Hydro bills could go up as much as 40%

By Ken Johnston
Editor

If you are shocked at your electric bill now, wait two more years.
If Hydro One gets its way everyone will be paying a great deal more by 2011.
In an ad in the August 18, 2009 edition of the Record, Hydro One gave “Notice of application and hearing for an electricity rate change.”
The increase request is in two phases with the first one, if passed, will begin Jan. 1, 2010. It is a request for an average of 9.5% increase on distribution rates. Hydro says there will be a varied effect across the province from a decrease of 1.3% to as high of an increase as 24.6%.
The following Jan. 1st (2011), if passed, an even steeper increase of 13.3% on average (varying from 7.7% to 23.2%.
Howard Hampton says these increases are only the tip of the iceberg. “Factor in the harmonized sales taxes next year and another request from Ontario Power Generation for an increase, and residents may be facing more than a 40% spike in their hydro bills.”
Hampton, who is sitting on a legislative review committee this week said he will be asking OPG, “How can you expect the common person to take this kind of an increase?”
Hampton said he will be expecting them to explain why there is such a need for a large increase.
Hampton also feels residents of Northwestern Ontario are being discriminated against in this entire process. “We are prejudiced in that here in Northwestern Ontario we have a surplus of power. About 500 megawatts of power is let just run over the dams every year.” He suggests that NWO create its own separate power commission, but admits that he does not see the province allowing that to happen.
“We could make our own decisions about whether to have smart meters or what rates to set,” explained Hampton, noting that he thinks the term “smart meter” is ridiculous. “Why it got the name smart meter is beyond me. The program is going to cost users big time.”
In Hydro One’s notice to the public it said, “Hydro One Networks Inc. is seeking approval of $1,181,000,000 as the 2010 revenue it requires to provide electricity distribution and $1,294,100,000 as the 2011 revenue it requires to provide electricity distribution. On an equivalent basis, this compares with a Board approved level of $1,028,100,000 for 2008, the last year the rates were reviewed on a cost for service basis. For the 2009 rates, the Board approved adjustments to the distribution rates using an incentive Regulation Mechanism process.”
A barrage of letters to the editor in the region have suggested that Hydro’s increases will create undo hardship, especially on people with fixed incomes like senior citizens. Hampton agrees with that observation saying, “At some point it will become apparent how much hardship this will cause for small businesses and the common folks.”
Hydro’s application says the increases are on a cost recovery basis. Some letter writers have suggested that Hydro trim its expenses before asking for large increases.
The Ontario Energy Board will be reviewing the request in the near future. So what can the public do to express support or opposition to the matter? The easiest way is to write a letter to the OEB. According to the ad in the Record, letters must be received by OEB no more than 30 days from the publication or service date of the notice.
To send a letter mail it to the following addresses:
Mail
Ontario Energy Board
P.O.Box 2319
2300 Yonge St., 27th Floor
Toronto, ON
M4P 1E4
Attn: Board Secretary
On the internet
Fillings:www.errr.oeb.gov.on.ca
E-mail
Boardsec@oeb.gov.on.ca
Fax
416-440-7656
The other way to participate is to become an observer at the hearing. But they do not actively get to participate; only observe. One can become an intervenor. However, the deadline to become either of these has already passed.
Hampton is electric in stressing that the more people that send in concerns the more likely the OEB is to deny the increase. He himself will be sending out a leaflet to all his constituents to tell them more about this issue and how they can be involved.
Hydro has said that the customer impact will be varied as 2010 and 11 are years three and four of an OEB approved four year rate harmonization plan. It will convert the rate classifications from the 88 acquired utilities to a single set of rate classifications for Hydro’s entire service territory. Hydro One officially acquired Rainy River’s electric utility in May of 2001.