Great Lakes Power included in transmission rate changes

NEWS RELEASE

ONTARIO ENERGY BOARD

************************* OEB approves revised Ontario Uniform Transmission Rates

TORONTO, August 28 - Today the Ontario Energy Board (the board) issued a Decision and Rate Order on an application by Hydro One Networks Inc. (Hydro One) for just and reasonable rates and other charges for the transmission of electricity, commencing January 1, 2009.

Hydro One's application seeks adjustments to the Ontario Uniform Transmission Rate Schedules, which were previously adjusted by the board in its Ontario Uniform Transmission Rate Order of October 17, 2007.

This order approved a rate schedule to recover the revenue requirements of electricity transmitters in the Ontario Transmission Rates Pool, which include Hydro One, Great Lakes Power Limited, Canadian Niagara Power Inc. and Five Nations Energy Inc.

Hydro One's present application arose as a result of the board's decisions in previous transmission rate proceedings in which it directed Hydro One to implement: an Earnings Sharing Mechanism (ESM) to allow excess earnings of Hydro One's transmission business for the period from January 1, 2006, until new transmission rates were implemented, to be shared equally by ratepayers and Hydro One; and a 2007 Revenue Difference Deferral Account (RDDA) to capture the difference between revenue determined from the rates that resulted from the 2007 proceeding, and the revenue determined using the approved transmission rates that were current at the time, until new uniform transmission rates were implemented.

In order to reflect the appropriate repayment to transmission customers, the board's October 17, 2007, order incorporated a reduction in Hydro One's approved revenue requirement.

Hydro One's over-recovery from its customers arising from both the ESM and RDDA will be repaid by December 31, 2008.

The Uniform Transmission Rates adjustment approved today will allow Hydro One to recover the board-approved 2008 revenue requirement starting January 1, 2009.

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 served by responsive regulatory processes that are effective, fair and transparent.

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