TORONTO, Sept. 22 /CNW/ - Today the Ontario Energy Board (the Board) issued a Rate Order to reflect its Decision on 2009 electricity distribution rates for London Hydro Inc. (London Hydro). The new rates are effective September 1, 2009, but will not be implemented until October 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 $2.88 for London Hydro's residential customers using 1,000 kWh per month. The delivery portion represents about one-third of the total bill.
London Hydro requested a revenue requirement of $64,108,653 for the 2009 rate year. As a result of the Board Decision, London Hydro's approved rates will recover a forecasted revenue requirement of $61,782,082.
In its Decision, the Board accepted London Hydro's proposals which
- increased capital expenditures, that include investments in a new
customer information system worth $9.3 million, to improve
operational efficiencies and better serve ratepayers; and
- increasing the smart meter funding adder from $0.27 to $1.00 per
month per metered customer.
The Board also:
- reduced the weighted average cost of capital from 6.97% to 6.62%, to
reflect the Board's Cost of Capital parameters for 2009 and the
treatment of the cost of actual and deemed debt;
- reduced proposed increases to operations, maintenance and
administration costs by $409,637;
- did not approve London Hydro's proposal to average the tax/PILs
liability associated with the new customer information system over
four years; and
- approved returning $7,565,533 to London Hydro's ratepayers, over a
period ending April 30, 2011, as a result of clearing certain
deferral and variance account balances.
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.
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SOURCE Ontario Energy Board
For further information: For further information: Vanda Wall, Ontario Energy Board, (416) 440-8149