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BENCHMARKING ONTARIO'S ELECTRICITY COMPETITIVENESS The 2008 update compares delivered industrial electricity rates in Ontario from 2002 to 2007 to other provinces and selected United States markets. Aug 1, 2008 Industrial Rates in Ontario 2002 to 2007 The report compares delivered rates to industrial customers in Ontario. Aug 1, 2008 Average Distribution Rates in Ontario 2002 to 2007 The table shows average distribution costs from 2002 to 2007.

BENCHMARKING ONTARIO'S ELECTRICITY COMPETITIVENESS Comparing electricity costs on the basis of all-in delivered rates charged to customers we find that although prices recovered from the highs set during 2005, wholesale prices are trending upwards in all jurisdictions surveyed. In Canada, only Alberta is more expensive than Ontario, but Ontario finds itself in the middle of the pack compared to US markets in the Midwest, Northeast, New England and New York. Prices have increased more rapidly recently in the US than in Ontario, due to higher reliance on fossil fuels in the US and increasing prices of those fuels, narrowing supply cushions and persistent transmission congestion. Wholesale charges and transmission charges are significantly higher in Ontario than other jurisdictions. Of concern are distribution costs: up 18.5 percent since 2002, more than 7 percent per year from 2005 to 2007.