Ontario Energy Board has released its Decision & Order

Electricity E-news ~ November 12, 2021

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Greetings!

I am writing to bring you up-to-date. Late in the day on November 10, 2021, the Ontario Energy Board (OEB) released their Decision and Order on Hydro One’s Seasonal Rates Elimination implementation.

OEB’s 2015 decision stands: to eliminate the Hydro One Networks Inc. seasonal distribution rate class (approximately 148,000 customers) and move those customers into one of three Hydro One residential rate classes, according to their density.

Despite acknowledging that, “a significant number of seasonal customers moving to the R2 class were expected to experience bill increases greater than 10%” the OEB considers its decision “reasonable”, having determined that the distribution rates currently charged to seasonal customers do not appropriately reflect the cost to serve them.

This current (November 2021) OEB Decision and Order relates to implementation and mitigation of rate impacts for customers who would see bill impacts of 10% or greater per year.

The phase-in of bill impacts will take place over a period of 10 years, beginning January 1, 2023, in order to limit the total bill increase to 10% per year for affected seasonal customers, including those with low average monthly consumption. (However some seasonal customers at the extreme end of the low consumption range - e.g., monthly consumption of zero kWh - would see a bill increase slightly higher than 10%, but not exceeding 13%, during the 10-year implementation period.)

There will be no retroactive adjustments to any previous hydro bills.

The OEB’s report stated that it received around 850 letters of comment on this proceeding. FOCA notes this is an extraordinary number for this type of proceeding, and we thank every one of you who responded to our calls to action on this file!

In addition to the letters sent directly to the OEB, you helped FOCA's Power Line campaign if you were one of the 1,959 Ontarians who wrote or called their MPP to comment on the elimination of the seasonal rate class, explaining how it impacts your family.

Thank you.

We believe this was a contributing factor in the OEB’s decision to phase-in the bill impacts by no more than 10% per year.

Sincerely,

Terry Rees

FOCA Executive Director

info@foca.on.ca 705-749-3622 https://foca.on.ca/electricity-pricing/

Additional Outcomes of the Nov.10/21 OEB Decision & Order:

The OEB declined the following intervenor suggestions:

a current review of the density factors (including concerns about services weighting and meter reading weighting;

changes to eligibility criteria or application practices for the Rural and Remove Electricity Rate Protection (RRRP) or Distribution Rate Protection (DRP) programs that currently exclude seasonal customers from receiving these subsidies.

The OEB’s finding on the second issue was stated as follows: “The OEB agrees with Hydro One that the issue of eligibility for the RRRP and/or DRP subsidies is provided by provincial regulation and is beyond the scope of this proceeding.”

Further, the OEB has directed Hydro One to maintain existing billing and meter reading frequencies for seasonal customers, “until such time that alternative options can be more thoroughly examined with meaningful customer input, including cost and implementation issues of each alternative.”

Hydro One stated it will update the actual year-round residential classes that seasonal customers are moving to, based on the latest density review expected to be updated at some point in 2022 as part of Hydro One’s annual review process.

Hydro One stated that it has a well-established process to address individual customer requests for density reviews of their properties as well as an escalation path to deal with any customer complaints.

If you have questions, concerns or believe your service is misclassified:

contact the Hydro One Customer Contact Centre

1-888-664-9376

Read the full Nov.10, 2021 OEB Decision and Order (download PDF, 26 pages)

FOCA's ongoing role:

On behalf of our members in all the Hydro One rate classes, FOCA will continue to participate in future OEB hearings as an intervenor, as we have for over 20 years, fighting for a just and reasonable allocation of costs. We remain your eyes, and your voice, on this and other important issues affecting waterfront property owners across Ontario.

Your roles:

FOCA reminds everyone that if you believe you qualify for year-round residential status you should submit a completed declaration form and supporting material to Hydro One. A year-round residential customer requires eight months of continuous occupation of a dwelling over the year, and would be eligible for rate rebates through the RRRP and/or DRP (see definitions above).

Finally, if you are in a financial position to do so, please support FOCA as a Waterfront Champion, Friend of FOCA or Individual Supporter. While Lake Associations are FOCA's primary members, we appreciate the extra support of individuals and families:

https://foca.on.ca/foca-supporters/

FOCA is the Federation of Ontario Cottagers' Associations,

the voice of the waterfront for nearly 60 years.

info@foca.on.ca | 705-749-3622 | https://foca.on.ca

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