The Fair Hydro Act, 2017 went into effect on July 1, 2017 and reduces your residential electricity bill by 25% on average.

As many as half a million small businesses and farms will also benefit.

In addition:

  • Your electricity rate will not increase beyond the rate of inflation for four years
  • You will receive additional relief if you live in a rural area, or remote area or if you are a First Nations residential customer
  • Certain electricity-related relief programs will be removed from your electricity bill, and instead, those programs will be funded through taxes

Part of the 25% fair adjustment includes the 8% rebate that came into effect January 1, 2017. In addition, the cost of the Ontario Electricity Support Program has been removed effective May 1, 2017.

How will the Fair Hydro Act benefit me?

Below is a comparison of rates that were in effect in January 1, 2016 including the 8% rebate in effect and a bill with the new fair hydro act rates in effect July 1, 2017:

*This comparison does not take into consideration the DRP reduction.

Where do I see the savings on my bill?

Electricity Charges

The “Electricity” line, that covers the cost of electricity, is where you will see the most savings, whether you are a residential customer, small business or farm.

Regulated Price Plan (Time-of-Use and Tiered Pricing)

Most InnPower customers fall under the Regulated Price Plan (RPP). Starting on July 1, 2017 you will see lower rates when it comes to Time-of-Use and Tiered pricing.

Non-Regulated Price Plan

If you have a contract or have opted out of the RPP and pay the Global Adjustment (GA) as a separate line item on your bill you will see a fair adjustment in the form of a Global Adjustment Modifier effective July 1, 2017. The GA modifier is $ 32.90/MWh or $ 0.0329/kWh. This credit is designed to provide eligible customers not paying RPP prices a benefit that corresponds with a level of benefit that relates to customers paying the lower RPP pricing.

The GA modifier will also benefit customers that are not eligible for the RPP but are eligible for the 8% rebate (for example, eligible institutional residential complexes).

Delivery Charges:

The “Delivery” line of your bill covers the cost of delivering electricity from generating stations across the province to your home or business through high voltage (transmission) and low voltage (distribution) lines.

Under the Fair Hydro Act, 2017, two new programs will provide additional electricity bill relief for certain electricity customers in the province. No intended end date has been announced for these new programs. These two new programs are being funded through taxes and are:

Distribution Rate Protection (DRP)

First Nations On-reserve Delivery Credit

InnPower residential customers are eligible for the Distribution Rate Protection.Under the DRP the Ontario Energy Board (OEB) has set the maximum monthly base distribution charge at $ 36.43. This charge will apply to electricity used on or after July 1, 2017 and remain in effect until changed by the Ontario Energy Board.

Currently InnPower base distribution charges include the fixed “Service Charge” of $ 24.85 and the “Distribution Volumetric Rate” of .0139/kWh. Under our current approved rates, if you use more than 833 kWh/month will see the DRP take effect and your charges will be capped at a maximum of $ 36.43.

E.g. at 833 kWh/month

Service Charge = $ 24.85

Volumetric Charge – 833 x .0139= $ 11.58

Total Base Distribution Charges = $ 36.43 (equal to DRP maximum – no adjustment)

E.g. at 750 kWh/month

Service Charge = $ 24.85

Volumetric Charge – 750 x .0139= $ 10.43

Total Base Distribution Charges = $ 35.28 (below DRP maximum – no adjustment)

E.g. at 1000 kWh/month

Service Charge = $ 24.85

Volumetric Charge – 1000 x .0139 = $ 13.90

Total Base Distribution Charges = $ 38.75 (above DRP maximum – adj required)

Distribution Rate Plan Credit = ($ 2.32)

Dist Charges with Fair Hydro Plan= $ 36.43

The DRP pricing will continue regardless of any Ontario Energy Board approved distribution rate increases.

Regulatory Charges:

The “Regulatory Charges” line of your bill covers the cost of operating the wholesale electricity market and maintaining the reliability of the province’s high voltage power grid. It also includes the cost of funding the Rural or Remote Electricity Rate Protection (RRRP) program, which helps to offset the higher cost of providing electricity service to customers in rural or remote areas of the province. Until recently, the Regulatory Charges line also included the cost of the Ontario Electricity Support Program (OESP), which provides eligible low-income customers with monthly on-bill credits to reduce their electricity bills.

OESP

From January 1, 2016 to April 30, 2017, all electricity customers in Ontario paid a charge of 0.11¢/kWh to fund the cost of the OESP. The OEB removed the OESP charge from customer bills as of May 1, 2017.

The OESP will continue to help eligible low-income customers, however, the program will be funded through taxes once the existing funding runs out.

RRRP

Electricity customers have been paying for the cost of the RRRP program for many years. At the time when the Fair Hydro Act, 2017 was passed, the RRRP charge was 0.21¢/kWh, much of which has been helping to off-set the cost of serving eligible customers in one of Hydro One’s two mainly rural rate classes.

On June 22, 2017, the OEB set a new RRRP charge of 0.03¢/kWh effective July 1, 2017. This lower RRRP charge means that electricity customers will pay a much smaller share of the cost of the RRRP program, with the rest (about 80%) being funded through taxes.

The new RRRP charge will remain in effect until the end of 2017. For each subsequent year, the OEB will calculate a revised RRRP charge in accordance with the rules set out in a regulation.

Questions?

More information regarding the Fair Hydro Act 2017 can be found athttps://www.oeb.ca/newsroom/2017/fair-hydro-act-2017

or you can reach out to InnPower Customer Service at:

Phone 705-431-4321

E-mail customerservice@innpower.ca



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