News Releases
May 9, 2007
Ontario Energy Board approves BPI rate reduction
BRANTFORD, ON – The Ontario Energy Board has approved Brantford Power Inc.’s application to reduce its local electricity distribution charge, effective May 1. The reduction will lower the average monthly residential electricity bill by 60 cents.
The local distribution charge, which makes up approximately 18 per cent of the total bill, appears on the “Delivery” line of consumer bills. The charge covers Brantford Power’s costs to build and maintain the local system and to deliver electricity to homes and businesses. It does not cover the actual cost of the commodity electricity.
Brantford Power, owned by the City of Brantford, does not set the price of “electricity” but collects this money from customers at cost and pays it directly to its suppliers.
The reduction, among other costs, was caused primarily by the removal of Conservation and Demand Management (CDM) costs from Brantford Power’s distribution rate structure. Starting in Spring 2007, conservation programs in Ontario have been initiated on a province-wide basis and funded through the Ontario Power Authority.
George Mychailenko, CEO of Brantford Power, said removal of CDM funds from the distribution rate structure does not lessen the local utility’s commitment to energy conservation. “We will continue to promote conservation initiatives as they are introduced provincially and we also continue to study additional measures that can be established locally,” Mychailenko said.
The approval of the distribution rate reduction follows the April 12, 2007, announcement by the OEB of the new electricity price plan that will lower the monthly cost of power for a typical household in Brantford by about $5.19, or 8.1 per cent. The price of electricity under the new plan will be 5.3 cents per kWh for the first 600 kilowatt-hours used each month, and 6.2 cents per kWh for electricity used over this amount.
When combined with a reduction in GST, the distribution rate changes and the new electricity price plan will decrease the total monthly cost for the typical residential consumer in Brantford by $7.35, or 5.7 per cent.
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