OEB Releases Final Report to Reduce EV Charging Rates

Following two rounds of consultations, the Ontario Energy Board (“OEB”) released its Final Report on the design of the Electric Vehicle Charging Rate (“EVC Rate”) on March 31, 2025.

As a refresher, the OEB has been exploring options to lower the electricity charges for electric vehicle (“EV”) charging stations to support efficient EV adoption across the province via its Electric Vehicle Integration initiative. The new EVC Rate will reduce the Retail Transmission Service Rates (“RTSRs”) paid by participating owners of end-use EV charging stations (here and in the Final Report, “customers”). RTSRs are charges that electricity distributors apply to customers to collect the wholesale transmission line connection, transformation and network charges that distributors owe to electricity transmitters.

In April 2023, the OEB hired Power Advisory as a consultant to analyze and explore alternative delivery rate designs and, in May 2024, was subsequently directed by then-Minister of Energy Todd Smith to explore rate design options for EV charging. The Final Report integrates feedback from stakeholders on the Revised Proposal (January 2025) and the original Draft Proposal (May 2024), both of which we covered previously via Energy Insider.

An overview of the changes in the Final Report and next steps for implementation can be found below.

Updates From the Final Report

The OEB’s Final Report included the following updates to the EVC Rate and associated rules and requirements, as compared to the earlier Proposals:

• Refined Load Factor Calculation: A 12-month average load factor (rather than annual) will be used to calculate EVC Rate eligibility, accounting for seasonality and potential volatility during individual months.
• New Limit on Lower-Level, Non-Direct Current Fast Chargers (“DCFCs”): The total capacity rating of lower-level chargers at a station may not exceed the total rating of the station’s DCFCs, which will ensure that EVC Rate eligibility will be limited to where charging is provided primarily through DCFCs.
• Single Opt-in System: Rather than requiring annual re-submission of the opt-in form, customers will only need to opt in once and will remain enrolled for as long as they continue to meet the eligibility requirements. They must notify their distributor within 30 days if they cease to be eligible.
• Future EVC Rate Review: The OEB confirmed its intent to initiate an EVC Rate review within five years.
• Record-Keeping Requirement Confirmed: EVC Rate participants (i.e., distributors and customers) will be required to keep certain records (e.g., hourly demand, charger types, DER quantities and types, total monthly demand of participating customers, etc.), some of which will be reported in documents such as the opt-in form and other templates to be developed.
• No Restrictions on Venues: The OEB confirmed that the EVC Rate will be available for eligible charging stations at any venue, such as municipal buildings, retail sites, business offices and educational campuses.

Next Steps for Implementation

Electricity distributors must make the EVC Rate available to eligible charging stations in 2026, on the same day their OEB-approved 2026 distribution rates become effective. Distributors are encouraged to make opt-in forms available at least 90 days in advance of the effective date. The EVC Rate will not be applied retroactively to customers prior to opting in or before their respective effective date.

To facilitate the EVC Rate’s implementation over the coming months, the OEB will undertake the following activities in consultation with distributors and other stakeholders:

• EVC Rate Opt-In Form: Develop a standard form that distributors and participants will use as part of the opt-in process.
• Record-Keeping Requirement Process: Establish a process and develop templates for the record-keeping requirement.
• Deferral and Variance Account: Establish a deferral account for distributors to track the revenue requirement impacts of incremental and material costs of implementing the EVC Rate.
• Communication Materials: Prepare educational communication materials to support implementation.

We will continue to monitor updates regarding the implementation of the EVC Rate as they arise.