On September 16, 2025, the Ontario Energy Board’s (OEB) changes to the Distribution System Code to implement a Capacity Allocation Model (CAM) to facilitate housing development connections came into effect.
A CAM may be used for large, multi-year, multi-developer expansions in a defined development area. The purpose of this model compared to the standard evaluation, is that ‘first movers’ do not bear the cost of the entire expansion, as was the case under the prior rules.
Each developer who connects to capacity built under the CAM contributes its share of the entire upstream infrastructure expansion based on their requested load.
Capital contributions are forecasted and recovered over a period that cannot exceed 15 years.
Customers who connect to the CAM area after Year 1 will also pay a financing charge to keep earlier contributors and the electricity ratepayers whole.
Electricity distributors will require binding financial commitments (e.g., letters of credit) for any agreed (i.e. committed) capacity.
Large residential developments often require major system expansions, span several years and involve multiple stakeholders. Under the former cost responsibility rules, initial developers typically covered nearly all expansion costs. While costs may be reimbursed through expansion rebates, the upfront financial burden remained significant for customers connecting in Year 1.
Photo source: OEB
A CAM promotes cost-sharing for system expansions among all benefiting customers, upholding the beneficiary-pays principle. Developers or customers contribute to capital costs based on their capacity requirements.
Photo source: OEB
For Elexicon Energy to consider implementing a CAM project, these five (5) qualifications will be reviewed:
For all kinds of homes / residential units, on average, estimated demand is 3 kW. Please contact us to discuss your development’s requirements.
The estimated demand shown above does not necessarily consider additional sources of demand per residence, such as electric vehicle chargers, heat pumps, battery storage, etc.
If you have a question or require support, email: dservices@elexiconenergycom. (Please include ‘CAM Request’ in the Subject line of your email.)