Tuesday 8 November 2011

An Update from Hydro One

An Update from Hydro One

In early 2011, FOCA wrote to the President/CEO of Hydro One Inc., outlining our concerns about the higher costs of the “seasonal” rate class which is applied to the property of many of our members. With changing demographics, many “cottagers” are making their cottages their permanent residence. So, seasonal customers are often next door to a permanent resident and paying delivery charges significantly higher than their neighbour.
Why are my seasonal rates higher than year-round residential rates?

In July, Hydro One provided a written response that we have posted to the FOCA website: www.foca.on.ca/rural- services. 
In accordance with government regulation, rural year- round residential customers receive cost relief as part of the monthly Rural and Remote Rate Protection subsidy. Without this subsidy, delivery rates for serving rural year-round residential customers would on average be higher.

In addition, Hydro One has provided the following Q&A on the subject:

Why does Hydro One have seasonal rates?
Delivery rates are developed using the Ontario Energy Board’s (OEB) approved cost allocation model, which allo- cates the costs to serve across the various rate classes (residential, seasonal, general service, etc.) served by Hydro One.”
“Unlike other utilities, we serve a large number of seasonal customers. A seasonal customer is someone who owns a residential property, in addition to their primary residence, typically in a rural or remote location. Our seasonal rate class allows us to recover the costs associated with deliv- ering electricity to these customers.” 

Read the full article in the FOCA News Letter starting on Page 24 Link to the PDF below

No comments:

Post a Comment