OEB Announces Electricity Distribution Rates For Kenora Hydro

TORONTO - - The Ontario Energy Board has announced electricity distribution rates for Kenora Hydro Electric Company Ltd. Kenora.

The rate change announced today represents an increase on the overall bill of approximately $8.23 or 8.64 for residential customers using 800 kWh per month. The delivery line represents about one-third of the total bill.

Kenora requested $2,850,945 to cover its costs for the 2011 rate year. As a result of the Board's decision, Kenora will recover a revenue requirement of $2,718,988 for the 2011 rate year. The increase addresses rising operations, maintenance and administration costs as well as necessary capital investments such as rebuilding aging transformer stations.

In its Decision, the Board:

• Reduced Kenora Hydro's operations, maintenance and administration costs by about $92,000 from 21.2 over 2009 actual spending to 15.8

• Lowered Kenora Hydro's cost of capital to incorporate the Board's recent cost of capital parameters

• Reduced Kenora's 2011 Capital Budget by $376,000 from $1,284,500 to $908,500.

The Board also approved recovery of Kenora's late payment penalty of $16,296, which will be recovered through a monthly charge of $0.20 from July 1, 2011 to April 30, 2012. The late payment penalty settlement goes toward programs administered by charities that provide assistance to low-income energy consumers.

A table of the estimated bill impacts on residential consumers is available on our website at http://www.ontarioenergyboard.ca/OEB/_Documents/2011EDR/bill_impacts_2011.pdf.

For more information please refer to the 2011 Electricity Distribution Rates Backgrounder on our website site at http://www.ontarioenergyboard.ca/OEB/_Documents/Press+Releases/bckgrndr_2011.pdf.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers and works toward this vision through regulation that is effective, fair and transparent. For more information on the Board, please visit our website at www.ontarioenergyboard.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.