The Ontario Fair Hydro Plan: Rate Regulated Accounting and Public Policy
(6 pages of text)
Case (Pub Mat)
This case explores Ontario's Fair Hydro Plan, a 2017 policy of the Government of Ontario that aimed to reduce consumer electricity rates by borrowing to provide subsidies. This borrowing was to be repaid through increased rates levied on future consumers in the province. This policy was accounted for using the principles of rate-regulated accounting. The impetus for these changes was the rapidly rising electricity rates.
This case can be used at the undergraduate or graduate level. It is best suited for accounting courses or courses concerning public policy. After completion of this case, students will be able to:
- Understand the basic purpose of rate-regulated accounting.
- See the impact of accounting policy choices on public accounts.
- Understand the function of the auditor general of Ontario and Financial Accountability Office.
- Gain some background on the Ontario electricity market.
Canada, Large, 2018
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