OEB Issues Report on the Allocation of Electricity Distribution Costs to Different Customer Classes



    TORONTO, Nov. 28 /CNW/ - Today the Ontario Energy Board (the Board)
issued its report entitled Application of Cost Allocation for Electricity
Distributors (the Report). The Report outlines the Board's expectations about
how electricity distributors are to allocate the costs of providing
distribution service to different customer classes. The Board's cost
allocation policies, as set out in the Report apply to distributors whenever
they apply for rates on a cost of service basis.
    The Report addresses a number of issues, most significantly, the
relationship between the customer class revenue and the allocated costs to
serve the customer class (revenue-to-cost ratio). It also discusses the
treatment of the Monthly Service Charges, metering credits for the unmetered
scattered load class, transformer credits for customer-owned transformers, and
charges to provide standby power for customers with load displacement
generation.
    The Report also identifies factors that remain to be addressed in
relation to cost allocation.

    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)
440-8149


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