Section 78.1 of the Ontario Energy Board Act, 1998, S.O. 1998, c. 15 Schedule B (OEB Act) and Ontario Regulation 53/05 under the OEB Act (O. Reg 53/05), set out the OEB’s authority to set payment amounts for Ontario Power Generation (OPG) nuclear facilities and certain hydroelectric facilities, including the form, methodology, assumptions and calculations used in setting payment amounts.
OPG is expected to file its 2022-2026 Payment Amounts application in late December 2020 (OPG Application). This application is expected to include a proposal for the recovery of nuclear liabilities in OPG’s payment amounts (and a study regarding cost recovery methodologies). This will be the first application in which the OEB is retaining an expert to review nuclear liabilities.
The OEB’s decision in OPG’s 2017-2021 Payment Amounts proceeding accepted OPG’s approach to the recovery of its nuclear liabilities through its payment amounts. However, the OEB directed OPG to file, in its next cost-based application, a jurisdictional study of cost recovery methodologies for nuclear liabilities. The OEB further stated that the study should include an examination of cost recovery for short-term and long-term nuclear liabilities as it relates specifically to OPG’s assets. The OEB further stated that parties may examine the issue of discount rates as part of the consideration of the nuclear liability cost recovery methodology (EB-2016-0152, Decision and Order, pp. 97-98).
This RFP is issued concurrently with three (3) other Requests for Proposals (RFPs) and one (1) Request for Services (RFS) for expert services related to the OPG Application. Vendors that bid in response to this RFP who also may be interested in submitting bids in response to the other RFPs should consider their capacity to provide services in response to this RFP as well as the other RFPs, taking into account the anticipated volume and pace of work. Vendors should be prepared to work in coordination with the other Vendor(s) selected to support OEB staff on the OPG Application and demonstrate previous successful experience of collaboration with other vendors or consultants.
Objectives
To retain an expert who will review OPG’s 2022-2026 Payment Amounts Application, specifically OPG’s proposals regarding the recovery, in payment amounts, of its nuclear liabilities (including a consideration of cost recovery methodologies used in other jurisdictions and the appropriate discount rates that should be applied).
