BlackburnNews.com file photo.BlackburnNews.com file photo.
Midwestern

Hydro One Explains Proposed Increase In Distribution Charge

The Ontario Energy Board held a public meeting in Owen Sound last night about Hydro One's plan to increase distribution charges to help maintain the system.

Hydro One Spokesperson Jay Armitage says a proposed distribution rate increase should not impact customers much.

"Happening at the very same time, is a piece of government policy, the fair hydro plan, which all together is going to still mean a drop of 31% on our average customer's bills," explained Armitage.

Armitage says the Liberal hydro rate relief plan will bring the average $177 a month customer bill down to $122. And the distribution rate hike would then add only about $2 more to their monthly bill, in each of the next five years.

However Bill Walker states Hydro One should not raise rates while it at the same time allows its CEO to take home $4.5-million a year, which is ten times higher than those of the CEOs of Hydro-Quebec and B.C. Hydro.

“Everyday local families are struggling to put food on the table, local businesses are struggling to stay in the black and our public institutions like hospitals and schools are forced to divert money from public services because hydro costs keep climbing higher and higher," says Walker.

He explained that Hydro One wants OEB approval to hike distribution rates, adding another $141 to the average family’s annual bill.

“Consider that families have already faced hikes between $1,000 and $1,400 per year. Some 60 households in my riding of Bruce–Grey–Owen Sound alone had their lights, heat and hydro shut off in the fall of 2014 because they could not afford the monthly bills,” Walker said.

“Likewise, small business operators like Pat Cottrell of Saugeen Cedars Campground and Peter Knipfel of the Chesley Grocery Store are finding it harder and harder to stay in business. In 2011, Pat’s cost for electricity was $8,000 per year; today, it’s $37,000. And with Peter’s hydro bills at $119,100 a year, 120% higher than in 2003, how long can they keep absorbing the costs before they shutter? Meanwhile, Grey Bruce Health Services saw its hydro bills rise by $350,000 a year, a 40% increase in just one year."

However, Hydro One's Jay Armitage says 80% of the executive salary is tied to aggressive targets.

"Targets around customer service, around finding efficiencies in the business, and around reliability, and if those targets aren't met, that money doesn't flow," says Armitage.

The five year plan also calls for productivity savings of $380-million.

If the application is approved, a typical residential customer using 750 kWh per month would see increases* as set out below: 2018 ............... $2.79 per month 2019 ............... $2.47 per month 2020 ............... $2.31 per month 2021 ............... $1.95 per month 2022 ............... $2.23 per month *These amounts do not include any credits resulting from the Fair Hydro Act, 2017.

Read More Local Stories