Rate Reductions for ORPC Customers - Ottawa River Power Corporation

August 28, 2024

In good news for residential and commercial customers, Ottawa River Power Corporation (ORPC) has introduced a reduction in electricity rates, with the reductions becoming effective in May 2024. These lower rates come from ORPC’s efforts to get helpful rule changes and fix billing issues with Hydro One.

For many years, ORPC has had a direct connection to the hydroelectric station in Waltham, Quebec. This setup lets ORPC purchase clean energy locally. The direct purchasing agreement with the facility owners has allowed ORPC customers to avoid 65% of Wholesale Market Charges and 50% of Hydro One Transmission Charges on the energy delivered from Waltham. From 2015 to 2020, this agreement saved ORPC customers about $1.23 million in energy related charges.

ORPC saw more ways to save by removing Global Adjustment (GA) charges on energy from Waltham. In 2020, customers paid about $2.28 million in GA for this energy. Seeing the big savings possible, ORPC started pushing for rule changes to achieve this for its customers.

Early efforts by ORPC faced some difficulty due to the rules that existed at the time, but in 2021, during a routine audit by the Ontario Energy Board (OEB), ORPC asked for a review of the GA charges on the Waltham connection. Though the OEB recognized the uniqueness of the supply from Waltham, certain rules blocked the exemption.

ORPC then focused on changing specific rules to get the needed relief. They worked with local Member of Provincial Parliament John Yakabuski, then Minister of Energy Todd Smith, and policy managers at the Ministry of Energy to gain attention and support on the goal of treating this supply of energy differently to allow for direct savings to customers. ORPC ran a full advocacy campaign to push for changes.

In late 2022, Ontario Regulation 429/04 was opened for review. At the time, this regulation contained language preventing the Waltham supply from an exemption. This gave ORPC a chance to speak up for its customers and ask for the supply from Waltham to be treated differently. ORPC sent in formal recommendations about the GA, stressing unique details of the Waltham supply. They pointed out that the energy came from an out-of-province generator and used private lines. These suggestions were reviewed, and it seems they played a part in the outcome. In June 2023, changes to Ontario Regulation 429/04 were approved. As of July 2023, the GA was removed from Waltham’s energy supply.

After the rule change, ORPC began designing a rate structure to pass the GA savings directly to its customers. A rate application was submitted to the Ontario Energy Board in October 2023 and was later approved, allowing for an effective date of May 2024. This adjustment created a new method of settlement for power supplied by Waltham, leading to extra savings for customers.

In addition to the GA savings, ORPC found a billing issue with Hydro One, leading to a $3 million adjustment for ORPC’s customers, helping to further lower bills.

Due to these changes, beginning May 2024, the yearly savings for an average customer will be about $48 for residential, $143 for small businesses, and $5,712 for large businesses.

“These rate cuts show our commitment to our customers,” said Justin Allen, President of ORPC. “We are dedicated to providing affordable and reliable energy. The GA exemption on Waltham supply is a big benefit, reflecting our ongoing efforts to innovate and advocate for our customers.”

ORPC appreciates the assistance and collaboration from local MPP John Yakabuski, former Minister of Energy Todd Smith, and the staff at the Ministry of Energy. These rule changes and savings would not have been possible without their assistance.