Time of Use electricity rates to kick in March 23rd in RR

By Ken Johnston
Editor

Get ready to pay more for electricity during peak hours.
In a letter from Hydro One this week residents and businesses were informed that the new Time of Use (TOU) electricity rates will be implemented beginning March 23, 2011.
The province had installed so called Smart Meters to all hydro customers over the past couple of years and has been rolling out the implementation of the rates.
In the letter it said, "TOU prices are based on which times of day – or days of the week – experience the highest and lowest electricity demands. When demand and production costs are at their highest, the prices will be higher; when costs go down, so will prices."
Here is the breakdown of what electricity costs will be:
Summer (May 1-Oct. 31)
Weekdays
On peak (11 a.m. to 5 p.m.) 9.9¢/kwh
Mid-peak (7-11 a.m. and 5 p.m to 9 p.m.) 8.1¢/kwh
Off-peak (9 p.m. to 7 a.m.) 5.1¢/kwh
Weekends
Off-peak rates (5.1¢/kwh) apply all day Saturday and Sunday and on Holidays

Winter (Nov.10-April 30th)
Weekdays
On-peak (7-11 a.m. and 5-9 p.m.) 9.9¢/kwh
Mid-peak (11 a.m. to 5 p.m.) 8.1¢/kwh
Off-peak (9 p.m. to 7 a.m.) 5.1¢/kwh.

Weekends
Off-peak rates (5.1¢/kwh) apply all day on Saturday and Sunday at holidays.

The letter has a rider on it stating: "Prices shown are as of Nov. 2010 and reflect only the electricity cost on your bill. They do not include delivery, regulatory charges or the debt retirement charge. Electricity prices are set by the Ontario Energy Board and subject to change every six months in May and November.
Hydro One also included a brochure for customers outlining the impacts of using electricity at peak demand times.
It says:
"Supplying electricity at those peak times has a range of impacts:
•It adds to our electricity costs because higher demand leads to higher prices
•It's hard on the environment because meeting peaks may require the building of additional electricity generation plants.
•It adds to the amount of new generation, transmission and distribution infrastructure Ontario must build and consumers must pay for it.
•It puts a strain on our electricity system.