System Investments

Transmission rates pay for the cost for Hydro One to operate and maintain the high-voltage system that carries electricity from generating stations to local electric utilities or large industrial customers, such as manufacturers and mines.

Our transmission system is aging and needs investment. We know every dollar we spend comes at a cost to our customers and the people of Ontario, which is why we are focusing on the most critical investments to keep the system safe, the power on and costs as low as possible. Safe, reliable power is essential to a thriving economy. Our continued investment in the high-voltage electricity system will help to build a strong and prosperous Ontario.

If our application is approved as filed, customers will see the following bill impacts:

• An average residential customer with a medium density using 750 kWh a month will see an increase of:

• 0.2 per cent on the total bill

• Approximately 23 cents per month on the total bill.

• A general service energy billed customer using 2,000 kWh a month will see an increase of 0.1 per cent on the total bill.

• The estimated average bill impact for a transmission-connected customer is 0.2 per cent.

The Ontario Energy Board (OEB) sets delivery rates. Some of the delivery charges are "fixed" and do not change no matter how much electricity you use, while other charges vary depending on how much electricity you use.

Delivery charges include:

• Distribution flat charge: A fixed charge for costs related to meter reading, billing, customer service and account maintenance, and for general utility operations.

• Distribution volume charge: A variable charge for the cost of building and maintaining the distribution system, including overhead and underground power lines, poles and transformer stations.

• Smart metering entity charge: A fixed charge that is collected on behalf of the IESO.

• Transmission rates: A variable charge to pay the cost to operate and maintain the high voltage system that carries electricity from generating stations to local electric utilities or large industrial customers such, as manufacturers and mines.

• Line loss adjustment: It is normal for a small amount of power to be lost as it travels over power lines to your home or business. In calculating your electricity costs for the billing period, Hydro One or your local electric utility multiplies your electricity cost by an adjustment factor that accounts for those losses. This adjustment factor is approved by the OEB.

The electricity system in the province expanded rapidly in the 1950s. Now, those assets are reaching the end of their expected service life and need to be replaced or refurbished.