RATE RIDERS. Filed: EB Exhibit G1 Tab 5 Schedule 1 Page 1 of REGULATORY ASSET RATE RIDER

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1 Filed: 0--9 EB-0-06 Exhibit G Schedule Page of 6 RATE RIDERS.0 REGULATORY ASSET RATE RIDER 5 6 This section describes the used to allocate the Regulatory Asset amounts, as identified in Exhibit F, Tab, Schedule, among customer classes The proposed to allocate the Regulatory Asset balances to customer classes follows the approach approved in previous Hydro One applications for similar regulatory assets, or aligns with the cost allocators used in the Boards CAM. 5 6 Hydro One proposes that Regulatory Assets associated with overall revenue requirement (e.g. Pension, OEB Costs, Smart Grid, Green Energy) be disposed of using riders with both a fixed and volumetric component. Regulatory Assets associated with customer based charges (e.g. Smart Meter) will be disposed of via a fixed rider. RSVA balances will be disposed of via a volumetric rider It is proposed that all Regulatory Asset be disposed of evenly over the five-year Custom COS period to smooth customer impacts. 0 Table shows the regulatory accounts and balances proposed for disposition. The table also lists the allocators used to distribute these costs among customer classes and the rationale for using these allocators.

2 Updated: EB-0-06 Exhibit G Schedule Page of 6 Table Regulatory Asset Balances and Allocators Proposed for Disposition Wholesale Market Service Retail Transmissi on Network Retail Transmissi on Connection Low Voltage Global Adjustment Power (Line Losses) Disposition & Recovery of Regulatory Balances (0) balance ($) (7,078,80) 9,70,57 6,66,88,970,868 (,750,9) (555,90) (705,66) RCVA,06,8 Proposed Allocator Forecast kwh excluding wholesale market participants Forecast kwh for non- RPP, non-ldc and class B Forecast number of Rationale EB

3 Updated: EB-0-06 Exhibit G Schedule Page of 6 balance ($) OEB Costs 9,7,07 Proposed Allocator OM&A from Cost Allocation study Rationale EB DSC Exemption 6,67, Revenue Same allocator used for Green Energy Costs in EB Special Purpose 7,860 Same basis as charge incurred and per IRM Tax Changes (7,76,06) Net Assets from Cost Allocation study EB MicroFIT Connection (,58,655) OM&A from Cost Allocation study Treated like another source of revenue. Same allocator used in the CAM for Miscellaneous Revenue Deferred Pension 60,9,0 05 Revenue Treated same as other contributors to Revenue Requirement (eg. Smart Grid and Green Energy approved in EB ) Generator Joint Use (,) OM&A from Cost Allocation study Treated like another source of revenue. Same allocator used in the CAM for Miscellaneous Revenue Capex (,75,777) 05 Revenue EB Smart Meter,686,79 Number of metered EB Smart Grid (,060,) 05 Revenue EB-0-06 Green Energy (,87,) 05 Revenue EB Each test year s forecast of the number of, annual energy and peak demand are used as charge determinants to derive the annual rate rider amounts.

4 Updated: EB-0-06 Exhibit G Schedule Page of Table provides a summary of the proposed Regulatory Assets Rider by rate class. Details of the derivation of the rider amounts for all rate classes for each year of the Custom COS period are provided in Exhibit G,, Schedule. Rate Class Table Regulatory Assets Rate Rider by Rate Class or or $/kw) $/kw) or $/kw) UR R R Seasonal GSe GSd UGe UGd St Lgt Sen Lgt USL DGen ST-General ST-Excl WMP Note: Global Adjustment Rate Rider of $/kwh will apply to all non-rpp, non-ldc, and class B for the entire Custom COS period.

5 Filed: 0--9 EB-0-06 Exhibit G Schedule Page 5 of 6.0 REVENUE SMOOTHING RATE RIDER The amount of revenue required in each test year to smooth the overall distribution rate impacts over the five year Custom COS period is discussed in Exhibit F, Tab, Schedule Hydro One proposes to dispose of the annual smoothing revenue via a rider with both fixed and volumetric components consistent with how revenue would normally be collected from. The allocation of the smoothing revenue to each rate class will be based on the share of total revenue collected by rate class. The smoothing revenue by rate class will be split between fixed and volumetric components in proportion to the amount of revenue collected via fixed and volumetric charges for each rate class. As with the Regulatory Asset rate rider, each test year s forecast for number of, annual energy and peak demand are used as charge determinants to derive the annual rate rider amounts Table provides a summary of the Revenue Smoothing Rider by rate class. Details of the derivation of the rider amounts for all rate classes for each year of the Custom COS period are provided in Exhibit G,, Schedule.

6 Updated: EB-0-06 Exhibit G Schedule Page 6 of 6 Table Revenue Smoothing Rate Rider by Rate Class Rate Class UR R R Seasonal GSe GSd UGe UGd St Lgt Sen Lgt USL DGen ST