Electricity transmission rates for 2012 announced

NEWS RELEASE

ONTARIO ENERGY BOARD

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OEB announces 2012 uniform electricity transmission rates for Ontario

TORONTO (December 20, 2011) - Today, the Ontario Energy Board (the board) has announced the uniform Ontario electricity transmission rates for the 2012 rate year.

The new rates are effective January 1, 2012.

The 2012 uniform electricity transmission rates are based on board rate decisions concerning the four regulated electricity transmitters in Ontario:

EB-2010-0291 - Great Lakes Power Transmission Inc., February 2, 2011

EB-2009-0387 - Five Nations Energy Inc., November 1, 2010

EB-2011-0268 - Hydro One Networks Inc. Transmission, November 23, 2011

EB-2001-0034 - Canadian Niagara Power Inc., December 11, 2001

Transmission costs represent about 7 percent of the total bill for a typical electricity consumer in Ontario and these costs are part of the delivery line on the electricity bill.

The transmission rates announced today are primarily the result of an increase in Hydro One's transmission revenue requirement including additional operations and capital investment costs.

The new rates will result in an estimated average increase on total customer bills of about 0.6 percent.

A residential customer consuming 800 kWh per month will see their total monthly bill increase by about $0.73 in 2012 as a result of the transmission rate increase.

Hydro One accounts for 97 percent of the total electricity transmission revenue requirement for Ontario.

The delivery component of the customer bill is one of the four regular items that appear on all Residential and General Service electricity bills.

This change to the delivery component of the bill is separate from other potential changes to electricity bills such as changes to the "electricity" component charges and changes to distribution charges.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest.

It envisions a viable and efficient energy sector with informed consumers and works toward this vision through regulation that is effective, fair and transparent.

For more information on the board, please visit our website or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.

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