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Understand My Bill
Your electricity bill is comprised of three main components: Commodity, Delivery and Regulatory.
Our transmission and distribution system safely and reliably serves communities throughout Ontario. Delivery rates pay for the cost for Hydro One to operate and maintain the low-voltage system that carries electricity from our transformer stations to distribution stations, to pole-top transformers through power lines, and into homes and businesses.
Instructions: Click on any highlighted portion of the sample General Service - Demand bill page below for more details about that specific section or line item.
Total electricity consumption in kWh adjusted by the total loss factor per rate category.
Demand units of measurement (kW & kVA) are used to calculate the delivery charge..
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.
The Electricity line item is invoiced based on the $/kWh rate. Options for paying the Electricity line item are:
The Wholesale Electricity Price – also referred to as the spot market price
Regulated Price Plan (Time-of-use pricing)
Per Energy Retailer Contract.
Avg. Monthly Demand: >50kW & Annual Consumption: >250,000 kWh
Wholesale Electricity Price 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
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 Wholesale Electricity Price 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 Wholesale Electricity Price 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 Wholesale Electricity Price 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.
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
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
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.
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.
Covers the costs related to meter reading, billing, customer service and account maintenance, and for general utility operations.
General Service - Demand
$/Month
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.
$/kW or 90% kVA
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.
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.
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)
These OEB-regulated charges include the cost to operate the electricity system and run the wholesale market (IESO).
Standard Supply Service Administration Charge
Rural or Remote Rate Protection
$/kWh
Wholesale Market Service Rate
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 decreased to 13.1% (from 19.3%), effective November 1, 2024.
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.
