Thank you, Mr. Chair.
I think the Auditor General mentioned that it was a 30-year formula, so we did update it in July of 2021 as one of the actions in the recommendations. We tried to look at industry standards in order to change the formula. We looked at the asset cost, the different equipment that is part of the asset, the remoteness factor, as well as adjustments for inflation. We hope that these changes will bring that certainty and predictability of funding.
We also moved from 80% coverage of O and M to 100% coverage. Right now, I think we're at four times the level of funding that we were previously. Perhaps in the early years, the investment in the capital without matching that with the investment in the O and M may have had an impact on how the sustainability of the systems progressed. This is actually a really important initiative to go to 100% and change that formula.