ots wind up plan: key issues september...

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OTS Wind Up Plan: Key IssuesSeptember 2017

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OTSWindUpPlanIssuesandProposals• Context

• KeyOperationalIssuesandProposals:• TerminationofOTSIncentivePayments;• TreadMarks Transition;• DataReleaseProposal;• WindupofOTSCommunication&R&DActivities;• StakeholderCommunicationsPlan;• CoordinationofTransitionwithPostOTSStakeholders

• KeyFinancialIssues:• OTSFinancialOverview;• IssuesAffectingFinancialForecast:

• OTSContingencyFundEstimate• 2017UsedTireVolumeProcessingIssue• PotentialHSTObligation• OTRAccountBalanceReconciliationOTSContingencyFund;

• OtherFinancialIssuesRaisedDuringConsultation;• DispositionofPotentialOTSresidualfund

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OTS Wind Up Plan Context

• Minister’sWind-upDirections:• February17,2017;• June29,2017.

• Stakeholderfeedback• ResourceProductivityRecoveryAuthority(RPRA)IndustryFunding

Organization(IFO)Wind-upGuide;

• KeyTimelines:– OTStosubmitwindupplantoRPRAbyOctober31,2017;– RPRA,followingconsultation,toapproveaplanbyMarch31,2018;– UsedTireprogramtoceaseoperationsDecember31,2018(asper

Minister'sdirectionFeb17,2017);


MinisterialDirections

FebruaryLetter:Planshouldbeconsistentwithfollowingprinciples:

• Nodisruptionintheoperationofthewastediversionprogramduringwindup;• Currentprogramtargetsmustbemaintaineduntilprogramceasesoperations;• Affectedstakeholdersmusthaveopportunitiesformeaningfulengagement;• Planshallnotresultinunfairorpreferentialtreatmentofthepublicoraffected

stakeholders.

JuneLetter:

• Interestsofcurrentandfuturetireconsumersshouldbeconsideredinoptionsdealingwithprogramsurplusesanddeficits;

• Wherepossible,rulesshouldeliminatefeesforPLTtirestominimizesurplusfunds- byMay1,2018orassoonasfeasible.


RPRAGuidingPrinciples

• PlanmustbeFairandEquitable;• Minimalimpacttostakeholders- Minimaldisruptiontostakeholders- Any

excessfundsmustbeallocatedtostewards;• DefinedandMeasurableScope- MustaddressSection14ofWDTAand

MinisterialDirections• Transparency- Publicandaffectedstakeholdersmustreceiveclear

communicationsandhaveopportunityformeaningfulengagement;• CommercialReasonability- Assets,liabilities,rightsandobligationsofIFOto

bedealtwithinareasonablemanner;• IntegrityandProtectionofData- Datashallbesafeguarded;• Independenceandprofessionalism- MustbemaintainedbyBoardmembers

andmanagement;• FiscalResponsibilityandOperatingPerformance- Performancetargetsmust

bemaintained- spendinglimitedtonecessaryprogramexpenditures.


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OTSTerminationofIncentivePayments

• OTSreviewed3optionsrelatedtoTerminationofIncentivePaymentswithstakeholdersduringconsultation:1. Minimalinventoryrecognition– onlyoperationalstakeholderactivities

completedpriortoDecember31– wouldbeeligibleforOTSincentivepayments;

2. Onhandinventoryrecognition– stakeholderinventoriesheldasofDecember31,2018wouldbeeligibleforOTSincentivepayments;

3. FullInventoryrecognition– AllusedtirescollectedpriortoDec31,2018wouldbeeligibleforfullrangeofOTSincentivepayments.

TerminationofIncentiveOptionEstimate2019Cost

Scenario1(Assumesbumpinclaimsin2018)

$1.5Million

Scenario2 $8.8Million

Scenario3 $15.4Million


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TerminationofOTSIncentivePayments:StakeholderFeedback

• MostimportantwindupissueforvirtuallyallOTSrecyclingpartners(i.e.collectors,haulers,processorsandrecycledproductmanufacturers(RPMs);

• ProgramparticipantsuniversallysupportrecognitionofexistingmaterialinventoriesasofDecember31,2018:

– Indicatedlackofinventoryrecognitionwouldleadtosupplychaindisruptionsin2018asterminationdatenears;

• SomestewardsalsosupportclearlegaldistinctionbetweenOTStires(collected2018)andRRCEAtires(collectedJanuary2019):

– Donotwanttoassumelegalliabilityforwastecollectedin2018.

• Conversely,littlestakeholdersupportforlimitingOTSincentivepaymentstoactivitiescompletedbeforeDec.31,2018(Option1).


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OTSTerminationofIncentivePayments:PreferredStakeholderPosition

Option3:FullInventoryRecognition:• OTSpaysfullrangeofincentivesonusedtirescollectedin2018;• OTSestablishesclaimsschedule/auditproceduresfor2019toensureno

overlapwith2019usedtirematerials;• Reducesestimated2019programreservefundstoapproximately$1million

(seeFinancialDiscussion).

ImplicationsAssociatedwithOption:• Minimizerisksofdisruptiontousedtirerecyclingduringwindup;• Inventoryrecognitionwillsupportsmoothertransitionprocess;• AddressesanumberofcriteriaincludedinbothMinisterialDirectionsand

RPRAGuidingPrinciples;• Treatsallstakeholdersfairly- processors;manufacturerswillnotbeadversely

affectedinrelationtocompetitorsduetodifferencesinseasonalinventorylevels;

• Cleanlegaloption- noconfusionaboutliabilities/obligationsinrelationtousedtirescollectedin2018underRRCEAframework;

• SomeadministrativecomplexityforOTSin2019.


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TransitionofOTSTreadMarks• Duringearlierconsultation,stakeholder'sexpressedbroadsupportforOTS's

proposaltotransitioningTreadMarks:– MakeTreadMarksavailableforusebyanypost-OTSPRO/brandholderresponsiblefor

usedtirediversioninOntarioatnominalcost.

Proposal:• OTSWindUpplanincludedetailedtransitionproposalforTreadMarks

Implications:• Helpsminimizedisruptionduringtransitionasallstakeholdershaveaccessto

TreadMarkstechnology;• DoesnotcreatepreferentialtreatmentorimpactcompetitionbetweenResource

RecoveryandCircularEconomyAct(RRCEA)brandholders.


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TireSalesandRecyclingData• StakeholdersexpressedbroadsupportforOTS'sproposedApproach:

– AggregateOTStiresaleandrecyclingdataforreleasetopost-OTSbrandholdersandrecyclingparticipantsinelectronicformatnominalcost;

– Protectcommerciallyconfidentialinformation.• SomestakeholdersreservedjudgmentpendingreviewofproposedOTS

aggregateddataoutline.

Proposal:• OTSDatareleasetoinclude:

– AggregatedProvincialSalesbyTireCategoryPLT,MTandOTR;– CollectiondataaggregatedbyGeographiczonesbytirecategory(PLT,MTandOTR);– Processors:InboundtonnageandaggregateoutputTDPbyprocessor;– RPMs:InboundtonnageandaggregateoutputTDPbyRPM;– Dataplanwillalsoincludetimingofreleaseandperiods(e.g.OTSwillreleasedata

March31,2018forthecalendaryears2017and2016)• OTSwillalsoconsiderreleaseofcompanyspecificdatatothirdpartieswith

uponrequestandauthorizationofcompany(i.e.Stewardsales,moredetailedprocessoroutputs;etc.)


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TireSalesandRecyclingData• GeographicZonesforCollectionreporting


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OTSProposalforWindDownofCommunicationsandResearchandDevelopmentActivities

Continuein2018

• CommunityRenewalFundGrants&Demonstration Builds (projectswillcompletedbyDecember2018)

• RPM& ProcessorMarketSupport• ConsumerRebate Programs• Consumer&TradeShows• PR&CommunicationsOutreach• Specialtirecollectionevents(e.g.OARA)

Wind-Upin2017

• DesignChallenge• R&DGrants• Third-partySpokespeople• RethinkTires RoadTrip

2018P&Ereductionsresultinbudgetbeingapproximately40%lessthan7+52017Forecast


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TransitionofCommunicationsAssets

• Wherepossible,OTSwillprovidemarketingcommunicationsassetsforfreedownload/availabilityviaasecuresharefile site.– MaterialswillbeavailableasofJuly1,2018toanyonewho

registersforaccess(e.g.:PROS/ObligatedParties);– ThissitewillbeliveuntilJan31,2019.

• Theseassetswillincludethingslike:– DesignfilesforPOS/Ads/infographics;– Photography(whererightsareallowed);

• Availabilitywillassistbrandholdersindevelopingtheirownmarketingcommunicationsmaterials.


ProposedStakeholderCommunicationPlan

• WindUpDirectionCommunicationsenttoallOTSProgrampartnersandaffectedstakeholdersinApril2018(FollowingRPRAapprovalofWindUpplan(byMarch31,2018)):

– Outliningkeyelementsofwindupplan;– Keydatesandanyoperationalchangesthatstakeholdersshouldbeaware

of;– Specificpartnercommunicationpackages(i.e.collectororsteward)as

required;– LinktofullwindupdocumentonOTSwebsite;– Linktowindupportalwithprocesstoanswerstakeholderquestions;– ScheduleofwebinarswhereOTSwillprovidebriefsynopsisofplan;relevant

changesandofferopportunityforstakeholderstoprovidefeedback,etc.• PublicnoticeofOTSWindUp(Website,PrintMedia)withlinkstoweb

portalwithmoreinformation.• IncorporationofWindUpinformationintoanyon-goingOTS

communicationactivities(i.e.ConsumerandTradeShows).


ProposedCoordinationwithPost-OTSBrandHolders

• InAprilOTStoscheduleaseriesofwebinars/meetingsopentoanyinterestedRRCEABrandHolder:

– DetailsofTreadMarksTransition;– QuestionsandAnswersre:PublicDataRelease;– IdentificationandSchedulingofBriefingsonOTSOperationalProcessesof

InteresttoRRCEABrandHolders;

• On-going2018OTS- BrandHoldermeetingswhichmayincreaseinfrequencytowardtheendofyear:

– MeetingsopentoallinterestedRRCEABrandHolders;– Co-ordinationoffinalOTSWindUpactivitiessuchasfinalclaimsprocesses;– Identificationofanytransitionalissuesandmeasurestoensuresmooth

transition.


OperationalObjectives

• Meetprogramtargets- minimizedisruptiontousedtireprogramduringwindup:– Full2018inventoryrecognitionwithrespecttoterminationof

incentivepaymentsseemstosupport;– Co-ordinationofOTSWindUpactivitieswithRRCEABrandHolder

startupactivities.

• Supportstakeholderfairnessandpromotecompetitivenessinfuturemarketplace:– EquitabletransitionofkeyOTSassetsanddatamanagement

releasepolicies.

• Transparentandopencommunicationsprocessinsupportofallwindupobjectives.


KeyFinancialIssues


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FinancialOverviewInitialEstimatedNetAssetPosition

December31,2018

Reserves$InThousands

NetAssets

TotalNetAssets– 12/31/16 $49,155

20176+6Estimate ($14,666)

2018Estimate(IncludesTreadMarks writeoffof$500) ($9,482)

NetAssetEstimate– 12/31/18 $25,007

Initial 2017 - 2018 deficit estimates include no adjustments to OTS steward fees and/or incentive payments.


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FinancialOverviewEstimated2019OTSExpenses

Financial Estimates assume Option 3 re Termination of Incentive Payments –full recognition of inventory at service providers. The financial implications of this

Option are shown as the most conservative representation of OTS’s potential 2019 Inventive costs and should not be construed as suggesting any ”guarantee” that this

Option is the one that will be implemented going forward.

NetAssetEstimate-12/31/18 $24,678,000

OperationalReserve2019GeneralandAdminExpenses

OTSOperations ($4,373,171)RPRACosts ($1,000,000)One-timeWind-UpCosts ($500,000)

TotalAdminExpenses ($5,873,171) ($5,873,171)

OTSIncentivePaymentsCA(inclusiveofHST) ($713,210)TI(inclusiveofHST) ($3,793,838)PI ($7,536,147)MI ($3,401,802)

TotalOTSIncentives ($15,444,997) ($15,444,997)

TotalOperationalReserve $3,359,832

$25,007,000

TotalUnrestrictedNetAssets $3,688,831

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IssuesAffectingFinancialPlanning

1. OTSContingencyFundEstimate2. 2017UsedTireVolumeProcessingIssue3. PotentialHSTObligation4. OTRAccountBalanceReconciliation


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1.OTSContingencyFundEstimate

VariationinCA,TI,PIandMIIncentiveClaims(10%of2019Estimate) $1,544

PotentialStewardNon-Compliance(Assume10%ofOctobertoDecemberTSFRevenue)

$1,500

LegalandFinancialCosts- Disputes/Claims $???

Total $3,044

UnrestrictedNetAssets $3,689

OperationalSurplusNetofContingencyFund($000) $645


2. 2017UsedTireVolumeProcessingIssue

• GrowthofPLT/MTusedtiresisgeneratingcapacity/processingchallengesnow;– IssuerelatedbothtostructuralgrowthinscrapPLT/MT

volumesandtemporarydisruptionofProcessingcapacity

• Ontariobeginningtoexperiencedelaysincollectionandbottlenecks;– Significantconcernsregardingescalationofimpactsin

comingmonthsduetoseasonalityofPLTmarket

• Challengesforhaulerswhohavelimitedcapacitytostorematerials.

• OTShasmetwithstakeholderstoidentifyoptionstoaddress


2. 2017UsedTireVolumeProcessingIssue:OptionstoAddress

1. Useout-of-provinceprocessorstoaddressemergingbacklogs

2. IncreaseOTSprocessingincentives3. ImplementaPIratefor“incremental”processing

output4. ContractforadditionalOntarioprocessingthrough

RFPprocess5. ImplementenhancedOTSstoragesubsidytohelp

managebacklogs



1. Useout-of-provinceprocessorstoaddressemergingbacklogs

– TimingchallengetoissueandawardRFPs– OtherCanadianjurisdictionsnotaviableoptionduetosimilarvolume

challenges– Logisticschallengesduetocross-bordershippingpermits&

requirements

2. IncreaseOTSprocessingincentives– Willdriveincrementalexpensetotheprogram

3. ImplementaPIratefor“incremental”processingoutput

– ChallengesinimplementingincrementalPIratesfromasystemperspective

– Annualcalculationof“base”and“incremental”volumeswouldalsomeanProcessorswouldnotaccessincrementalPIinQ1– Q22018whenresidualvolumesfrom2017wouldstillbeininventory,potentiallyunderminingeffectiveness



4. ContractforadditionalOntarioprocessingthroughRFPprocess

– TimingchallengetoissueandawardRFP(s)– Inconsistentwithexistingprogramapproachtoincenting

processingcapacity– Mayresultinperversemarketimpactsasawarded

Processorsseektolock-upincrementaltirevolumesneededtomeetobligationstoOTSunderAgreement

5. ImplementenhancedOTSstoragesubsidytohelpmanagebacklogs

– StoragepresentscompliancerisksanddrivesincrementalexpenseforOTS

– Maysimplydeferandmagnifycapacitychallengeinto2018



Option2: IncreaseOTSprocessingincentives:

• $20pertonne increasetoon-roadprocessingincentive;

• $40pertonne increasetooff-roadprocessingincentive

• EstimatedAnnualCostIncrease=~$2Million

InearlySeptemberOTSimplementedaTrailerStoragesubsidyforwholetires.ThisSubsidywasincreasedSeptember25thto$14/day(upfrom$10/daypreviously)



IncrementalCostsassociatedwithPIincreaseandStoragesubsidyestimatedat$2.5million

• Proposedcostsavingsoff-set:– ReductioninPLT&MTCollectionAllowance- April12018

toDec312018:• ReducePLTCAto$0.50perunit(from$0.88)• ReduceMTCAto$2.00perunit(from$3.05)

Estimatedsavings=$2.59million

ThesereductionsinCAarenecessarytooffsetthecostsoftheprocessingandstorageinitiativesessentialtoensuringCollectorscontinuetoreceiveuninterrupted,no-costusedtirepicksthroughtheprogramwind-up


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3. ResolutionofHSTObligation

• ByDec312018OTSwillbeholding~$12.9MillioninreserverelatedtopotentialHSTobligationonprocessors:

– CurrentlyaccruesasaliabilityinOTSfinances.

• PaymentobligationwillnotberesolvedpriortoOct312017deadlinetosubmitplanandactionstoclarifyobligationpriortoDecember31,2018mayresultinprocessorobligationstopayCanadaRevenueAgency.

OTSTaxCounselAdvice:• Createpost-OTStrustfundtoholdreservesuntilobligationtopayhasbeen

clarified:– IfprocessorsareobligatedtopayHST- trustfundtobedistributedinaccordancewith

variousprocessorobligations;– IfprocessorsarenotobligatedtopayHST- trustfundstobedistributedtoPLTstewards

inproportiontotheircontributionstoOTSrevenuesovertheperiodofthepotentialHSTobligation.

Implications• Fiscallyprudentapproachwhichprotectsprocessorsand/orstewardsfrom

potentialfutureclaimsregardingHSTobligation.


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4. Resolution of Historic OTR Account Balance

• Boardproposedcontinuedaccountdeficitreductionthroughwindupbutnofeeincreaseoronetimechargetoaddresspotentialoffroadtireaccountdeficit(~$2MillionasofDecember2018).

• Selectstewardsstronglyopposedtoalternatives:– HavepaidrequiredOTSfeesingoodfaith(despitedisagreeingwithaccountallocation

methodology);– Shouldnotbeheldfinanciallyresponsibleforpaperaccountdeficit.

• However,post-OTSConsultationMinisterialDirection(June30)clarifiedthatOTRAccountBalancemustbebalancedpriortoprogramterminationtoensurecompliancewithWDTAprovisions.

TireCategory CurrentFee AccountBalance

PLT(PassengerandLightTruck) $3.30 Balanced

MT(MediumTruck) $12.95 Balanced

OTR(OffRoad) $5.55/pteOperatingSurplusHistoricalDeficit

Estimateof$2millionasofDec2018


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4. HistoricOTRAccountBalance

OptionstoAddress:

1.ReduceOTSOTRRelatedCosts;2.IncreaseOTRstewardfeesMarch31,2018;3.Combinationoffeeincreaseandyear-endinvoice;4.InvoiceOTRstewardsforremainingaccountdeficitDecember31,2018.


HistoricOTRAccountBalanceOptions:Option1:ReduceOTRRelatedCosts

• EliminateOTRCollectionAllowanceApril1,2018:– Willsave~$348,000

• EliminateOTSOTRCommunicationsAllocationreP&ESpending2018:– Willsave~$100,000

• OthercostsavingssuchasreductioninOTRTI,PIorMIpaymentsinconsistentwithmaintainingcurrentprogramtargets

• Identifiedsavingstillresultsinadeficitrepaymentshortfallof$1.552millionwhichmustberecoupedfromOTRstewardstobeconsistentwithRPRAandMoECC direction


4.HistoricOTRAccountBalanceOptions:Option2:IncreaseOTRFeesApril1,2018

• IfdoneincombinationwithOption1costsavings,OTRfeeincreasewouldneedtoincreaseto~$6.78effectiveMay1,2018tocoverentireanticipatedOTRshortfall

Implications:• SomewhatdisruptiveforOTRstewardsandconsumersbutmaybefairer

forstewardsthaninvoicingforshortfallinJan2019


4. HistoricOTRAccountBalanceOptions:Option3:Combinationoffeeincreaseandyearendinvoicing

• Option1CostSavings: ~$448,000• RevenuefromOTRfeeincreaseto$5.88~$417,000• RemainingestimatedOTRshortfall ~$1,135,000

• OTScouldprovidestewardswithestimateofyearendinvoiceinApril2018.

• OTSmayfaceadditionalstewardcomplianceissueswithyear-endinvoice.


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4. HistoricOTRAccountBalanceOptions:Option4:YearEndInvoice

• Option1CostSavings: ~$448,000• RemainingestimatedOTRshortfall ~$1,552,000

• OTScouldprovidestewardswithestimateofyearendinvoiceinApril2018.

• OTSmayfaceadditionalstewardcomplianceissueswithyear-endinvoice.


4. HistoricOTRAccountBalanceOptionsSummary

RevenueGeneratingOptions($000)

Option2FeeIncrease

Option3FeeIncreaseandInvoice

Option4InvoiceOnly

Estimated2019OTRAccountShortfall($000) $2,000 $2,000 $2,000

Opt#1OTRCostSavingsCutOTRCA/EliminateP&ECommunications

$448 $448 $448

OTRFee&RevenueGrowth

$6.78*$1,552

$5.88*$417

$5.55*$0

OTRStewardEndofYearInvoice $0 $1,135 $1,552

RemainingOTRAccountBalance Zero Zero Zero

*CurrentOTRTSFrateis$5.55/PTE


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FinancialOverviewImplicationsofOTRAdjustmentforOverall

AccountBalance

Reserves$InThousands

NetAssets NetAssetswOTRAdjust

TotalNetAssets– 12/31/16 $49,155 $49,155

20176+6Estimate ($14,666) ($14,666)

2018Estimate(IncludesTreadMarkswriteoffof(500) ($9,482) ($7,582)

NetAssetEstimate– 12/31/18 $25,007 $26,907


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FinancialOverviewEstimated2019OTSExpenseswithOTRAdjustment

NetAssetEstimate- 12/31/18 $26,907,000

OperationalReserve

2019GeneralandAdminExpenses

OTSOperations ($4,373,171)

RPRACosts ($1,000,000)

One-timeWind-UpCosts ($500,000)

TotalAdminExpenses ($5,873,171) ($5,873,171)

OTSIncentivePayments

CA(inclusiveofHST) ($713,210)

TI(inclusiveofHST) ($3,793,838)

PI ($7,536,147)

MI ($3,401,802)

TotalOTSIncentives ($15,444,997) ($15,444,997)

OTSContingencyFund ($3,044,000)

TotalUnrestrictedNetAssets $2,544,832

Financial Estimates assume Option 3 re Termination of Incentive Payments –full recognition of inventory at service providers. The financial implications of this Option are shown as the most conservative representation of OTS’s potential 2019 Inventive costs and should not be construed as suggesting any ”guarantee” that this Option is the one that will be implemented going forward.


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OtherFinancialIssuesRaisedDuringConsultation

TireInventoryDevaluation

• TirewholesalersindicatetheyhaveabsorbedfinanciallossesassociatedwithinventoriesandpreviousOTSfeereductions:

– HaveestimatedimpactofafullPLTfeereductionas$15to$20Million.

• ArguethatWindUpprocessneedstorecognizefinancialimpactofeventualeliminationofOTSfeesonwholesaletireinventories.

• HistoricallyissuebeyondthescopeofOTSfeesettingresponsibility.


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DispositionofPotentialOTSResidualFunds:

OTSreviewed3optionswithstakeholdersduringconsultation:1. ReduceorEliminateStewardFeespriortoDecember31,20182. IssueRebatetoStewardsAfterDecember31,20183. UseOTSResidualFundstosupportfuturetirerecycling

Whilestakeholdersprovidedvariousopinionsontheseoptions,Minister’ssecondwindupdirectionletter(June2017)indicatedthat:

"Wherepossible,theruleswouldeliminatefeesforpassengerandlighttrucktiresinordertominimizetheremainingsurplusfunds,includinganyrestrictedorunrestrictedreserves,whentheprogramceasesoperationsonDecember31,2018.ItismyexpectationthatOTSwillimplementthefeeeliminationfromMay1,2018orassoonasfeasible..."



• Asnotedinthefinancialoverview,therewillbeanestimatedOTSreserveof~$2.5million(basedoncertainassumptionsandoperational/fiscaldecisionsandbasedontheassumptionthatOTSwillimplementOption#3– fullinventoryrecognitionatserviceproviders)in2019afterOTShasfulfilleditsvariousprogramobligations:

• Somevariationinpotentialreserveestimatebasedon:– Potentialfluctuationsin2017-2018tiresales;– Potentialfluctuationin2017-2018incentiveclaims;– ResolutionofvariousOTSfinancialandlegalrisksandaccount

adjustmentsduringwindup.

• Butnoguaranteethatreservefundwillincreasebasedoncurrentestimates



• Questionablewhetherfeecutmakessenseifrelatedsurplusislessthanamonthworthofstewardpayments:

– Minimalconsumerbenefit;– Retailersmorelikelytomaintainconsumertirefeesuntil2019iffeecutis

forshortperiod.

• Simpleradministrativelytoconductafinalreconciliationofstewardfeesin2019onceallOTSfinancialprogramobligationshavebeenfulfilled:

– GeneratesaslightlylargerOTSbufferfundtomanagepotential2018contingencies;

– ConsistentwithWDTAprovisionsandRPRAGuidelinesregardingmanagementofanysurplusfunds.

• Implementationofalongerfeecutbasedoncurrentfinancialforecastsandwithvolume/capacityuncertaintywouldseemtorequireimplementingoperationallyriskieroptions(i.e.NoinventoryrecognitionorHSTtrustholdback)


OTSWindUpSummaryRPRAGuidingPrinciples ProposalsUnderConsideration

1.FairandEquitable ü

2.MinimalImpacttoStakeholders ü

3.DefinedandMeasurableScope ü

4.Transparency ü

5.CommercialReasonability ü

6.IntegrityandProtectionofData ü

7.IndependenceandProfessionalism ü

8.FiscalResponsibilityandOperatingPerformance ü

MinisterialDirections

1.NoDisruptioninprogramoperations ü

2.Performancetargetsmaintainedofexceededduringwindup ü

3.Nopreferentialtreatmentorbarrierstocompetition ü

4.Openandfairsharingofdata ü

5.Consultationmeaningfulopportunitiesforstakeholderengagement ü

6.Interestofcurrentandfuturetireconsumersconsidered ü

7.Wherepossible,eliminatePLTfees ????8.Ensuresufficientfundstomeetprogramcosts ü


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ots wind up plan: key issues september...

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