OEB announces electricity distribution rates for Newmarket-Tay Power Distribution Ltd.

TORONTO, Feb. 24 /CNW/ - Today the Ontario Energy Board (the Board) announced electricity distribution rates for Newmarket-Tay Power Distribution Ltd. (Newmarket-Tay). The new rates are the result of harmonizing the rates in the Newmarket and Tay operating areas, and the increase in costs to provide service. The rate will be effective January 1, 2011, and will be implemented on March 1, 2011.

The delivery line of electricity bills will increase by approximately 7.3% or $2.60 for residential customers in the Newmarket service area using 800 kWh per month and will decrease by approximately $6.69 or -16.8% for residential customers in the Tay service area using 800 kWh per month. The delivery line represents about one-third of the total bill.

Newmarket-Tay requested $18,215,226 to cover its costs for the 2010 rate year. As a result of the Board's alternate dispute resolution process, Newmarket-Tay reached a settlement with intervenors in the application which the Board approved. Newmarket-Tay's approved settlement agreement will recover a revenue requirement of $17,049,937 for the 2011 rate year.

In the settlement agreement, Newmarket-Tay:

    <<
    -   Harmonized the rates of the Newmarket and Tay service areas;
    -   Reduced its proposed capital expenditures by $4.6 million;
    -   Reduced its proposed operations, maintenance and administration costs
        by $619,109.
    -   Updated its cost of capital to incorporate the Board's recent cost of
        capital parameters.
    -   Will collect $1,913,004 from its Newmarket service area ratepayers
        over a period ending April 30, 2013, to clear certain deferral and
        variance account balances related to those customers.
    -   Will return $556,886 to its Tay service area customers over a period
        ending April 30, 2013, to clear certain deferral and variance account
        balances related to those customers.
    >>

A table of the estimated bill impacts on residential consumers is available on our website at http://www.oeb.gov.on.ca/OEB/_Documents/2010EDR/bill_impacts_2010.pdf.

For more information please refer to the 2010 Electricity Distribution Rates Backgrounder on our website site at http://www.oeb.gov.on.ca/OEB/_Documents/Press+Releases/bckgrndr_2010.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 web site at www.ontarioenergyboard.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.

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SOURCE Ontario Energy Board

For further information: Media Inquiries: Vanda Wall, Ontario Energy Board, (416) 544-5171; Public Inquiries: (416) 314-2455 Or 1-877-632-2727


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