Despite bills being on the rise for Hydro One customers, residential Entegrus customers will notice a drop.
Entegrus Powerlines (Entegrus) announced that it has received approval by the Ontario Energy Board (OEB) to decrease the distribution portion of Residential customer bills effective May 1, 2016.
The typical decreases range from $1.60 decline per month in Chatham-Kent to a $6.47 decline per month in Newbury, for a household that consumes 750 kWh per month.
The distribution rate reduction follows a March 2016 ruling made by the OEB on a rate application submitted by Entegrus.
Distribution rates relate to the costs associated with bringing the electricity from transformer stations and feeder lines to the Entegrus service territory, and then to homes and businesses.
This includes the cost of building and maintaining distribution lines and poles.
Distribution charges are reflected in the “Delivery” line of electricity bills, along with other charges from transmitters.
“In the rate application, there was a unique opportunity to reduce distribution rates for many of our customers,” stated Jim Hogan, President and CEO of Entegrus.
“Previously, Entegrus operated 4 rate zones as a result of utility acquisitions. We were able to achieve efficiencies by amalgamating these acquisitions while leveraging other recent industry changes. Further, we were able to harmonize Entegrus distribution rates across our service territory. This means that all customers in the same rate class are now paying the same amount for the same level of service.”
This reduction in distribution charges assists in offsetting the impact of the recently announced May 1 provincial Time-of-Use electricity prices.
Provincial electricity prices are increasing for residential customers by approximately $3.13 per month on the ‘Electricity’ line of electricity bills.
Entegrus distribution charges account for approximately 17% of a typical Residential electricity bill in the Entegrus service territory. The remaining charges on the bill are collected by Entegrus on behalf of other market participants such as generators, transmitters and provincial agencies.
Visit the Entegrus website for two short videos which provide more details on electricity bills and rate harmonization, at http://entegrus.com/ratedecrease
Check out these videos provided by Entegrus:
The Bill
Rate Harmonization
