April 20, 2010

OEB increases electricity prices across the province
Residential consumption pricing threshold adjusted to 600 kWh for summer months

YORK REGION, ON ~ Semi-annual pricing adjustments by the Ontario Energy Board (OEB), a new regulatory charge from the Ministry of Energy and Infrastructure (MEI), combined with a change to local distribution rates will result in an increase in electricity costs for PowerStream customers in York Region effective May 1, 2010. Click here for the Barrie/Simcoe County news release.

The Regulated Price Plan (RPP) prices, reflected on the “Electricity” line of customer bills, were increased by the OEB for electricity customers in Ontario on two-tiered pricing from 5.8 to 6.5 cents per kilowatt hour (kWh) for consumption up to 600 kWh each month; and from 6.7 to 7.5 cents per kWh for usage above that monthly threshold. For RPP customers with a smart meter, and who have received notification of their account being migrated to time of use (TOU) pricing, the changes are from 4.4 to 5.3 cents per kWh for off-peak consumption, no change in the 8.0 cents per kWh for mid-peak and from 9.3 to 9.9 cents per kWh for on-peak.

RPP two-tiered pricing beginning May 1st will be:

• 6.5 cents per kWh up to and including 600 kWh each month (750 kWh for small business) – from 5.8 cents; and,
• 7.5 cents per kWh (from 6.7 cents) above that.

RPP TOU pricing beginning May 1st will be:

• Off-peak price at 5.3 cents per kWh (from 4.4 cents)
• Mid-peak price at 8.0 cents per kWh (no change)
• On-peak price at 9.9 cents per kWh (from 9.3 cents)

A new regulatory charge assessed by the MEI to recover costs related to energy conservation and renewable energy programs will be incorporated into the Regulatory Charge line item on bills effective May 1, 2010. This charge is $0.0003725 per kWh or $0.33 per month with GST for a customer using 800 kWhs.

The “Delivery” line includes transmission charges and distribution charges. Transmission charges are collected and paid by PowerStream on behalf of Hydro One to cover the cost for operating the provincial grid which delivers electricity to PowerStream’s service area. Distribution charges are the amounts that PowerStream is allowed to retain to fund its operations in providing the wires and services that bring electricity from the provincial grid to customers. Distribution rates, charged by local utilities such as PowerStream, are reviewed and approved by the OEB. PowerStream’s set of distribution rates remain one of the lowest in Ontario.

The rise in the OEB’s two-tiered RPP rates and the lowering of the seasonal price threshold from 1,000 kilowatt hours (kWh) per month to 600 kWh will cause the electricity portion of the bill for a typical residential consumer, who uses 800 kWh in a month, to increase by $8.01 per month. The delivery portion will increase by $0.68 per month (the distribution cost component will increase slightly by $0.10 per month). This will result in an overall bill increase of 10.2% or $9.44 per month with GST.

The rise in the OEB’s TOU RPP rates will cause the electricity portion of the bill for a typical residential consumer, who has a smart meter, is on TOU rates and uses 800 kWh in a month, to increase by $4.99 per month. The delivery portion will increase by $0.68 per month (the distribution cost component will increase slightly by $0.10 per month). This will result in an overall bill increase of 6.5% or $6.28 per month with GST.

Similarly, a typical small business customer on two-tiered RPP pricing, that consumes 2,000 kWh in a month, will see an increase in the electricity portion of the bill of $15.73 per month. The pricing threshold for small business consumers remains unchanged at 750 kWh per month. The delivery portion will increase by $1.17 per month (the distribution cost component will decrease by $0.07 per month). This will result in an overall bill increase of 8.0% or $18.54 per month with GST.

About PowerStream Inc.
PowerStream is the second largest municipally-owned electricity distribution company in Ontario, providing service to more than 320,000 customers residing or owning a business in communities located immediately north of Toronto and in Central Ontario. The communities served include Alliston, Aurora, Barrie, Beeton, Bradford West Gwillimbury, Markham, Penetanguishene, Richmond Hill, Thornton, Tottenham and Vaughan. PowerStream is an incorporated entity, jointly owned by the City of Barrie, the City of Vaughan and the Town of Markham.

About the Ontario Energy Board
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 served by responsive regulatory processes that are effective, fair and transparent.

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Media Contact
Eric Fagen
Director, Corporate Communications
PowerStream Inc.
Office Phone: 905-532-4522
Media Line (24/7): 905-532-4400
Email: eric.fagen@powerstream.ca