Hydro One Seeks Permission to Raise Distribution Rates 24.3% Over Two Years Cites Green Energy Act as Reason
Today it became public that Hydro One has asked the Ontario Energy Board for permission to raise the cost of distribution to all Ontario customers an average of 9.5% in 2010 and 13.3% in 2011 to cover $266 million dollars in costs relating to their four year Green Energy Plan for 2010 to 2014. By 2011 the impact of this $266 million will be an average increase of 24.3% over two years on the delivery portion of every Ontarian’s hydro bill. Because each public utility is a customer of Hydro One, it doesn’t matter who sells you your electricity – this impacts you.
In February 2009, George Smitherman told Ontarians that the cost to implement the five billion dollars of investment Ontario is expected to make in renewable energy as part of the Green Energy Act would result in an annual increase of approximately 1% per year on the average hydro bill.
Considering the cost of just 5% of Smitherman’s proposed five billion in investments will have an impact of 24.3% on your bill, you do the math and figure out how that other 95% of investment will impact your bill.
On it’s own the impact of these distribution increases over 2010 and 2011 will be crippling for Industry and citizens in Ontario and will have a devastating impact on many families. It will hurt any economic recovery that is underway in 2010 or 2011, and the worst part, it will be subject to the new harmonized sales tax, which will add an extra 8% to everyone’s bill as well.
Below is a press release I issued on this today, in hopes the media will pick up on this massive increase to the cost of electricity before it happens. Every Ontarian has the right to address the Ontario Energy Board on this issue and should if you believe this 24.3% increase in the cost of the delivery portion of your bill would hurt you financially. I will be posting the details on responding to this application by Hydro One – a 100% Ontario Government owned crown corporation to the Ontario Energy Board (an agency of the Ontario government) as a result of the Green Energy Act (a bill written by Ontario Liberal Party lobbyists and donors from the wind industry and passed by the McGuinty Government).
9.5% and 13.3% Increase to Delivery Portion of Hydro Bill in 2010/2011 – Result of Green Energy Act
Media Release
Hydro One is seeking permission from the Ontario Energy Board to raise the delivery portion of hydro bills in Ontario by 9.5% in 2010 and 13.3% in 2011, in an attempt to raise over 250 million dollars to cover increased distribution costs. Much of that cost is tied to its Green Energy Plan for 2010-2014.
This is in stark contrast to Minister Smitherman’s statement on February 23rd 2009, “We anticipate that associated with the investments that I’m speaking about today, [the increase will be] approximately one per cent per year.” – George Smitherman, Minister of Energy and Infrastructure discussing the financial impacts of the GREEN ENERGY ACT.
“This massive increase just deals with the increased cost of delivering wind factory produced energy. We aren’t even dealing with the increased cost of promising wind developers’ a price for their power which is three to five times higher than the current retail cost.” commented John Laforet, President of Wind Concerns Ontario, a coalition of thirty- four grassroots citizen groups spread out over twenty-one counties and the Cities of Toronto and Ottawa.
“Especially during the tough times Ontario industry and citizens are facing through this painful recession, it is the wrong time for these kind of increases, brought on by an irresponsible and ill-advised plan of our energy future by this government” said John Laforet in response to the impacts this will have on Ontario’s people and economy.
“The government needs to realize that this plan is unsustainable and unaffordable for Ontarians. Steep increases like these to our hydro bills, which will be subject to an additional 8% tax when the PST is harmonized are really going to hurt a lot of folks who are just barely hanging on.”
Wind Concerns Ontario is calling on Minister Smitherman and the Ontario Energy Board to keep his promise to Ontarians that electricity bills would not see increases of more than 1 percent per year and develop an energy plan that reflects that reality.
For More Information Contact:
Beth Harrington, Media Relations, Wind Concerns Ontario
John Laforet, President Wind Concerns Ontario
Tags: Dalton McGuinty, Distribution Rate Increases, George Smitherman, Green Energy Act, Hydro One, Ministry of Energy, Ontario Energy Board, Ontario Liberal Party, Wind Concerns Ontario
August 17th, 2009 at 7:35 pm
In a nutshell McGuinty and Smitherman have just condemned Ontario and more importantly Toronto to a Death Sentence for any future manufacturing investment let alone Recovery. That is not to say there isn’t a massive painful experience for every single citizen of Ontario who has to pay their own Hydro Bills but take away manufacturing because Electricity costs are too high for manufacturers to locate here and then jobs are gone and people don’t work and make money and lose their homes and then move away……….and on and on……….these “Madmen” must have the power to influence our lives taken away from them….now!
“Throw the Bums Out!”…Lee Iacocca
August 17th, 2009 at 10:15 pm
I noticed that Dalton McGuinty said in his interview with CityTV after the protest last Tuesday that we have to accept change. Perhaps he is ready for change at the next election.
August 17th, 2009 at 11:26 pm
How many more families will have to choose between electricity or shelter? Soon none of us will be able to help the unfortunate as we too will be seeking aid. This is not the Ontario to be feeling too proud about. Kick them when they are down and get more down to kick.
August 18th, 2009 at 1:14 am
I think what we’re seeing here is an arrogant, out of touch government so ignorant to what real people are going through they can’t even comprehend the negative impacts they have on real people.
Unemployment is flirting with 10% and rising, industry is drying up and those who’ve been able to keep their job certainly aren’t seeing an increase.
McGuinty can (and did) raise his salary 25%. Unfortunately for real people, our money doesn’t grow on trees like the Premier seems to think it does for him. We can’t simple create the money needed to pay for his failed policies.
We do have ballots though, and I expect this Premier’s failed energy policies, economic policies and hate on for democracy will guide the hands of Ontarians as they reach for and cast their ballots in the next election.
August 18th, 2009 at 12:24 pm
Yes–we have a ballot–but that is not worth the paper it is written on. Who do we vote for? We always know who to vote against but they are all the same in the end. All unaccountable to the people. All spin the necessity for us to pay more for less. Our democracy is dead but we are still supposed to vote? No politician of any party or level of government is ever held accountable because we have no method of doing so. We are supposed to pay and shut up. My neighbour is a single elderly man–he said to me yesterday that he didn’t know how he would be able to afford to live in his home with all the increased cost in everything.
Sadly he is not alone in his ‘future’. Not jsut the provincial government, but the municipal and federal governments all have their hands out for more. Our seniors pension went down because our CPP was increased by $4.00. All of us are facing this. But thank goodess our politicians can do what they want to do on our dime–right down to their TH coffee!!!
August 18th, 2009 at 12:56 pm
I want to say that I’m shocked and appalled by this but I’m not. Just more lies and unfulfilled promises from the premier and this out of touch government. Bring on the next election I can’t wait to “throw the bums out”.
Enviralment
August 18th, 2009 at 4:09 pm
Even before the Green Energy Act, we were set to have a 46% increase in the total bill based on OPA projections and a CIBC prediction that the generation line on your bill would be 8 cents/kwh if coal was phased out.
Our bills may very well double if they get their way. With some businesses it has already happened because of the smart meter time of use prices. Smart Meters are just a clever way to sneak through increases.
We should heed President Obama’s advice.
“We figured out how to put a man on the moon in 10 years. You can’t tell me we can’t figure out how to burn coal that we mine right here in the United States of America and make it work. We can do that.”
The Germans have been clever enough to figure out how. It’s just mealy-mouthed Ontario politicians that think otherwise–the politicians that would have you believe your bill will only rise 1%/year.
August 18th, 2009 at 5:59 pm
Is it weird that I looked all day and didn’t a single paper that covered this? The Globe, Star, Post and Sun all had nothing on this news?
August 18th, 2009 at 6:40 pm
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August 18th, 2009 at 8:11 pm
We haven’t even paid the debt of the former Ontario Hydro and now we are digging a new hole.
Sounds like a great plan. NOT.
August 19th, 2009 at 11:48 am
John can you put up a link so others can access this information or media release?
August 20th, 2009 at 9:05 am
It’s about time Hydro One was checked a little. They are a utility company and should be there to provide people of Ontario with reasonably priced power,not some arrogant giant that continiues to destroy Ontario. What other commodity costs more to deliver than it’s worth.
August 20th, 2009 at 12:48 pm
Don’t blame Hydro One for this-put the blame where it belongs- on Mr McGuinty’s lap-the liberals of the day also created the Hydro Debt. Mcguinty’s government is run by self promoteing parasitic so called green NGO’s who haven’t a clue about what’s needed to build and run a reliable , efficient clean power grid . If you think our bills are high now just wait a couple of years -based on what we know now the aversge bill in Ontario will be up at least $50.00. plus the Smart Meters raise -do the math.
August 21st, 2009 at 1:07 am
Why do we need to pay more for Hydro? Oh right the executives need to find a way to keep their lavish lifestyles. Remember using the company helicopter to take the CEO’s family to the cottage costs money and has to come from somewhere.
We need to say to Dalton enough. Ernie Eves once said that Dalton and the Liberals cannot keep their dirty little hands out of our pockets. He was bang on!
August 21st, 2009 at 2:32 pm
[...] August 17th I wrote an entry called ‘Hydro One Seeks Permission to Raise Distribution Rates 24.3% Over Two Years Cites Green [...]
August 27th, 2009 at 2:34 am
My daughter lives in Rockwood and her hydro bills are out of sight. It averages $500 per month and she doesn’t even have central air conditioning. This is crazy. When she calls to talk someone they just give her some bull about the bills being estimates and if she overpays it will be adjusted when they read the meter. They refuse to address the fact that this kind of usage is abnormal and offer no solution.
August 31st, 2009 at 3:15 am
I think this is a fair question from them.I can see nothing wrong in demanding more.
September 13th, 2009 at 12:35 pm
Lynn,
Your daughter absolutely has to buy something like the TED 5000. Electrical usage monitor. They are under $300 canadian delivered, and she will figure out where it is all going. I have also read that some of the new meters being installed are not working and are massively overcharging. If her meter is working the TED 5000 will help her save. If the meter is not working she can use the data to convince hydro to swap to a new meter, and test the old one ad get a refund. Ok well a refund is a little far fetched!
September 14th, 2009 at 10:59 pm
delivery charge for electricity is a huge racket. charges should be a small fixed amount, and not increase with the electricity delivered. as if a truck is delivering a load of electricity to my house daily. the lines and transformer do not suffer extra wear and tear. someone surely has dreamed up this ripoff
September 18th, 2009 at 12:10 am
What I cannot understand is that with the significant drops in energy prices over the past year, how does Ontario Hydro justify these ridiculous increases? The Ontario Government is just letting them pillage the populace instead of protecting them from the whims of a utility that is obviously abusing their monopolistic position in the energy market!