TORONTO, July 18 /CNW/ - Today the Ontario Energy Board (the Board)
issued its Decision on an application by Brantford Power Inc (Brantford) for
2008 electricity distribution rates. New rates will take effect the date the
final Rate Order is issued.
Distribution rates are set to recover the cost to deliver electricity to
consumers and reflect an individual utility's cost of service. Utilities apply
to have their proposed rates to deliver electricity reviewed by the Board
through a public process to determine what costs can be passed on to
consumers. Distribution rates are reflected in the "Delivery" line of
In 2008, distribution rates will be set using two different
methodologies. Most utilities will have their rates set using incentive
regulation guidelines which provide a standard rate adjustment that accounts
for inflation and productivity improvements. Others will have their rates set
by way of a cost of service review, in which the utility applies for rates
based on the costs it incurs to deliver electricity.
For the rate year which starts on May 1, 2008, 21 utilities are having
their 2008 rates set by way of a cost of service rate review. 60 utilities are
having their 2008 rates set using the Board's incentive regulation guidelines.
Brantford had its rates set by way of a cost of service review.
Key points in the Board's Decision include:
- The costs for operations maintenance and administration and the costs
for capital expenditures were lowered from the levels proposed;
- New, lower tax rates and the Board's recently updated cost levels for
short term debt and common equity will be used to set rates;
- The smart meter rate adder will continue at $0.28 per meter month;
- Certain amounts claimed for collection through deferral accounts were
- Rates charged for Street Lighting and Sentinel Lighting will be
raised to better reflect the costs to serve these customers.
The Board directed Brantford to file a draft rate order, reflecting the
findings in this Decision, and a schedule of proposed final distribution rates
Bill impacts resulting from 2008 distribution rate decisions will be
announced in the coming weeks after the utilities have submitted draft rate
schedules to the Board reflecting today's decision. The Board will announce
the rate impacts when it approves and issues final rate orders to the
A table of the estimated bill impacts on residential consumers will be
available once any potential adjustments to the RPP are determined and as
specific rate orders for individual utilities are issued by the Board. This
table will be published on the Board's website www.oeb.gov.on.ca.
For more information please refer to the 2008 Electricity Distribution
Rates Backgrounder on the OEB website site at
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 on the Board, please
visit our web site at www.oeb.gov.on.ca or contact the Consumer Relations
Centre at 416-314-2455 or toll-free at 1-877- 632-2727.
For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)