2009 Distribution Application (EB-2008-0187) 3rd Generation Incentive Regulation
On November 7, 2008, Hydro One applied to the Ontario Energy Board (OEB) for approval to increase the rates that we charge for electricity distribution, effective May 1, 2009.
We have followed the OEB guidelines for the 3rd Generation Incentive Regulation Mechanism (IRM). IRM is a short-term approach for setting rates between cost of service applications (i.e. our 2008 distribution rate application and our next application). It promotes efficiency within the distribution sector and through the regulatory process via simplified filing requirements.
Our portion of the delivery rates will be adjusted by a formula provided by the OEB to account for cost of living adjustment less productivity improvements. For more information on IRM, visit the OEB’s website. |
In addition, we are requesting OEB approval for the following changes:
to increase Retail Transmission Service rates (RTSR) to reflect the new Uniform Transmission rates that are being implemented by the Independent Electricity System Operator (IESO) as of January 1, 2009
for incremental capital investment and refunding customers for changes in tax rates
to increase the smart meter funding adder of $0.93 per month to $1.65 per month. This adder is included
in the Distribution service charge
to phase in the second step of our proposed four-year harmonization plan.
These changes, if approved, will affect the Delivery line on your bill.
If our 2009 delivery rate application is approved as filed, an average customer would see a monthly increase of: