The appellants, including Ontario Power Generation Inc. (OPG) and two unions, appealed a decision of the Ontario Energy Board (OEB) that disallowed $145 million of OPG's forecast nuclear compensation costs for the 2011-2012 test period.
The appellants argued the OEB was required to presume the collective agreements were prudent when entered into and could not use hindsight to assess their reasonableness.
The Divisional Court dismissed the appeal, holding that the OEB was not restricted to a retrospective prudence review for forecast costs and was entitled to consider current market comparators to ensure rates were just and reasonable for consumers.
The court also found the OEB's reasons were adequate and its decision did not violate section 2(d) of the Charter.
