Good morning Kelli,

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I appreciate your patience. The following provides responses to each question raised:

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Question 1:

a.     Westario Power Inc. does not serve any Market Participant.

b.     Westario Power Inc. does not serve any Class A customers per O.Reg 429/04.

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Question 2: Not applicable due to the answer to question 1.

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Question 3: The IRM application is intended to be a Price Cap IR where the Annual Adjustment Mechanism utilizes: inflation based on the Composite Index; Productivity is based on peer group x-factors; and the sharing of benefits is through the stretch factor. My apologies if our application indicated the Annual IR Index.

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Question 4: You are correct, the number should be 5,458,939 kWh not the 18,246 kWh presented for the street lighting rate class.

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Question 5: You are correct, the Regulatory Taxable Income on Tab 11 should be $29,588, Tax Impact should be $4,586, and the Grossed-up Tax amount should be $5,427.

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Question 6: We acknowledge the rates will expire December 31, 2014 and Board Staff will update the model.

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We apologize for the errors noted above and appreciate you updating the model for Westario Power Inc.

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Respectfully submitted,

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Matthew McMurdie CPA, CMA

CFO

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Westario Power Inc.

24 Eastridge Road, RR #2

Walkerton, ONÂ N0G 2V0

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519-507-6666 Ext. 211

matt.mcmurdie@westario.com

HYPERLINK "http://www.westario.com/"www.westario.com

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From: Kelli Benincasa [mailto:Kelli.Benincasa@ontarioenergyboard.ca]
Sent: November-17-14 10:58 AM
To: McMurdie, Matt
Subject: IR's for Westario

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I have reviewed Westario’s application and I just have a few questions so no technical conference will be needed. My first two questions are generic IR’s we are asking everyone, they may not apply to you at all if so just respond with not applicable. If you require an explanation please let me know and I will set up a conference call with a fellow employee.

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Question 1

Chapter 3 of the Filing Requirements notes that “distributors must establish separate rate riders to recover the balances in the RSVAs from Market Participants (“MPs”) who must not be allocated the RSVA account balances related to charges for which the MPs settle directly with the IESO (e.g. wholesale energy, wholesale market services).”

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Chapter 3 of the Filing Requirements also note that “distributors who serve Class A customers per O.Reg 429/04 (i.e. customers greater than 5 MW) must propose an appropriate allocation for the recovery of the global adjustment variance balance based on their settlement process with the IESO.

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a)    Please confirm whether or not Westario serves any consumers that are Wholesale Market Participants (“WMPs”).

                          i.         If yes:

                                                   i.    Have these consumers been WMPs throughout the entire time over which variances accumulated in the RSVA accounts proposed for disposition?

                                                  ii.    Please confirm that RSVA account balances have not been allocated to WMP customers as they settle these charges directly with the IESO.

b)Â Â Â Â Please confirm whether or not Westario serves any class A consumers that settle energy charges directly with Westario. If yes, please explain how balances in Account 1589 (Global Adjustment) have been allocated to these consumers.

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Question 2

In calculating Deferral and Variance Account rate riders for sub-groups of customers within a class (e.g. WMPs and non-WMPs), distributors have used two approaches.

1)Â Â Â Â Rate riders grouped by the nature of the deferral and variance accounts (i.e. one set of rate riders for accounts related to transmission (e.g. 1584 and 1586) and another set of rate riders for accounts related to power (e.g. 1580 and 1588). For an example, see the EnWin Utilities Ltd. Final 2014 Tariff of Rates and Charges (EB-2014-0156).

2)    Sets of rate riders calculated on the basis of the customer group to which they would apply (i.e. one rate rider for WMPs and one rate rider for non-WMPs). For an example, see Bluewater Power Distribution Corp.’s 2014 IRM application (EB-2013-0112).

Please explain which approach Westario would use and why.Â

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Question 3

Please confirm your IRM application is an Annual IR Index as filed and not intended to be a Price Cap IR.

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Question 4

Please confirm in cell D22 in Tab 9 should be 5,458,939 kWh not 18,246 kWh for the street lighting rate class.Â

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Question 5

Pasted below is Tab 6 from your RRWF EB-2012-0176.

Please confirm Regulatory Taxable Income on Tab 11 of your IRM application should be $29,588 not $33,091.

Please confirm the Tax Impact on Tab 11 of your IRM application should be $4,586 not $4,650.

Please confirm Grossed-up Tax amount should be $5,427 not $6070. Â

If not please explain the amounts. Â

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Question 6

The rates in Tab 15 RTSR – UTR’s & Sub-Tx will expire on December 31, 2014, Board staff will update the model. Please see below for reference.Â

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If you have any questions please email or call me.

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Kelli Benincasa

Rates Analyst

P.O. Box 2319

2300 Yonge Street, 27th Floor

Toronto, ON M4P 1E4

Tel:Â 416-440-7624

E-Mail:Â HYPERLINK "mailto:Kelli.Benincasa@ontarioenergyboard.ca"Kelli.Benincasa@ontarioenergyboard.ca

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