TORONTO, Jan. 19 /CNW/ - Today the Ontario Energy Board (the Board) issued a Rate Order to reflect its Decision on 2009 electricity distribution rates for Greater Sudbury Hydro Inc. (Greater Sudbury). The new rates are effective July 1, 2009, but will not be implemented until February 1, 2010. The foregone revenue between July 1, 2009 and January 31, 2010 will be recovered through a rate rider until April 30, 2011.
As a result of the merger between Greater Sudbury Hydro and West Nipissing Energy Services Ltd., the Board approved harmonizing rates over a two year period. Based on this Rate Order, the portion of the bill associated with the cost to distribute electricity for a typical residential customer using 1,000 kWh per month will increase by approximately $3.70 per month in the Sudbury area and by $0.27 per month in the West Nipissing area during the first year of the phase in.
On May 1, 2010, once full rate harmonization is implemented, a typical residential customer using 1,000 kWh per month in the Sudbury area will see a decrease of approximately $0.60 per month and customers in the West Nipissing area will see an increase of approximately $2.50 per month in the cost to distribute electricity.
Greater Sudbury requested a revenue requirement of $23,818,537 for the 2009 rate year. As a result of the Board's Decision, Greater Sudbury's approved rates will recover a forecasted revenue requirement of $22,793,669.
In its Decision, the Board accepted Greater Sudbury's proposals which included increased capital expenditures required to replace aging distribution system infrastructure. The Board also directed Greater Sudbury to complete a study of all shared services by the end of 2011 to determine the most appropriate method to allocate the costs to provide services to affiliates.
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: Media Inquiries: Vanda Wall, Ontario Energy Board, (416) 544-5171; Public Inquiries, (416) 314-2455 Or 1-877-632-2727