In Bulletin 2016-22, the AUC announced its approval of AUC Rule 031: Conditional Exemption from Specific Financing and Reporting Requirements (“Rule 31).
Rule 31 was approved in Decision 21555-D01-2016 (the “Rule 31 Decision”), and is effective as of December 6, 2016.
The process leading to the decision included submissions from stakeholders on the proposed form of the rule. The AUC directed interested parties refer to the Rule 31 Decision and the Proceeding 21555 e-filing record for additional information on the process and AUC findings respecting Rule 31.
The Rule 31 Decision is also summarized below.
In 2014, the AUC issued Bulletin 2014-09, stating its objective to improve the efficiency of the application and approval process for utilities seeking equity.
Section 101(2)(a) of the Public Utilities Act, and Section 26(2)(a) of the Gas Utilities Act require certain designated utility owners to apply for approval for the issuance of equity or debt with a maturity period of greater than one year (longterm debt), unless otherwise exempted.
The new Rule 31 is intended to streamline that application process and provide greater certainty to applicants about requirements.
The AUC noted that an objective of the streamlined process is to enhance timely access to debt and equity markets, improve regulatory efficiency, and potentially reduce customers’ costs.
