Why are delivery rates being harmonized?
We have now integrated the former customers of
Norfolk Power into our existing rate structure. This was done to establish delivery rates that
appropriately reflect the costs to serve customers.
We followed the OEB’s direction to harmonize rates after the acquisition of Norfolk Power. The
acquisition of the former Norfolk Power provided efficiency gains for both Hydro One’s existing
customers and the newly acquired customers. The rates for both set of customers would have been
higher if the acquisition of Norfolk Power didn’t take place.
What is the change to the Smart Meter Entity Charge?
We collect this charge on behalf of the
Independent System Electricity Operator from residential and general service energy billed
customers. This charge covers the cost of operating the Meter Data Management/Repository
(MDM/R), which collects, manages and stores smart metering data that is used to support billing.
The monthly charge has been reduced to $0.42 (from $0.43). This charge will be in place until
December 31, 2027.
What are the credit adjustments?
The OEB directed us to clear our deferral/variance
accounts as they met the OEB-defined threshold. These credit adjustments will be in place until
December 31, 2025.
What is the Wholesale Market Service Rate?
This is a portion of Regulatory Charges line item on the bill. The rate is set by the OEB to recover the costs of the services provided by the Independent Electricity System Operator (IESO). These services include operating the electricity system and administering the wholesale market. We collect this charge on behalf of the IESO. The new charge is 0.45 cents per kWh (from 0.34 cents per kWh).
What is Rural or Remote Rate Protection Charge?
This is a portion of the Regulatory Charges line
item on the bill. This charge is designed to reduce costs for eligible customers located in
rural or remote areas where the costs of distributing electricity is higher. This charge is paid
by all electricity consumers in the province and is approved by the OEB. The new charge is 0.07
cents per kWh (from 0.05 cents per kWh), effective January 1, 2023.
Who approves delivery rates?
The OEB approved the rates that we charge for
electricity transmission and distribution over a five year period, beginning January 1, 2023 and
for each subsequent year through to December 31, 2027. These rates are reflected on the Delivery
line on bills.
We submitted a five-year application (2023-2027)
for our distribution and transmission rates. The OEB conducted an intensive, public review of
our projected costs and investment plan for the years 2023-2027.
We’re following the OEB’s multi-year rate-setting
approach. Our rates will be adjusted at the beginning of each year, consistent with the OEB’s
approval. Rates for the years 2024 to 2027 will be formulaic rate increases.
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 volume charge that varies based on how much electricity you use (this
charge only applies to non-residential customers).
- A smart meter entity charge of $0.42 per month that we collect on behalf of the IESO. This
charge is effective until December 31, 2027 and only applies to residential and general
service energy-billed customers.
- Cost or credit adjustments (also known as rate riders) – adjustments to reconcile for costs
or surpluses incurred while providing electricity to customers.
- 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.
When will I see these changes on my bill?
They are effective on electricity used as of
January 1, 2023. Customers will see these billing changes on their bills issued on or after
January 9, 2023.
Where can I find my delivery rates?
Delivery rates are shown below.
What is the eligibility criteria for the Hydro One Sub Transmission rate class?
The Sub Transmission classification applies to either:
- Embedded supply to Local Distribution Companies (LDCs). "Embedded" meaning receiving supply
via Hydro One Distribution assets, and where Hydro One is the host distributor to the
embedded LDC. Situations where the LDC is supplied via Specific Facilities are included. OR
- Load which:
- is three-phase; and
- is connected to and supplied from Hydro One Distribution assets between 44 kV and
13.8 kV inclusive, where 44 kV and 13.8 kV are the voltage of the primary side of
the local transformer; local transformer can be Hydro One owned or customer-owned;
and
- is greater than 500 kW (monthly measured maximum demand averaged over the most
recent calendar year or whose forecasted monthly average demand over 12 consecutive
months is greater than 500 kW).
