For Immediate Release
2002-03-18
For further information contact:
Jim Keech, Utilities Kingston - 546-1181 ext. 2217
ELECTRICITY PRICES INCREASE - CITY OWNED UTILITY COMPANY OUTLINES THE EFFECT ON CUSTOMERS
Utilities Kingston has received approval from the Ontario Energy Board to increase its distribution rates effective immediately. The utility company notes that 85% of the rate increase is a pass-through charge that Utilities Kingston must bill customers in accordance with the regulations under the Electricity Act. This regulation stipulates that Local Distribution Companies (as Utilities Kingston is) will be charged payments in lieu of taxes based on their net profit. These charges are then allocated against the former Ontario Hydro's stranded debt. The remaining 15% of the increase will be used to help fund the ongoing maintenance and capital upgrades to the City's electrical infrastructure.
For residential customers the monthly basic charge will be increased from $7.98 to $10.07 and the kilowatt-hour charge will change from $0.08115 to $0.0831. The average residential customer using 1000 kilowatts a month will see an increase of approximately $4.04. "The majority of this increase will assist the Province in reducing the Stranded Debt accumulated by the former Ontario Hydro, over which we have not control. Our portion will be utilized to fund ongoing upgrades and maintenance to our electric infrastructure," says Jim Keech, President and C.E.O., of Utilities Kingston.
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