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Guelph Hydro Raises Rates

Morning Post Exchange – Friday February 6, 2015

Guelph – The Ontario Energy Board has approved a rate increase of 1.3 per cent for Guelph Hydro Electric Systems Inc. residential and commercial customers, effective retroactively to January 1, 2015. This increase in electricity distribution rates covers rising costs associated with building, operating and maintaining the electrical system infrastructure required to safely and reliably deliver electricity to 53,000 customers in Guelph and Rockwood.

Infrastructure consists of poles, overhead wires, underground cables, transformers, substations, fleet vehicles and the company’s offices and service centre in Guelph. Operational costs include normal business overhead costs including salaries and wages for employees including line crews who provide day-to-day operation and emergency services and office staff who handle customer service, billing and other administrative functions.

Also effective January 1, 2015, customers were impacted by an increase in transmission fees which are paid to Hydro One and other costs related to operating the wholesale electricity market in Ontario. Transmission costs and wholesale market costs are outside of the control of Guelph Hydro.

In total, the average residential customer consuming 800 kilowatt hours of electricity monthly will experience a 7.96 per cent increase on the Delivery portion of their electricity bill which covers the increase in transmission fees by Hydro One, wholesale market fees, and the increase in distribution costs by Guelph Hydro. Together, these changes will result in an increase of about $3.47 per month or 2.7 per cent on the customer’s total electricity bill.

Small commercial customers, such as a small retail store in a strip mall, consuming 2,000 kilowatt hours of electricity monthly, will experience a 9.32 per cent increase in the Delivery portion of their electricity bill. This will result in an increase of about $6.76 or 2.37 per cent per month on the customer’s total electricity bill.

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