OEB Announces New Electricity Prices



    TORONTO, April 15 /CNW/ - Today the Ontario Energy Board (OEB) released
electricity commodity prices that take effect May 1, 2009.
    Regulated Price Plan (RPP) prices, reviewed semi-annually, are reflected
on the "Electricity" line of residential consumer bills. The new RPP prices
will increase by 0.1 cents per kilowatt hour (kWh).

    
    -   5.7 cents per kWh up to 600 kWh each month; and
    -   6.6 cents per kWh above that.
    

    The impact of the change in RPP prices on the average electricity bill
will be about $1.00 per month (1% approx.), based on 1,000 kWh/month use.
    Effective May 1, the seasonal threshold will change from 1,000 kWh to 600
kWh per month. The impact of the change in threshold on the average
electricity bill will be about $3.60 per month (3% approx.).
    The electricity price increase coupled with the threshold change will
raise the monthly bill of a consumer that uses 1,000 kWh/month by about $4.60
or 4%.

    
    Time-of-Use prices have been adjusted for all three periods as follows:

    -   Off-peak Prices at 4.2 cents/kWh
    -   Mid-peak Price at 7.6 cents/kWh
    -   On-peak Price at 9.1 cents/kWh
    

    RPP prices are based on a 12-month forecast and are designed to provide
stable and predictable electricity pricing as well as ensure the price
consumers pay better reflects the price paid to electricity generators.
    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
    -------------------------------------------------------------------------
    What is the     The Regulated Price Plan (RPP) is an electricity pricing
    RPP?            structure designed to ensure consumers pay what it costs
                    to supply their electricity while smoothing the daily
                    price variations that occur in the market. When the
                    Ontario Energy Board (OEB) sets prices, it adjusts for
                    past differences between what consumers have paid and
                    what it will cost to supply them over a 12-month forecast
                    of future electricity costs. RPP prices are reviewed and
                    adjusted twice a year in the spring (May 1) and in the
                    fall (Nov. 1).

                    For residential consumers, the monthly threshold for the
                    lower price is set at 600 kWh per month during the summer
                    season from May 1 to October 31 (and at 1,000 kWh per
                    month for the winter season from November 1 to April 30).

                    For non-residential consumers eligible for the price
                    plan, the threshold remains at 750 kWh per month for the
                    entire year.

                    Consumers who currently buy their electricity from a
                    retailer and are paying their contract price are not
                    affected by changes in RPP prices.
    -------------------------------------------------------------------------
    Factors in      Primary factors contributing to the 0.1 cent per kWh
    May 1, 2009     increase in RPP prices include:
    Prices
                    - Increased payments for output from Ontario Power
                      Generation's (OPG) regulated nuclear and large hydro
                      assets.
                    - End of the OPG Rebate for OPG's coal and small hydro
                      assets. The OPG Rebate reflects the government cap on
                      the amount paid to certain generation facilities owned
                      by OPG. Consumers received a rebate for any revenues
                      from facilities exceeding the cap.
                    - An expected increase in payments under the contract
                      with Bruce Power.

                    Relative to the previous forecast, factors that are
                    expected to partially offset the impact of those above
                    are driven by the decline in the economy and include:

                    - A significant reduction in wholesale electricity market
                      prices, primarily due to lower energy demand.
                    - Lower natural gas prices, which significantly reduces
                      the cost to operate gas-fired generators.

    Variance        The RPP variance account, managed by the OPA, tracks the
    Account         difference between what consumers have paid versus what
                    has been paid to generators. Since the last RPP price
                    adjustment in November 2008, the positive balance in the
                    variance account has increased from about $120 million to
                    just over $137 million, meaning a higher credit included
                    in the RPP price.
    -------------------------------------------------------------------------
    Time-of-Use     Time-of-Use prices only apply to a small subset of
    (TOU) Prices    consumers (about 35,000) at this time. This currently
                    includes some consumers with Milton Hydro as well as
                    Newmarket and Tay Hydro.

    For more        Visit www.oeb.gov.on.ca.
    information

    Ce document est aussi disponible en français.
    





For further information:

For further information: Paul Crawford, Ontario Energy Board, (416)
440-7607


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