Hydro One delivery rates go up
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Hydro One Rate Hike reflects Ontario Energy Board approval for higher delivery charges, impacting seasonal customers more than residential classes, funding infrastructure upgrades like wood pole and transformer replacements across Ontario's medium-density service areas.
What's Behind the News
The Hydro One rate hike is an OEB-approved delivery charge increase to fund upgrades, with impacts on seasonal users.
OEB-approved delivery rate increases retroactive to 2018
Seasonal customers see larger monthly bill impacts than residential
Funds pole, transformer replacements and tree trimming work
Hydro One seasonal customers will face bigger increases in their bills than the utility's residential customers as a result of an Ontario Energy Board approval of a rate hike, a topic drawing attention from a utilities watchdog in other provinces as well.
Hydro One received permission to increase its delivery charge, as large projects like the Meaford hydro generation proposal are considered across Ontario, retroactive to last year.
It says it needs the money to maintain and upgrade its infrastructure, including efforts to adapt to climate change, much of which was installed in the 1950s.
The utility is notifying customers that new statements reflect higher delivery rates which were not charged in 2018 and the first half of this year, due to delay in receiving the OEB's permission, similar to delays that can follow an energy board recommendation in other jurisdictions.
The amount that customers' bills will increase by depends not only on how much electricity they use, but also on which rate class they belong to, as well as policy decisions affecting remote connections such as the First Nations electricity line in northern Ontario.
For seasonal customers such as summer cottage owners, the impact on a typical user's bill will be 2.9 per cent more per month for 2018, and 1.7 per cent per month for 2019.
There will be further increases of 1.0 per cent, 1.4 per cent and 1.1 per cent per month in 2020, 2021 and 2022 respectively.
Typical residential customers will experience smaller increases or rate freezes over the same period.
In the residential medium density class, the rate changes are a 2.0 per cent increase for last year, a decrease of 0.5 per cent this year, and an increase of 0.5 per cent in 2021. There will be no increases in 2020 and 2022.
Seasonal Rate Class — Estimated bill impact per month
2018 - 2.9 %
2019 - 1.7%
2020 - 1.0%
2021 - 1.4%
2022 - 1.1%
Residential Medium Density Rate Class — Estimated bill impact per month
2018 - 2.0%
2019 - -0.5% decrease
2020 - 0.0%
2021 - 0.5%
2022 - 0.0%
A Hydro One spokesperson told tbnewswatch.com that over the next three years, the utility's upgrading plan includes reliability investments such as replacing more than 24,000 wood poles across the province as well as numerous transformers.
In the Thunder Bay area, the spokesperson said, some of the revenue generated by the higher delivery rates will cover the cost of replacing more than 180 poles and trimming hazardous trees around 3,200 kilometres of overhead power lines while sharing electrical safety tips with customers.
