OEB issues rate order on 2009 electricity distribution rates for Lakeland Power Distribution Limited



    TORONTO, June 30 /CNW/ - Today the Ontario Energy Board (the Board)
issued a Rate Order to reflect its Decision on 2009 electricity distribution
rates for Lakeland Power Distribution Limited (Lakeland). Lakeland is the
licensed electricity distributor providing service to consumers within its
licensed service area: the Municipalities of Bracebridge, Huntsville, Burk's
Falls, Magnetawan and Sundridge. The new rates are effective May 1, 2009, but
will not be implemented until July 1, 2009.

    As a result of this Rate Order, the delivery portion of the bill
associated with the cost to distribute electricity will increase by
approximately 12.1% or $4.60 per month for Lakeland's residential customers
using 1,000 kWh per month. In its application Lakeland had requested a
distribution rate increase of approximately 17.9%. The delivery portion
represents about one-third of the total bill.

    Lakeland requested a revenue requirement of $5,672,375 for the 2009 rate
year. As a result of the Board's Decision, Lakeland will recover a revenue
requirement of $5,105,714. The approved distribution rates include an
additional $0.87 per month for ten months to recover foregone revenue from May
1 to June 30, 2009.

    In the Decision, the Board accepted Lakeland's proposed capital
expenditures of $1,685,160 in 2009 and included these changes to Lakeland's
proposals:

    
    -   A reduction in applied for operating and maintenance expenses of
        $42,000.
    -   A reduction in the allowance for Payments in Lieu of Taxes of
        $153,157.
    -   A reduction in the depreciation expense of $70,000.
    -   An increase in Lakeland's smart meter rate adder from $0.25 to $1.00
        per customer per month.
    -   A recovery of $152,151 in deferral and variance accounts over a two
        year period.
    

    A table of the estimated bill impacts on residential consumers is
available on the Board's website at
    http://www.oeb.gov.on.ca/OEB/_Documents/2009EDR/bill_impacts_2009.pdf.

    For more information please refer to the 2009 Electricity Distribution
Rates Backgrounder on the Board's website site at
http://www.oeb.gov.on.ca/OEB/_Documents/Press+Releases/bckgrndr_edr.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.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





For further information:

For further information: Vanda Wall, Ontario Energy Board, (416)
440-8149


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