On May 14, 2020, the OEB initiated a consultation on a deferral account relating to impacts arising from the COVID-19 emergency in the electricity and natural gas sectors (the Account). The Account applies to electricity distributors, electricity transmitters, natural gas distributors, and Ontario Power Generation Inc. (collectively Regulated Entities).
This consultation is also referred to as the COVID Deferral Account Consultation (Consultation). OEB staff is in the process of engaging an Economic Consultant and also needs an Accounting Consultant for the Consultation.
The objective of the Consultation is to assist the OEB in the development of new accounting guidance related to the Account and filing requirements, where appropriate, for the review and disposition of the Account, giving due regard to bill impacts on customers.
Purpose and Scope
Further detailed accounting guidance, including policy direction, will need to be issued by the OEB on key issues in order for Regulated Entities to be able to assess the need for, and if necessary, properly make applications for review and disposition of the Account balance in due course. OEB guidance could include the following and some of these points may not necessarily be incorporated into the Accounting Consultant’s deliverables:
Full details of the RFP document is available only through MERX at www.merx.com or 1-800-964-6379, MERX reference number 0000180242.
- Rules on the operations of the three sub-accounts
- The nature of the costs/revenue to be recorded
- Timing of recovery (including the nature of any near term relief, if needed)
- How materiality will be assessed
- Whether any additional revenues or offsetting cost savings need to be considered
- Rate impacts and rate mitigation considerations