2011 uniform transmission rates announced: OEB

Ontario Transmission Rate Increase driven by Hydro One's 7% revenue requirement hike will add about 0.5% to bills; residential users at 800 kWh see $0.62 more on delivery charges, per Ontario Energy Board.

The Ontario Energy Board the Board has recently announced the uniform Ontario electricity transmission rates for the 2011 rate year. The new rates are effective January 1, 2011. The 2011 uniform electricity transmission rates are based on Board rate decisions concerning three regulated electricity transmitters in Ontario: Great Lakes Power Transmission Inc., Five Nations Energy Inc., and Hydro One Networks Inc. Transmission.

Transmission costs represent about 7 of the total bill for a typical electricity consumer in Ontario and, with investments in new power lines moving ahead, these costs are part of the delivery line on the electricity bill.

The new rates will result in an estimated average increase on total customer bills of about 0.5, and similar TOU rate increases may influence overall bills as well.

A residential customer consuming 800 kWh per month will see their total monthly bill climb by about 62 cents in 2011 as a result of the transmission rate increase.

The transmission rates announced today are primarily the result of a 7 increase in Hydro One's transmission revenue requirement. Hydro One accounts for 97 of the total electricity transmission revenue requirement for Ontario.

The delivery component of the customer bill is one of the four regular items that appear on all Residential and General Service electricity bills. This change to the delivery component of the bill is separate from other potential changes to electricity bills such as changes to the "electricity" component charges and changes to Kenora Hydro distribution rates that are determined independently.

The Ontario Energy Board, through decisions like approving Brampton transmission facilities, regulates the province’s electricity and natural gas sectors in the public interest.

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