Why are delivery rates changing?
We have implemented the fourth and final phase of the move to fixed distribution rates (included in the Delivery line on your bill) for
residential customers. Now, your distribution rates are only based on a fixed monthly service charge.
There is a slight increase to transmission rates (also included under the Delivery line on your bill) to reflect the costs in transmitting electricity over the high-voltage system.
There are cost adjustments that have expired from bills as of May 1, 2019 have resulted in a reduction in rates for most customers. These cost adjustments reflect the difference between forecast costs and actual costs from prior periods. Most adjustments are pass-through costs that Hydro One has no control over.
What is the amount of the 1% reduction to my rates?
The 1% rate reduction will be applied to the Delivery line on your bill until September 7, 2019. For residential customers, this results in a rate reduction of $0.55 per month to the monthly service charge. A typical general service energy billed customer using 2,000 kWh a month will see a reduction of $1.34 per month.
Please refer to the
rate schedule for the former Norfolk Power to see the reduction to distribution rates for other rate classes. The credits are shown as a Rate Rider per Hydro One Networks’ Acquisition Agreement ($/month) and Rate Rider per Hydro One Networks’ Acquisition Agreement (cents/kWh or $/kW). To determine your rate class, please check page two of your bill.
Why are my rates changing to fixed distribution rates?
The OEB directed all utilities to move to fixed distribution rates for
residential customers starting in 2016. We have implemented the fourth and final phase of the move to fully fixed distribution rates (included in the Delivery line on your bill) for residential customers. Now, your distribution rates are only based on a fixed monthly service charge. To see your rates, please scroll down.
How will the move to fixed distribution rates affect my bill?
Most residential customers will see only a small change to the Delivery line. The fixed service charge has increased by $3.95. 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) are not impacted by the move to fixed distribution rates.
What is 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 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.
Low Voltage Service Rate varies based on how much electricity you use.
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) – can be either a charge or credit that is 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. Most adjustments are pass-through costs that Hydro One has no control over.
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.
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