Frequently Asked Questions 

What are Time-of-Use prices?
Time-of-Use prices, as the name suggests, are electricity prices that vary based on the time of day, day of week (weekdays versus weekend), and by season (winter or summer) and more closely reflect the cost to produce electricity at different times. Prices for electricity rise and fall over the course of the day and tend to drop overnight and on weekends based on the amount of supply available and our levels of demand. Time-of Use prices are set by the Ontario Energy Board (OEB) and are subject to change each May and November.

* Time-of-Use prices as of May 1, 2010. Time-of-Use prices reflect the cost of the "Electricity" line of your bill only. Delivery, Regulatory, and 
   Debt Retirement charges are additional line items found on your bill and are not included here.

Why are customers being switched to Time-of-Use prices?
Hydro One, together with all electricity distributing companies across Ontario, are switching consumers to Time-of-Use pricing as part of the provincial government initiative to help promote a culture of energy conservation across Ontario.   Between now and 2025, Ontario will need to replace about 80 per cent of its electricity system because it is aging.  Building new electricity supply will be vital – but so is energy conservation and demand management. Time-of-Use electricity pricing encourages consumers to shift electricity usage from on-peak to off-peak periods when possible, and thereby reduce the strain on the electricity system, help the environment, and provide customers with a new way of managing their electricity use (and costs).

Why does “peak demand” matter so much?
Supplying electricity at peak times (those times when we're all using a lot of electricity) has a range of impacts:

• It adds to our electricity costs because higher demand often means higher market prices.
• It's hard on the environment because more of the less attractive forms of generation must be run to meet them.
• It adds to the amount that Ontario needs to invest in the system because meeting the peaks means building even more new generating facilities, and more transmission and distribution infrastructure – and that also adds to electricity costs.

So working together to reduce peak demand makes good sense.

What is the difference between today’s electricity prices (Regulated Price Plan Two-Tiered Prices) and Regulated Price Plan (RPP) Time-of-Use Pricing? 
RPP two-tiered prices are based on averaging the more expensive (weekday daytime) and less expensive (night-time and weekend) prices of electricity. Time-of-Use pricing better reflects what it costs to produce electricity at different times of the day and week. With Time-of-Use pricing, you’ll have a new way to help manage your electricity use (and costs), reduce the strain on the electricity system, and help the environment.

Why is it so much more expensive to use electricity during weekdays?
When everyone is using a lot of power at the same time a "peak demand" is created. Higher demand means higher electricity prices as more expensive types of generation are run to meet the demand. It can also mean importing electricity from more expensive jurisdictions on days when our own generation is not enough. Therefore, it makes sense for us to work collectively to reduce our usage at peak times to smooth out the peak.

What are the “holidays” that are included for off-peak pricing?
The days considered “holidays” for Time-of-Use pricing – the days when off-peak prices apply – are those days when a majority of Ontarians are absent from work. That's because on those days the demand for electricity is much lower than on a “normal” weekday. Visit the Ontario Energy Board for a current listing of applicable holidays.

How are Time-of-Use prices calculated?
The Ontario Energy Board (OEB) sets prices for Regulated Price Plan (RPP) Time-of-Use prices in May and November each year.  Prices are based on the electricity supply cost forecast for the year ahead, and any adjustments required due to differences between what was paid and the actual electricity supply costs for the previous period.

When is Hydro One switching customers Time-of-Use prices?
Hydro One will begin a two-year process of switching customers to Time-of-Use prices beginning in 2010 and continuing through 2011. Once the process begins, thousands of customers will be switched to Time-of-Use prices every month until all residential and small business customers are switched to the new pricing structure. You will be notified in advance of being switched to Time-of-Use prices directly through the mail with a helpful information kit.

When will Time-of-Use pricing come into effect for me?
Unfortunately, we’re not able to provide customers with the exact timing of your switch to Time-of-Use pricing. The switch is dependent on a range of factors, some of which are under Hydro One’s control (the installation of meters and the installation and testing of the network that enable the meters to communicate), and some of which are under the control of other organizations (the integration with the central Meter Data Management Repository responsible for storing all the meter readings across the province).  You will be notified directly in the mail of your switch to Time-of-Use prices at least 30 days in advance of the day you will begin being charged Time-of-Use prices.

My neighbors have been switched to Time-of-Use pricing, why have I not been switched?
As much as possible, Hydro One tries to switch entire geographic areas to Time-of-Use prices at the same time.  In some cases, individual customers within the geography may not make the switch due to a range of factors (e.g. meter not yet installed, meter not yet communicating and tested, bill timing, etc.).  Rest assured, your account will make the switch in 2010 through 2011 and you will be notified at least 30 days in advance of the switch through the mail.

Can you expedite the process of switching me to Time-of-Use pricing? 
Unfortunately, it’s not possible to expedite your move to Time-of-Use pricing as Hydro One is focusing its resources on switching customers to Time-of-Use prices on a geographic basis.

I understand that I will be able to view my electricity usage over the internet. When can I set up my account? 
Once you have been notified in the mail that you’re making the switch to Time-of-Use prices, you’ll be able to register to view your electricity use online through our customer login.  Initially, you’ll be able to view a few weeks of your consumption information.  As you accumulate your electricity usage information under Time-of-Use pricing, you’ll be able to access a growing history of your information.

I don’t have access to the internet to view my electricity use on-line? What other options are available to me to learn about my electricity use patterns?
If you don’t have access to the internet, simply call Hydro One and we’ll provide you with a print out of your electricity usage or we’ll provide you with a toll free number to call to get your usage information over the phone.

What are my best strategies to manage my electricity costs under Time-of-Use pricing?
First, focus on learning about your electricity consumption patterns by viewing your electricity use once you have been notified of your switch to Time-of-Use pricing—you may be surprised at how much electricity you use and when.

Second, focus on getting more efficient and conserving electricity across all Time-of-use periods if possible.

Third, take action to shift your electricity use from on-peak to off-peak or mid-peak periods when possible. The most energy intensive appliances are those that heat or cool air or water — focus on shifting them first to help manage your costs, reduce strain on the electricity system, and help the environment. For example, when possible, do some of your laundry on weekends, shift dishwasher use to after 9:00 p.m., avoid running air conditioners from 11 a.m. to 5 p.m. on weekdays in the summer, or install a programmable thermostat for managing temperature in your home when you are at work or not at home.

What other tips could you provide to manage my costs, reduce strain on the electricity system, and help the environment with Time-of-Use prices? 
There are a number of things you can do to help manage your costs under TOU prices:

• Wait for the weekend when possible
  ­Electricity demand is lower on the weekends; and so are electricity prices.  You can reduce your costs by waiting for the weekend to do energy intensive household tasks — such as using the cleaning function of your self cleaning oven.
• Time for a timer
  ­Put your chargers on a power bar with a timer set to turn on and shut down during off-peak hours, when prices are lower.
• If it's not “on”, turn it off
  ­Some electrical devices — computers, TV’s, audio equipment — draw electricity continually, even when they are not in use.  You can cut electricity consumption by putting them on a power bar and switching the power bar off when they’re not being used.
• Look for the ENERGY STAR label
  ­Next time when you purchase a new appliance, consider one with timer functions that will allow you to benefit from Time-of-Use prices—and always look for the ENERGY STAR label.

Where can I learn more about what it costs to operate different appliances under Time-of-Use prices?
To learn what it costs to operate different appliances during off, mid, and on-peak periods, visit “10 Smart Meter Lane”.

If everyone shifts their electricity usage, won’t it just create a peak period at another time? 
Electricity demand in Ontario is roughly split between 1/3 industrial, 1/3 commercial, and 1/3 residential.  Residential and small commercial customers would not be able to shift enough electricity use to create an entirely new peak demand period but rather their shifting will “flatten” the existing peak period and move it to the “shoulder” periods; thus reducing the strain on the electricity system and reducing the negative environmental impacts of generating electricity during peak periods.

Where will all the meter data be stored?
The Independent Electricity System Operator (IESO) was engaged by the provincial government to build the Meter Data Management Repository (MDM/R) which receives and stores the hourly consumption information transmitted daily by each of Ontario’s over 90 local distribution companies.

Is my personal information secure?
Yes. Ontario’s electricity distribution companies are required, by law, to ensure that customer personal information is secure.  Further, the only information that is transmitted by the smart metering system is customer meter number and electricity consumption — the same information that was previously available on the old meter located at your premise.  Customer personal information is not associated with meter number until it is within Hydro One’s secure Customer Information System.

Won’t I pay more for my electricity under Regulated Price Plan (RPP) Time-of-Use prices relative to today’s RPP Two-Tiered prices?
Today’s RPP two-tiered prices are based on averaging the more expensive (weekday daytime) and less expensive (night-time and weekend) prices of electricity. Time–of-Use pricing more closely reflects what it costs to produce electricity at different times of the day and week.

Bill impacts from Time-of-Use prices depend on your electricity usage characteristics (both how much electricity you consume and when you consume it), and how much electricity usage you can or choose to shift from on-peak to off-peak or mid-peak periods.
For customers with the average provincial load profile (how much and when they use electricity is the provincial average), there will be no or little impact on bills.  This is due in part to the fact that there are over 3 times as many off-peak hours (98) as there are on-peak (30 in the summer and 40 in the winter) in a given week. For example, for every hour your fridge is running on-peak, there are three off-peak hours when you're paying less than the current tiered prices.  In this way, Time-of-Use prices tend to off-set one another for equipment that operates 24 hours a day, 7 days a week.

For customers that use electricity primarily off-peak, there will be a decrease in electricity costs because they are using electricity when it is less costly to produce.

For customers that use electricity primarily on-peak and do not shift use where possible, there will be upward pressure on electricity costs because they are using electricity when it is more costly to produce.

I operate a business. Won't these prices cost me more?
Bill impacts under Time-of-Use prices are dependent on your electricity usage characteristics (both how much and when you use electricity).  It’s impossible to generalize what the bill impacts to business are given there are so many different types of businesses (e.g. retail outlet, dairy farm, restaurant, etc.). If you consume electricity primarily in on-peak and mid-peak periods during weekdays and have no opportunity to shift usage, there will be upward pressure on the electricity line item of your bill.  However, if you business has equipment that operates 24/7 (e.g., refrigeration, lighting, exhaust fans, etc), electricity costs would tend to balance out relative to today’s prices given that overnight and on weekends TOU prices are lower. When you’re notified of your switch to Time-of-Use prices, you’ll be able to become a more informed energy consumer by viewing your electricity use at HydroOne.com.  Then you’ll have the information you’ll need to better understand bill impacts and to consider your options.  For example, you could consider ways to reduce your electricity consumption across all time periods by becoming more efficient. Visit our save energy section to find out more about energy efficiency programs. You could also compare Time-of-Use pricing with other pricing options (e.g. a flat rate electricity contract with a retailer).

If I have a contract with an electricity retailer, will I make the switch to Time-of-Use prices? 
No. Your electricity prices will be determined by the terms and conditions of the contract you have with your retailer. However, when your retail contract expires and if you choose not to enter into a new contract, the price of your electricity will be calculated using Time-of-Use electricity prices. Even though you’re not moving to TOU prices now, you can still get real feedback about your electricity use. Simply set up an account at the Customer Login to securely view your electricity use by hour, by day, or by billing period.

I rely on electric heat and air conditioning and I believe that Time-of-Use prices will increase my bill significantly – what can I do about that?
Bill impacts associated with Time-of-Use prices are dependent on when you use appliances and equipment.  To the extent that appliances are operated 24 hours a day 7 days a week (e.g., electric heat), there should be minimal or no bill impact given that there are more off-peak than on-peak hours over a 7 day period.  The actual breakdown of on-peak/mid-peak/off-peak hours is 40/30/98 in the winter and 30/40/98 respectively in the summer.

For equipment that is operated during peak hours (e.g. air conditioning during the afternoon on a hot summer day) the electricity price will be higher, reflecting the cost to produce electricity during peak times.  In cases where customers have a choice of when they operate appliances, (e.g., clothes washer, clothes dryer, dishwasher, etc.), they can reduce costs by shifting to off-peak periods.
Specifically in the case of where customers both want to use their air conditioner and want to manage their costs, consider installing a programmable thermostat and setting it to cool your home in the early morning off-peak and mid-peak periods.  Set it to increase the temperature during the afternoon on-peak period from 11:00-5:00 pm and use a fan to keep the air circulating. In addition consider the following air conditioning tips:

• Set the fan switch on your thermostat to “automatic” instead of “on” or “continuous” to save electricity
• Shade central air conditioning outdoor units with trees or shrubs to use up to 10% less electricity (but make sure you don’t block the air flow around the unit)
• During the day, draw you’re your blinds to block the warming effect of direct sunlight
• Close the fireplace damper tightly to keep cooled air from leaking out
• Service your central air system annually

What other service changes are being made by Hydro One when I make the switch to Time-of-Use prices? 
When you’re notified in the mail of your switch to Time-of-Use prices, there are a number of service improvements and changes that will take effect:

• Customers can set up an account at the Customer Login of HydroOne.com to securely view their electricity use by hour, by day, or by billing period
• Whatever your bill payment schedule (with the exception of budget billing), all bills will be based on actual usage for the billing period under normal conditions
• Bi-monthly billed customers will move to more regular and routine monthly billing
• No change to billing frequency for monthly and quarterly billed customers but bills will be based on actual usage for the billing period under normal conditions
• Customers will no longer have the need (or ability) to send us their meter readings.

Why can I no longer send in my meter readings when I make the switch to Time-of-Use Pricing?
Once you make the switch to Time-of-Use pricing, the cost for your electricity use (the electricity line item of your bill) will be based not only on how much electricity you use, but also on when you use it (off-peak, mid-peak, on-peak).  Given that your meter only displays your total electricity consumption, sending us your meter reading isn’t enough information to calculate your bill.