by
December 31, 2006 was supported by the evidence. However, the Board found
PUC's proposed PILs expense provision to be overstated.
The Board approved the requested relief, to be adjusted for the
overstatement, effective September 21, 2007, to be implemented February 1,
2008. The notional foregone revenue pertaining to the period of September 21,
2007 to January 31, 2008 is to be recorded in a deferral account to be
disposed of at a later date.
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 website 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)