Hydro One Networks Inc., files Distribution Rate Applications and submits them to the Ontario Energy Board following broad stakeholder input sessions. These sessions provide customers and other interested parties with the opportunity to have their opinions considered as Hydro One Networks plans the distribution system.

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:

Customer Type kWh Used per Month $ Increase on Delivery Portion of Bill % Increase on Delivery Portion of Bill % Increase on Total Bill​ ​$ Increase on Total Bill
​Residential Urban Density 1,000 $1.14​ 2.9%
1.4%​ ​$1.74
​Residential High Density 1,000​ $1.46​ 2.5%​ 1.3%​ ​$1.79
​Residential Normal Density 1,000​ $3.21​ ​5.1% 2.5%​ ​$3.54
​Seasonal High Density ​500 ​$7.44 ​15.7% ​9.0% $7.60
​Seasonal Normal Density ​500 ​$0 ​0% 0.2%​ $0.17​
​General Service Urban ​2,000 $3.41​ ​5.2% 1.8%​ ​$4.07
​General Service Single Phase 2,000 $3.25 ​2.8% 1.4% ​$3.90
​General Service Three Phase ​2,000 $0.60​ ​0.5% 0.4%​ ​$1.26
​General Service Demand-billed Single Phase ​43,000 w/ demand 133 kW ​$33.20 ​2.2% ​1.0% $46.94​
​General Service Demand-billed Three Phase ​43,000 w/ demand 133 kW ​$30.55 ​2.0% ​1.0% ​$44.29