Frequently Asked Questions
Don’t you need another OEB hearing to change your rates?
The OEB issued its Decision on our 2010-11 distribution rate application on April 9, 2010. In the OEB’s Decision, they approved the 2011 revenues to be collected and indicated the final rates for 2011 would be determined later in 2010 when they publish the expected return on equity for 2011. By mid-December, we expect the OEB to issue a final rate order that approves the delivery rates that we can charge for 2011.
Did the OEB approve the application as filed?
No, the OEB has reduced our 2011 capital expenditures by $43 million and our operations, maintenance and administration budget by $40 million, which will delay some of our planned work programs. This reduction has resulted in lower Delivery rates than what was originally requested.
Where will this delivery rate increase appear on my bill?
This increase will appear under the Delivery line on your bill.
When will the new Delivery rates be effective?
The new Delivery rates will be effective as of January 1, 2011. Bills with the new delivery rates will be issued after January 19, 2011.
Will there be any other changes to my bill?
Yes, the price most customers pay for Electricity is changing. This change affects the Electricity line on your bill.
Electricity: Most customers pay the two-tiered Regulated Price Plan for electricity, which the OEB has decreased to 6.4 cents per kWh (from 6.5 cents) for use up to 1,000 kWh a month for residential customers and to 7.4 cents per kWh (from 7.5 cents) above 1,000 kWh a month, effective November 1, 2010. According to the OEB, an average residential customer using 800 kWh per month will see a decrease of $2.80 per month, which is about a 2.6% reduction on the total bill.
Time-of-Use (TOU) prices: As part of the provincial government’s plan to promote a culture of energy conservation in the province, Hydro One is introducing TOU electricity prices for most customers. Hydro One will notify customers 30 days in advance of the switch to TOU prices. The new TOU prices are: 9.9 cents per kWh (from 9.9 cents) for on-peak, 8.1 cents per kWh for mid-peak (from 8.0 cents) and 5.1 cents per kWh (from 5.3 cents) for off-peak, effective November 1, 2010. According to the OEB, the estimated bill impact with the change in TOU prices and forecast changes in general consumption patterns over the three TOU pricing periods is a decrease of $1.21, or about a 1.1% decrease.
What is the Green Energy Act?
According to the Ministry of Energy, the act will boost investment in renewable energy projects (such as wind, solar, hydro, biomass and biogas) and increase conservation, creating 50,000 jobs for Ontarians in its first three years. For more information, visit the Ministry of Energy’s website at www.mei.gov.on.ca/en/energy/gea.
Will my rates have to increase because of the Green Energy Act?
Yes, as part of the government’s Green Energy Act, distribution companies will have to incur additional costs to connect renewable generation projects to their distribution facilities. These costs will be shared by all of Ontario electricity customers, but to the extent that any new facilities also benefit Hydro One customers, a portion of the costs will be paid for by solely Hydro One’s customers. The cost to Hydro One customers are included as part of the Delivery line on your bill.
How much will I pay for smart meters in 2011?
Customers are currently paying $2.32 a month towards smart meter installations and infrastructure costs. The OEB has approved an estimated smart meter charge of $3.99 per month for 2011. The exact value for the smart meter charge will be finalized later this year when the OEB approves our final rates for 2011. This charge will be included under the Delivery line on your bill.
Why is the increase so high for seasonal customers?
The primary reason for the higher increase for seasonal customers is the harmonization of the two seasonal rates (high density and normal density) into one rate. This is part of the general approach to simplifying our rate structure. It also reflects the higher cost to serve seasonal customers.
Are other distributors changing their delivery rates?
Hydro One submitted a cost of service application for our 2010-11 rates. In a cost of service proceeding, distributors apply for rates based on how much it costs them to deliver electricity and serve their customers. The OEB reviews each application in a public process and determines which costs it will allow the distributor to pass on to its customers.
The OEB estimates that 17 distributors will file cost of service applications for rates effective May 1, 2011. The remaining distributors will follow a mechanistic approach to set their 2011 rates based on OEB guidelines using a formula that provides a standard adjustment to rates to account for inflation and to encourage productivity improvements. If you are interested in viewing other distributors’ distribution rate applications, please visit the OEB’s website at www.oeb.gov.on.ca/OEB/Industry and select Electricity Distribution Rate Applications and Decisions.