A news day at Ontario's Electricity System Operator (IESO) and its nominal sector regulator, the Ontario Energy Board (OEB).
The most anticipated news came from the OEB's announcement of rates to be introduced for May 1st. From the Regulated Price Plan Price Report | May 1, 2017 to April 30, 2018
...the OEB has historically included a portion of significant price changes that may occur in the forecast period because of the smoothing benefits for customers. [emphasis added]
In keeping with this practice, the OEB has considered it appropriate in this price setting to take into account a portion of the estimated impact of the government’s proposed Fair Hydro Plan. The OEB has done this by way of a reduction in the forecast amount of the Global Adjustment of approximately $1B, which represents 50% of RPP consumers’ estimated portion of the proposed refinancing of the Global Adjustment.There's a lot of questionable assumption, some conflicting with other OEB practices, in this paragraph - but jumping to what will be of immediate concern to those only interested in immediate concerns...
The forecast average price prior to the OEB considering new government interference is $114.90 per megawatt-hour (MWh), or 11.49 cents per kilowatt-hour (kWh), which is up about 3% from a year earlier (roughly the inflation rate). For sketchy reasons the OEB has reduced that average rate to $97.62/MWh (15%), reflecting their anticipation of what could comprise the government's boot the cost down the road (BCDR) plan - also known by the government's spin as the Fair Hydro Plan.
The 1.7 cent/kWh reduction the OEB is making is half the cut in bill mock-ups by big new local distribution company Alectra from the very day the government announced the BCDR policy. It was as if they knew what was coming. Coincidentally the IESO today announced Peter Gregg as its new President and Chief Executive Officer, noting "recently he was President of Alectra Energy Solutions."