Application for an Electricity Distribution Rate Change
In May 2002 the Provincial Government restructured Ontario’s electricity market. This restructuring changed the way that electric utilities, including North Bay Hydro paid for electricity used by customers within their service area. The power bill was broken into at least 24 separate items and in some cases estimated costs were used to calculate North Bay Hydro’s bill instead of actual. Variance accounts were created to track these differences with the understanding that balances would be recovered from customers at some future date.
During the period between market opening in 2002 and December 31, 2008 North Bay Hydro has accumulated $2,046,974 in the major variance accounts. This amount represents costs for power that have been paid for by North Bay Hydro but never passed along to customers for electricity that was consumed.
North Bay Hydro has made application to the Ontario Energy Board to recover these costs by means of a temporary rate rider which would remain in place for 3 years. This proposed rate rider would amount to $1.20 per month for a typical residential customer or a 1.17% increase on a total monthly bill. A general service customer using 2000 kWh per month would experience a $2.40 per month increase or 1.12% on the total bill.
North Bay Hydro has taken action to minimize customer impact, however must recover costs for power used by its customers and never passed along.
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