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Hydro One delivers electricity safely and reliably to homes and businesses in Ontario. Effective January 1, 2023, new delivery rates will be in place.
Our regulator, the Ontario Energy Board (OEB), has approved our delivery rates for 2023. New delivery rates will apply to electricity use starting on January 1, 2023 and will be reflected on the Delivery line on the bill.
This approval also includes our 2023-2027 Investment Plan for our transmission and distribution systems. Our Investment Plan will reduce the impacts of power outages, renew and replace critical transmission and distribution infrastructure, enable economic growth, and prepare for climate change. Learn more.
Customers will see increases to the Delivery and Regulatory Charges lines on the bill. The amount your bill will change depends on your rate class and how much electricity you use.
The table below shows the bill impacts for a typical/average customer.
Click here to see where rate class is shown on your bill.
1Note that bill impacts shown are without the mitigation credit applied. This credit will be a one-time payment on customers’ first bill for 2023 and will cap the total bill impacts to no more than 10%. These customers will receive a letter in January with the amount of their mitigation credit.
2Customer moving from former Woodstock General Service 50 – 4,999 kW to Hydro One Sub Transmission.
3Customer moving from former Woodstock General Service greater than 1,000 kW to Hydro One Sub Transmission.
We have now integrated the former customers of
Woodstock Hydro 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 Woodstock Hydro. The
acquisition of the former Woodstock Hydro 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 Woodstock Hydro didn’t take place.
The main reason for the increase is a large credit
adjustment that was applied to monthly bills that has expired as of December 31, 2022.
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.
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.
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).
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.
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.
Delivery charges are made up of the following
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.
Delivery rates are shown below.
The Sub Transmission classification applies to
To learn about the changes, click here.
See how we can help you manage your electricity account, including:
We encourage you to call us at 1.888.664.9376 Monday to Friday from 7:30 a.m. to 8 p.m. to learn more about the support options available.
Our Investment Plan was informed by nearly 50,000 customers who told us they want a more
sustainable and resilient system that is ready for the future.