Author: Dr. Wayne Simpson (for CAC Manitoba).
This report examines the methodological issues associated with the determination of the Rate Stabilization Reserve target range. The report first summarizes the relevant issues considered in two earlier reports to the PUB on this matter, co-authored by Derek Hum and Wayne Simpson. In then assesses the arguments in the current rate application regarding the target RSR for 2012/13 and future years. The report considers how the DCAT can provide a better assessment of the target RSR in future rate hearings, based on the need for RSR target stability and an evidence-based and transparent process. The final section summarizes the arguments and provides recommendations regarding the target RSR.