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Media Releases
FOR IMMEDIATE RELEASE
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CAMBRIDGE, ON (January 19, 2005)
January 1st, 2005 "Provincial Benefit" New Adjustment for Customers on Spot Market Pricing
Cambridge and North Dumfries Hydro Inc., the local distribution company that delivers "commodity" (electricity) to residents and businesses in the City of Cambridge and the Township of North Dumfries are making changes to their systems to accommodate new provincial regulations that will impact those customers paying the spot market for their electricity effective January 1, 2005.
The provincial government passed Bill 100, effective January 1, 2005. This new legislation introduces a new adjustment called "Provincial Benefit" that will be reflected as a separate line item on the bill of those customers currently paying the spot market pricing for their electricity. The Provincial Benefit is defined as follows:
| Provincial Benefit |
The price of generation in Ontario is set by a competitive market. Certain generators receive payments through regulation or contracts that differ from the market price. Your portion of the net adjustment arising from these different payments is included on your bill. |
On an interim basis, the Provincial Benefit is to be calculated as the volume of electricity in kilowatt-hours (kWh's) (adjusted usage) multiplied by a rate established by the Independent Electricity System Operator, of $0.00010/kWh. Customers will see a pro-rated calculation on their first bill to apply the adjustment for electricity from January 1st to their current read date.
The Provincial Benefit is a "true-up mechanism" or "global adjustment" designed to ensure the spot market price billed for electricity is the true cost of the electricity. Once the regulations are final, the intent is to retire the Business Protection Plan Rebate (BPPR).
The local utility will provide further information once final details are released on these issues. In the meantime, customers are directed to contact the Customer Care Department or follow legislative changes on these matters and other electricity related topics by visiting the Ontario Energy Board website at www.oeb.gov.on.ca or The Independent Electricity System Operator's website at www.ieso.ca.
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