On September 30, Hydro One Networks Inc. plans to ask the Ontario Energy Board to approve rate increases of 29 to 37 per cent by 2010. 

“With the rate hikes already approved by the OEB, this increase would mean an additional 6 to 8 per cent increase in 2009 and another 12 per cent in 2010,” said AMPCO President Adam White. “It would cost our members an estimated $38 million in the next two years.”

Hydro One’s stakeholders were informed at a meeting on Wed. Sept 3 that its Board of Directors had been briefed on the application — including the impact on customers — and had given its approval to bring the application.

AMPCO will be well represented in the hearing before the Ontario Energy Board. At a minimum we will want to understand why Hydro One believes such significant rate increases are necessary. The process will provide an opportunity to test the justification for the large cost increases that underlie the application.

AMPCO will also be bringing evidence supporting its argument that the current design of rates is a major impediment to efficient demand management for wholesale customers, including industrials.

“For 10 years, AMPCO has been trying to persuade Hydro One and the Board that these rates over-charge industrial customers that shift demand to off-peak hours, and subsidize customers who consume more during peak periods,” said Adam White. “Our research shows that Ontario is alone among North American jurisdictions in having rates that are designed to discourage good demand management. Fundamentally, these poorly designed rates punish the very behaviour that the government — Hydro One’s sole shareholder — says it wants to promote.”

Once Hydro One’s application is filed, the OEB will issue an order with a timetable for the proceeding. We anticipate the oral hearing will not commence before 2009.

For information:

Adam White

President

e: awhite@ampco.org

t: 416-260-0225