OEB issues rate order on 2009 electricity distribution rates for Northern Ontario Wires Inc.



    TORONTO, May 27 /CNW/ - Today the Ontario Energy Board (the Board) issued
a Rate Order to reflect its Decision on 2009 electricity distribution rates
for Northern Ontario Wires Inc. (Northern Ontario Wires). The new rates are
effective May 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 15.8% or $5.75 for Northern Ontario Wires' residential customers
using 1,000 kWh per month. In its application Northern Ontario Wires had
requested a distribution rate increase of approximately 22.4%. The delivery
portion represents about one-third of the total bill.
    Northern Ontario Wires requested a revenue requirement of $2,890,752 for
the 2009 rate year. As a result of the Board Decision, Northern Ontario Wires
will recover a revenue requirement of $2,559,450.
    In its Decision, the Board accepted Northern Ontario Wires' proposals
which included:

    
    -   Northern Ontario Wires' capital expenditures pertaining to the
        purchases of specialized vehicles in excess of $220,000 in 2008; and
    -   $200,000 for a building (in Kapuskasing) and fixtures and $80,000 in
        additions to poles and wires infrastructure.

    During the proceeding, Northern Ontario Wires revised its proposals to
reflect the following:

    -   Removal of $8,000 in operations, maintenance and administration costs
        for temporary staffing to assist with implementing a new billing
        system; and
    -   Removal of $81,000 in other interest expenses associated with
        interest on Variance Accounts, Truck Loan interest and interest on
        Customer Deposits.

    In its Decision, the Board reduced certain requested amounts for
operations, maintenance and administration costs such as:

    -   $10,000 out of a total requested amount of $20,000 for the early
        hiring and training of a superintendent; and
    -   $18,000 to remove that portion of the requested increase in OM&A that
        exceeded the wage inflation estimate of 3%.
    

    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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