OEB announces 2010 electricity distribution rates for Hydro One Networks Inc.

TORONTO, April 29 /CNW/ - Today the Ontario Energy Board (the Board) announced electricity distribution rates for Hydro One Networks Inc. (Hydro One) for the 2010 rate year. The new rates for 2010 are effective May 1, 2010.

The delivery line of electricity bills will increase by approximately 7.9% or $4.72 for Hydro One's typical residential customers using 1,000 kWh per month. The actual impact for customers will depend upon how much electricity they use and the customer's specific rate class. The delivery line represents about 40% of the total bill for a typical Hydro One customer.

Rate impacts are due in part to increases related to increases in overall work activity, increases in capital costs for physical infrastructure and systems, investments related to the Green Energy and Green Economy Act (2009), and a higher cost of capital.

    
    In its Decision, the Board:

    -   Found Hydro One's Operations, Maintenance & Administration budget to
        be excessive and that Hydro One had not sufficiently controlled its
        spending growth. As a result, the Board established an overall
        funding envelope of $520 million for 2010 and $535 million for 2011
        (a reduction of $40 million in both 2010 and 2011 from applied-for
        levels). This represents an annual increase of 5% over 2008 actual
        spending for 2009 and 2010 and a 3% increase for 2011;
    -   Reduced Hydro One's capital expenditures for 2010 and 2011 to
        $500 million in each year (a reduction of $48 million in 2010 and
        $43 million in 2011 from what Hydro One applied for);
    -   Approved some expenditures related to Hydro One's Green Energy Plan;
    -   Approved continuing Hydro One's rate harmonization plan;
    -   Updated the cost of capital to incorporate the Board's recent cost of
        capital parameters.
    

A table of the estimated bill impacts on residential consumers is available on our website at http://www.oeb.gov.on.ca/OEB/_Documents/2010EDR/bill_impacts_2010.pdf.

For more information please refer to the 2010 Electricity Distribution Rates Backgrounder on our website site at http://www.oeb.gov.on.ca/OEB/_Documents/Press+Releases/bckgrndr_2010.pdf.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers and works toward this vision through regulation that is effective, fair and transparent. For more information on the Board, please visit our web site at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.

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For further information: Media Inquiries: Vanda Wall, Ontario Energy Board, [phone]; Public Inquiries: [phone] Or 1-877-632-2727