Generally it is the responsibility of the utilities to review utility revenue requirements and apply for new rates as required. Regular rate reviews provide the opportunity to assess the operating performance of a utility. The Public Utilities Board (Board) promotes the user-pay principle in rate setting to encourage conservation and send proper price signals to consumers. Fair and equitable rates are highly dependent on the accuracy of the underlying utility records. Many operating and administrative resources are shared between municipal operations and the utility. The appropriate allocation of costs is essential to avoid inappropriate cross-subsidization.

Consistent with its desire to retrain regulatory costs, the Board has developed a set of spreadsheets to assist municipalities in preparing rate studies. The spreadsheets are formula driven and by following the completion instruction, they may assist a municipality in preparing a rate application. However, the spreadsheets may be varied by the utility to address the individual circumstances of each utility. These variations must be explained in order for the Board to process the application.

Processing an Application  

After the utility files an application with the Board, a public notice of application will be issued and the utility is responsible for its posting and/or publishing using Board Guidelines. Directions will be provided with the notice. As stakeholder responses are received, they are added to the rate application file, and forwarded to the municipality.

The application is then reviewed and any necessary information requests are sent to the applicant (Municipality). Upon the receipt and review of the responses, the Board may request further information. Once the Board is satisfied that the necessary evidence has been received, a final review is completed. The Board Panel will determine whether a public hearing is in the best interest of the community or whether a paper review process will suffice. This determination will depend on many variables, such as the volume of stakeholder response, the nature of those responses and/or the magnitude of the requested increase. The Board will complete its review and render a decision by way of a Board Order.  

Failure to submit all pieces of an application will result in it not being accepted and sent back to the Utility to refile.

Rate Application with Rate Study Process

Simplified Rate Application Process