Hydro rates going up this summer, Ontario Energy Board says

Hydrorates are going up this summer, the Ontario Energy Board announced Thursday, a move that will add about $3 a month to the average household bill.

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Time-of-useelectricity rates have to go upbecause Ontarians used less power than expected during the milder winter, the OEBsaid.

The total monthly bill will rise 2.5 per centforhouseholdsthat consume750 kilowatt hours per month, the agency said.

• Time-of-use prices will got up a half cent to 18 cents perkilowatt hour for the peak period, which runs from 11 a.m. to 5 p.m. on weekdays.
• The off-peak rate, which is in effect between 7 p.m. and 7 a.m. and all day on weekends and holidays, is going up to 8.7 cents a kwh.

The changes gointo effect on May 1.

"Ontarians consumed less electricity than expected over the recent milder winter," said a statement from theOEB.

"As a result of lower usage, Regulated Price Plan (RPP) prices did not recover the full cost of serving RPP customers. One of the main reasons prices are increasing in May is to recover this shortfall."

Time-of-use prices vary based on when electricity is used during the day. They encourage consumers to use power when electricity market prices are lower.

The OEB reviews electricity prices twice each year based on updated cost forecasts,and prices are designed to recover the actual cost of electricity over the forecast period.