TORONTO, Oct. 17 /CNW/ - Today the Ontario Energy Board (the "Board")
issued a Rate Order approving the rate schedule for the recovery of the
revenue requirements of electricity transmitters in the Ontario Transmission
Rates Pool (Hydro One Networks Inc., Great Lakes Power Ltd., Canadian Niagara
Power Inc. and Five Nations Energy Inc.). The transmission rate schedule was
amended as a result of the EB-2006-0501 Hydro One decision on August 16, 2007.
In that decision, the Board reduced the Hydro One transmission revenue
requirement from current levels and also approved the refund of amounts in
certain deferral accounts, which will result in a further reduction in 2007
and 2008 transmission revenue requirements.
Transmission rates recover the costs of transmitting electricity from
generators to large end-use customers or to electricity distributors.
The uniform transmission rates approved today are in effect from November
1, 2007 until December 31, 2008. The Board Decision has reduced uniform
transmission rates by an average of approximately 12% over the period compared
to previous rates, which should result in approximately 1% decrease in an
average customer's total electricity bill. Transmission costs account for
approximately 8% of the average total electricity bill. The effect of changes
to transmission costs is normally reflected on the "delivery" line of
residential consumer bills.
There are three components to transmission rates in Ontario: Network rates
and Line Connection rates, which were reduced; and Transformation Connection
rates, which were increased.
- The decrease in the Network and Line Connection rates is largely the
result of a decreasing revenue requirement for Hydro One due to a
combination of a shift in program spending and revenue credits to
these pools as compared to previously approved rates. The decrease in
Network and Line pool rates is also caused by higher charge
determinants as a result of load growth.
- The increase in the Transformation Connection rate is due to a
combination of higher Hydro One revenue requirement and a lower
charge determinant from the previously approved rates, both of which
drive an increase in this rate. The increasing revenue requirement is
a result of increased spending on transformation assets and the
decrease in the charge determinant is a result of negative load
growth, net of CDM, for customers supplied by this pool.
The change in overall transmission revenue requirements has also resulted
in a change to the revenue allocation factors among the four transmitters.
The Rates approved in this Decision will affect over 55 utilities and
65 end-users of the Ontario transmission network encompassing over 500
customer delivery points.
Today's Decision is available on the OEB website at www.oeb.gov.on.ca.
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 towards this vision through
regulatory processes that are effective, fair and transparent.
For more information on the Board or the Decision, please visit our
website at www.oeb.gov.on.ca or contact the Consumer Relations Centre at
416-314-2455 or toll-free at 1-877-632-2727.
For further information:
For further information: Paul Crawford, Ontario Energy Board, (416)