The Ontario Energy Board once again is changing the price structure for electricity and Fort Frances Power Corp. customers soon will see changes to the “electricity” and “delivery” portions of their hydro bills.
But don’t worry—this is a good news story.
FFPC president and CEO Jim Kibiuk said Thursday that after May 1, the estimated total bill impact of the Regulated Price Plan (RPP) and distribution rate changes for a FFPC residential customer who uses an average of 1,000 kilowatts/month will be a 5.8 percent decrease.
“The combined effect is good for us, for sure,” he noted.
“But these rates are only in effect for people that are purchasing their electricity through the Fort Frances Power Corp. Anyone dealing with any of the other retailers is on a separate contract,” Kibiuk stressed.
The new price structure set by the OEB under the RPP will be 5.3 cents per kWh for the first 600 kWh/month and 6.2 cents per kWh for any consumption above that level.
This is a change from last May’s rate of 5.8 cents per kWh for the first 600 kWh/month, plus 6.7 cents per kWh for any consumption above that level.
The rate in November then was changed to 5.5 cents for the first 1,000 kWh/month, plus 6.4 cents per kWh for any consumption above that level.
Customers will notice the RPP changes to the “electricity” charge line on their bill.
This change will affect residential, low-volume, and designated customers who currently are paying the two-tiered regulated price plan for electricity through their local utility.
The OEB resets RPP prices every six months to reflect the actual amount paid to generate the electricity used while continuing to “smooth” electricity prices for protection from day-to-day volatility.
When setting the new RPP rates, the OEB takes into account a forecast of the prices paid to electricity generators plus the outstanding balance in the variance account, which has been tracking the difference between what has been paid and what it costs to generate the electricity used since April 1, 2005.
The OEB also is directing a change in distribution rates, which will be reflected on the “delivery” line on their bills.
The delivery line reflects the combined costs of electricity delivered from generators to utilities and the local distribution costs for the FFPC to it to homes and businesses.
The new local distribution rates for residential customers will be $11.60 plus $.0076 per kWh.
For general customers using less than 50 kW, it will be $27.59 plus $.0051 per kWh, and for general customers using more than 50 kW, it will be $228.16 plus $2.87 per kWh.
Kibiuk noted the FFPC will confute its efforts to provide the highest level of service at the lowest possible electrical power rates for customers in the Town of Fort Frances.