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Hydro One looks to increase rates by up to 4%

CBC News Posted: Jan 09, 2015 8:15 AM ET Last Updated: Jan 09, 2015 8:15 AM ET

The Ontario Energy Board is considering whether to allow Hydro One to increase its rates — by as much as four per cent. (Yvon Theriault/Radio-Canada)

Cottage-owners and rural residents in the northwest may have to dig deeper into their pockets to pay for electricity this year, because Hydro One is applying for a rate increase.

Depending on where customers live, the increase would translate to between $2.50 and $7 per month — a rise of approximately four per cent rise.

Seasonal customers like camp owners would see the lowest increase, while residential customers in rural areas of Ontario would see a bigger hike.

“We’re looking at building and upgrading some of our facilities to meet customer growth over the next five years.”– Hydro One spokesperson Nancy Shaddick 

Businesses would also pay more — up to an additional $200 a month.

Hydro One spokesperson Nancy Shaddick said the utility needs the extra revenue to upgrade transmission lines and poles.

“[It’s to] replace and maintain the equipment that we currently have that’s nearing the end of its life, or, with damage through storms,” she said.

“We’re looking at building and upgrading some of our facilities to meet customer growth over the next five years.”

Shaddick said Hydro One also wants to do more tree trimming, to try to reduce the frequency of power outages.

Hydro One can only get more money by increasing the delivery charge, she noted. All the other itemized charges on the hydro bill go to other companies.

“The delivery line item of your bill is the only line item that actually goes to pay for the work that Hydro One does. So that’s both transmission and distribution. The delivery line item covers the cost of that.”

The Ontario Energy Board is reviewing hydro’s application.

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