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FFPC asks to trim delivery charges

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Fort Frances Power Corp. customers might get a break on a line item on their hydro bills later this year.

That’s because the FFPC has applied to the Ontario Energy Board for permission to decrease its delivery charges beginning May 1.

FFPC president and CEO Joerg Ruppenstein said that each year, the FFPC takes a look at the current rates compared to those approved a year ago and then performs a “true up” to see whether they have over-collected or under-collected.

“There were a few billing components where we’ve accumulated a surplus, over-collected, and we’re asking for approval for those components to allow us to give it back to the ratepayer,” Ruppenstein noted, adding the surplus would be given back in the form of a lowered deliver charge.

If the application is fully approved, the monthly bill for a residential customer who consumes 800 kWh per month would decrease by about $3.06.

The monthly bill for a general service customer consuming 2,000 kWh per month, and having a monthly demand of less than 50 kW, would decrease by about $9.68.

 The proposed changes to the delivery charges are separate from other potential changes to hydro bills.

Along with commodity charges, regulatory charges, and the Ontario Clean Energy Benefit, delivery charges are one of the regular items on residential and general service customers’ bills and vary depending on the amount of electricity consumed.

The application also includes a request to recover the impact of lost revenues associated with various conservation initiatives.

“We have facilitated a lot of conservation and demand management programs over the past few years, like all of the lighting retrofits that we do, and that in essence has reduced our volume of electricity sold,” noted Ruppenstein.

“So this lost revenue adjustment mechanism is a mechanism to recover some of those consumption losses,” he said.

He added electricity consumption has dropped somewhat in recent years, partly due to energy conservation programs, and that the OEB has mechanisms in place for distributors like the FFPC to recover some of those losses.

In related news, the OEB will announce what the new commodity prices for electricity, which will come into effect May , sometime in April.

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