Why are rates increasing for residential customers with a medium or low density?
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Residential customers with a medium or low density receive distribution rate protection, which is a subsidy that caps the amount customers pay for base distribution rates (monthly service charge and distribution volume charge) to $36.86 a month.
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However, this rate protection doesn’t include increases to transmission rates and rate riders, which are temporary adjustments to rates.
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There were three rate riders that were credits that have come off bills as of December 31, 2021.
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 (monthly service charge and distribution volume charge that are 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.
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Residential customers with an urban high density – was completed in 2021
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Residential customers with a medium density – will be completed in 2024
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Residential customers with a low density – will be completed in 2024.
What rates and charges are included in the Delivery line?
Delivery charges are made up of the following items:
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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:
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a monthly service charge that does not change no matter how much electricity you use, and
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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).
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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.
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Cost or credit adjustments (also known as rate riders) – one-time adjustments to reconcile for costs or surpluses incurred while providing electricity to customers.
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Retail transmission rates recover the costs to operate and maintain the high-voltage transmission system and vary based on how much electricity you use.
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An adjustment for line losses.
Where can I find my delivery rates?
Delivery rates are posted here.