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News Releases
March 31, 2005
Ontario Energy Board approves BPI rate adjustment
BRANTFORD - The Ontario Energy Board has approved Brantford Power's application to adjust its local electricity distribution charge that will add $2.05 to the average monthly residential electricity bill, effective April 1.
The adjustment 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 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.
George Mychailenko, CEO of Brantford Power, said $1.34 million collected from the increased distribution charge will be invested in conservation and demand management activities. BPI's Conservation and Demand Management (CDM) Plan was approved by the OEB on December 10, 2004. The largest component will consist of distribution system improvements in Brantford's older subdivisions, which experience significant energy losses.
"We are particularly pleased with our plans to assist low income households to implement conservation programs that will help them lower their energy costs. We are currently working out the details on implementing a plan in partnership with the Share the Warmth organization," Mychailenko said.
The approval of the distribution rate adjustment follows the March 11 announcement by the OEB of the new electricity price plan that will boost the annual cost of power for a typical household by about 4.4 per cent. The price of electricity under the new plan will be 5 cents per kWh for the first 750 kilowatt-hours used each month, up from 4.7 cents, and 5.8 cents per kWh for electricity used over this amount, up from 5.5 cents.
When combined, the distribution rate changes and the new electricity price plan will increase the total monthly cost for the typical residential consumer in Brantford using 750 kWh per month by 5.7 per cent, or $4.30.
The Ontario government has also previously announced that householders will receive rebates this spring ranging from $50 to $100 per customer because consumers paid slightly more than the actual cost of power during the past year.
Contact Information:
George Mychailenko
CEO, Brantford Power
(519) 751-3522
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