TORONTO, June 12 /CNW/ - Today, the Ontario Energy Board in an oral
decision dismissed a distribution licence amendment request by
Kitchener-Wilmot Hydro Inc. that would have exempt the utility from section
220.127.116.11 of the Distribution System Code for a specific commercial customer.
The ruling means the utility does not have the right to impose more frequent
payment on Lear Corporation.
Kitchener-Wilmot had been expected to impose a weekly payment plan for
Lear Corporation to reduce the risk of non-payment where the risk of default
On April 23, 2009, Kitchener wrote to the Board expressing concern over
the financial stability of one of their large-use customers and requested
guidance on how to enforce a weekly payment plan to reduce the risk of
Lear Corporation provides complete seat systems, electrical distribution
systems and electronic products to major automotive manufacturers. The
company's continuing business viability is dependent on the automotive
industry and the company's risk of non-payment is high with the current
The application stated that Lear consumes 2 MW per month and has an
average monthly bill of about $80,000. When annualized, the bill is
approximatly $960,000. The company is a long-term Kitchener-Wilmot customer of
35 years with a demonstrated "good payment history"
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 towards this vision through
regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our 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.
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For further information:
For further information: Paul Crawford, (416) 440-7607