Hydro Rate Changes Coming Into Focus

John Curran | Dec 09, 2020

Only about half of Ontario’s cottagers should expect to see their rates increase as a result of the Ontario Energy Board (OEB) decision forcing the elimination Hydro One’s seasonal rate class.

Daniel Levitan, Vice President Stakeholder Relations for Hydro One Networks, made the comment recently during the Federation of Ontario Cottager Associations’ (FOCA) fall webinar, while explaining the process that has fallen out of the OEB directive.

The impact to your bill depends on how Hydro One classifies your community and property going forward. In medium density zones – an area that contains 100 or more customers, with at least 15 customers for every kilometre of power line used to supply energy in the zone – customers will actually see their monthly bills decrease by about $5 on average.

The other category of impacted customers, those in low density zones, will not be so lucky. Levitan said these customers can expect their bills to increase by about $54 a month. Customers classified as residential low density are residences in any area not covered by urban high or medium destiny zones.

Hydro One, aided in part by FOCA, had argued the changes imposed by the OEB were unnecessary and would inflict undue hardship on rural property owners. Those efforts ultimately weren’t successful, but the plan going forward includes a measure to help soften the blow at least somewhat for those impacted at the high-end of the range.

“The breakdown between those who will be classed as medium density versus low density is about 50/50,” said Levitan. “The rate changes will be spread out over nine years.”

He added that FOCA played an important role in voicing the concerns of Ontario’s waterfront property owners.

“I really appreciate the advocacy work you’ve done on behalf of your members and our customers,” said Levitan. “Although we may not always agree on everything, we’ve been very good partners.”

Hydro One is Ontario’s largest transmission and distribution company. It operates 98 per cent of Ontario’s transmission grid serving 1.4 million rural customers, including 186,000 seasonal residences, explained Levitan.

“We have regular dialogue with Hydro One, they’re an important supplier to all of us,” said Terry Rees, FOCA executive director. “Electricity is a pretty vital element to our quality of life, so we’ll continue to work closely together.”