High dollar helps drops electricity rates

The Ontario Energy Board (OEB) has announced that electricity prices are dropping approximately five per cent this winter, thanks partly to the soaring value of the Canadian dollar and provincial conservation efforts.

"The OEB sets the regulated electricity prices twice a year, based on the market price of electricity from the previous six months", said Mark Henderson, president and CEO of Barrie Hydro.

The price reduction only applies to residential, designated and small business customers who buy power directly from local distribution utilities such as Barrie Hydro. It doesn't apply to people who have signed long-term power contracts with electricity retailers.

During the past summer, a growing number of people have started to reduce electricity use by directly participating in conservation programs offered by Barrie Hydro in association with the Ontario Power Authority and by making a conscience personal effort to reduce their consumption through minor lifestyle changes.

The province also benefited by the fact that more generating plants were connected into the provincial electricity grid. Unfortunately, when electricity peaked on hot days, expensive US power still had to be purchased, but our strong Canadian dollar helped reduce the impact.

"When the province peaks, electricity is purchased through grid ties with the US. The electricity is purchased in US funds and because of parity between the US and Canadian dollar, there's a reduced cost," said Henderson.

This also applies to the fuel required for coal, oil and natural gas fired generating plants used during peak.

As of Nov. 1, monthly regulated electricity prices change to five cents per kilowatt hour for the first 1,000 kilowatt-hours, then 5.9 cents per kilowatt-hour after that.

During the past summer, the monthly price was 5.3 cents per kilowatt-hour for the first 600 kilowatt-hours, then 6.2 cents a kilowatthour after that. The first tier in pricing varies between summer and winter to reduce the impact on customers.