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Consultation on Proposed Amendments to AUC Rule 023, AUC Bulletin 2021-017

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Rules – Rates

The AUC issued Bulletin 2021-017 seeking feedback on amendments to Rule 023: Rules Respecting Payment of Interest.

The proposed amendments aim to simplify Rule 023 and ensure broad application of the rule. The AUC noted its consideration of the following changes:

  • General application of Rule 023 to all outstanding balances and adjustments of rates, tolls or charges and any other costs that are subject to the AUC’s jurisdiction;

  • Simplification of the criteria applied to a request for the payment of interest;

  • Reduction of the period for which a balance must be outstanding;

  • Removal of a specific materiality threshold; and

  • Use of the Bank of Canada policy rate instead of the Bank of Canada bank rate.

The proposed changes are intended to apply to applications on a go-forward basis. Once the amended rule is approved, following the AUC’s approval of the amended rule, deferral accounts and balances that have been awarded interest at a weighted average cost of capital (“WACC”) or another interest rate will be honoured for the time periods for which they were approved, after which, a request for any rate other than the rate specified under Rule 023 will be required to justify a different rate.

Participation in the consultation is possible until October 7, 2021.

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