PowerStream Inc.

PowerStream Inc.

October 12, 2007 17:33 ET

PowerStream Customers to see Electricity Price Decreases Along With Harmonized Distribution Rates on November 1

YORK REGION, ONTARIO--(Marketwire - Oct. 12, 2007) - PowerStream residential and low-volume customers currently on the Ontario Energy Board's (OEB) Regulated Price Plan (RPP) will see lower electricity prices and harmonized base distribution rates effective November 1.

In an announcement made today, the OEB lowered the RPP prices to 5.0 cents per kilowatt hour (kWh) up to the two-tiered pricing consumption threshold each month and 5.9 cents per kWh above that. As in previous year, the consumption threshold will change on November 1 from the summer setting of 600 kWh per month to a winter level of 1,000 kWh per month. Non-residential consumers eligible for the RPP prices will continue to use 750 kWh each month as their consumption threshold.

The new prices announced by the OEB, which are reflected on the "Electricity" line of consumers' bills, represent a 0.3 cents per kWh, or 4.8% decrease relative to the prices that went into effect in May 2007 for that portion of the bill. It also marked the third time since November 1, 2006 that the OEB has reduced the electricity commodity price for those consumers on the RPP.

The lower prices will become effective on the same day that PowerStream is scheduled to introduce harmonized base electricity distribution rates for customers across its service territory. Under the harmonized structure, which was approved in August by the OEB, all PowerStream customers will be assessed distribution charges at the same rate regardless of the municipality in which they reside or are located.

As a result of the lower electricity prices and rate harmonization, a typical residential consumer using 1,000 kilowatt hours (kWh) per month will see decreases to their total bill of 12.5% for Aurora, 1.5% for Markham, 5.2% for Richmond Hill and 0.7% for Vaughan. Typical small commercial customers will see decreases of 10.1% (Aurora), 0.5% (Markham), 5.8% (Richmond Hill) and 5.2% (Vaughan). Typical large commercial customers will see decreases of 4.5% (Aurora), 2.8% (Richmond Hill), 1.5% (Vaughan) and an increase of 3.1% (Markham).

"The decrease in RPP commodity prices coincides with the significant overall reduction in electricity distribution rates we have been able to achieve and pass along to most of our customers in recent years," Brian Bentz, PowerStream's President and CEO said.

Establishing a harmonized distribution rate structure was necessary for PowerStream following the merger of three local utilities in 2004 and the acquisition of a fourth in 2005, which saw customers in four municipalities paying different distribution rates that were primarily based on the operational structure of their respective predecessor utility.

The reduction in electricity prices announced by the OEB is primarily due to the need to reduce the surplus in the RPP variance account balance. As a result, a credit of 0.3 cents per kWh has been included in the RPP prices to clear the variance account surplus over the next 12 months.

About PowerStream Inc.

PowerStream Inc. is the third largest local electricity distribution company in Ontario, providing service to more than 234,000 residential and business customers in the municipalities of Aurora, Markham, Richmond Hill and Vaughan. It is an incorporated entity, jointly owned by the City of Vaughan and the Town of Markham.

Contact Information

  • PowerStream Inc.
    Media Contact: Eric Fagen
    Corporate Communications Manager
    (905) 417-6910
    Media Line (24/7): (905) 417-6937
    Email: eric.fagen@powerstream.ca