Energy savings programs create revenue shortfall

TORONTO, ONTARIO - Toronto residents and businesses have taken to the idea of saving electricity – so much so that Toronto Hydro-Electric System Ltd. is looking to raise rates to cover a $10.4 million decrease in revenue.

The subsidiary of Toronto Hydro Corp. said yesterday it has filed an application with the provincial regulator to increase electricity distribution rates by 6.3 per cent as of May 1.

The hike is needed to cover a $10.4 million loss in revenues associated with conservation programs that began in 2005, including last year's summer challenge, which offered hydro customers a 10 per cent credit on their fall bill if they cut electricity use by 10 per cent over two months, according to the utility.

As well, Toronto Hydro-Electric is looking to offset another $4.4 million in extra costs associated with the installation of smart meters in Toronto homes and businesses. The meters allow a utility to record when and how much electricity is used, paving the way for time-of-use pricing.

If its application is approved, Toronto Hydro said, an average residential customer using 1,000 kilowatt hours per month would see bills increase by $2.07 a month, for a 1.7 per cent increase on the total bill.

"We are very pleased with the success of these programs," said Blair Peberdy, a spokesman for Toronto Hydro-Electric, noting the increase is being sought under a provision that allows utilities to recoup conservation-related revenue losses.

That's because the cost of delivering electricity doesn't necessarily decrease because people are using less. "Costs don't go away, but the revenue has gone down," Peberdy said.

Distribution rates cover costs associated with bringing electricity from transformer stations to homes and businesses, and with building and maintaining overhead and underground distribution lines, poles, stations and local transformers.

Anthony Haines, president of Toronto Hydro-Electric, said between spring 2005 and the end of 2006, electricity loads in Toronto were reduced by 178.5 million kilowatt hours – enough to power 178,000 homes for a month. By year's end, 194,000 smart meters had been installed across the city. The province says they'll be in use throughout Ontario by 2010.

Toronto Hydro-Electric System also applied for a 0.4 per cent rate increase in February to cover the cost of inflation.

Related News

elon musk

Elon Musk could help rebuild Puerto Rico with solar-powered electricity grid

WASHINGTON - Puerto Rico’s governor Ricardo Rossello has said that he will speak to Elon Musk after the Tesla inventor said his innovative solar power systems could be used to restore electricity on the island.

Mr Musk was mentioned in a tweet, referencing an article discussing ways to restore Puerto Rico’s power grid, which was knocked out by Hurricane Maria on September 20.

Restoring the ageing and already-weakened network has proved slow: as of Friday 90 per cent of the island remained without power. The island’s electricity company was declared bankrupt in July.

Mr Musk was asked: “Could @ElonMusk go in and rebuild #PuertoRico’s…

READ MORE
hydro one logo

Ontario introduces new fixed COVID-19 hydro rate

READ MORE

bc hydro sign

B.C. government freezes provincial electricity rates

READ MORE

saudi windpower

Saudis set to 'boost wind by over 6GW'

READ MORE

typhoon radar image

Nearly 600 Hong Kong families still without electricity after power supply cut by Typhoon Mangkhut

READ MORE