The appellant utility company appealed an Ontario Energy Board decision allocating 38% of Future Tax Savings to ratepayers.
The savings arose from a departure tax paid by the appellant when the Province sold shares in its parent company.
A Review Panel had previously found the original allocation flawed because the departure tax was a real cost borne by the utility, not ratepayers, and directed a rehearing.
The Rehearing Panel upheld the original allocation by applying a reasonableness standard rather than reconsidering the matter.
The Divisional Court held the Rehearing Panel erred in law by applying the wrong test, quashed the decision, and remitted the matter to a new panel with directions to apply the 'benefits follow costs' principle, meaning the tax savings should benefit the shareholders who bore the cost.
