PUC disclosure shocks the Sault

Our days of paying some of the cheapest electricity bills in Ontario may have dramatically ended.

Brian Curran, president and chief executive officer of PUC Services Inc., says the Sault might soon be paying the highest power bills in the province.

In a letter to the City dated Sept. 30, Curran says the low prices enjoyed by Saultites were originally expected to continue until at least December of next year because of an agreement between the PUC and Great Lakes Power.

However, the electricity that PUC distribution gets from Great Lakes Power comes through transmission lines owned by the Independent Electricity Market Operator (IMO), the new not-for-profit organization responsible for the day-to-day operation of Ontario's electrical system.

That means that IMO charges are now being added to the cost of PUC-distributed power.

IMO bills us an extra $3.6 million

"The new charges add approximately $3.6 million in additional charges to our customers," Curran says.

"If they cannot be eliminated, customers in Sault Ste. Marie will go from having almost the lowest electricity rates in the province to having the highest.

"Our current contract with Great Lakes Power is also in jeopardy if we cannot resolve this matter," Curran says.

In his letter, Curran says that PUC Distribution has vigorously protested the new charges to both the IMO and the Ontario Energy Board, but has been advised that IMO charges apply to every consumer.

The PUC and Great Lakes Power continue to discuss the issue, he says.

Full text of Brian Curran's letter

To read the full text of Brian Curran's letter to the City, please click here.