Expectations of Performance-based Regulation in the Natural Gas Industry examines the expectations of the parties involved in reaching a performance-based regulation agreement. This discussion paper looks at recent experiences in Ontario with performance-based regulation and what customer groups, other stakeholders, utilities and regulators are expecting from the process and the agreement. This discussion paper is part of a five-part series.
Document Highlights
Energy industries are calling for improved regulatory streamlining. The Ontario Energy Board and the National Energy Board are conducting public hearings on natural gas regulation this autumn. Signal49 Research, in conjunction with the Canadian Gas Association, is contributing five discussion papers to the debate on natural gas regulation.
Expectations of Performance-based Regulation in the Natural Gas Industry examines the expectations of the parties involved in reaching a performance-based regulation agreement. This discussion paper looks at recent experiences in Ontario with performance-based regulation and what customer groups, other stakeholders, utilities and regulators are expecting from the process and the agreement. In Ontario, customer groups have exhibited a level of mistrust of the utilities based on the first performance-based regulation agreements. Until customer groups are willing to trust the utilities, the best alternative may be to review the process of cost-of-service regulation, with an eye to streamlining the process and achieving some of the goals of all parties. If the utilities want to pursue performance-based regulation, it will be up to them to regain the trust of customer groups. The Ontario Energy Board has a role to play in helping to define expectations of performance-based regulation and being part of streamlining the process.
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