Performance based regulation framework for electricity distributors in Ontario

The Ontario Energy Competition Act, 1998 which forms part of Bill 35, received Royal Assent on October 30, 1998. This creates a fully competitive electricity market and expands the Ontario Energy Board's regulatory responsibility to the monopoly parts of the electricity industry, transmission and distribution wires. This is in addition to its responsibility over the natural gas industry. The Act gives the Board considerable flexibility in adopting a method it considers appropriate for the purpose of fixing just and reasonable rates. Given this flexibility, the Board is considering the use of an appropriate performance based regulation framework (PBR) wherever it is appropriate. This report, prepared by Board Staff, reviews and evaluates input received to date from stakeholders and proposes a PBR framework for electricity distributors in Ontario. The final recommendations and design details of the PBR will be issued in March, 1999