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2013/2014 Transmission Revenue Requirement and Rate Application
(EB-2012-0031)

 

Hydro One Networks' Transmission Revenue Requirement & Rate Application (EB-2012-0031) to the Ontario Energy Board (OEB) was filed on May 28, 2012.  Application and Evidence in support of the proposed transmission rate change to be implemented on January 1, 2013, is available in Adobe Acrobat format below.


Use the jump links below to download files from the specific Exhibits:

  • 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 - Tx Rate Design

  • Exhibit I - Interrogatory Responses

  • Exhibit J - Undertaking Responses

  • Exhibit K - Miscellaneous Exhibits

  • Exhibit M - Settlement Agreement

A full listing of the exhibits is provided in Exhibit A - Tab 1, Schedule 1.
A full listing of the exhibits that have been updated is provided in the Transmittal Letter.


Exhibit A - Administration

A-01-01Exhibit List (Updated August 15, 2012)

A-02-01Application (Updated August 15, 2012)

A-03-01Summary of Application (Updated August 15, 2012)

A-03-02Financial Summary (Updated August 15, 2012)

A-04-01Summary of Tx Business

A-05-01Notice of Motion, Procedural Orders, Correspondence - Attachments 12 and 3 (Updated August 15, 2012)

A-06-01Compliance with OEB Filing Requirements for Electricity Transmitters (Updated August 15, 2012)

A-07-01Transmission System Maps North and South

A-08-01Corporate Organization Charts

A-08-02Hydro One Governance and Control Framework

A-08-03Affiliate Service Agreements (Updated September 20, 2012)

A-09-01Hydro One Tx Financial Statements and Utility Income - Historic Years (2009, 2010 and 2011)

A-09-02Transmission Pro Forma Statements of Income for Bridge Year (2012) and Test Years (2013 and 2014) 

(Updated August 15, 2012)

A-10-01Hydro One Inc. - Historical Year Annual Report (2010)

A-10-02Hydro One Inc. - Bridge Year (2012) Quarterly - Attachment 1 and 2 (Updated August 15, 2012)

A-10-03Reconciliation of Regulatory Financial Results with Audited Financial Statements

A-11-01Rating Agency Reports (Updated July 12, 2012)

A-11-02Prospectus for Most Recent Financing

A-12-01Key Governing Legislation, Standards and Codes

A-12-02Summary of Hydro One Transmission Policies

A-13-01 Planning Process

A-13-02Transmission 10 Year Outlook (Updated November 12, 2012)

A-14-01Green Energy Plan (Updated August 15, 2012)

A-15-01Economic Indicators (Updated August 15, 2012)

A-15-02Load Forecast and Methodology

A-15-03Investment Plan Development

A-15-04Investment Prioritization Process

A-15-05Project and Program Approval & Control

A-15-06Work Execution Strategy

A-16-01Transmission Business Performance

A-17-01Cost Efficiencies (Updated November 12, 2012)

A-17-02Productivity Metrics

A-18-01Stakeholder Consultation

A-19-01Summary of OEB Directives and Undertakings from Previous Proceedings

A-20-01 - Issues List Appendix A (Updated August 15, 2012)

A-21-01List of Witnesses

A-21-02Curriculae Vitae


Exhibit B - Cost of Capital

Exhibit B1 - Written Direct
B1-01-01 - Cost of Capital (Updated August 15, 2012)

B1-02-01 - Cost of Long-Term Debt


Exhibit B2 - Bridge Year and Test-Year Exhibits

B2-01-01 - Debt and Equity Summary (Updated August 15, 2012)

B2-01-02 - Cost of Long-Term Debt Capital (Updated August 15, 2012)


Exhibit C - Cost of Service
Exhibit C1 - Written Direct
C1-01-01 - Cost of Service Summary (Updated August 15, 2012)
C1-02-01 - Tx Assets and Investment Structure (Updated August 15, 2012)
C1-02-02 - Transmission Assets and Investment Overview (Updated August 15, 2012)
C1-03-01 - Summary of OM&A Expenses (Updated August 15, 2012)
C1-03-02 - Sustaining OM&A
C1-03-03 - Development OM&A
C1-03-04 - Operations OM&A
C1-03-05 - Customer Care
C1-04-01 - Summary of Shared Services (Updated August 15, 2012)
C1-04-02 - Common Corporate Functions and Services and Other OM&A (Updated August 15, 2012)
C1-04-07 - Property Taxes
C1-05-03 - Pension Costs
C1-06-01 - Costing of Work
C1-07-01 - Common Corporate Costs, Cost Allocation Methodology (Updated August 15, 2012)
C1-08-01 - Depreciation and Amortization Expenses (Updated August 15, 2012)
C1-09-01 - Payments in Lieu of Corporate Income Taxes (Updated August 15, 2012)

Exhibit C2 - Bridge Year and Test Year Exhibits and Analysis
C2-01-01 - Cost of Service (Updated August 15, 2012)
C2-02-01 - Comparison of OM&A Expense by Major Category (Updated August 15, 2012)
C2-04-01 - Depreciation and Amortization Expenses (Updated August 15, 2012)
C2-05-01 - Calculation of Utility Income Taxes - Attachments 12345 and 6 (Updated August 15, 2012)
C2-05-03 - 2011 Hydro One Networks Income Tax Return - Attachments 123 and 4 (Updated August 15, 2012)

Exhibit D - Rate Base

Exhibit D1 - Written Direct
D1-01-01 - Rate Base (Updated August 15, 2012)
D1-01-02 - In-Service Capital Additions (Updated August 15, 2012)
D1-01-03 - Working Capital (Updated August 15, 2012)
D1-02-01 - Allowance for Funds Used During Construction (Updated August 15, 2012)
D1-03-01 - Summary of Capital Expenditures (Updated August 15, 2012)
D1-03-02 - Sustaining Capital (Updated August 15, 2012)
D1-03-03 - Development Capital - Appendix ABCDE and F (Updated August 15, 2012)
D1-04-01 - Summary of Shared Service Capital (Updated August 15, 2012)
D1-04-02 - Shared Services - Information Technology (Updated August 15, 2012)
D1-04-03 - Shared Services - Cornerstone Capital (Updated August 15, 2012)
D1-04-04 - Shared Services - Facilities and Real Estate (Updated August 15, 2012)
D1-04-05 - Shared Services - Transport, Work and Service Equipment (Updated August 15, 2012)
D1-05-01 - Materials and Supplies Inventory (Updated August 15, 2012)

Exhibit D2 - Bridge Year and Test Year Exhibits (all updated August 15, 2012)
Exhibit E - Revenue Requirement
Exhibit E1 - Written Direct
E1-02-01 External Revenues

Exhibit E2 - Test Year

Exhibit F - Regulatory Assets

Exhibit F1 - Written Direct
F1-01-01Regulatory Assets
Exhibit F2 - Supporting Schedules

Exhibit G - Cost Allocation
Exhibit G1 - Written Direct
G1-05-01 Wholesale Meter Pool
H1-03-01 - Charge Determinants
H1-04-01 - Wholesale Meter Service (Updated August 15, 2012)
Exhibit H2 - Tx Rate Schedules
H2-01-02 - Proposed Uniform Transmission Rates (Updated August 15, 2012)
H2-02-02 - Proposed Wholesale Meter Service Rate Schedule


Exhibit I - Interrogatory Responses

Tab 1 - Issue 1 Has Hydro One responded appropriately to all relevant Board directions from previous proceedings?

Tab 2 - Issue 2 Is the overall increase in 2013 and 2014 revenue requirement reasonable? (Updated November 12, 2012)

Tab 3 - Issue 3 Is the load forecast and methodology appropriate and have the impacts of Conservation and Demand Management initiatives been suitably reflected? (Updated October 19, 2012) 

Tab 4 - Issue 4 Are Other Revenue (including export revenue) forecasts appropriate?

Tab 5 - Issue 5 Are the proposed spending levels for Sustaining, Development and Operations OM&A in 2013 and 2014 appropriate, including consideration of factors such as system reliability and asset condition? (Updated November 12, 2012) 

Tab 6 - Issue 6 Are the proposed spending levels for Shared Services and Other O&M in 2013 and 2014 appropriate?

Tab 7 - Issue 7 Are the 2013/14 Human Resources related costs (wages, salaries, benefits, incentive payments labour productivity and pension costs) including employee levels appropriate? Has Hydro One demonstrated improvements in efficiency and value for dollar associated with its compensation costs I-07-9.02 SEC 21 Attachment 12345 (Updated November 12, 2012)

Tab 8 - Issue 8 Are the methodologies used to allocate Shared Services and Other O&M costs to the transmission business and to determine the transmission overhead capitalization rate for 2013/14 appropriate?

Tab 9 - Issue 9 Are the amounts proposed to be included in the 2013 and 2014 revenue requirements for income an other taxes appropriate?

Tab 10 - Issue 10 Is Hydro One Networks’ proposed depreciation expense for 2013 and 2014 appropriate?

Tab 11 - Issue 11 Are the amounts proposed for rate base in 2013 and 2014 appropriate? (Updated October 24, 2012)

I-11-4-15 PP 15 Attachment 1
I-11-4.27 PP 27 Attachment 1

Tab 12 - Issue 12 Are the proposed 2013 and 2014 Sustaining and Development and Operations capital expenditure appropriate, including consideration of factors such as system reliability and asset condition? (Updated October 24, 2012)
Tab 13 - Issue 13 Are the proposed 2013 and 2014 levels of Shared Services and Other Capital expenditures appropriate?
Tab 14 - Issue 14 Are the methodologies used to allocate shared services and other capital expenditures to the transmission business, appropriate?
Tab 15 - Issue 15 Are the inputs used to determine the working capital component of the rate base and the methodology used appropriate?
Tab 16 - Issue 16 Does Hydro One’s Asset Condition Assessment information and Investment Planning Process adequately address the condition of the transmission system assets and support the O&MA and Capital expenditures for 2013/14?
Tab 17 - Issue 17 Is the proposed timing and methodology for determining the return on equity and short-term debt prior to the effective date of rates appropriate? 
Tab 18 - Issue 18 Is the forecast of long term debt for 2012-2014 appropriate?
Tab 19 - Issue 19 Are the proposed amounts, disposition and continuance of Hydro One’s existing Deferral and 
Variance accounts appropriate?
Tab 20 - Issue 20 Are the proposed new Deferral and Variance Accounts appropriate?
Tab 21 - Issue 21 Is the cost allocation proposed by Hydro One appropriate?
Tab 22 - Issue 22 Are the OM&A and capital amounts in the Green Energy Plan appropriate and based on appropriate planning criteria?
Tab 23 - Issue 23 What is the appropriate level for Export Transmission Rates in Ontario? (Updated October 5, 2012)
Tab 24 - Issue 24 Are the proposed modifications to the Hydro One transmission connection procedures appropriate?
Tab 25 - Issue 25 Have all impacts of the conversion of regulatory and financial accounting from CGAAP to USGAAP been identified, and reflected in the appropriate manner in the Application, the revenue requirement for the Test Years and the proposed rates?



Settlement Agreement (Updated November 6, 2012)