October 16, 2008
Greg Mercer
RECORD STAFF
WATERLOO REGION
Just in time for winter, your electricity rates are going up.
The Ontario Energy Board is raising basic electricity prices by more than 10 per cent -- to 5.6 cents per kilowatt-hour for the first 1,000 kWh a month and 6.5 cents per kWh beyond that, starting Nov. 1.
This means an average local household will pay about $6 more per month for electricity than it did last winter.
Waterloo Region's three hydro utilities say there's nothing they can do about the rate increase -- it will simply be passed on to their customers.
"There's no influence we have," said Jerry Van Ooteghem, the president and CEO of Kitchener-Wilmot Hydro.
Part of the increase is driven by the expected higher costs associated with conservation initiatives and "green" sources of power as the province replaces coal-fired generation, he said.
The provincial government has ordered carbon dioxide emissions from coal plants to be cut by a third by 2011.
Also driving the increase is the rising price of natural gas, which generates about 10 per cent of Ontario's electricity, and the expected rise in the cost of electricity from nuclear and large hydro plants.
Local hydro utilities don't stand to earn any extra money from the rate increase.
"We earn our revenues from delivering power," said Cambridge and North Dumfries Hydro's chief executive officer John Grotheer.
"The commodity has gone up in price, and we have to pay more for it."
Compared to summer electricity prices, which are higher than winter prices to encourage conservation, the new rate will mean an additional $2.40 per month on a house using 1,000 kWh monthly.
The average house in the Cambridge area uses about 750 kWh a month, Grotheer said.
The regulated electricity rate, reset at the start of each May and November, had been five cents per kilowatt-hour up to the lower summer threshold of 600 kWh, and 5.9 cents per kWh for consumption above that level.
"It's a modest increase, but for some people struggling to make ends meet in today's economy, it still has an impact," said John Janzen, spokesperson for Waterloo North Hydro.
The energy board said the price increase -- reflected on the "electricity'' line of consumer utility bills -- is caused by several factors.
A spokesperson for the board said the price of electricity is only part of the costs included in a customer's bill. Including administrative and other costs, the typical household will see its bill rise about two per cent.
More than half the province's electricity needs comes from Canada's most extensive network of nuclear plants. Currently, Ontario has three operating nuclear plants -- Pickering and Darlington east of Toronto and Bruce on Lake Erie -- and plans a major expansion.
The provincial regulated price plan for electricity is designed to have consumers pay the costs of supplying electricity while smoothing out price variations.
gmercer@therecord.com With files from The Canadian Press
Greg Mercer
RECORD STAFF
WATERLOO REGION
Just in time for winter, your electricity rates are going up.
The Ontario Energy Board is raising basic electricity prices by more than 10 per cent -- to 5.6 cents per kilowatt-hour for the first 1,000 kWh a month and 6.5 cents per kWh beyond that, starting Nov. 1.
This means an average local household will pay about $6 more per month for electricity than it did last winter.
Waterloo Region's three hydro utilities say there's nothing they can do about the rate increase -- it will simply be passed on to their customers.
"There's no influence we have," said Jerry Van Ooteghem, the president and CEO of Kitchener-Wilmot Hydro.
Part of the increase is driven by the expected higher costs associated with conservation initiatives and "green" sources of power as the province replaces coal-fired generation, he said.
The provincial government has ordered carbon dioxide emissions from coal plants to be cut by a third by 2011.
Also driving the increase is the rising price of natural gas, which generates about 10 per cent of Ontario's electricity, and the expected rise in the cost of electricity from nuclear and large hydro plants.
Local hydro utilities don't stand to earn any extra money from the rate increase.
"We earn our revenues from delivering power," said Cambridge and North Dumfries Hydro's chief executive officer John Grotheer.
"The commodity has gone up in price, and we have to pay more for it."
Compared to summer electricity prices, which are higher than winter prices to encourage conservation, the new rate will mean an additional $2.40 per month on a house using 1,000 kWh monthly.
The average house in the Cambridge area uses about 750 kWh a month, Grotheer said.
The regulated electricity rate, reset at the start of each May and November, had been five cents per kilowatt-hour up to the lower summer threshold of 600 kWh, and 5.9 cents per kWh for consumption above that level.
"It's a modest increase, but for some people struggling to make ends meet in today's economy, it still has an impact," said John Janzen, spokesperson for Waterloo North Hydro.
The energy board said the price increase -- reflected on the "electricity'' line of consumer utility bills -- is caused by several factors.
A spokesperson for the board said the price of electricity is only part of the costs included in a customer's bill. Including administrative and other costs, the typical household will see its bill rise about two per cent.
More than half the province's electricity needs comes from Canada's most extensive network of nuclear plants. Currently, Ontario has three operating nuclear plants -- Pickering and Darlington east of Toronto and Bruce on Lake Erie -- and plans a major expansion.
The provincial regulated price plan for electricity is designed to have consumers pay the costs of supplying electricity while smoothing out price variations.
gmercer@therecord.com With files from The Canadian Press
2 comments:
So what can we do about it>
Unfortunately nothing Jo. The bad news is even after 10% we are still looking at more increases to bring us in line with the true costs of power.
That is why I believe renewables are the ONLY long term solution.
Cheers
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