The appellant utility appealed a Divisional Court decision affirming an Ontario Energy Board order that reclassified $22 million in FT-RAM revenues from utility earnings to gas supply cost reductions.
The appellant argued this was an unauthorized departure from their Incentive Regulation Mechanism Agreement and constituted impermissible retroactive ratemaking.
The Court of Appeal dismissed the appeal, finding that the revenues were generated on a planned basis contrary to the regulatory principle inherent in the agreement, and that because the revenues were brought forward for disposition and the utility failed to disclose its planned activities, the funds were encumbered and subject to further disposition by the Board without offending the rule against retroactive ratemaking.
