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Our regulator, the Ontario Energy Board (OEB), has directed us to end seasonal rates on
31, 2022, and move our seasonal customers into one of three density-based residential
classes, effective January 1, 2023.
The decision to end seasonal rates was based on the OEB’s determination that delivery
charged to seasonal customers are subsidized by other customers and don’t reflect the actual cost to serve
We have three density-based residential rate classes that are set by the OEB:
Areas that have a
3,000 or more customers, with at least 60 customers
km of power line.
Areas that have a
100 or more customers, with at least 15 customers for
of power line.
cluster of fewer than 100 customers with less than 15
customers per km of power line.
It costs more to deliver electricity to customers who live in low density areas as more
needed (poles, power lines, transformers, etc.). For example, if there are five customers per km of
line, compared to 25 customers per km of power line, the costs are shared by fewer customers and
each customer pays more.
Delivery rates for Low Density customers are based on the cost of delivering electricity to their property.
If you use your property on a seasonal basis, you’re not eligible for two government
which reduces the amount you pay for Delivery charges. These subsidies only apply to customers who use
seasonal property as their principal residence.
To help minimize the financial burden you may experience with this increase, we’ll gradually increase
service charge over the next 10 years. This approach will limit the total bill increase to no more than
year (excluding very low users of electricity). The amount your bill will change depends on how much
The table below provides estimated monthly bill impacts based on different usage levels for a customer on
Customers who use a lot of electricity will see a reduction on their total bill. This is because the
in the service charge is entirely offset by a lower distribution volume charge.
* Includes a cost adjustment (also known as a rate
applied to the monthly service charge for both 2022 and 2023.
** Includes credit adjustments applied to
volume charge for 2023.
***Collected on behalf of the Independent
If so, you may be eligible for two government subsidies. To qualify, you must live at the property at
four days of the week for eight months of the year. As well, the address for your property must
your driver’s licence and other important documents.
The two subsidies are:
Rural or Remote Rate Protection: an automatic reduction of $60.50 per month to the Delivery
Distribution Rate Protection: a cap of $38.08 per month on the distribution rate portion of
To help us determine if your seasonal property is your principal residence, we require you to
submit a Declaration Form to apply for year-round rate status.
The OEB decided that the delivery rates charged to
customers are subsidized by other customers and don’t reflect the actual cost to serve them.
Read the OEB's Decision here. To learn more about seasonal rates ending, visit the OEB’s website.
Seasonal customers don’t qualify for Rural or Remote
Protection that reduces the monthly service charge by $60.50 per month. This government
only applies to year-round residential customers living at their principal residence.
As well, seasonal customers aren’t eligible for the
government subsidy — Distribution Rate Protection — which caps the service
and volume charge to a maximum amount of $38.08 per month.
The increase in charges also better reflects the
to serve customers in low density areas.
To ease the impact to our customers, we’ll gradually
increase your service charge over the next 10 years. This approach will limit the total
increase to no more than 10% per year (excluding very low users of electricity).
If you’re moving to Low Density rates, you’ll
letter in December 2022 that will show your estimated bill impacts.
We’ll gradually phase in the increase to protect
from seeing large bill increases. Your service charge that’s included in your delivery
will be slowly increased on a yearly basis. This increase will be offset by a lower
volume charge each year.
We won’t make any additional revenue from ending
rates. This change only impacts how overall costs are recovered between residential
Most seasonal customers are currently billed
We’ll continue to bill seasonal customers on a quarterly basis. If you prefer to receive
monthly bill, you may sign up for our budget billing program.
If your seasonal property is your principal
you’ll need to fill out a declaration
to acknowledge that you live at the residence at least four days a week for eight months
year and provide a copy of your driver’s licence that shows your address for this
We confirmed the location of your seasonal
and compared it with the number of customers who are near you and the power
other equipment that deliver power to you.
We counted the number of electricity
within your community or area, and length of power lines serving that area. We
follow the OEB’s criteria for Urban, Medium, or Low Density, to finalize your
We use our geographic information system
identify and mark the boundaries of core clusters of customers.
Once density zone boundaries are marked, we
out the customer cluster boundary in all directions to easily identifiable
geographical boundaries (such as roads, railways, rivers, lakes) or non-physical
boundaries identifiable within the GIS system (such as property lines), where
boundaries are remotely located from customer clusters.
Customer clusters located close to each
combined into a larger, single density zone.
We map the kilometre of power line within a
density zone boundary and calculate the number of customers per kilometre of
Based on this we can confirm the correct rate class for customers located in the
As your rate class has changed, we need to calculate
Delivery charges using Low Density rates for any usage on and after January 1, 2023.
Delivery charges shown on page 3 are calculated using Seasonal rates for any usage
To learn about the changes, click here on or after January 1,
See how we can help you manage your electricity account, including:
We encourage you to call us at 1.888.664.9376 Monday to Friday from 7:30 a.m. to 8 p.m. to learn more about the support options available.
Our Investment Plan was informed by nearly 50,000 customers who told us they want a more
sustainable and resilient system that is ready for the future.