What’s the amount of the 1% reduction to my rates?
Please refer to the
rate schedule for the former Haldimand County Hydro to see the reduction to distribution rates. The credits are shown as a Rate Rider per Hydro One Networks’ Acquisition Agreement ($/month) and a Rate Rider per Hydro One Networks’ Acquisition Agreement (cents/kWh or $/kW). To determine your rate class, please check page two of your bill. These credit adjustments will be applied to the Delivery line on your bill from May 1, 2018 to April 30, 2019. For residential customers, this results in a rate reduction of $0.28 per month to the monthly service charge and a reduction of 0.01¢ per kWh to the distribution volumetric rate.
Why are my rates changing to fixed distribution rates?
The OEB directed all utilities to move to fixed distribution rates for residential customers. We’re now implementing the third year of a five-year phase-in and by 2020 residential customers will only be billed a fixed monthly service charge for distribution rates. Currently, customers are billed a fixed monthly service charge and a distribution volumetric rate that varies based on how much electricity is used.
How will the move to fixed distribution rates affect my bill?
Most residential customers will see only a small change in their total bill. The fixed service charge has increased by $3.73 and the distribution volumetric rate has decreased by 0.5¢ per kWh.
Residential customers who use a lot of electricity (for example, those who heat with electricity) will see their distribution charges go down; customers who use little electricity will see their distribution charges go up.
The charges for the electricity you use (reflected on the Electricity line on your bill) aren’t impacted by the move to fixed distribution rates.
Why did my bill increase in January?
Hydro One, like all utilities, has variance accounts that collect costs/credits that aren’t related to the distribution of electricity. Last year, the variance accounts for Haldimand were cleared and over $3 million was refunded to customers. This amount was mainly due to the over-collection of the wholesale market service charge and the cost of power for the Independent Electricity System Operator (IESO). This money was refunded to customers through a credit adjustment (also known as a rate rider) applied to the Delivery line on your bill.
Since this adjustment was a large credit, which expired on December 31, 2017, customers saw their bills increase on January 1, 2018, when the credit came off bills. For a typical residential customer using 750 kWh a month, the credit was $7.73 a month for the period January 1, 2017 to December 31, 2017. As of January 1, 2018, a typical residential customer saw a bill increase of $7.73 a month.
What’s included in the Delivery line?
Delivery charges are made up of the following items:
Distribution rates which 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 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/credit adjustments (also known as rate riders) – can be either a charge or credit that’s incurred for providing electricity to customers that has not been recovered or refunded through rates. These adjustments are to reconcile the difference between what was forecasted and what was actually paid by customers.
Retail transmission rates recover the costs to operate and maintain our high voltage transmission system and vary based on how much electricity you use.
An adjustment for line losses.
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