Delivery rates are changing for 2011

On December 21, 2010, the Ontario Energy Board (OEB) approved our 2011 Rate Order. This is a schedule of the approved rates and charges that Hydro One will bill customers.

Customers will see an increase in their delivery rates for 2011, effective January 1, 2011. The increase in delivery rates is needed to maintain a reliable distribution system and also to accommodate more conservation and renewable energy. In order to do so, we need to:

  • Replace and maintain equipment nearing its end-of-life or damaged by storms.
  • Build or upgrade our facilities to keep up with customer growth and ensure reliability of the distribution system.
  • Fund smart meter installations.
  • Connect renewable generation projects (such as wind, solar, hydro, biomass and biogas) to our distribution facilities as part of the government’s Green Energy Act.
  • Pay for capital costs for physical infrastructure and systems, and compensation.

To ensure we continue to deliver good value to customers, we have made many productivity improvements in our business that will save the company and our customers millions of dollars over the next few years. Some examples include the use of better technology, improving contracts with our service providers and the use of automated meter reading.

 

Important Information for Customers
with Community-Specific Rates

  

If you have a Community Name listed beside "Your service type is Residential - ____" or "Your service type is General Service - ____" on Page 2 of your 2010 bill, see the OEB-approved bill impacts for 2011:

For more information, read our bill insert(aussi disponible en français).

  

2011 Rate Changes

  

Effective May 1, 2011, a credit and some charges have been removed from delivery rates, as approved by the OEB. This will result in a slight decrease or increase to your delivery rates, depending on your rate classification. Learn more.

  

Hydro One is wholly owned by the Province of Ontario. In 2010, we paid $28 million in dividends to the Province and $48 million in payments lieu of corporate income taxes, including capital taxes, to the Ontario Electricity Financial Corporation.

Our delivery rates underwent a rigorous regulatory review.

This included a public hearing by the OEB. Public participation helps ensure that the OEB makes an informed decision on our delivery rates. The OEB approved our 2010-11 distribution rate application on April 9, 2010. In its decision, the OEB reduced some of our proposed spending. This reduction results in lower delivery rates than were originally requested.

Changes to your bill

Other components of your bill are also changing. These include:

  • Ontario Clean Energy Benefit: As directed by the provincial government, residential, seasonal, farm and small business customers will receive a 10% rebate on their total electricity charges, including HST. This rebate is effective for electricity consumed January 1, 2011, through to December 31, 2015, and will help customers manage rising electricity bills. Learn about the new Ontario Clean Energy Benefit at www.ontario.ca/energyplan  or call 1-888-668-4636.
     
  • Electricity: Many of our customers pay the two-tier Regulated Price Plan (RPP) for electricity. The OEB adjusts RPP prices every spring and fall. As of November 1, 2010, the OEB has decreased RPP prices. The new prices are 6.4 cents per kWh for use up to a certain threshold and 7.4 cents per kWh above that threshold. This will result in a decrease of $5 per month for an average residential customer using 1,000 kWh of electricity per month.
     
  • Time-of-Use (TOU) Electricity Prices: As part of Ontario’s conservation strategy, most customers have now moved to TOU electricity prices. As of May 1, 2011, the OEB has changed all TOU prices: 10.7 cents per kWh for on-peak (up from 9.9 cents), 8.9 cents per kWh for mid-peak (up from 8.1 cents) and 5.9 cents per kWh for off-peak (up from 5.1 cents). Your bill may stay about the same or be higher or lower, depending on your ability to shift your usage to off-peak periods. Hydro One will notify customers in advance of their switch to TOU prices.
     
  • Special Purpose Charge: This charge was introduced by the provincial government last year to pay for conservation and renewable energy programs. An average residential customer pays about $4 a year for this charge. This charge will end on April 30, 2011.
     
  • New Service Types: Some customers will see a new service type description on their bill starting in January. The change in service type descriptions does not affect the delivery rates you pay. See the table below for more information on this change.
     
  • Change to Bill Payment Date: As directed by the OEB, customers must have at least 16 days to pay their bill before a late payment charge can be applied. You now have 19 days (from 21 days) to pay your bill. If your required payment date falls on a weekend or holiday, you’ll have until the next business day to make payment. For more information, see Ways to Pay.
     
  • Provincial Benefit: As directed by government regulation, the name of the line item Provincial Benefit has been changed to Global Adjustment, effective January 1, 2011.Only customers who have signed a retail contract and customers who are billed spot-market prices will see this change on their bill.

The amount by which your bill will increase depends on your service type and the amount of electricity you use, and in some cases, the community where you live (see our notice about community-specific rates above). An average customer will see the following increase on his or her bill before the new Ontario Clean Energy Benefit is applied.

Customer Type

Electricity Used
per Month (kWh)

$ Increase on Delivery 
Line of Bill

% Increase on Delivery Line of Bill


% Increase on
Total Bill

Residential  - Urban High Density
(formerly Residential - Urban)

1,000

$4.03

7.3%

2.8%

Residential - Medium Density
(formerly Residential - High Density)

1,000

$4.45

6.9%

2.9%

Residential - Low Density
(formerly Residential - Normal Density)
(formerly Farm - Single Phase with a residence)
(formerly Farm - Three Phase with a Residence)


1,000


$7.46

$7.29

$6.60


10.5%

10.2%

9,2%


4.7%

4.5%

4.1%

Residential - Seasonal
(formerly Seasonal - High Density)
(formerly Seasonal - Normal Density)


500
500


$9.23
$3.24


14.6%
4.7%


8.8%
2.9%

General Service  - Urban Energy
(formerly General Urban and Farm Urban)

2,000

$5.60

7.9%

2.2%

General Service - Energy
(formerly General - Single Phase)
(formerly General - Three Phase)
(formerly Farm - Single Phase)
(formerly Farm - Three Phase)


2,000


$8.33
$5.67
$2.22
$4.40


6.7%
4.5%
1.7%
3.4%


2.7%
1.8%
0.7%
1.4%

General Service - Urban Demand
(formerly General Urban and Farm Urban)

36,000 w/ demand 117 kW

$64.70

5.5%

1.5%

General Service - Demand
(formerly General - Single Phase)
(formerly General - ThreePhase)
(formerly Farm - Single Phase)
(formerly Farm - Three Phase)
(formerly General - Transmission)

36,000 w/ demand 117 kW


$84.50
$81.84
$78.39
$79.57
$27.28


5.9%
5.7%
5.4%
5.5%
1.8%


1.9%
1.8%
1.8%
1.8%
0.6%

General Service - Unmetered Energy
(formerly Unmetered - Urban)
(formerly Unmetered - Single Phase)
(formerly Unmetered - Three Phase) 

500


$7.55
$1.28
$6.19


16.5%
2.5%
13.2%


8.6%
1.4%
6.9%

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