VAUGHAN, Ontario, April 25, 2013 (GLOBE NEWSWIRE) -- Province-wide adjustments to time-of-use electricity prices, announced by the Ontario Energy Board (OEB) earlier this month, will be coming into effect on May 1, 2013.
The new prices for residential and small business customers are as follows:
• Off-peak (7 p.m. to 7 a.m. weekdays, weekends & statutory holidays) = 6.7¢/kWh
(Up from 6.3¢/kWh, an increase of 0.4¢/kWh)
• Mid-peak (7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. weekdays) = 10.4¢/kWh
(Up from 9.9¢/kWh, an increase of 0.5¢/kWh)
• On-peak (11 a.m. to 5 p.m. weekdays) = 12.4¢/kWh
(Up from 11.8¢/kWh, an increase of 0.6¢/kWh)
The impact of these price increases to PowerStream customers will be somewhat less given reductions the utility achieved in its distribution rates, which came into effect earlier this year for the company's residential and small business customers.
Although PowerStream purchases the electricity they deliver to its customers from the province's generation companies, the utility does not earn any margin on the sale of the commodity. Instead, PowerStream and other electricity distribution companies in Ontario recover their costs through distribution charges, which are part of the Delivery portion that appear on customer electricity bills. Distribution charges account for approximately 20% of a residential customer's total bill.
Also effective May 1, 2013, the OEB has mandated the introduction of a new charge of $0.79 per month for all residential and small business customers to recover the costs of developing, implementing and operating the province's smart meter data management systems. This charge will be collected by all electric utilities in the province and will be embedded in the Delivery portion of customer bills. The combined impact of the province's new rates and charges will cost a typical PowerStream residential customer just over $4.00 on their total monthly bill. A typical small business customer will see an increase of just under $9.00 per month.
The Ontario Clean Energy Benefit (OCEB), which provides a 10% reduction on the total electricity bill, will continue.
*NOTE: Customers who purchase electricity from an energy retailer will continue to pay electricity prices and charges in accordance with their contracts.
• "No one likes to see increases in their bills but the OEB works on behalf of the consumer and must adjust electricity prices to accommodate the rising costs of electricity generation," explained John Glicksman, PowerStream's Executive Vice President and Chief Financial Officer.
• "We are happy that the distribution rate reductions that PowerStream achieved earlier this year will help mitigate these time-of-use price changes for most of our customers. It's another way that PowerStream is doing our part to help our customers," explained Frank Scarpitti, PowerStream Board Chair and Mayor of the City of Markham.
• A typical residential and small business customer consumes 800 kWh and 2,000 kWh monthly, respectively.
• The OCEB credit applies to the first 3,000 kWh consumed monthly.
PowerStream is a community-owned energy services company providing power and related solutions to more than 355,000 customers residing or owning a business in communities located immediately north of Toronto and in Central Ontario. It is jointly owned by the Cities of Barrie, Markham and Vaughan.
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