Total electricity consumption in kWh adjusted by the total loss factor per rate category.

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Demand units of measurement (kW & kVA) are used to calculate the delivery charge.

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Your power factor is the ratio of the amount of energy used to do real work (real power or kW) and the amount of total energy used to do that work (kVA). If the equipment draws too much reactive power, measured in kilovolt-amperes-reactive (kVAR), it can't work as efficiently, and it limits the capacity of our lines to deliver real power and quality voltage to the facility.

A power factor of less than 90% may negatively impact your bill.

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The Electricity line item is invoiced based on the $/kWh rate. Options for paying the Electricity line item are:

1. The Hourly Ontario Energy Price (HOEP) – also referred to as the wholesale or spot market price

2. Regulated Price Plan (Time-of-use pricing)

3. Per Energy Retailer Contract.

Service Size	Electricity Price Options
Avg. Monthly Demand: >50kW & Annual Consumption: >250,000 kWh	Hourly Ontario Energy Price (HOEP) or Energy Retail Contract
Avg. Monthly Demand: <50kW or Annual Consumption: <250,000 kWh	Regulated Price Plan (RPP) - Time-of-Use or Energy Retail Contract

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The Global Adjustment (GA) line item is billed based on the $/kWh rate set monthly by the Independent Electricity System Operator (IESO). This billing component was designed to reflect the difference between the Hourly Ontario Energy Price (HOEP) for electricity and the guaranteed rates paid for regulated and contracted generation. Some important characteristics of the Global Adjustment include:

• It includes the cost to deliver conservation and demand management programs

• All electricity consumers have to pay a share of the Global Adjustment. It is either bundled within the regulated price plan, or shown as a separate line item on their bill.

• The Global Adjustment varies from month to month, responding to changes in the HOEP compared to contract prices of generation

• Customers will be billed based on the first estimate of the GA. The latest GA is available the last business day of the preceding month on the IESO's website

• The first estimate of the GA is comprised of three components:

• An estimate of GA costs based on the one month previous

• An estimate of Ontario’s power demand for the current month

• A true-up for the difference between the previous month’s 1st Estimate and the Actual rate

• When the HOEP is high, the GA is lower, and vice versa

• The GA can also increase as new generation projects come into service, contract payments take effect, or as a result of a high demand for electricity

• Class B Methodology is the Total adjusted for loss consumption (kWh) for the billing period multiplied by the first Estimate of Global Adjustment, which is what makes up the dollar amount shown on your invoice.

Billing Example

The Billing Period is February 11 to March 14 and total usage is 497,094.65 kWh.

• 10.559 ¢/kWh – 1st Estimate February

• 8.409 ¢/kWh – 1st Estimate March

Billing Period	Total kWh	1st Estimate	Total
February 11 to 28	355,196.82	$0.10559	$37,505.23
March 1 to 14	141,897.84	$0.08409	$11,932.19
February 11 to March 14	497,094.65	$0.09945	$49,437.42

Class A consumers are assessed their portion of GA costs based on the percentage that their peak demand contributes to the top five Ontario system peaks. Learn more about our Industrial Conservation Initiative (ICI) (Class A). For additional information on Class B Global Adjustment, please visit the IESO's website.

Source: http://www.ieso.ca/Power-Data/Price-Overview/Global-Adjustment

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Commercial and industrial customers can be billed on the Hydro One General Service Demand or Sub Transmission rate categories. Further rate categories were inherited through Hydro One’s acquisitions of the Norfolk, Haldimand and Woodstock utilities.

Rate Category	Eligibility Criteria
General Service Demand	Average monthly peak demand which is equal to, or greater than 50 kW, and in a non-urban density zone
Urban General Service Demand	Average monthly peak demand which is equal to, or greater than 50 kW, and in an Urban density zone
Sub Transmission	Customers taking load that is: Three Phase; Greater than 500 kW (monthly measured maximum (peak) demand averaged over the most recent calendar year, or with forecasted monthly average demand greater than 500 kW over twelve consecutive months); and Directly connected to, and supplied from, Hydro One distribution assets between 44 kV and 13.8 kV (the meaning of ‘directly’ includes Hydro One not owning or responsible for the local transformation)
Norfolk General Service 50 – 4,999 kW	Average monthly peak demand between 50 kW and 4,999 kW in the acquired Norfolk service territory
Haldimand General Service 50 – 4,999 kW	Average monthly peak demand between 50 kW and 4,999 kW in the acquired Haldimand service territory
Woodstock General Service 50 – 999 kW	Average monthly peak demand between 50 kW and 999 kW in the acquired Woodstock service territory
Woodstock General Service > 1000 kW	Average monthly peak demand greater than 1000 kW in the acquired Woodstock service territory

• The Delivery Charge reflects the costs of delivering electricity from generating stations to your business through the high-voltage (transmission) and low-voltage (distribution) systems.

• The Delivery Rate is approved by the Ontario Energy Board and contains fixed and variable charges. Delivery charges also vary according to customer density and location (Urban vs non-Urban).

• Peak demand is the highest electrical power demand that has occurred over the billing period, and is measured in kW and kVA.

Delivery Charge Components

The Fixed Component (Service Charge)

• Covers the costs related to meter reading, billing, customer service and account maintenance, and for general utility operations.

Rate Classification	Unit of Measurement
General Service - Demand	$/Month

The Volumetric Component (Distribution Charge)

• Covers the costs related to building and maintaining the distribution system, including power lines, poles and transformer stations. The distribution volumetric component is measured in kW or kVA depending on the Power Factor at the facility. Customers with a Power Factor of less than 90%, 90% of the kVA will be used to calculate the distribution volumetric charge.

• Power Factor is the ratio of the amount of energy used to do real work (real power or kW) and the amount of total energy used to do that work (kVA). If the equipment draws too much reactive power, measured in kilovolt-amperes-reactive (kVAR), it can't work as efficiently, and it limits the capacity of our lines to deliver real power and quality voltage to the facility.

Rate Classification	Unit of Measurement
General Service - Demand	$/kW or 90% kVA

The Volumetric Component (Transmission Charges)

• Covers the costs of transmitters to operate and maintain the high-voltage transmission system. The transmission components are measured in kW only and are subject to loss adjustment per the Total Loss Factor associated with the rate classification. It is normal for a small amount of power to be lost as it travels over the power lines to customer facilities. The Total Loss factor is an OEB-approved adjustment mechanism to account for these losses.

Rate Classification	Total Loss Factor
General Service - Demand	6.1%

There are two transmission charge line items, the "Network Service Rate" and the "Line and Transformation Connection Service Rate." The Network Service Rate is billed based on the peak kW recorded only during ‘on-peak’ hours; 7 a.m. - 7 p.m. business days.

Rate Classification	Charge type	Unit of Measurement
General Service - Demand	Retail Transmission Network Service Rate	$/kW (loss Adjusted) 7 a.m. – 7 p.m. business days only
	Retail Transmission Line and Transformation Connection Rate	$/kW (loss Adjusted)

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These OEB-regulated charges include the cost to operate the electricity system and run the wholesale market (IESO).

Rate Classification	Charge Type	Unit of Measurement
General Service - Demand	Standard Supply Service Administration Charge	$/Month
	Rural or Remote Rate Protection	$/kWh
	Wholesale Market Service Rate	$/kWh

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The Government of Ontario introduced the Ontario Electricity rebate in 2019. It’s shown at the bottom of bills as a pre-tax credit. The amount of the rebate has been increased to 19.3% (from 11.7%), effective November 1, 2023.

Commercial and industrial customers are automatically eligible for the rebate as long as they are using less than 250,000 kWh a year. Multi-unit complexes can complete an application form.

The rebate is calculated on the base amount of the bill prior to applying HST. The base amount includes the Electricity charge, Delivery charge, and Regulatory Charges. It excludes any other charges that may appear on bills such as late payment charges or disconnection charges.

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