Hydro One Networks has applied to the Ontario Energy Board for a delivery rate change.
For the majority of our customers this would result in higher delivery rates if approved by the Ontario
Energy Board (OEB). The OEB is responsible for regulating electricity utilities and setting just and reasonable delivery rates.

The information below is primarily geared to our customers that have community-specific rates that we are requesting to harmonize or consolidate. For the majority of our customers who do not have community-based rates, our application, if approved as filed, would result in an average increase of 1.3% on the total bill in 2008 for an average residential customer. An average residential customer is defined as a customer using 1,000 kWh per month.

All customers deserve fair, reasonable and affordable rates. In order for rates to be fair, they must be consistently applied across our customer base.

We have followed the OEB's guidelines in our rate application and are requesting to consolidate, or harmonize, the rates in your community with other communities served by Hydro One Networks across Ontario. Under this rate structure, all customers of the same rate class will be charged the same delivery rates, regardless of where they live. Currently, we administer more than 280 rate classes across the 318 communities that we serve.

Based on our application, the delivery rate increase will be phased in over four years to minimize the impact to your bill. As displayed in the table below, the increase for 2008 and in each year over the four year period will be less than 10% on the total bill for an average residential customer who lives in a community affected by harmonization. Check your local community newspaper from January 21, 2008 to February 1, 2008 for a Hydro One advertisement about our OEB application. Download a sample ad (PDF 34 KB).

See proposed impact on General Service energy-billed customers.
See proposed impact on General Service demand-billed customers.

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Frequently Asked Questions

I use more than 1,000 kWh per month. What will the percentage increase be to my bill?
If our application is approved as filed by the OEB, residential customers who use more than 1,000 kWh per month may see slightly lower impacts than noted in the table above for the "Average 2008 Increase on Total Bill." The example below displays the proposed increase on the total bill in 2008 for residential customers living in Ailsa Craig:

Ailsa Craig - Proposed Increase for Residential Customers

			Proposed	Proposed
	Existing	Proposed	$ Increase	% Increase
kWh	Total Bill	Total Bill	Total Bill	Total Bill
1,000	$104.40	$113.80	$9.40	9.0%
1,500	$154.10	$167.30	$13.30	8.6%
2,000	$203.70	$220.90	$17.10	8.4%

I use less than 1,000 kWh per month. What will the percentage increase be to my bill?
If our application is approved as filed by the OEB, residential customers who use less than 1,000 kWh per month may see slightly higher impacts than noted in the table above for the "Average 2008 Increase on Total Bill." The example below displays the proposed increase on the total bill in 2008 for residential customers living in Ailsa Craig:

Ailsa Craig - Proposed Increase for Residential Customers

			Proposed	Proposed
	Existing	Proposed	$ Increase	% Increase
kWh	Total Bill	Total Bill	Total Bill	Total Bill
100	$19.50	$21.90	$2.40	12.2%
250	$33.00	$36.50	$3.50	10.6%
500	$55.40	$60.80	$5.40	9.7%
750	$79.60	$87.00	$7.40	9.3%

Are you a General Service energy-billed customer?
See the Average Delivery Rate Increase on the Total Bill.

Are you a General Service demand-billed customer?
See the Average Delivery Rate Increase on the Total Bill.

If approved by the OEB, the distribution rate increase will affect the Delivery line on your bill.

How do I know if this affects me?
Do you live in a community where Hydro One purchased the electric utility from your municipality? You can confirm this by checking on page two of your Hydro One Networks bill. If one of the community names listed in the table above appears besides the words "Your service type is Residential - Community Name" or "Your service is General - Community Name", you would be affected by our plan to harmonize rates.

Will I see a rate increase if my community name does not appear in the above table?
For confirmation, we suggest you look at page two of your Hydro One Networks bill. Does it display one of the following descriptions besides "Your service type is …."?

• Residential - Urban
• Residential - High density
• Residential - Normal density
• Seasonal - High density
• Seasonal - Normal density
• Farm - Single Phase
• Farm - Three Phase
• General - Single Phase
• General - Three Phase
• General - Urban
• General - Transmission
  

If so, the increase for an average residential customer would be 1.3 per cent on the total bill for 2008, assuming our application is approved as filed. The increase for an average general service energy-billed customer would be less than 2.5 per cent on the total bill for 2008. The OEB defines an average customer as a residential customer using 1,000 kWh per month. Hydro One's average general service energy-billed customer consumes 2,000 kWh per month.

The increase for a seasonal customer using 500 kWh per month would be 9-10% on the total bill for 2008. The increase for a single phase farm customer who is energy-billed would be 0.5% on the total bill for 2008.

Do I have a say in these rates?
The OEB will hold a public hearing before rates are approved. If you would like to participate in the OEB process you must register within 10 days from the publication date of the OEB notice to become an Intervenor or Observer. You have 30 days from the publication date of the OEB notice to provide a letter with comments. Public participation helps ensure that the OEB makes an informed decision on our rates. Information on how to participate may be obtained by visiting the OEB's website at www.oeb.gov.on.ca or by calling the OEB's Consumer Relations Centre at 1-877-632-2727.

See a copy of the OEB's Notice of Application and Hearing for an Electricity Distribution Rate Change - Hydro One Networks Inc. (PDF - aussi disponible en français)

Why are you raising my delivery rates?
All customers deserve fair, reasonable and affordable rates. For rates to be fair they must be consistently applied across our customer base and reflect the cost to deliver electricity. We have followed OEB guidelines in our rate application and are requesting to consolidate or harmonize the rates in your community with other communities served by Hydro One across the Province. Under a harmonized structure, all customers in the same rate class will be charged the same delivery rates, regardless of where they live.

How much electricity does an average customer use?
The OEB defines an average customer as a residential customer using 1,000 kWh per month. Hydro One's average general service energy-billed customer consumes 2,000 kWh per month.

Why is the proposed rate increase so high for my community?
Based on OEB guidelines the delivery rates for your community are set too low and are not covering the cost to serve you. Your delivery rates are lower than the rates that other Hydro One customers are paying. We are committed to ensuring our rates are an accurate and fair reflection of our costs. However, we do not know if the OEB will approve our application as filed.

We have proposed to phase in the rate increase over four years, so the increase will be less than 10% on the total bill for an average customer (residential customer using 1,000 kWh per month or a general service energy-billed customer using 2,000 kWh per month).

Why is the proposed rate increase for my community higher than other communities served by Hydro One?
This is because your rates are lower than what customers in other communities are paying. We have followed the OEB guidelines and the delivery rates for your community are set too low and are not covering the cost to serve you. We are committed to ensuring our rates are an accurate and fair reflection of our costs. However, we do not know if the OEB will approve our application as filed.

Wouldn't my community be better off if we didn't sell to Hydro One?
Your former utility would have had to make significant investments to stay viable as an independent utility. This would have been reflected in higher rates to you.

Will the OEB approve the application as filed?
We do not know if the OEB will approve our application as filed. Our rate application will undergo rigorous regulatory review with a public hearing being held before the OEB sets our new delivery rates.

What delivery rates will change?
If approved by the OEB, the monthly distribution service charge ($/month) and the distribution volume charge (cents/kWh or $/kW) would change. The distribution volume charge is a variable charge and will vary month to month depending on the amount of electricity you use. Both these charges are rolled up under the Delivery line on your bill.

Where will this delivery rate increase appear on my bill?
If approved by the OEB, these charges will appear as part of the Delivery line on your bill.

When will I see the delivery rate increase on my bill?
We need OEB approval before we can change your rates. We do not expect the OEB to approve our delivery rates until sometime in the summer of 2008. We will notify you of any changes through your bill and on our website.

Did Hydro One ask customers for their input?
Yes, before we finalized the submission to the OEB, we shared it with several stakeholder groups in 2007 and asked for their input. Our goal was to help our stakeholders better understand what it costs to run the system reliably and how we are recovering these costs, and for us to understand what matters most to our stakeholders. Participants in this consultation included the Consumers Council of Canada, Federation of Ontario Cottage Association, the Vulnerable Energy Consumers Coalition, Ontario Federation of Agriculture, Energy Probe, and School Energy Coalition.

Are other utilities increasing their delivery rates?
Only one-third of electricity utilities are rebasing their rates at this time. The remaining utilities are following a simpler approach to set their 2008 rates. They will base their rates on a formula provided by the OEB to account for inflation and improved efficiencies in their operations. If you are interested in viewing other utilities’ distribution rate applications, please visit the OEB’s website at http://www.oeb.gov.on.ca/html/en/industryrelations/ongoingprojects_2008_EDR_rateapplication.htm and select 2008 Distribution Rates.

How will I receive notification when the OEB makes it decision?
We will notify through your bill. Look for a bill insert explaining the changes to your first bill with the new Delivery rates. We will also have information posted on our website.

Have any questions about our rate application?
Please send us an e-mail at Webmaster@HydroOne.com.

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OEB Process

How can I participate in the OEB process?
There are three ways you can participate:

1. Send a letter with your comments to the OEB. Your letter must be received by the OEB no later than 30 days from the publication date of the OEB notice.
2. You may become an Observer. Observers do not actively participate in the proceeding but monitor the progress of the proceeding by receiving documents issued by the OEB. Your request for Observer status must be made in writing and received by the OEB no later than 10 days from the publication date of the OEB notice.
3. You may ask to become an Intervenor if you wish to actively participate in the proceeding. Your request for Intervenor status must be made by letter of intervention and be received by the OEB no later than 10 days from the publication date of the OEB notice.

Read a copy of the OEB’s Notice of Application and Hearing for an Electricity Distribution Rate Change – Hydro One Networks Inc. (PDF - aussi disponible en français)

For more information, please visit the OEB’s website at www.oeb.gov.on.ca or call its Consumer Relations Centre at 1-877-632-2727 (office hours are Monday to Friday from 8:30 a.m. to 5 p.m.).

How long do I have to register with the OEB to become an Intervenor or Observer?
To be an Intervenor or Observer you must register with the OEB no later than 10 days from the publication of the OEB notice. The OEB notice will be published in newspapers across Ontario from January 21-30, 2008.

When did the OEB publish their notice?
The OEB notice was published in the following papers between January 21-30, 2008:

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How does the OEB decide on rates?
Here’s how the process works:

Hydro One Networks is required to provide the OEB with a detailed explanation and rationale for what it costs to serve customers for one year including customer service, repairs, maintenance and putting new equipment in service. The OEB carefully reviews this information in public hearings with the opportunity to ask questions and to hear from interested parties and customers. The OEB then decides what the new rates will be, striking a fair balance between what customers pay and what the utility needs to run its business.

I missed the OEB deadline, can I still participate in the OEB proceeding?
You should call the OEB to discuss. The number for the OEB’s Consumer Relations Centre is 1-877-632-2727 (office hours are Monday to Friday from 8:30 a.m. to 5 p.m.)

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