OEB Adjusts Electricity Commodity Prices under the RPP for Homes and Small
Businesses

TORONTO, April 15 /CNW/ - Today the Ontario Energy Board (OEB) released the electricity commodity prices that take effect May 1, 2010 under the Regulated Price Plan (RPP).

RPP prices are based on the OEB's estimate of the cost to supply electricity to residential and small business RPP consumers over 12 months. This cost is recovered in one of two ways from those consumers: through tiered pricing or time-of-use (TOU) pricing.

RPP prices, reviewed semi-annually, are reflected on the "Electricity" line of residential and small business RPP consumer bills, representing about half the total bill.

Tiered pricing will be adjusted as follows:

    
    -   6.5 cents per kWh up to and including 600 kWh each month (750 kWh for
        small business) (from 5.8 cents); and
    -   7.5 cents per kWh (from 6.7 cents) above that.
    

When both the change in tier prices and the change in the seasonal tier threshold (from 1,000 kWh/month to 600 kWh/month) are considered, the estimated bill impact for residential RPP consumers that are on tiered pricing is about $7.60/month based on 800 kWh/month use. This change to the electricity line equates to approximately 8% on the total bill.

TOU pricing will also be adjusted as follows:

    
    -   Off-peak Price at 5.3 cents per kWh (from 4.4 cents)
    -   Mid-peak Price at 8.0 cents per kWh (no change)
    -   On-peak Price at 9.9 cents per kWh (from 9.3 cents)
    

The estimated bill impact of the change in TOU prices for those residential RPP consumers that are on TOU pricing is about $5.79/month based on 800 kWh/month use and average TOU consumption patterns. This change to the electricity line equates to approximately 5.8% on the total bill.

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 served by responsive regulatory processes that are effective, fair and transparent.

For more information, please refer to the attached backgrounder, visit the OEB website at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.

Ce document est aussi disponible en français.

Backgrounder

    
    April 15, 2010
    -------------------------------------------------------------------------

    What is the     Both tiered and time-of-use prices form part of the OEB's
    RPP?            Regulated Price Plan (RPP). The RPP is designed to ensure
                    the price that residential and small business RPP
                    consumers pay for electricity recovers the payments made
                    to generators that supply the electricity they consume.
                    RPP prices are set to recover the total cost of that
                    supply, regardless of which of these prices (tiered or
                    time-of-use) distributors use to bill for the electricity
                    consumed by their RPP customers.

                    RPP prices, reviewed semi-annually, are reflected on the
                    "Electricity" line of residential and small business RPP
                    consumer bills, representing about half the total bill.

                    Consumers who buy their electricity from a retailer pay
                    the commodity price set out in their contracts and are
                    not affected by changes in RPP prices.

                    If you are a customer that has a retail contract, you
                    will also see a separate line item on your bill for what
                    is called the Provincial Benefit (or "Global
                    Adjustment"). For customers of a local utility on the
                    RPP, the Provincial Benefit is factored into RPP prices.

                    The Provincial Benefit accounts for differences between
                    the market price of electricity and rates paid to
                    regulated and contracted generators.

    What is the     The estimated bill impact of the revised electricity
    bill impact?    prices for those on tiered pricing is about $7.60/month,
                    based on 800 kWh/month use, when compared to the prices
                    that were in effect until April 30, 2010. This change to
                    the electricity line equates to approximately 8% on the
                    total bill.

                    The seasonal tier threshold change (from 1,000 kWh/month
                    to 600 kWh/month) that affects consumers on tiered
                    pricing accounts for about $2/month of that estimated
                    impact.

                    The estimated bill impact of the revised electricity
                    prices for those on time-of-use (TOU) pricing (based on
                    average TOU consumption patterns) is about $5.79/month,
                    based on 800 kWh/month use, when compared to the prices
                    that were in effect until April 30, 2010. This change to
                    the electricity line equates to approximately 5.8% on the
                    total bill.

    Why are         Primary factors contributing to the overall increase in
    electricity     RPP prices include:
    prices
    changing?       -  Payments going to renewable generation projects, gas
                       plants, as well as conservation and demand management
                       programs;

                    -  New contracts for existing generation, including
                       support payments for fossil fuel plants and for
                       existing hydro generation;

                    -  Recovery of the RPP variance account, managed by the
                       Ontario Power Authority (OPA), which tracks the
                       difference between what RPP consumers have paid versus
                       what has been paid to generators that supply their
                       electricity as well as costs associated with certain
                       conservation and demand management programs.

    For more        Electricity RPP prices are one portion of total bills and
    information     do not include other charges like delivery. For more
                    information, visit the "Your Utility" section of the
                    OEB's consumer website at www.oeb.gov.on.ca.
    

Ce document est aussi disponible en français.

SOURCE Ontario Energy Board

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


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