2013 Cost of Service Orientation Session COS Filing Requirements – General Updates and Reminders

1. 2013 Cost of Service Orientation SessionCOS Filing Requirements – General Updates and Reminders July 9, 2012 Martin Davies Project Advisor, Electricity Rates Applications and Regulatory Audit Ontario Energy Board

2. Introduction • Letter dated Jan 26, 2012 established a list of 25 LDCs for 2013 COS filings • 1 LDC has received permission to defer • 2 LDCs have requests currently before the Board to defer rebasing • For LDCs with a Jan to Dec rate year – applications deadline was Apr 27, 2012 • Enersource, PowerStream and Canadian Niagara Power have filed. • Applicants who have already filed will be expected to update their applications for any major Filing Requirement changes • For LDCs with a May to Apr rate year, application deadline is Aug 31, 2012 • Purpose of this presentation is to take you through some of the key changes to Chapter 2 for 2013

3. Substantive Areas of Change to Chapter 2 of the 2013 COS Filing Requirements • New Chapter 1 Overview was preamble to Chapter 2 • Consolidation of key generic findings from decisions and revised requirements over the past year • Administrative changes • Revisions to certain existing information requirements • MIFRS related changes

4. New Chapter 1 Overview • Completeness and accuracy of application • Certification of evidence • Updating an application • Interrogatories -Filing of interrogatories and responses must be grouped by issue, not intervenor • Confidential Information

5. Consolidation of key policy statements from the past year • GEA Plan Filing Requirements - Under the May 17, 2012 update to the EB-2009-0397 Filing Requirements a utility can no longer seek an exemption to filing a GEA Plan. The Filing Requirements however do contain a provision that allows a utility to defer the filing of a GEA Plan, if accompanied by a detailed explanation as to the reason for the postponement and a proposed revised filing date. • Revised CDM Requirements - Viive will further discuss in her presentation this afternoon • Working Capital Policy - April 12, 2012 letter from the Board provided an update to the options for filing a requested working capital allowance - Key change is shift in default allowance from 15% to 13%

6. Administrative Changes & Requirements • Hyperlinks added for referenced documents • New administrative requirements • Statement as to when the distributor believes the Board’s rate order would be required in order to achieve rate implementation by the requested date • Provision of rationale and estimated cost impacts for planned changes in corporate or operational structure • Others

7. Revisions to certain existing information requirements - 1 • Inclusion of CDM impacts in load forecast • CDM component of forecast must be specifically identified by class as the amount approved by the Board will be the basis for LRAMVA • Regulatory Costs additional requirement • Information supporting the level of costs associated with the current application • Non recoverable expenses reminder • Reminder from 2006 EDR Handbook that some distribution-only expenses may be deductible for tax purposes, but excluded for COS recovery (e.g certain charitable donations)

8. Revisions to certain existing information requirements - 2 • Cost Allocation – Revisions to Requirements for Host Distributors • Any distributor that is the host to one or more distributors must provide information on the cost of serving those embedded distributors in one of two ways: (1) If the host has a separate rate class for embedded distributor(s), or is proposing such a class, the host distributor must include the class as such in its cost allocation study and in Appendix 2-P (2) If the host distributor proposes to bill the embedded distributor(s) as if it/they were General Class customers, the costs and revenue should be included with that class in the cost allocation study and Appendix 2-P, and the host distributor must also complete Appendix 2-Q which shows details on how much of the host’s facilities are required to serve the embedded distributor(s). • Deferral and Variance Accounts • Additional items added that were previously requested through interrogatories • Tests for the establishment of DVAs added • Removal of outdated requirements • 1562 disposition, special purpose charges

9. MIFRS Related Changes • Changes to reflect the fact that all applications are expected to be filed on MIFRS or an alternative accounting standard for 2013. • Daria will provide more details on these changes.

10. EDR Webpage • Information on our website: • Industry • Quick Links (at bottom) • Electricity Distribution Rate Applications and Decisions • Electricity Distribution Rates home page • Links to Annual Rates Database • Links to Annual EDR Applications (2005 to 2013) • 2013 Electricity Distribution Rate Applications • Link to Full Case Record • Process Type (i.e. COS or IRM) • Correspondence • Notice • Decision and Rate Order • Website address: www.ontarioenergyboard.ca

11. Changes to Appendices • There have been significant changes to the Appendices since last year. • We will now go through these briefly with the exception of those related to IFRS which Daria will discuss in his presentation.

12. Appendices Mapping 2013 2-A Capital Projects 2-B Fixed Asset Continuity 2-C Depreciation 2-D Overhead 2-E PP&E Deferral Account 2-F Other Revenue 2-G OM&A Detail 2-H OM&A Variance 2-I OM&A Summary 2-J OM&A Drivers 2-K Employee Costs 2-L OM&A Per Customer and FTEE 2-M Regulatory Costs 2-N Corporate Cost Allocation 2-O Capital Structure and Debt Instruments 2-P Cost Allocation 2-Q Cost of Serving Embedded Dx 2-R Loss Factors 2-S Stranded Meters 2-T Account 1592 2-U IFRS Transition Costs 2-V Revenue Reconciliation 2-W Bill Impacts 2-X COS Flowchart 2012 2-A Capital Projects 2-B Fixed Asset Continuity 2-C Other Revenue 2-D OM&A Accounts 2-E OM&A Summary 2-F OM&A Detail 2-G OM&A Drivers 2-H Regulatory Costs 2-I OM&A Per Customer and FTEE 2-J OM&A Variance 2-K Employee Costs 2-L Corporate Cost Allocation 2-M Depreciation 2-N Capitalization 2-O Cost Allocation 2-P Loss Factors 2-Q Smart Meters 2-R Stranded Meters 2-S Embedded Dx LV 2-T Account 1592 2-U Revenue Reconciliation 2-V Bill Impacts 2-W COS Flowchart