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Review of Further Efficiencies in the Electricity Distribution Sector

Review of Further Efficiencies in the Electricity Distribution Sector. Brian Weber Grimsby Power. Recent Developments. Deregulation Reports/Recommendations Bill 35 Bill 100 Bill 210 Customer Issues/Expectations Hearings. OEB Initial Goals and Objectives.

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Review of Further Efficiencies in the Electricity Distribution Sector

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  1. Review of Further Efficiencies in the Electricity Distribution Sector Brian Weber Grimsby Power

  2. Recent Developments • Deregulation Reports/Recommendations • Bill 35 • Bill 100 • Bill 210 • Customer Issues/Expectations • Hearings

  3. OEB Initial Goals and Objectives • Reducing costs of LDCs through PBR • Phase 1 and 2 • Service Quality Data • Set LDC Benchmarks • Maximum for ROR • Sharing Higher ROR with Customers • Rate Stability

  4. Today’s Situation • PBR appears lost due to Government • Perception that all LDCs are inefficient • OEB has adopted a ‘heavy handed’ regulation philosophy • Push by OEB towards consolidation

  5. OEB Report Suggests Cost Reductions • Working Smarter • Contracting Out • Partnering • Industry Consolidation

  6. Consolidation And Regulatory Issues • Rate Differentials • OEB RUD Model • Snap Shot • Differing Strategies • Collect same Revenue • 10% contingency • Rebasing • Cross Subsidization

  7. Rules & Rationalization • Amalgamation requires rates to be harmonized. • Only reduces number of LDCs • Does not reduce regulatory burden • Multiple Rate submissions • Workload for OEB • Justification • Benefit of retaining LDC

  8. Recommendations Allow LDC to choose own destiny Encourage OEB to: Provide some stability for the customers and the industry as a whole Stay on the path as originally set as we have not been on this path long enough to know whether it is good or not Set service quality benchmarks for small, medium and large LDCs so that these service quality benchmarks indices could serve as economic indicators to provide the business economics to assist in voluntary MAADS

  9. Recommendations – cont’d Allow LDCs autonomy and the ability to choose own direction unfettered Recognize that LDCs are opposed to having someone else choose their destiny Adopt a truly light handed approach to regulation as the current approach only serves to drastically increase costs, which are increasing due to regulatory changes and mark rule amendments

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