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Following stakeholder consultation, Hydro One Networks Inc., files Transmission Rate Applications and submits them to the Ontario Energy Board. These sessions provide customers with the opportunity to have their opinions considered as Hydro One Networks plans the transmission system.


2007/2008 Transmission Revenue Requirement and Rate Application
(EB-2006-0501)

Hydro One Networks' Transmission Revenue Requirement & Rate Application (EB-2006-0501) to the Ontario Energy Board (OEB) was filed on September 12, 2006. Application and Evidence in support of the proposed transmission rate change to be implemented on May 1, 2007, is available in Adobe Acrobat format. Note: The revised OEB case number for this proceeding is EB-2006-0501. Please disregard the docket number EB-2005-0501 as shown in the header of exhibits and refer to the correct case number in all communications with the OEB.

  • Exhibit A - Administration
  • Exhibit B Cost of Capital
  • Exhibit C - Cost Of Service
  • Exhibit D - Rate Base
  • Exhibit E - Revenue Requirement
  • Exhibit F - Regulatory Assets
  • Exhibit G - Cost Allocation
  • Exhibit H - Rate Design
  • Exhibit J -Interrogatory Responses
  • Exhibit K -Undertaking Responses
  • Reply Argument

A full listing of the exhibits is provided in Exhibit A - Tab 20, Schedule 1.


Exhibit A – Administration (Updated February 23, 2007)


Tab 1 Schedule 1 - Application

Tab 2 Schedule 1 - Summary of Application

Tab 2 Schedule 2 - Financial Summary

Tab 3 Schedule 1 - Summary of Transmission Business

Tab 4 Schedule 1 - Notices of Motion

Tab 5 Schedule 1 - Electricity Transmission Licence

Tab 6 Schedule 1 - Transmission System Map

Tab 7 Schedule 1 - Corporate Organization Charts

Tab 8 Schedule 1 - Hydro One Governance and Control Framework

Tab 8 Schedule 2 - Affiliate Service Agreements

Tab 9 Schedule 1 - Hydro One Transmission Financial Statements for the Year ended 2005

Tab 10 Schedule 1 - Hydro One Inc. - Historical Year Annual Reports

Tab 10 Schedule 2 - Hydro One Inc. - Budget Year Quarterly Reports

Tab 11 Schedule 1 - Rating Agency Reports

Tab 11 Schedule 2 - Prospectus for Most Recent Financing

Tab 12 Schedule 1 - Key Governing Legislation, Standards and Codes

Tab 12 Schedule 2 - Summary of Hydro One Transmission Policies

Tab 13 Schedule 1 - Transmission Revenue Requirement Adjustment Mechanisms

Tab 13 Schedule 2 - Development of the OM&A Asset Aging Adjustment Factor

Tab 13 Schedule 3 - Development of the Capital Asset Aging Adjustment Factor

Tab 13 Schedule 4 - Calculation of 2009 & 2010 Transmission Revenue Requirement using the Proposed Adjustment Mechanism

Tab 14 Schedule 1 - Planning Process

Tab 14 Schedule 2 - Economic Indicators

Tab 14 Schedule 3 - Transmission Business Load Forecast and Methodology

Tab 14 Schedule 4 - Project & Program Approval & Control

Tab 14 Schedule 5 - Work Program Prioritization

Tab 15 Schedule 1 - Transmission Business Performance

Tab 15 Schedule 2 - Transmission Benchmarking

Tab 15 Schedule 3 - Customer Delivery Point Performance Standards

Tab 16 Schedule 1 - Stakeholder and First Nations Engagement

Tab 17 Schedule 1 - Summary of Board Directives and Undertakings from Previous Proceedings

Tab 18 Schedule 1 - Procedural Orders, Correspondence, Notices

Tab 19 Schedule 1 - List of Witnesses

Tab 19 Schedule 2 - Curriculae Vitae

Tab 20 Schedule 1 - Exhibit List

Exhibit B – Cost of Capital (Updated February 23, 2007)
Exhibit B1 – Written Direct

Tab 1 Schedule 1 - Cost of Capital

Tab 2 Schedule 1 - Debt Financing Strategy and Cost of Debt

Tab 3 Schedule 1 - Cost of Capital - Rate of Return Study


Exhibit B2 – Supporting Schedules


Tab 1 Schedule 1 - Debt and Equity Summary

Tab 1 Schedule 2 - Cost of Long-Term Debt Capital


Exhibit C – Cost Of Service (Updated February 23, 2007)
Exhibit C1 – Written Direct

Tab 1 Schedule 1 - Cost of Service Summary

Tab 2 Schedule 1 - Summary of OM&A Expenditures

Tab 2 Schedule 2 - Sustaining OM&A

Tab 2 Schedule 3 - Development OM&A

Tab 2 Schedule 4 - Operations OM&A

Tab 2 Schedule 5 - Shared Services and Other OM&A

Tab 2 Schedule 6 - Property Taxes

Tab 3 Schedule 1 - Corporate Staffing

Tab 3 Schedule 2 - Compensation, Wages, Benefits

Tab 4 Schedule 1 - Costing of Work

Tab 4 Schedule 2 - Cost Efficiencies

Tab 5 Schedule 1 - Common Corporate Costs and Cost Allocation Methodology

Tab 5 Schedule 2 - Overhead Capitalization Rate

Tab 5 Schedule 3 - Common Asset Allocation

Tab 6 Schedule 1 - Depreciation and Amortization Expenses

Tab 6 Schedule 2 - Depreciation Rate Review

Tab 7 Schedule 1 - Payments in Lieu of Corporate Income Taxes


Exhibit C2 – Supporting Schedules


Tab 1 Schedule 1 - Cost of Service

Tab 2 Schedule 1 - Comparison of OM&A Expense by Major Category

Tab 3 Schedule 1 - Comparison of Wages and Salaries

Tab 4 Schedule 1 - Capital Taxes

Tab 5 Schedule 1 - Depreciation and Amortization Forecasted Expenses

Tab 6 Schedule 1 - Calculation of Utility Income Taxes


Exhibit D – Rate Base (Updated February 23, 2007)
Exhibit D1 – Written Direct

Tab 1 Schedule 1 - Rate Base

Tab 1 Schedule 2 - Transmission Assets

Tab 1 Schedule 3 - Level and Appropriateness of Transmission Assets

Tab 1 Schedule 4 - Regulatory Treatment of Supply Mix Capital Projects

Tab 1 Schedule 5 - Working Capital and Lead-Lag Study

Tab 1 Schedule 6 - Materials and Supplies Inventory

Tab 2 Schedule 1 - Asset Condition Assessment

Tab 3 Schedule 1 - Summary of Capital Budget

Tab 3 Schedule 2 - Sustaining Capital

Tab 3 Schedule 3 - Development Capital

Tab 3 Schedule 4 - Operations Capital

Tab 3 Schedule 5 - Shared Services and Other Capital

Tab 4 Schedule 1 - Allowance for Funds Used During Construction


Exhibit D2 – Supporting Schedules


Tab 1 Schedule 1 - Statement of Utility Rate Base

Tab 2 Schedule 1 - Comparison of Capital Expenses By Major Category

Tab 2 Schedule 2 - List of Capital Expenditure Programs/Project Greater than $3 Million

Tab 2 Schedule 3 - Justification for Programs/Projects in Excess of $3 Million


Exhibit E – Revenue Requirement (Updated February 23, 2007)
Exhibit E1 – Written Direct

Tab 1 Schedule 1 - Revenue Requirement


Exhibit E2 – Supporting Schedules


Tab 1 Schedule 1 - Calculation of Revenue Requirement


Exhibit E3 – External Revenues


Tab 1 Schedule 1 - External Revenues


Exhibit F – Regulatory Assets (Updated February 23, 2007)
Exhibit F1 – Written Direct

Tab 1 Schedule 1 - Summary of Regulatory Assets

Tab 1 Schedule 2 - Variances Resulting from Board Decisions

Tab 2 Schedule 1 - Planned Disposition of Regulatory Assets

Tab 3 Schedule 1 - Variance Account Requested


Exhibit F2 – Supporting Schedules


Tab 1 Schedule 1 - Regulatory Assets

Tab 1 Schedule 2 - Schedule of Annual Recoveries


Exhibit G – Cost Allocation (Updated February 23, 2007)
Exhibit G1 – Written Direct

Tab 1 Schedule 1 - Cost Allocation and Change Determinants

Tab 2 Schedule 1 - Description of Cost Allocation Methodology

Tab 3 Schedule 1 - Network and Line Connection Pool

Tab 4 Schedule 1 - Transformation Connection Pool

Tab 5 Schedule 1 - Wholesale Meter Pool

Tab 6 Schedule 1 - Cost Data for Low Voltage Switchgear Compensation


Exhibit G2 – Supporting Schedules


Tab 1 Schedule 1 - List of Transmission Lines by Functional Category

Tab 1 Schedule 2 - List of Transmission Stations by Functional Category

Tab 2 Schedule 1 - Allocation Factors for Dual Function Lines

Tab 3 Schedule 1 - Allocation Factors for Generator Line Connections

Tab 3 Schedule 2 - Allocation Factors for Generator Station Connections

Tab 4 Schedule 1 - Asset Value by Functional Category

Tab 4 Schedule 2 - Total Depreciation by Functional Category

Tab 4 Schedule 3 - Return on Capital and Income Taxes by Functional Category

Tab 4 Schedule 4 - OM&A Costs by Functional Category

Tab 5 Schedule 1 - Detailed Revenue Requirement by Rate Pool


Exhibit H - Rate Design (Updated February 23, 2007)
Exhibit H1 – Written Direct


Tab 1 Schedule 1 - Overview of Uniform Transmission System Rates

Tab 2 Schedule 1 - Transmission Customers Load Forecast

Tab 3 Schedule 1 - Charge Determinants

Tab 4 Schedule 1 - Rates for Wholesale Meter Service

Tab 5 Schedule 1 - Rates for Export Transmission Service

Tab 5 Schedule 2 - Review of Export Tariff in Other Jurisdictions

Tab 5 Schedule 3 - Disposition of the Export Transmission Service Revenues from May 1, 2007 and Beyond


Exhibit H2 – Rate Schedule


Tab 1 Schedule 1 - Current Ontario Transmission Rate Schedule

Tab 2 Schedule 1 - Wholesale Meter Service Rate Schedule


Exhibit J – Interrogatory Responses


Tab 1 -
Ontario Energy Board Staff (16.9 MB - high-speed connection required)

Tab 2 - Society of Energy Professionals (SEP) (16 MB - high-speed connection required)

Tab 3 - Power Workers Union (PWU) (46 KB)

Tab 4 - Great Lakes Power (GLP) (59 KB)

Tab 5 - Vulnerable Energy Consumers Coalition (VECC) (9.1 MB - high-speed connection required)

Tab 6 - Association of Major Power Consumers of Ontario (AMPCO) (603 KB)

Tab 7 - School Energy Coalition (SEC) (4.7 MB) 

            Tab 7 - 033 - Part 1 (8.2 MB - high-speed connection required) 
            Tab 7 - 033 - Part 2 (11.8 MB - high-speed connection required)
            Tab 7 - 033 - Part 3  (13.3 MB - high-speed connection required)

Tab 8 - Independent Energy System Operator (IESO) (38 KB)

Tab 9 - Consumer Council of Canada (CCC) (2.9 MB)

Tab 10  - Energy Probe (EP) (104 KB)


Exhibit K – Undertaking Responses

List of Undertaking Responses (Excel - 29 KB)

Filed Undertaking Responses (ZIP, contains 34 files, 2.5 MB)


Reply Argument

Filed Reply Argument (dated June 13,2007)