RFPOEBCAMS12022024 - Capacity Allocation Model for System Expansions to Connect Housing Developments

Project Background
The Ontario Energy Board (OEB) is developing a capacity allocation model (CAM) to address issues related to system expansions for connecting housing developments. This initiative builds on the recommendations set out in the OEB's Report Back to the Minister on System Expansion for Housing Developments (Report to the Minister), which were endorsed by the Minister of Energy and Electrification in his October 21, 2024 letter to the Chair of the OEB's Board of Directors. A technical advisory group (CAMAG) is being established by OEB staff to assist in developing the CAM and rules for its implementation. 
 
Purpose and Objectives
The OEB is seeking a consultant to assist OEB staff in the development of a CAM that will provide a fair and equitable allocation of costs in circumstances where significant initial system expansion into a development area is required, and the associated costs are borne solely by the initial connecting customers. Through use of the CAM:

• Initial connecting customers will pay a fair share of the cost of expansion facilities; and
• Later customers with planned developments or connections will also contribute their allocated share of the cost of the expansion facilities. 

• Establishing rules and requirements for the CAM, including addressing financial considerations to ensure an appropriate balance of costs between new customers and existing ratepayers.
• Developing connection processes under the CAM, including true-up and expansion rebate processes, that minimize administrative burden.

1. Deliverable 1: Conceptual Design of the CAM.

• The successful Vendor will work with OEB staff to develop a high-level conceptual design for the CAM, incorporating input and feedback from OEB staff and the CAMAG.
• The successful Vendor will prepare and present the draft CAM conceptual design to CAMAG for review and feedback. The Vendor’s attendance at all CAMAG sessions will be online/remote. 

2. Deliverable 2: Develop detailed CAM rules and requirements, including connection process under the CAM

• The successful Vendor will assist OEB staff in drafting detailed rules and requirements for the CAM, incorporating feedback from the CAMAG in Deliverable 1. This may include the development of a connection process under the CAM, rules and requirements, capacity & cost allocation calculations, and true-up processes.
• The successful Vendor will conduct comprehensive impact assessments of potential CAM rules and requirements, including analyses of financial, operational, and stakeholder impacts, in particular any administrative or financing impacts on distributors.
• The successful Vendor will prepare a presentation summarizing the findings of the impact assessments and which will include recommendations on the CAM rules and requirements to be implemented. The successful Vendor will present these results to CAMAG.