Question 1)



The report recommends that the cost allocation model be modified to ensure that only the customer classes that include customers that provide their own transformation are included in the determination of TOA. Has the Board reviewed the 2007 Cost Allocation Filings to determine the effect of the proposed change on the ranges of revenue to cost ratios? Particular emphasis should be placed on the Larger User Class where the Board implemented a narrow revenue to cost range based on the original methodology. Would the Board consider adjusting the current Revenue to Cost range for the Large Use class based on the revised findings? Do actual costs to service Large Use customers vary significantly from LDC to LDC?



Question 2)



The Cost Allocation module includes an opportunity for the direct allocation of costs. Does Elenchus or the Board consider the use of this column an important part of completing a relevant Cost Allocation filing? Are there statistics available to show what percentage of LDC’s actually used this column in their Cost Allocation Filing?





Wayne Armstrong

Director of Finance

Welland Hydro-Electric System Corp.

Phone: 905-732-1381 Ext. 234

Fax: 905-732-0123

Email: warmstrong@wellandhydro.com



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