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News Releases
February 14, 2005
Brantford Power applies for rate adjustment
BRANTFORD - Brantford Power Inc. has applied to the Ontario Energy Board for a rate adjustment to the local electricity distribution charge scheduled to take effect on April 1, 2005.
If approved, the adjustment is expected to add $2.27 to the average monthly residential electricity bill.
The local distribution charge, which makes up approximately 18 per cent of the total electricity bill, 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 April 1 increase in the distribution charge is the third phase of regulated rate increases granted local distribution companies such as Brantford Power since Ontario's electricity industry was restructured in 2000. It is intended to allow LDCs to earn a market-based rate of return.
The Ontario government previously announced that an amount equal to one year's additional returns from the 2005 increase must be invested in conservation and demand management activities.
Brantford Power's 2004-2005 Distributor Conservation and Demand Management (CDM) plan was approved by the Ontario Energy Board in November 2004. It calls for BPI to invest $1.34 million, the anticipated amount of the 2005 rate adjustment, on a range of CDM activities.
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