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Electricity Rates and Schedules Change May 1

Electricity Rates and Schedules Change May 1

The total amount on your electricity bill comes from four costs: Electricity Use, Delivery, Regulatory, and Debt Retirement Charge.

On May 1, Kingston Hydro is adjusting the part of the electricity rates it uses to maintain and upgrade local infrastructure. Additionally, both the schedule and rates for Time-of-use (TOU) electricity pricing are set to change.

The price for consumers is increasing by approximately $4.95 per month or about 4.0 per cent on the total electricity bill, for a household with a typical consumption pattern of 800 kWh per month. (Learn what’s a kilowatt Hour?)

Delivery Rates

Ontario’s Local Distributing Companies (LDCs), like Kingston Hydro, retain part of the delivery portion of electricity rates. We use this portion to operate, maintain and replace existing infrastructure.

The Ontario Energy Board (OEB) approved a distribution rate increase of approximately 2.0 per cent, effective May 1, 2014. In addition, there is a 13.4 per cent increase in amounts Kingston Hydro pays to others for electricity transmission, resulting in an overall 5.1 per cent increase to delivery costs.

Time-of-use Prices and Schedules

In addition to the schedule changes that happen each May and November, the Ontario Energy Board (OEB) is adjusting electricity prices to accommodate the rising costs of electricity generation. Learn more from the OEB news release.

This increase to TOU electricity rates is a pass-through cost. Kingston Hydro does not profit from this increase, but is required to charge it and then remit it to the Independent Electricity System Operator.

Standard supply service residential and small business customers are billed based on TOU pricing for the electricity commodity portion of their bill. This means that customers are charged less for the electricity commodity at times when the demand for it is less. For example, you’ll save money by doing your laundry on weekends or later in the evening.

TOU prices are rising 0.3 cents per kilowatt hour for off-peak and mid-peak periods, and 0.6 cents for on-peak periods. As of May 1, TOU schedules and pricing will change as follows:

Period

Schedule

Price Change

Off-peak (the most cost effective time to use electricity)

7 p.m. to 7 a.m. weekdays, and on weekends and statutory holidays

7.5 cents/kWh (up from 7.2 cents/kWh)

Mid-peak

7 a.m. to 11 am. and 5 p.m. to 7 p.m. weekdays

11.2 cents/kWh (up from 10.9 cents/kWh)

On-peak

11 a.m. to 5 p.m. weekdays

13.5 cents/kWh (up from 12.9 cents/kWh)

Learn About Rates; Save Energy and Money

We’ve created an article to help customers understand the services they receive for the rates they are paying. It also includes access to information and financial assistance that help you save energy & money.