2021 Delivery Rates

What's changing?	Increase/Decrease to the Delivery line
An inflationary increase less a factor for productivity that has been applied to distribution rates.	Increase
Updated transmission rates to reflect the slightly higher costs of transmitting electricity over the high-voltage system	Increase
We're sharing a total of $48 million of our earnings with customers for productivity savings and favourable weather conditions. A credit adjustment will be rolled into the Delivery line from January 1 to December 31, 2021. This credit won’t display separately on the bill.	Decrease
A cost adjustment that was collected for 18 months from customers expired on December 31, 2020. This charge was for the recovery of the revenue that we were unable to collect between May 1, 2018 and June 30, 2019 (14 months) due to the delay in the OEB approving our 2018 delivery rates.	Decrease
As directed by the OEB, we implemented the next step in the move to fixed distribution rates for residential customers. For customers with an urban rate class, this is the fifth and final year of the transition period to a fixed distribution rate. The transition will be complete for residential customers with a medium or low density rate class and for seasonal customers in 2024. Learn more	Neutral

What's the earning savings credit?

• We're pleased to share $48 million of our earnings with customers that were achieved through productivity savings and favourable weather conditions.

• We're committed to continuing to drive productivity savings in our business.

• Customers will have a credit adjustment applied to the Delivery line for the period January 1 to December 31, 2021. This credit adjustment is rolled up into the Delivery line and doesn't display separately on the bill.

• The amount of this credit adjustment varies by rate class.

• A residential customer with an urban rate class will receive a monthly credit of $0.50.

• A residential customer with a medium density will receive a monthly credit of $0.85.

• A residential customer with a low density will receive a monthly credit of $1.92.

• A seasonal customer will receive a monthly credit of $0.90.

What's distribution rate protection?

• Distribution rate protection ensures rural delivery rates are comparable to urban rates.

• It is a cap that lowers base distribution rates (included under the Delivery line).

• This cap ensures distribution charges will not exceed $36.86 a month and only applies to residential customers with a medium or low density rate class.

When will the move to all-fixed rates be completed?

The OEB directed us to transition to all-fixed distribution rates for residential customers starting on February 1, 2016.

• Residential customers with an urban high density – will be completed in 2021

• Residential customers with a medium density – will be completed in 2024

• Residential customers with a low density – will be completed in 2024

• Seasonal customers– will be completed in 2024

What rates and charges are included in the Delivery line?

Delivery charges are made up of the following items:

• Distribution rates are designed to recover our costs for the poles, wires, meters, stations that are used to deliver electricity to your home or business, as well as the costs related to meter reading, billing and customer service. Distribution rates include:

• a monthly service charge that does not change no matter how much electricity you use, and

• a distribution volumetric rate that varies based on how much electricity you use (this no longer applies for residential customers who have moved to all-fixed distribution rates).

• A smart meter entity charge of $0.57 per month that we collect on behalf of the IESO. This charge is effective until December 31, 2022 and only applies to residential and general service energy-billed customers.

• Cost or credit adjustments (also known as rate riders) – one-time adjustments to reconcile for costs or surpluses incurred while providing electricity to customers.

• Retail transmission rates recover the costs to operate and maintain the high-voltage transmission system and vary based on how much electricity you use.

• An adjustment for line losses.

How's the Ontario Electricity Rebate calculated?

• 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.

• If your first bill issued after January 1, 2021 includes any usage in December, the rebate will be pro-rated based on the number of days before January at 33.2% and the number of days on and after January 1 at 21.2%.

What's the Global Adjustment Deferral?

• A portion of the Global Adjustment (GA) was deferred for the months of April, May and June 2020 when the GA rate was set at $115 per MWh.

• Recovery of $333 million in deferred charges will be collected from customers who benefitted from the deferral.

• In addition, the Government of Ontario will fund a portion of GA associated with the costs of non-hydro renewable energy contracts (i.e., wind, solar and bioenergy), which will offset the GA deferral.

• It's expected, Class A consumers could see net savings of about 11% on their bills, while non-RPP Class B consumers could see savings of about 14% on their bills. This is the combined impact of the GA Deferral and the reduction to GA charges from the Government of Ontario funding a portion of non-hydro renewable energy costs.