OEB announces 2010 electricity distribution rates for Veridian Connections

TORONTO, May 10 /CNW/ - Today the Ontario Energy Board (the Board) announced electricity distribution rates for Veridian Connections Inc. (Veridian). The new rates are effective May 1, 2010.

For customers in Veridian's Main rate zone, the delivery line of electricity bills will decrease by approximately 6.9% or $2.14 for residential customers using 800 kWh per month. For customers in Veridian's Gravenhurst rate zone, the delivery line of electricity bills will increase by approximately 16.8% or $5.87 for Residential Urban Year-Round customers using 800 kWh per month. The delivery line represents about one-third of the total bill.

Veridian requested $51,866,572 to cover its costs for the 2010 rate year. As a result of the Board's alternate dispute resolution process, Veridian reached a settlement with intervenors in the application, which the Board approved. Veridian's approved settlement agreement will recover a revenue requirement of $50,747,110.

As part of the settlement agreement, Veridian:

    -   Reduced its proposed capital expenditures by $300,000;
    -   Reduced its proposed operations, maintenance and administration costs
        by $750,000; and
    -   Updated its cost of capital to incorporate the Board's recent cost of
        capital parameters.

Veridian will return $21,839,284 to ratepayers in its Main rate zone, over a period ending April 30, 2012, and recover $1,095,106 from ratepayers in its Gravenhurst rate zone over a period ending April 30, 2014, to clear certain deferral and variance account balances.

A table of the estimated bill impacts on residential consumers is available on our website at http://www.oeb.gov.on.ca/OEB/_Documents/2010EDR/bill_impacts_2010.pdf.

For more information please refer to the 2010 Electricity Distribution Rates Backgrounder on our website site at http://www.oeb.gov.on.ca/OEB/_Documents/Press+Releases/bckgrndr_2010.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: Media Inquiries: Vanda Wall, Ontario Energy Board, (416) 544-5171; Public Inquiries: (416) 314-2455 Or 1-877-632-2727

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