Ontario Hydro Rate Increase Set For Tuesday

CP  |  By Posted: 04/30/2012 5:10 pm Updated: 05/ 2/2012 10:24 am

Electricity

TORONTO - Get ready for a heftier hydro bill.

Ontario residents will start paying more for electricity starting Tuesday.

A typical household using 800 kilowatt hours a month will see the "electricity" line on their hydro bill increase by nearly six dollars, while consumers using smart meters — or time-of-use pricing — will see an increase of about four dollars.

The Ontario Energy Board, which reviews the rates twice a year, said prices are changing as coal-fired generation declines and is replaced with natural gas, nuclear and renewable energy.

But critics say the governing Liberals' expensive foray into wind and solar power is the main culprit behind higher hydro rates.

Ontario pays up to 80.2 cents a kilowatt hour for small rooftop solar power and 13.5 cents per kWh for wind power.

Ontario Power Generation, the government-owned utility, is paid 5.6 cents a kWh for nuclear power and between two cents and 3.5 cents per kWh for power from its hydro-electric facilities. Residential consumers pay between 6.2 cents and 10.8 cents a kWh.

High electricity rates will drive away businesses that Ontario needs to grow its economy, said Progressive Conservative Leader Tim Hudak.

"It's hitting families hard in the pocketbook and it's chasing jobs out of the province," he said.

"We're on the wrong path. We just can't afford to keep paying 10 times the price of power for wind and solar."

Energy Minister Chris Bentley said the rate increase mainly reflects the cost of upgrading Ontario's electricity system, not what the province pays for green power.

"The reality is that very little of the price increase we see is as a result of the renewable energy approach," he said. "That will come on more in the future."

The province announced in March that it would lower the guaranteed rate for wind and solar power, but the reduced rates only apply to new contracts.

Thousands of contracts were approved during the first two years of the feed-in-tariff program at the higher rates that will last for 20 years.

Electricity rates will continue to rise, but there are many factors at work, including inflation and investments in conservation, transmission and distribution, said Elise Herzig, president and CEO of the Ontario Energy Association.

Green energy is only a small portion of the May rate increase, she said. Last year, only three per cent of Ontario's power came from wind and solar.

"But they will be the bulk of the cost increases over the next five years," Herzig added.

In 2010, the government warned that hydro bills would jump 46 per cent over five years and green energy would be responsible for 56 per cent of that increase.

Nuclear power is another reason why hydro rates are going up, according to the New Democrats.

Consumers who are still paying for Ontario's last nuclear build will see prices go up again when the government moves ahead with its $26-billion plan to refurbish its aging nuclear fleet, said NDP Leader Andrea Horwath.

"If people think that we're refurbishing Darlington for free, then they have another thing coming," she said.

"It's costing billions of dollars for new nuclear builds on the horizon and, of course, we know that these projects never come in on time and they never come in on budget."

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08:08 AM on 05/01/2012
I am NOT bracing, I AM FUMING.
Lizard got us by our..........s
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HUFFPOST SUPER USER
Warren Yuill
Jesus Built My Hot-Rod
07:10 AM on 05/01/2012
Whats the average monthly bill in ontario anyway?
Based on say a typical 1400 sg ft home
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butchcliff
The future is unwritten
07:47 AM on 05/01/2012
$140 even using smart meters correctly
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butchcliff
The future is unwritten
01:49 PM on 05/01/2012
Sorry...that's summer rate. Fall to spring it goes up to $300+. As one example Nova Scotia about $60 year round
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HUFFPOST SUPER USER
gravescanada
05:21 AM on 05/01/2012
MISSOURI SERVICE AREA USA
Issued pursuant to the Order of the Mo.P.S.C in Case No. ER-2011-0028.
DATE OF ISSUE July 18, 2011 DATE EFFECTIVE July 31, 2011
ISSUED BY Warner L. Baxter President & CEO St. Louis, Missouri
NAME OF OFFICER TITLE ADDRESS
SERVICE CLASSIFICATION NO. 1(M)
RESIDENTIAL SERVICE RATE
* Rate Based on Monthly Meter Readings
Summer Rate (Applicable during 4 monthly billing
periods of June through September)
Customer Charge - per month $8.00
Low-Income Pilot Program Charge – per month $0.03
Energy Charge - per kWh 10.59¢
Energy Efficiency Program Charge – per kWh 0.07¢
Winter Rate (Applicable during 8 monthly billing
periods of October through May)
Customer Charge - per month $8.00
Low-Income Pilot Program Charge – per month $0.03
Energy Charge - per kWh
First 750 kWh 7.53¢
Over 750 kWh 5.02¢
Energy Efficiency Program Charge – per kWh 0.04¢
Optional Time-of-Day Rate
Customer Charge - per month $16.81
Low-Income Pilot Program Charge – per month $ 0.03
Energy Charge - per kWh (1)
Summer (June-September billing periods)
All On Peak kWh 15.39¢
All Off Peak kWh 6.30¢
Energy Efficiency Program Charge – per kWh 0.07¢
Winter (October-May billing periods)
All On Peak kWh 9.08¢
All Off Peak kWh 4.49¢
Energy Efficiency Program Charge – per kWh 0.04¢
02:41 AM on 05/01/2012
Crazy, the Libs and Cons are both responsible, the rates out of this world.
11:54 PM on 04/30/2012
The main problem is in the middle of a third term and while now they are a minority, we still need the Liberal government to get a clue and at least develop a sustainable master plan for Hydro generation. The massive Blunders which the Liberal Government and to be fair the preceding governments as well have left us in a pretty dire state especially when our main stregnth has been low cost Hydro electricity coupled with a well educated workforce unfortunately we are going to only have the workforce, no one is setting up manufacturing in a provice who's hydro rates are 5 times their competitions. No investment in Nuclear, two failed MultiBillion dollar Power generation facilities and the Green Energy Joke, "Welcome to our Nightmare".
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07:47 PM on 04/30/2012
Remember that song: ONTAREREREO?
We are not singing it any more.
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butchcliff
The future is unwritten
07:45 AM on 05/01/2012
Nor participaction
07:15 PM on 04/30/2012
hudak has no clue -----

there are two aspects top electricity costs-------production and transmission ----
the cost of gas fired electricity will vary with the price of gas ---
the cost of building nuclear plants will continue to rise
they are not making anymore NIAGARA FALLS

transmission lines are desperately in need of a cash injection --billions in fact ---

if hudak has a magic lantern -----he will need to rub it -----or we will all be using lanterns if we dont pay the cost to produce and transmit the electrons
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logicanada
Blogger, radio co-host, writer, editor, voice-over
06:59 PM on 04/30/2012
High electricity rates will drive away businesses that Ontario needs to grow its economy, said Progressive Conservative Leader Tim Hudak.

What a silly man.

How many companies have moved away or overseas due to utility costs?

Business moves away for one reason only: Labour costs. Not tax rates and not utility rates. Labour costs.
08:51 PM on 04/30/2012
Try Smelting metals without cheap energy. Gone.
07:41 AM on 05/01/2012
Labour costs go up with electricity costs as the labour require energy to live also. That is unless there's a deliberate depressionary condition designed to lower the standard of living permanently as seems to be the case here, which means that it's a disastrous policy.