Thursday, February 24, 2011

Ontario electricity prices to rise again as OPG seeks 6.2 per cent hike March 1

The Canadian Press

TORONTO – Electricity ratepayers in Ontario, already reeling from soaring prices, should brace for yet another increase.

The Ontario Energy Board is expected to rule shortly on a request from Ontario Power Generation for a 6.2 per cent increase in electricity rates effective March 1.

The Liberal government has been under non-stop attack over rising electricity rates, especially since the HST was added to hydro bills last July, but Premier Dalton McGuinty said Tuesday he wouldn’t be directing the OEB on the rate request.

“The OPG request is the kind of thing that will have to be considered by the Ontario Energy Board,” said McGuinty.

The New Democrats predicted increasing electricity bills will cost the Liberals seats in the Oct. 6 election, and said the OPG rate hike would have a major impact on consumers.

“It’s a huge hike and in the context of electricity prices that have already been compounded and then added to by Mr. McGuinty’s HST, it just increases the crushing burden on Ontario families,” said NDP critic Peter Kormos.

“This is crushing Ontario families and is going to be a major issue in the upcoming provincial election, and it’s something around which Mr. McGuinty has no defence for himself and the Liberals whatsoever.”

In the legislature, the Progressive Conservatives accused McGuinty of treating Ontario families “like they’re bottomless ATM machines” when it comes to electricity bills.

“Why do they keep paying more and more for your bungling on the hydro file,” asked Opposition Leader Tim Hudak.

“You just do not respect the fact that Ontario families get stuck with the bills for the expensive mess you’ve created in our hydro policy.”

Hydro One, the giant transmission utility that also acts as a local distribution company for about one million customers, is threatening to cut off power to people it knows are struggling to pay their bills.

“We recognize that some Ontario families are experiencing financial difficulties and having problems paying their utility bills,” wrote Hydro One’s manager of public affairs, Enza Cancilla, Jan. 27.

“We encourage these customers in particular to contact our customer communication centre to discuss payment arrangements and avoid potential disconnection of service.”

OPG produces two-thirds of the province’s electricity, 70 per cent of which is subject to regulated prices set by the energy board.

OPG says a 6.2 per cent increase for its regulated output from nuclear plants and large hydro stations would add about $1.86 to a typical homeowner’s monthly hydro bill.

The government-owned utility originally asked for a 9.6 per cent rate increase, but scaled that back after the Liberal government asked the huge generator and Hydro One to keep increases to a minimum.

OPG is seeking 3.7 cents a kilowatt hour for power generated by its large hydro-electric stations, and 5.3 cents a kwh for its nuclear output. By comparison, Bruce Power was paid a reported 6.3 cents a kwh last year for output from the nuclear reactors it leases from OPG.

The province is paying some solar power generators up to 80 cents a kwh under its controversial Green Energy Act.

Ontario homeowners and small businesses pay between five and 10 cents per kilowatt hour, depending on time and amount of use.

OPG President and CEO Tom Mitchell says the government-owned utility is the lowest-cost energy provider in Ontario and intends to stay that way.

Soaring hydro bills have already prompted the Liberals to introduce 10 per cent rebates this year, but they’re still on the defensive after admitting electricity prices would rise 46 per cent over five years.

The increases are necessary to pay for badly needed repairs and upgrades to Ontario’s electricity system and to phase out all coal-fired generation by 2014, said McGuinty.

“I think most Ontarians now understand that our electricity system was at risk, in a tremendous state of disrepair in our early years, with warnings about an inadequacy of supply,” he said. “We’ll let Ontarians pass judgment on a daily basis and at election time.”

Shutting down the coal plants will save lives and billions of dollars in health care costs caused by pollution, added McGuinty.

The government had to tell 1,000 farmers who invested money to get into solar generation that there’s no room for the electricity they generate on the province’s power grid.

And it recently imposed a moratorium on off-shore wind farms, the same move the Liberals made prior to the 2007 election, which they reversed after winning.

The opposition parties say those reversals and flip flops have left McGuinty and the Liberals with no credibility on the electricity file.


  1. People need to know that we sell our Hydro to our Neighbours down south yet the OPG claims we do not have enough to supply our own Demands and Proclaim the needed Increases for Much needed repairs..The revenue generated by surplus being sold off should be put back directly into the Infrastructure..Problems solved in my opinion..The OPG wants us to conserve more so they can sell more surplus Hydro...Make more money for the fat cats fat pockets..

  2. I think I figured out why my Hydro bill is double what it was this time last year. Because I am being billed monthly now instead of bi-monthly the delivery charges and all the other add-on charges occur every month instead of every two months. Dodgy billing tactics!
    In regards to the 10% rebate I think they bungled this too. When I look closely at my bill the 10% credit is only for my on-peak usage (one line on my bill) and not all the charges as claimed in the slip of paper that came in my bill. A computer software bug (or a blatant rip-off)?

  3. It has gotten to the point now where I have to subsidize my 74 year-old mom so that she can pay her hydro bill. This is getting out of hand. Get the F'ing liberals out of office!

  4. i am involved in the energy business. i offer a fixed price of 5.49c/kw + global adjustment for a 5 years term. This is the best price on the market.

    give me a call if you want to know how you could be making 10% residual income everytime your customers are paying those bills.


  5. My home Hydro bill has gone up 100%, it is now like I have to make an extra mortgage payment each month.

    Daltom McGuinty has often lied to us; he has often chosen his own path without considering what those that elected him. Let's send the Ontario liberals and this arogant pr&** a strong message this fall and elect a Majority Conservative government to clear this mess up.

  6. as far as the ontario hydro is concerned , ive cut down my hydro use ,, no fridge ,, no hot water heater , im cooking some times by microwave. other than that its the camp stove or the bar b que, heating in the winter months ???? i use kerosene heaters thru the day , and oil filled heaters for when im in bed , as for lights , im using kerosene lamps
    as for tv?? a solar panel hooked up to a deep cycle battery with an inverter,, i refuse to pay the criminal rates that the ontario hydro are gouging us ,, people !!!! its time to take a stand ,,,

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