Rules, Codes, Guidelines & Forms
Listed below are the regulatory instruments that govern the energy industry participants, such as codes, guidelines, accounting and reporting and record-keeping requirements:
- General Regulatory
- Natural Gas
- Accounting Procedures for Natural Gas & Electricity
- Reporting & Record Keeping Requirements for Natural Gas & Electricity
Sets out general procedures to be followed by parties appearing on matters before the Board.
Ontario Energy Board Rules of Practice and Procedure (revised October 28, 2016)
- Tracked revisions to the Rules of Practice and Procedure (October 28, 2016)
- Form A: Acknowledgement of Expert's Duty
- Letter outlining the April 24, 2014 revisions (Apr 24, 2014)
- Letter: Review of the Framework Governing the Participation of Intervenors in Board Proceedings – Completion of First Phase (Apr 24, 2014)
Sets out the Board’s rules of practice and procedure for enforcement proceedings.
Rules of Practice & Procedure for Enforcement Proceedings (revised April 24, 2014)
Practice Direction on Confidential Filings (revised October 28, 2016)
- Tracked revisions to the Practice Direction on Confidential Filings (October 28, 2016)
- Form: Certificate of Destruction
- Form: Declaration and Undertaking
Practice Direction on Settlement Conferences (formerly Guidelines) (revised October 28, 2016)
- Letter outlining the October 28, 2016 changes to the Practice Direction on Settlement Conferences (October 28, 2016)
- Tracked revisions to the Practice Direction on Settlement Conferences (October 28, 2016)
Practice Direction on Cost Awards (revised April 24, 2014)
- Revised forms to be used for costs incurred after June 1, 2014:
- Previous forms may be used for costs incurred prior to June 2, 2014:
- Letter regarding the Board's Publication of Cost Awards (February 6, 2012)
- Letter to applicants and intervenors in Board proceedings Re: Practice Direction on Cost Awards (June 24, 2011)
- Appendix A:
Cost Award Tariff
- Appendix B:
Form 1 - Summary of Statement of Hours
Form 2 - Summary of Disbursements
Form 3 - Affidavit in Support of Cost Claim (revised June 9, 2009)
Review of the Existing Methodology of the Cost of Capital for Ontario’s Regulated Utilities January 14, 2016
Cost of Capital Parameter Updates
Return on Equity (ROE)
Deemed Long-term Debt Rate
Deemed Short-term Debt Rate
Weighted Average Cost of Capital (WACC)*
Letter (issuance date)
|Jan 1, 2017||8.78%||3.72%||1.76%||5.67%||Oct 27, 2016|
|Jan 1, 2016||9.19%||4.54%||1.65%||6.28%||Oct 15, 2015|
|Jan 1, 2015||9.30%||4.77%||2.16%||6.48%||Nov 20, 2014|
|Jan 1, 2014||9.36%||4.88%||2.11%||6.56%||Nov 25, 2013|
|May 1, 2013||8.98%||4.12%||2.07%||5.98%||Feb 14, 2013|
|Jan 1, 2013||8.93%||4.03%||2.08%||5.91%||Nov 15, 2012|
|May 1, 2012||9.12%||4.41%||2.08%||6.20%||Mar 2, 2012|
|Jan 1, 2012||9.42%||5.01%||2.08%||6.66%||Nov 10, 2011|
|May 1, 2011||9.58%||5.32%||2.46%||6.91%||Mar 3, 2011|
|Jan 1, 2011||9.66%||5.48%||2.43%||7.03%||Nov 15, 2010|
|May 1, 2010||9.85%||5.87%||2.07%||7.31%||Feb 24, 2010|
*Assuming a deemed capital structure of 40% equity, 56% long-term debt and 4% short-term debt
The Rate Handbook provides guidance to utilities and stakeholders on applications to the OEB for approval of rates. It outlines the key principles and expectations the OEB will apply when reviewing rate applications.
The Handbook is applicable to all rate regulated utilities, including electricity distributors, electricity transmitters, natural gas utilities and Ontario Power Generation.
- Cover Letter (October 13, 2016)
Sets out the standards and conditions for the interaction between gas distributors, transmitters and storage companies and their respective affiliated companies.
Affiliate Relationships Code for Gas Utilities (Revised November 25, 2010)
Sets out the minimum standards under which a licensed gas marketer may market natural gas.
Demand Side Management Framework for Natural Gas Distributors (2015-2020)
- Board Letter (December 22, 2014)
- Report of the Board: Demand Side Management Framework for Natural Gas Distributors (2015-2020) (December 22, 2014)
- Filing Guidelines to the Demand Side Management Framework for Natural Gas Distributors (2015-2020) (December 22, 2014)
Sets out the Demand Side Management framework that should be used by natural gas utilities in developing their DSM plans.
Demand Side Management Guidelines for Natural Gas Utilities (issued June 30, 2011)
Provides direction to parties applying for facilities approvals before the Board. It includes the planning requirements for locating new facilities, the mitigation required for construction of these projects as well as the process for review and approval of the environmental reports which are produced.
Aug 11, 2016 - The OEB has issued a new edition of its Environmental Guidelines for the Location, Construction and Operation of Hydrocarbon Pipelines and Facilities in Ontario. The Guidelines enhancements ensure that roles and obligations for the Crown’s duty to consult process for intra-provincial hydrocarbon pipelines are better defined. The revisions to the OEB Guidelines streamline and clarify roles and obligations for the Ministry of Energy, the OEB and pipeline proponents.
- Cover Letter (August 11, 2016)
Sets out the standards for natural gas utilities to follow when requesting pre-approval of the cost consequences of long-term natural gas supply and/or upstream transportation contracts that support the development of new natural gas infrastructure.
Sets out a new filing requirement for the Board's review of applications for expansions of natural gas transmission systems in Ontario. The new filing requirement is for an economic assessment of the proposed pipeline on existing pipeline systems in the province to ensure economically prudent long-term capital investments in the natural gas system in Ontario. For ease of reference, the Board created a new document that contains thirteen unmodified economic feasibility requirements already set in the EBO 134 Report, plus the new requirement.
Filing Guidelines on the Economic Tests for Transmission Pipeline Applications (issued February 21, 2013)
- Board Letter (February 21, 2013)
- View all documents in the EB-2012-0092 consultation
Establishes conditions of access to gas distribution services provided by a gas distributor and sets out rules governing the conduct of gas distributors toward gas vendors, including gas marketers.
Gas Distribution Access Rule (as amended October 8, 2015)
Service Agreement (as amended December 11, 2007)
For more information visit the Gas Distribution Access Rule (GDAR) webpage
The Guidelines provide a common analysis and reporting framework to be applied by regulated gas distribution companies. The Guidelines are part of the Distribution System Expansion Report (E.B.O. 188) dated January 30, 1998.
February 18, 2015 - The Board has issued a letter intended to promote the expansion of natural gas to rural and remote communities in order to reduce energy costs and enhance competitive position for businesses.
Sets out the standards by which the natural gas utility applications must be developed and filed. These requirements are to be used by natural gas utilities for filing a cost of service application for 2007 rates.
Each municipality may grant a gas utility the right to deliver gas service and use road allowances or utility easements within its borders. The municipal franchise agreement outlines the specific terms and conditions of the agreement between the municipality and the utility and requires OEB approval.
Gas Franchise Handbook published by a joint committee of Gas Company and Municipal Sector Representatives
The purpose of this Rule is to: 1) establish operating requirements to ensure open and non-discriminatory access to transportation services for customers and storage providers, 2) establish reporting requirements for natural gas transmitters, integrated utilities and storage providers and, 3) ensure customer protection within the competitive storage market. The Board made this Rule in accordance with section 44(1) of the Ontario Energy Board Act, 1998.
The Board has developed an application process for electricity distributors to apply for distribution rate adjustments in 2005. The process is described in the Filing Guidelines provided below. The 2005 Rate Adjustment Model (RAM) and the 2005 Payments in Lieu of Taxes (PILs) Model and documentation for both models are provided below.
Sets out the standards and conditions for the interaction between electricity distributors and transmitters and their respective affiliated companies.
Affiliate Relationships Code for Electricity Distributors and Transmitters (revised March 15, 2010)
NOTE: This amended version of the Affiliate Relationships Code contains numerous amendments made by the Board that were posted on the Board’s website on May 16, 2008. Section 2.3 of this revised version of the Affiliate Relationships Code does not come into effect until August 16, 2008. Until that time, section 2.3 of the Affiliate Relationships Code as it existed before the May 16, 2008 revisions (see link below) and the associated definition of “fair market value” will continue to apply. In addition, the amendments to the Affiliate Relationships Code that were issued by the Board on May 16, 2008 do not apply to any Affiliate Contract that was in effect on September 19, 2007 until such time as the initial term of the Affiliate Contract expires. Until that time, the relevant sections of the Affiliate Relationships Code as it existed before the May 16, 2008 revisions (see link below) will continue to apply to such Affiliate Contracts.
NOTE: Section 2.3 of this version of the Affiliate Relationships Code applies to all affiliate transactions until August 16, 2008. After that time, section 2.3 of the amended Affiliate Relationships Code as issued by the Board on May 16, 2008 (see link above) will apply. Certain provisions of this version of the Affiliate Relationships Code also continue to apply to Affiliate Contracts that were in effect on September 19, 2007 until such time as the initial term of the Affiliate Contract expires. After that time, the relevant sections of the amended Affiliate Relationships Code as issued by the Board on May 16, 2008 (see link above) will apply.
Guidance from the Chief Compliance Officer for Self-Certifying Compliance with the Affiliate Relationships Code for Electricity Distributors and Transmitters:
Sets out comprehensive standards for electronic business transactions to allow electricity retailers and distributors to share customer and billing information efficiently and promote the rapid and accurate settlement of all accounts. EBT standards were developed by a Board advisory committee and working group.
This page contains current documentation. Current and historical documentation, including Implementation Guides and Schemas, can be accessed at the OEB EBT Standards Working Group website at the following link:
Sets out the obligations and requirements that licensed distributors must comply with in relation to the CDM Targets set out in their licences. This Code also sets out the conditions and rules that licensed distributors are required to follow if they choose to use Board-Approved CDM Programs to meet the CDM Targets.
Conservation & Demand Management Code for Electricity Distributors (issued Sep 16, 2010)
Provides guidance on certain provisions in the CDM Code and the type of evidence a distributor should file to support an application for Board-Approved CDM programs.
2015 CDM Guidelines
- Guidelines for Electricity Distributor Conservation and Demand Management (EB-2014-0278) (Dec 19, 2014)
- Board Letter (Dec 19, 2014)
2012 CDM Guidelines
- Guidelines for Electricity Distributor Conservation and Demand Management (CDM) (issued Apr 26, 2012)
Sets out the minimum standard under which a retailer must disclose to electricity consumers information relating to system-wide electricity supply mix and the electricity supply mix of electricity products.
- Ontario's System-Wide Electricity Supply Mix: 2015 Data (posted Jul 21, 2016)
Sets out the minimum obligations that a licensed electricity distributor must meet in carrying out its obligations to distribute electricity within its service area under its licence.
Distribution System Code (revised December 21, 2015)
- Appendix A - Conditions of Service
- Appendix B - Methodology and Assumptions for An Economic Evaluation
- Appendix C - Minimum Inspection Requirements
- Appendix D - Information in a Connection Agreement with a Customer
- Appendix E - Contracts and Applications for Connecting a Generator to the Local Distribution System & Information in a Connection Agreement for a Large Embedded Generation Facility
- Appendix F - Process and Technical Requirements for Connecting Embedded Generation Facilities
- Appendix G - Process for Connecting Another Distributor
- Appendix H - Farm Stray Voltage Distributor Investigation Procedure
- Frequently Asked Questions about the Distribution System Code
- Fire Safety Notice
- Avis de sécurité-incendie
Amendments to the DSC:
1. Amendments regarding the treatment of bulk-metered residential condominiums for security deposit purposes. Read here for information about the changes.
2. Amendments regarding maximum cumulative generation from net metered generators that the distributor must allow to be connected and a revised version of the net metering threshold table that accompanied Notice of the net metering amendments to the Distribution System Code (EB-2005-0447). Read here for information about the changes.
3. Amendments regarding consumer security deposits. Read here for information about the changes
4. Amendments regarding the connection of new generation to distribution systems. Read here for information about the changes
5. Please note that there is no change to any of the Distribution System Code or Retail Settlement Code amendments issued by the Board on October 30, 2006.
6. Amendments to Chapter 3 - Connections and Expansions, in force as of January 23, 2007. Read here for information about the changes.
7. Amendments with respect to load transfers came into force as of March 12, 2007. Read here for information about the changes.
8. Amendments with respect to Electricity Service Quality Requirements, in force as of January 1, 2009. Read here for information about the changes.
9. Amendments to facilitate the connection of smaller size embedded generation facilities, came into force February 12, 2009. Read here for more information about the changes.
10. Amendments to extend the time period for geographic distributors to eliminate their long term load transfer arrangements came into force June 10, 2009. Read here for more information about the changes.
11. Amendments to include the addition of a ‘Farm Stray Voltage Distributor Investigation Procedure’ (Appendix H) and for Customer reclassification and non-payment risk issues.
- Read here for more information on Farm Stray Voltage changes
- Read here for more information on customer reclassification and non-payment risk changes
12. September 21, 2009 amendments to the generation connection and capacity allocation process and for account treatment of embedded retail generators.
- Read here for more information on the generation connection and capacity allocation process
- Read here for more information on the account treatment of embedded retail generators
13. Amendments in relation to assigning cost responsibility as between a distributor and a generator in relation to the connection of renewable generation facilities to distribution systems.
14. Amendments in relation to distributor-owned generation.
15. Amendments that address issues related to the DSC's alternative bid provisions.
16. Amendments that address customer service issues applicable to all residential customers.
- Read here for more information about these changes
Note: The customer service amendments approved on July 2, 2010 will come into force in stages on October 1, 2010, January 1, 2011 and April 1, 2011. These will be consolidated into the DSC in due course.
17. Amendments in relation to connection timelines for large embedded generators.
18. Amendments to the DSC in relation to the connection process for micro-embedded generation.
19. Amendments to implement the Board’s policies related to Regional Infrastructure Planning.
20. Amendments to implement the Board’s policies related to requiring distributors to install interval meters for customers with monthly average peak demand during a calendar year of over 50 kW.
21. Amendments to implement the Board's policies with respect to unmetered load customers and distributor Conditions of Service came into force on January 1, 2015.
22. Amendments in relation to billing frequency, the use of estimated billing, and billing accuracy that came into force on April 15, 2015.
23. Amendments to support the implementation of the Ontario Electricity Support Program (OESP) that came into force on October 8, 2015.
24. Amendments in relation to the elimination of load transfer arrangements that came into force on December 21, 2015.
Sets out the policies, guidelines and procedures to be used by Ontario electricity distributors in preparing applications for distribution rates. Also included are associated Excel spreadsheets that conform with the methodologies in the Distribution Rate Handbook and that will assist in the preparation and analysis of rate applications.
There are two versions of the Distribution Rate Handbook. The current version is the 2006 DRH to be used in resetting the revenue requirement of an electricity distributor as part of 2006 distribution rate applications.
The prior version of the DRH was used for establishing unbundled distribution rates and for calculating the price cap-based rate adjustment, and was used primarily for distribution rate setting in 2001 and 2002. It contains information pertinent to electricity distribution rate-setting effective to April 30, 2006.
The Minister of Energy has granted approval for electricity distribution companies to apply to the Board for recovery of Regulatory Assets, effective March 1, 2004. The filing guidelines provide direction for the distributors in filing for these rate changes.
On February 5, 2004, the Board published notice of applications by 92 distribution utilities seeking to recover Regulatory Assets.
The Board has prepared a summary report of Regulatory Asset accounts as provided by the utility in its rate application. The individual application should be referred to for the amount proposed by the utility to be recovered in rates starting April 1, 2004. While every effort is made to ensure accuracy, intervening parties should consult applications of interest.
The Board has determined that the Review of Regulatory Assets for Ontario Electricity Distributors would be done in two Phases, Phase 1 was the granting of interim rate recovery on April 1, 2004. Phase 2 is the prudency review of the Regulatory Asset balances. As a first step in Phase 2, the Board reviewed the Regulatory Asset applications of Hydro One, Toronto Hydro, Enersource Hydro Mississauga and London Hydro. In addition to the decisions on the rate recovery amounts for each of these four distributors, the Board also assessed what would constitute the best evidence, forum and process to determine the reasonableness of Regulatory Asset amounts for the remaining distributors.
- July 26 -05:
- Mar 14-05:
- Hydro One Networks Inc.Final Order
- Hydro One Networks Inc. Legacy Schedule
- Hydro One Networks Inc. Acquired Schedule
- Toronto Hydro-Electric System Limited Interim Order
- Toronto Hydro-Electric System Limited Interim Schedule
- Enersource Hydro Mississauga Inc. Final Order
- Enersource Hydro Mississauga Inc. Schedule
- London Hydro Inc. Final Order
- London Hydro Inc. Schedule
- Jan 11-05:
- Dec 9-04:
- May 5-04:
Following the Phase 2 prudence review of Regulatory Assets for Hydro One, Toronto Hydro, Enersource Hydro and London Hydro, the Board determined what constitutes the best evidence, forum and process to determine the reasonableness of Regulatory Assets and how these amounts should be recovered from customers, for the remaining distributors. The Filing Guidelines provided below are based on the Board’s Decision. The Regulatory Assets worksheet and accompanying documentation are also provided below. Electric utilities should apply to the Board for their Phase 2 Regulatory Assets review concurrently with their 2006 EDR applications.
- July 25-05
- July 12-05
Sets out the minimum standards under which a licensed electricity retailer may retail electricity.
It is a deemed condition of licence of all distributors that they file, at the time and in the manner mandated by the Board, distribution system plans relating to the connection of renewable generation and the development of a smart grid. With the issuance of the Filing Requirements, distributors are now directed to file distribution system plans pertaining to the connection of renewable generation facilities at the time and in the manner set out in the Filing Requirements.
Filing Requirements: Distribution System Plans – Filing under Deemed Conditions of Licence (revised May 17, 2012)
- Cover Letter (May 17-12)
- Cover Letter (Mar 25-10)
- Click here for more information on the development of these Guidelines
Provides guidance to electricity distributors with respect to filing applications for service area amendment.
On December 20, 2006, the Board issued a letter to electricity transmitters, distributors and interested parties together with a staff proposal on the Filing Requirements for Service Area Amendment Applications. The Board sought comments on the proposed filing requirements by January 17, 2007. Four parties responded. The Board has now finalized the document, which specifies the information required by the Board for these types of applications. In due course, the document will be incorporated as the next chapter (chapter seven) in the "Filing Requirements for Transmission and Distribution Applications", issued on November 14, 2006.
Provides guidance to electricity distributors with respect to filing applications for service area amendment and applications under Section 86.(1)(b) of the OEB Act, 1998, for the purpose of eliminating long term load transfer arrangements:
Sets out the standards for transmitters and distributors to follow when filing for rate adjustments, leave to construct approvals, and conservation funding.
- Chapter 1: Overview (Feb 11-16)
- Chapter 2: Revenue Requirement Applications (Feb 11-16)
- Chapter 4: Applications under Section 92 of the Ontario Energy Board Act (Jul 31-14)
- Chapter 1 - Overview (Jul 14-16)
- Chapter 2 - Cost of Service Rate Applications Based on a Forward Test Year (Jul 14-16)
- Chapter 3 - Incentive Regulation (Jul 14-16)
- Chapter 5 - Consolidated Distribution System Plan Filing Requirements (Mar 28-13)
- 2017 Cost of Service (Jul 8-16)
- 2017 Incentive Regulation Models (Jul 21-16)
- 2016 Cost of Service (Jul 7-15)
- 2016 Incentive Regulation Models (Jul 30-15)
- Cover Letter for Chapter 1 and 2 Updates (Jul 18-14)
- Cover Letter for Chapter 3 Updates (Jul 25-14)
- Filing Requirements for Electricity Distribution Rate Applications - Chapter 1 (Jul 18-14)
- Filing Requirements for Electricity Distribution Rate Applications - Chapter 2 (Jul 18-14)
- Filing Requirements for Electricity Distribution Rate Applications - Chapter 3 (Jul 25-14)
- Cover Letter for Filing Requirements Update (Jul 17-13)
- Filing Requirements for Electricity Distribution Rate Applications - Chapters 1, 2, 3, 5 (Jul 17-13)
- Chapter 5 – Consolidated Distribution System Plan Filing Requirements (Mar 28-13)
- Cover Letter for Filing Requirements Update (Jun 28-12)
- Filing Requirements for Electricity Transmission and Distribution Applications (revised Jun 28-12)
- Cover Letter for Chapter 4 and Chapter 5 Updates (May 17-12)
- Update to Chapter 4 and Chapter 5 (May 17-12)
- Cover Letter for Chapter 2 and Chapter 3 Updates (Jun 22-11)
- Update to Chapter 2 (Jun 22-11)
- Update to Chapter 3 (Jun 22-11)
- Filing Requirements for Transmission and Distribution Applications (Nov 14-06)
- Cover Letter
- Final document
- Minimum Filing Requirements for Transmission and Distribution Rate Applications and Leave to Construct Projects:
The Board Secretary posted a letter to electricity transmitters, distributors and interested parties together with a staff proposal on the "Minimum Filing Requirements for Transmission and Distribution Rate Applications and Leave to Construct Projects". The Board is seeking comments on the proposed filing requirements by August 4, 2006. Subsequently, the Board will finalize the document, which will then establish the minimum amount of information required by the Board for these types of applications.
Comments (Aug 22-06):
NOTE: For further information on preparing rate applications in light of the transition to International Financial Reporting Standards (IFRS), click here.
Sets out the form for licensed transmitters seeking designation for a transmission project identified in a Notice issued by the Board.
For applications under sections 86(1)(a) and (c) and sections 86(2)(a) and (b) of the OEB Act, please refer to:
- Handbook to Electricity Distributor and Transmitter Consolidations
- Cover Letter for Handbook (January 19, 2016)
For applications under section 86(1)(b) of the OEB Act, please use:
Outlines the OEB's expectations of electricity distributors and unit sub-meter providers (utilities) with respect to the delivery of the Ontario Electricity Support Program (OESP).
Sets out the dates on which the IESO, Distributors and Participating Retailers must make certain payments relating to the Ontario Price Credit.
Sets out the minimum obligations that an electricity distributor and retailer must meet in determining the financial settlement costs of electricity retailers and consumers in facilitating service transaction requests where a competitive retailer provides service to a consumer.
Retail Settlement Code (revised October 8, 2015)
- Appendix C - Service Agreement
- Self-Certification Statement 2
- Letter confirming its October 11, 2006 determination that the current provisions of the Retail Settlement Code (RSC) in relation to load customers and the amendments to the RSC contained in the Board's Notice of Amendments to the Distribution System Code and the RSC issued on October 31, 2006 are appropriate.
Dec. 15, 2011 - The Board issued Guideline G-2011-0001: Smart Meter Funding and Cost Recovery – Final Disposition. This guideline replaces Guideline G-2008-0002: Smart Meter Funding and Cost Recovery issued October 22, 2008.
Guideline G-2011-0001 contains information to assist electricity distributors to make applications seeking approval and disposition of smart meter costs as smart meter deployment and TOU price implementation are completed or nearly completed. The Board also issued an associated Smart Meter Model which corresponds to Guideline G-2011-0001 and previously communicated accounting guidance for smart meter cost accounting and recovery.
- Guideline G-2011-0001: Smart Meter Funding and Cost Recovery – Final Disposition (Dec 15, 2011)
- Guideline G-2008-0002 - Smart Meter Funding and Cost Recovery (Oct 22, 2008)
- Cover Letter (Oct 22-08)
Sets out the rules that govern the conduct of Ontario electricity distributors in the provision of electricity to consumers connected to their distribution system.
Standard Supply Service Code (revised October 8, 2015)
Sets out the minimum standards that an electricity transmitter must meet in designing, constructing, managing and operating its transmission system. The code also sets out the requirements, standards, terms and conditions of a transmitter’s obligations to connect consumers to the transmission system, including performance standards, technical requirements and expansions and connections.
Transmission System Code (revised August 26, 2013)
- Appendix 1, Version A (load customers)
- Appendix 1, Version B (generator customers)
- Appendix 2
- Appendix 3
- Appendix 4
- Appendix 5
- Report on Risk Assessment Methodology Options - March 30, 2000
Amendments to the Transmission System Code
For more information about the July 25, 2005 changes to the Transmission System Code click here.
For more information about the October 20, 2009 changes to the Transmission System Code click here.
For more information about the June 10, 2010 changes to the Transmission System Code click here.
For more information about the August 26, 2013 changes to the Transmission System Code click here.
Sets out the minimum conditions and standards that a licensed unit sub-metering provider must meet when providing unit sub-metering services on behalf of a master consumer.
Unit Sub-Metering Code (revised October 8, 2015)
ACCOUNTING PROCEDURES HANDBOOK
The Accounting Procedures Handbook, including Chapter II, the Uniform System of Accounts, was approved by the Board on November 10, 1999. The Handbook provides guidance to electricity distribution utilities on accounting procedures and requirements as well as setting out a uniform accounting system.
In addition, the OEB has posted a separate document that contains a list of generic accounts that have been opened since the last update of the APH (issued December 2011). This document will be updated at regulator intervals upon the establishment of new accounts or changes to existing accounts.
Accounts Opened Since the APH Update Issued December 2011 (March 31, 2015)
Accounting Procedures Handbook for Electricity Distributors (Effective January 1, 2012)
- Cover letter (March 28, 2012)
NOTE: Adoption of International Financial Reporting Standards (IFRS) January 1, 2012 (with comparitive figures for 2010) raises certain regulatory accounting issues. These are discussed here.
LETTERS ON THE ACCOUNTING PROCEDURES HANDBOOK:
- Guidance on Wholesale Market Services Accounting for Capacity Based Demand Response (CBDR) and new IESO Charge Type 9920 (Mar 29, 2016)
- New Charge Types for Recording in Account 4708 (Jun 4, 2015)
- Accounting policy changes for Accounts 1575 and 1576 effective in the 2014 cost of service rate applications and subsequent rate years (Jun 25, 2013)
- Regulatory accounting policy direction regarding changes to depreciation expense and capitalization policies in 2012 and 2013 under Canadian GAAP (Jul 17, 2012)
- Variance Account 1521 and related accounts 4324 and 5681re: “Special Purpose Charge” Assessment (Apr 23, 2010)
- 4708 account re IESO charge type classifications for reactive support and voltage control (Dec 23, 2008)
- Stranded Meter Costs Related to the Installation of Smart Meters (Jan 16, 2007)
- Accounts for Smart Meters and Low Voltage Charges (Jun 13, 2006)
- 4708 account re IESO charge type classifications for Day-Ahead Commitment Process (Jun 1, 2006)
- 1508 Sub-account re interest rate for pension contributions in 2005 (Feb 20, 2006)
- 4708 and 4712 accounts re IESO charge type reclassifications (Dec 2, 2005)
- 1508 and 1588 Sub-accounts (Feb 15, 2005)
- 1508 Sub-account (Dec 20, 2004)
- Account 1565 (Oct 29, 2004)
ACCOUNTING PROCEDURES HANDBOOK - GUIDANCE:
From time to time the OEB issues accounting guidance that addresses various matters associated with the APH. To date, this guidance has been labeled as Frequently Asked Questions. As of March 2015, this guidance has been renamed as simply “Guidance” as it may contain clarifications of accounting matters that may arise from other sources other than frequently asked questions.
In addition, the OEB has posted a separate document that contains a list of generic accounts that have been opened since the last update of the APH (issued December 2011). This document will be updated at regulator intervals upon the establishment of new accounts or changes to existing accounts.
- July 2016 – Accounting Guidance on Capacity Based Recovery
- March 2015
Summary of topics (click to expand)
- Reference information for new accounts established since the Accounting Procedures Handbook update
- Sub-accounts of Account 1551 Smart Meter Entity Charge Variance Account
- Account 1557 Meter Cost Deferral Account
- Account 1508 Other Regulatory Costs, Sub-account Energy East Consultation Costs
- Account 2105 Accumulated Depreciation of Electric Utility Plant – Property Plant and Equipment, Sub-account Accumulated Depreciation for Specifically Identified Asset Accounts
- Disposition journal entries for Accounts 1575 and 1576
- Derecognition gains or losses in Account 1575
- Expectations for existing deferral Accounts 1531, 1532, 1534, 1535 following the approval of a rate order that is underpinned by a distributor’s first consolidated distribution system plan
- Treatment of amounts in Accounts 1531 and 1532 related to assets not yet in service or not forecasted to be in service in the test year after the discontinuance of the accounts
- Accounting guidance for Account 1533 Renewable Generation Connection Funding Adder Deferral Account, Sub-account Provincial Rate Protection Payment Variances
- Disposition journal entries for Account 1568
- Guidance for LRAM variances incurred after December 31, 2014
- Account descriptions for Advanced Capital Module and Incremental Capital Module
- An example of journal entries to record revenues and expenditures related to an approved Advanced Capital Module and Incremental Capital Module
- Disposition of the balance in Account 1592 PILs and Tax Variances for 2006 and Subsequent Years, Sub-account HST / OVAT Input Tax Credits (ITCs)
- Rate Riders billed by Hydro One to embedded distributors
- Disposition of Global Adjustment to Class A consumers
IFRS Related Consultation and Guidance
Note: view the IFRS consultation webpage for more information.
Issue / Document
The OEB issued a letter providing guidance for all electricity utilities regarding the impact of the decision by the Canadian Accounting Standards Board (the “AcSB”) to defer the mandatory changeover to International Financial Reporting Standards (“IFRS”) to January 1, 2013.
The OEB issued an Addendum to Report of the Board: Implementing International Financial Reporting Standards in an Incentive Rate Mechanism Environment. The Addendum sets out regulatory policy for the transition to IFRS for utility rates rebased using a cost of service methodology and subsequently set using an incentive rate-setting mechanism.
The OEB posted a staff Discussion Paper on the Transition to IFRS – Implementation in an IRM Environment.
The OEB issued a letter further amending Section 9.1.2 of its Report on Transition to IFRS (originally issued Jul-28-09) to advise electricity distributors regarding the use of IFRS in filing cost of service applications for rates for 2012.
The OEB issued an amendment to its Report on Transition to IFRS (originally issued Jul 28-09) to reflect the Canadian Accounting Standards Board pronouncement allowing the option to delay transition to IFRS to January 1, 2012.
The Board has issued a depreciation study prepared by Kinectrics Inc. to assist electricity distributors in Ontario in their transition to International Financial Reporting Standards.
The OEB issued the draft report of Kinectrics Inc., Asset Amortization Study for the Ontario Energy Board, in relation to electricity distributors for comment to assist Kinectrics Inc. in finalizing their report.
The OEB issued a letter clarifying “Accounting for Overhead Costs Associated with Capital Work” to assist utilities with their transition to IFRS.
The OEB issued its report on Transition to International Financial Reporting Standards (IFRS) in recognition of the fact that Canadian Generally Accepted Accounting Principles will transition to IFRS applicable to most utilities regulated by the Board effective January 1, 2011
ACCOUNTING PROCEDURES HANDBOOK - FREQUENTLY ASKED QUESTIONS:
- July 2012
- December 2010
- October 2009
- August 2008
- July 2007
- December 2005
- April 2004
- December 2003
- April 2003
- April 2002
- December 2001
- February 2001
- June 2000
- March 2000
- Guidelines for Regulatory and Accounting Treatments for Distributor-Owned Generation Facilities (G-2009-0300) (Issued September 15, 2009)
- Cover Letter (Issued September 15, 2009)
Sets out the latest changes in accounting and regulatory practices and terminology. This USOA has been refined to accommodate the deregulated natural gas environment, as well as regulated and non-regulated activities of gas utilities.
- Guidelines: Regulatory and Accounting Treatments for Natural Gas Utility-Owned Qualifying Facilities or Assets (G-2010-0030) (Issued February 25, 2010)
- Cover Letter (Issued February 25, 2010)
Nov 28, 2006 — the Board approved a methodology to prescribe interest rates for regulatory accounts under the Uniform System of Accounts for natural gas utilities and electricity LDCs. These prescribed interest rates also apply to the accounts of other rate-regulated entities if approved by the Board.
Information related to the electricity and natural gas reporting & record keeping requirements can now be found under the RRR section of our website.
Have a Question?
If you have any questions related to these documents, you can submit them using our Industry Relations Enquiry form.
Page last updated 2016-10-28