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​​​​​​​​​​​​​​​​Delivery rates are chang​ing January 2017​

We filed an application with the Ontario Energy Board (OEB) on October 7, 2016 and an updated application on November 18, 2016 to change distribution rates beginning on January 1, 2017. The OEB approved our rate application on December 21, 2016.

We’re reducing the amount we charge by $2.21 a month for a typical residential customer with a medium density service type. We’re also lowering distribution charges for most other residential customers. 

Visit our FAQ section below to see the approvedbill​ impacts.

​​​​​​​How distribution rates are set – the OEB's role​

1. At regular intervals, the OEB requires us to go through an extensive review of our cost of providing service to our customers.  For our 2015 to 2017 distribution rates, the OEB approved our rates using a cost-based approach for three years.  Our rates are then adjusted at the beginning of each year, consistent with the OEB's approval.

2. The OEB reviews our rates through a public process.  Individual consumers, consumer groups, and other affected groups may also take part in the process by providing comments or actively participating in the process.

3. The OEB determines whether the costs in our application are reasonable and then approves the rates that we can charge for providing service.

Our future delivery rates will be determined using the OEB's multi-year rate-setting approach.  In this approach, year one in the cycle is an intensive, public review of our projected costs. This type of review is commonly called a cost of service review.  Years two to five in the cycle are formulaic rate increases - usually less than inflation. This encourages service providers to manage their costs efficiently.​

Moving to fixed distribution rates​

Last year, the OEB directed all utilities to move to fixed distribution rates for residential customers. This means distribution rates (included under the Delivery line on your statement) are gradually changing to an all-fixed monthly service charge over a four to eight year transition period depending on your service type.

Currently, the Delivery line on the statement consists of the following charges:




In addition, an adjustment for line losses and a smart meter entity charge are also included in the Delivery line on ​your statement.

At the end of the five to eight year transition period, the Delivery line on residential statements will be based on a distribution service charge ($ per month) and retail transmission rates (¢ per kWh).


​​Other changes to your statement starting January 1, 2017​

8% Provincial Rebate

The Ontario government will rebate an amount equal to the provincial portion of the HST from electricity statements as of January 1, 2017. This eight per cent rebate will provide electricity rate relief for residential households, farms and many small businesses. Customers will start to see this rebate on their statements covering electricity use on or after January 1, 2017.

Enhanced Rural or Remote Electricity Protection Program

The Rural or Remote Electricity Rate Protection (RRRP) program is designed to provide financial assistance to eligible customers located in rural or remote areas where the costs of providing electricity service to these customers greatly exceeds the cost of providing electricity to customers located in towns and cities. All customers in the province fund this program by paying an RRRP charge that is included under the Regulatory Charges line on the statement. The OEB is increasing this charge to 0.21 cents per kWh for 2017 (from 0.13 per kWh) to reflect the additional relief being provided to residential customers starting in 2017, as discussed below.

Residential customers with a service type of low-density will receive additional relief. The Rural or Remote Rate Protection credit is increasing by $29.00 a month (existing credit is $31.50 a month increasing to $60.50). Customers who are receiving this credit will see the following message on their statement starting in January:

Your delivery cha​rge is reduced through Rural or Remote Rate Protection by $60.50 per month.

To find your service type, please check page two of your statement. It's shown next to "Your electricity charges."

​For an explanation on the different service types, visit Service Types. More information on these initiatives will be included in your January statement.


​Frequently Asked Questions ​

How will my bill change?

The approved bill impacts are show​n her​e for a typical customer, a low-user and a high-user of electricity for residential and general service energy billed customers. For your convenience, we have also shown the impact of the eight per cent Ontario rebate. To find your service type and how much electricity you use, please check page two of your statement. It's shown next to "Your electricity charges." 

Why are delivery rates changing?

Our first priority is to deliver electricity to our customers safely, reliably and efficiently.  The reasons why delivery rates will change are as follows:

  • We need to reflect the cost of providing distribution service in 2017, as approved by the OEB
  • We need to update retail transmission rates (included under the Delivery line on the statement) to reflect the current uniform transmission rates. For most customers, this will result in a slight decrease in rates.
  • We need to increase the Rural or Remote Rate Protection credit to $60.50 a month (from $31.50) for residential customers with a low density service type
  • We need to implement the second step of the phase-in to all fixed distribution rates for residential customers

​Why is this move to fixed distribution rates happening?

Distribution charges are currently a blend of a fixed service charge and volume charge. Distribution rates for residential customers will become an entirely fixed monthly service charge by 2019-23, depending on your service type (see question below for more information).

The OEB decided to move to fixed distribution rates for the following reasons:

  • A fixed distribution charge creates more stability on bills for customers.
  • A fixed distribution charge shows customers that distribution costs are largely fixed when it comes to providing service to residential customers.
  • A fixed charge also benefits high electricity consumers such as those in less energy-efficient homes, or those with electric baseboard heating. This is because currently they are paying a bigger share of the distribution system costs as a result of their high electricity use. 

When will my distribution rates change to all fixed rates?

The OEB has directed us to transition to fixed distribution rates, as noted below. To find your service type, please check page two of your statement. It's located next to "Your electricity charges."

  • Urban High Density Residential Customers (5 years from 2016-20)
  • Medium Density Residential Customers (8 years from 2016-23)
  • Low Density Residential Customers (8 years from 2016-23)
  • Seasonal Rate Class Customers (8 years from 2016-23)

With the transition to all fixed rates, how much is the fixed charge increasing?

Please refer to the table below. To find your service type, please check page two of your statement. It's located next to "Your electricity charges."

While the fixed distribution service charge shown in the table below is gradually increasing, the volume charge is decreasing each year and by the end of the phase-in period, it will be eliminated.

table image

How will the move to fixed distribution rates affect my statement?

Most residential customers won't see a significant change in their distribution rates due to the move to fixed distribution rates. Customers who use very little electricity will see an increase on their statement, while customers who use a lot of electricity will see a decrease on their statement. Customers who have electric heat will benefit from this move to fixed rates.

Does Hydro One set delivery rates?

Hydro One, like other distributors, must apply to the OEB to change the rates that it charges for electricity delivery. The OEB sets delivery rates after reviewing Hydro One's application and holding a hearing where interested parties can intervene. The OEB sets rates for electricity delivery, transmission and other charges. The OEB also sets Time-of-Use and Tiered electricity prices for Regulated Price Plan customers.

When will the OEB approve distribution rates?

The OEB approved our distribution rates on December 21, 2016. The new rates will be effective on January 1, 2017.

How do I know if I'll receive a credit for being a rural customer?

Only customers who have a service type of residential low density receive the credit for Rural or Remote Rate Protection. You can check your service type by looking at page two of your statement. Customer who receive this credit will see a bill message on their january statement confirming the enhanced amount of the credit.


What is the amount of the RRRP credit?

The credit has increased to $60.50 (from $31.50) per month and will lower the distribution charge by $29 per month for residential customers with a low density service type. Customers who receive this credit will see a bill message on their January statement confirming the enhanced amound of the credit.


How is the increase in the RRRP credit being funded?

The charge is funded by all electricity users. This charge is included under the Regulatory Charges line on your statement. The OEB has increased the charge to 0.21 cents per kWh (from 0.13 cents).


What is the 8% Provincial Rebate?

The Ontario government is reducing electricity costs by rebating an amount equal to the provincial portion of the HST on your monthly hydro statement. That's an 8% rebate for Ontario families, farms and small businesses. This is part of Ontario's plan to help people with the cost of everyday living by reducing electricity costs.


What is included in the 8% Provincial Rebate?

Electricity, Delivery, Regulatory Charges and the Debt Retirement Charge (if applicable) will be reduced by the 8% rebate. HST and any additional charges that may appear on the statements like late payments, equipment rentals, or provision of other services are excluded.


When will I see the 8% Provincial Rebate on my statement?

You won't see it on your statement until January. The rebate is for electricity used on and after January 1, 2017.


Who is elgible for the 8% Provincial Rebate?

Residential customers, farms and small businesses are eligible.


I have a multi-residential property. Am I eligible for the 8% rebate?

As long as your property meets one of the following, you'll receive the rebate. You'll need to complete a declaration form, if we don't have a declaration form on file for you.

(i) a property, withinthe meaning of the Condominium Act, 1998.

(ii) a residential complex, within the menaing of subsection 2 (1) of the Residential Tenancies Act, 2006., without regard to section 5 of that Act, or

(iii) a property that includes one or more housing units and that is owned or leased by a co-operative within the meaning of the Co-operative Corporations Act.


What are retail transmisison rates?

Retail transmission rates reflect the costs to deliver electricity from generating stations along our high-voltage transmission system. These costs vary with the amount of electricity used. There are two separrate rates - network service charge and the line and transformation conection services charge. These rates are included in the Delivery line of your statement.


Why are retail transmission rate changing?

Retail transmission rates are changing to reflect the OEB approved 2016 uniform electricity transmission rates and to reflect how much each specific customer class contributes to transmission costs​. These rates are included under the Delivery line on your statement. Depending on your service type, you may see either an increase or a decrease to retail transmission rates.​




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