TORONTO, Dec. 13 /CNW/ - Today the Ontario Energy Board (the Board) announced electricity distribution rates for Algoma Power Inc. (Algoma Power). The new rates are effective December 1, 2010.
The delivery line of electricity bills will increase by approximately 10.5% or $5.19 for Algoma Power's residential customers (R1) using 800 kWh per month. As a result of the expiration of a credit previously approved by the Board, the delivery line of electricity bills will increase by a further 6.6% or $3.28 as of January 1, 2011. The delivery line represents about one-third of the total bill.
Algoma Power requested $18,585,008 and $20,082,054 to cover its costs for the 2010 and 2011 rate years, with new rates effective July 1, 2010 and January 1, 2011 respectively. As a result of the Board's alternate dispute resolution process, Algoma Power reached a settlement with intervenors in the application, which the Board approved. Algoma Power's approved settlement agreement provides for the recovery of an annual revenue requirement of $19,828,731, with new rates effective December 1, 2010.
In its Decision on non-settled matters, the Board disallowed the recovery of $412,726 related to organizational restructuring undertaken by Algoma Power's predecessor company. The Board also set the rural and remote rate protection adjustment for eligible customer classes by capping the increase to the monthly fixed charge and distribution variable rate that Algoma Power can charge eligible customers at 2.5%.
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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