The Ontario Energy Board appealed a decision that had required it to apply a mandatory prudence framework when assessing Ontario Power Generation compensation costs in rate-setting.
The majority held tribunal participation in defending its own decision was proper in this regulatory context and found no impermissible bootstrapping on appeal.
The Court held the governing statute did not require a single prudence methodology and permitted the Board to use a mixed approach for costs that were partly committed and partly subject to managerial discretion.
The Board’s disallowance of $145 million in compensation costs was found reasonable, and its original decision was reinstated.
