Kingston Hydro’s five-year cost forecast for 2023-2027
Utilities Kingston applied to the Ontario Energy Board with Kingston Hydro’s five-year electricity cost forecast. In 2019, electricity customers were invited to provide input to help inform this plan.
This five-year cost forecast is part of our commitment and responsibility to deliver safe and efficient electricity to our customers. It considers current and future system needs, as well as the needs of our customers.
The plan submitted to the OEB in 2022 included the following:
- Five-year Distribution System Plan, which includes a five-year capital spending forecast for 2023-2027
- Rate application for 2023
It also included all feedback that Utilities Kingston received from customers during this process.
You gave your say in shaping electricity plans
In 2019, customers were invited to provide feedback at a public meeting, in person, via an online survey and by joining the conversation on Twitter. We asked for your input on the following:
- Spending decision
- Reliability factors
- New technology
You told us that the following themes are important to you:
- Keeping rates as low as possible
- Climate action
- Coordinating electric work with customer needs
- Conservation programs
- The safety of our customers and employees
- Support for low-income customers
Kingston Hydro’s application for electricity distribution rates beginning January 1, 2023: EB-2022-0044
Video: Utilities Kingston customers: Have your say in shaping electricity plans (2019)
Strategic plans:
Websites:
We keep these themes front of mind, when managing, maintaining and operating the electricity system, and when planning system investments.
Impact of COVID-19
The pandemic has had a significant impact on the lives of our customers, including an economic effect. Many of our residential customers are now working and learning from home, with an increased use of utilities. Commercial and institutional customers have reduced operations or have temporarily closed their facilities, reducing the use of utilities.
Due to the uncertainties presented by the COVID-19 pandemic, and to assist its customers during this difficult time, Utilities Kingston deferred the submission of its application from 2020 to 2022.
Managing rate increases
You told us that keeping rates as low as possible was important. Here are the actions we are taking:
Pacing investments
The five-year forecast paces system investments to mitigate the impact of rate increases. More information is provided below.
Delivering the multi-utility model
Our shared services delivery model is unique in Ontario and gives Utilities Kingston clear advantages in cost savings and customer service over other utility providers in the province.
Cost savings come from efficiencies through the scope of services provided. One example of this is the savings from printing and mailing just one bill for all services received by the customer.
Reducing capital and operating costs through in-house work
Where feasible, Utilities Kingston manages costs by completing work in-house. A great example is the recent upgrade of the Municipal Substation No. 1, which is now supplying power to the downtown core. Through completing the work in-house and the efficient use of existing equipment , we reduced the cost of this project from $14.6 to $5.1 million.
By investing in multi-year upgrades to Kingston’s oldest substation, located inside a heritage building on lower Queen Street, we are strengthening the vitality, growth and development of Kingston’s downtown, university and hospital district for decades to come. Learn more.
The above photos were taken during the substation's energization by Kingston's Paul Wash.
Climate action
Many customers told us they are concerned about climate change.
Specifically, federal, provincial and municipal agencies have shared their net zero targets for the 2030-2050 timeframe and suggested that the most likely way of achieving these targets is through electrification of heating and transportation.
In order to better understand the potential impact of electrification on the local Kingston Hydro distribution system, the Hydro One provincial transmission system and the provincial electricity market managed by the Independent Electricity System Operator (IESO), we developed a preliminary electrification plan with the help of our larger customers and shared it with Hydro One and the IESO in 2021 as part of the regional planning process.
The regional plan for the Peterborough to Kingston region is updated every five years and is intended to identify near-term (five years), mid-term (5-10 years) and long-term (10-20 years) needs to ensure there is adequate transmission and generation capacity.
Major system investments
Our paced investment strategy will renew or replace critical infrastructure, ensure the continued reliability and resiliency of electricity services, prepare for the impacts of climate change, and support economic growth and intensification for Kingston.
The paced system investments are $3.2 million in 2023, $3.3 million in 2024 (forecast), $3.1 million on 2025 (forecast), $3.0 million in 2026 (forecast) and $3.1 million in 2027 (forecast).
Some major investment highlights by asset category for 2023 that will contribute to power reliability, resiliency and growth in our community include the following:
- $1 million for end-of-life underground distribution
- $550,000 for end-of-life poles and voltage conversion
- $450,000 for critical field truck replacements
- $375,000 for electricity meters to ensure continued reliability
- $300,000 for connecting new developments
Impact on electricity rates
As approved in the OEB Decision and Rate Order:
- It is estimated that for a typical residential customer with a monthly consumption of 750 kWh, the monthly distribution charge will increase by $1.45, or 5.32 per cent.
- On a total bill basis, a typical residential customer will see an increase of $5.20, or 4.46 per cent per month before taxes and the Ontario Electricity Rebate.
Steps in the rate setting process
- Kingston Hydro’s distribution rates must be approved by the Ontario Energy Board based on our application.
- The rate-setting process is open and transparent, and offers opportunities for public participation.
- Kingston Hydro must submit evidence to demonstrate the amount of funding it needs to safely and reliably distribute electricity to its customers.
- We submitted our application to the Ontario Energy Board in the second quarter of 2022.
- Rates become effective January 1, 2023. Read more: Electricity distribution rates are changing on Jan. 1, 2023
The Kingston Hydro electricity distribution area is operated by the employees of Utilities Kingston, who also operate municipal water, wastewater and gas utilities, and provides broadband networking services. Utilities Kingston’s roots in the community run deep; our employees have been providing utility services in Kingston since 1847.