Another reduction in electricity rates

NEWS RELEASE

ONTARIO ENERGY BOARD

************************* OEB issues rate order in Ontario uniform transmission rates proceeding

TORONTO, October 17 - Today the Ontario Energy Board (the "board") issued a rate order approving the rate schedule for the recovery of the revenue requirements of electricity transmitters in the Ontario Transmission Rates Pool (Hydro One Networks Inc., Great Lakes Power Ltd., Canadian Niagara Power Inc. and Five Nations Energy Inc.).

The transmission rate schedule was amended as a result of the EB-2006-0501 Hydro One decision on August 16, 2007.

In that decision, the Board reduced the Hydro One transmission revenue requirement from current levels and also approved the refund of amounts in certain deferral accounts, which will result in a further reduction in 2007 and 2008 transmission revenue requirements.

Transmission rates recover the costs of transmitting electricity from generators to large end-use customers or to electricity distributors.

The uniform transmission rates approved today are in effect from November 1, 2007 until December 31, 2008.

The board decision has reduced uniform transmission rates by an average of approximately 12 percent over the period compared to previous rates, which should result in approximately 1 percent decrease in an average customer's total electricity bill.

Transmission costs account for approximately 8 percent of the average total electricity bill.

The effect of changes to transmission costs is normally reflected on the "delivery" line of residential consumer bills.

The change in overall transmission revenue requirements has also resulted in a change to the revenue allocation factors among the four transmitters.

The rates approved in this Decision will affect over 55 utilities and 65 end-users of the Ontario transmission network encompassing over 500 customer delivery points.

Today's decision is available on the OEB website.

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 towards this vision through regulatory processes that are effective, fair and transparent.

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

************************* Earlier SooToday.com coverage

Electricity prices going down