Exhibit 9: Deferral & Variance Account EB-2019-0032 Exhibit 9: Deferral & Variance Accounts Filed: April 26, 2019 Page 2 of 41 Table of Contents 9.1 Overview .......................................................................................................................................................... 4 9.2 Account Balances ............................................................................................................................................. 5 9.2.1 Reconciliation of Account Balances ................................................................................................................ 5 9.2.2 Explanation of Variances to 2.1.7 RRR Balances ............................................................................................ 6 9.2.3 Energy Sales and Cost of Power ..................................................................................................................... 7 9.2.4 Carrying Charges ............................................................................................................................................. 8 9.2.5 Account 1575, IFRS-CGAAP Transitional PP&E Amounts ............................................................................... 9 9.2.6 One-Time Incremental IFRS Costs (Account 1508 Other Regulatory Assets – Sub Account Deferred IFRS Transition Costs) .................................................................................................................................................... 10 9.3 Disposition of Deferral and Variance Accounts ............................................................................................. 11 9.3.1 Overview ....................................................................................................................................................... 11 9.3.2 Group One Account Analysis ........................................................................................................................ 12 9.3.3 Account 1551: Smart Metering Entity (“SME”) ............................................................................................ 13 9.3.4 Account 1580: RSVA – Wholesale Market Services ...................................................................................... 13 9.3.5 Account 1584: RSVA – Retail Transmission Network ................................................................................... 14 9.3.6 Account 1586: RSVA – Retail Transmission Connection ............................................................................... 14 9.3.7 Account 1588: RSVA – Power ....................................................................................................................... 14 9.3.8 Account 1589: RSVA – Global Adjustment ................................................................................................... 14 9.3.9 Account 1595 (2017): RSVA – Disposition and Recovery of Regulatory Balances ....................................... 14 9.4 Group Two and Other Account Analysis ........................................................................................................ 15 9.4.1 Account 1508: Other Regulatory Assets ....................................................................................................... 16 9.4.2 Account 1518: RCVA Retail ........................................................................................................................... 17 9.4.3 Account 1522: Pension and OPEB Forecast Accrual versus Actual Cash Payment Differential variance account .................................................................................................................................................................. 18 9.4.4 Account 1534: Smart Grid Capital Deferral Account .................................................................................... 18 9.4.5 Account 1535: Smart Grid OM&A Deferral Account .................................................................................... 19 9.4.6 Account 1548: RCVA Service......................................................................................................................... 19 9.4.7 Account 1555: Smart Meter Capital – Stranded Meter Costs ...................................................................... 19 9.4.8 Account 1557: Meter Cost Deferral Account – MIST Meters ....................................................................... 19 9.4.9 Account 1568: LRAMVA ................................................................................................................................ 19 9.4.10 Account 1574: Deferred Rate Impact Amounts ......................................................................................... 20 9.4.11 Account 1575: IFRS – CGAAP Transitional PP&E Amounts ......................................................................... 20 9.4.12 Account 1592: PILs and HST Variances ....................................................................................................... 20 9.5 Account Status ............................................................................................................................................... 21 9.5.1 Establishment of new Deferral Account for Gains on Sale of Property Related to the Company’s Site EB-2019-0032 Exhibit 9: Deferral & Variance Accounts Filed: April 26, 2019 Page 3 of 41 Consolidation Plan ................................................................................................................................................. 21 9.5.1.1 Deferral Account for Gains on Sale of Property Related to the Company’s Site Consolidation Plan – Draft Accounting Order ................................................................................................................................................... 22 9.5.2 Continuation of Accounts ............................................................................................................................. 22 9.5.3 Discontinuation of Accounts ......................................................................................................................... 23 9.6 Calculation of Rate Riders .............................................................................................................................. 24 9.6.1 Billing Determinants Used ............................................................................................................................ 24 9.6.2 Calculation of Global Adjustment Rate Rider ............................................................................................... 24 9.6.3 Proposed Rate Riders ................................................................................................................................... 26 9.7 Description of Settlement Process ................................................................................................................ 31 9.7.1 Global Adjustment Settlement Process ........................................................................................................ 31 ATTACHMENT 9 – A ................................................................................................................................................... 33 OEB Deferral and Variance Account (Continuity Schedule) Work Form ............................................................... 33 ATTACHMENT 9 – B ................................................................................................................................................... 34 OEB Appendix 2-YA: One Time Incremental IFRS Transition Costs ....................................................................... 34 ATTACHMENT 9 – C ................................................................................................................................................... 36 OEB Appendix 2-EA: IFRS-CGAAP Transitional PP&E Amounts ............................................................................. 36 ATTACHMENT 9 – D ................................................................................................................................................... 39 OEB GA Analysis Work form .................................................................................................................................. 39 ATTACHMENT 9 – E.................................................................................................................................................... 40 OEB 1595 Analysis Work form ............................................................................................................................... 40 ATTACHMENT 9 – F .................................................................................................................................................... 41 Exhibit 9 Certification ............................................................................................................................................ 41 EB-2019-0032 Exhibit 9: Deferral & Variance Accounts Filed: April 26, 2019 Page 4 of 41 9.1 Overview ENWIN has included in this Cost of Service (“COS”) Application, a request for approval for disposition of Group 1, Group 2 and Other Deferral and Variance Account (“DVAs”) balances as at December 31, 2018 and the forecasted interest through December 31, 2019. ENWIN is requesting disposition of Account 1575 IFRS-CGAAP Transition PP&E Amounts which include projected balances to December 31, 2019 plus a return on rate base in accordance with the Filing Requirements. ENWIN has projected additional