HomeMy WebLinkAboutHuron Expositor, 2002-06-19, Page 2$-THE HURON EXPOSITOR, Jun. 27, 2001
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ONTARIO ENERGY BOARD
FESTIVAL HYDRO INC.
ELECTRICITY RATE CHANGE
NOTICE OF APPLICATION AND NOTICE OF WRITTEN HEARING
Particulars of the Application
Festival Hydro Inc. (the "Utility" or "Festival Hydro"), formerly Stratford Public Utilities Commission, must unbundle
electricity rates into electricity distribution rates and rates for power and other charges in order to meet the requirements of
new legislation. The Utility has filed its submissions with the Ontario Energy Board (the "Board") with respect to rates for the
distribution of electricity.
The Utility will, at a future date, file its submissions for rates for the provision of regulated power supply (Standard Supply
Service or "SSS") and other non-competitive electricity distribution rates related to the transmission of electricity and
services provided by the Independent Electricity Market Operator to the Utility ("other non-competitive electricity distribution
rates").
In this phase of this proceeding, the Board will approve or fix just and reasonable rates for the distribution of electricity
under subsection 78(3) of the Ontario Energy Board Act, 1998. The Board will approve rates for SSS and other non-
competitive electricity distribution rates under subsection 78(3) of the Ontario Energy Board Act, 1998 in a subsequent
phase (or phases).
The Board has issued an Electricity Distribution Rate Handbook (the "Rate Handbook"), which stipulates that the
distribution rate component of the electricity bill must be sub -divided into a fixed monthly charge and a variable charge.
This rate restructuring, while having no overall impact on the Utility's revenues, may result in individual customer rate
changes. The Rate Handbook also allows a utility to apply for a change in its distribution rates in order to earn up to a
market based rate of return after tax.
The Rate Handbook was revised on November 3, 2000 incorporating the provisions of the RP -2000-0069 Decision with
Reasons, Concerning certain matters relating to the June 7, 2000 Directive by the Ministry of Energy, Science and
Technology. The RP -2000-0069 Decision indicated that the Utilities would be able to earn market based returns but would
have to phase-in any increase in rates over three years to lessen the rate impact on consumers.
Merger and Rate Harmonization Plan
On September 22, 2000, the City of Stratford and the Town of St. Marys filed an application (RP -2000-0119) with the
Board, pursuant to subsection 86 (2) of the Ontario Energy Board Act, 1998, seeking an order or orders of the Board
granting leave for the City of Stratford to purchase all the issued and outstanding shares of a corporation to be held by the
Town of St. Marys in a corporation to be established by the Town of St. Marys under a transfer by-law pursuant to section
142 of the Electricity Act. 1998, and that would own and operate the electric distribution assets presently managed by the
St. Marys Public Utilities Commission within the boundaries of the Town of St. Marys.
In addition, a number of applications were filed between October 20, 2000 and November 7, 2000 (inclusive) by the City
of Stratford and affected municipalities seeking an order or orders of the Board granting leave to acquire the voting
securities of certain of the incorporated electricity distribution companies operating in the surrounding area. These
companies are: Hensel) Public Utilities Commission (RP -2000-0140), Seaforth Public Utilities Commission (RP -2000-0141),
Brussels Public Utilities Commission (RP -2000-0143), Zurich Hydro Electric System (RP -2000-0144) and Dashwood Hydro
Electric System (RP -2000-0188).
The above applications were approved by the Board on May 28, 2001. Festival Hydro Inc. has proposed a rate
harmonization plan for, the seven former service territories.
Festival Hydro has applied for a rate of retum on common equity of 9.88%. The Utility's selection of this rate of return on
common equity results in an additional $1,981,028 from all seven former utilities to be recovered in rates over a three year
period. In the first year of the phase-in plan the Utility will recover $660,343 of this amount. The incremental revenue
requirement is exclusive of Payments in Lieu of Taxes.
The bill impacts due to the unbundling, incremental revenue and the proposed rate harmonization plan in the first year
are shown below, for Residential and General Service <50kW customers. The first column shows the impact of the
unbundling and incremental revenue on stand-alone utility rates compared to current rates, as if no merger had taken place.
The second column shows the harmonized rates compared to the stand-alone rates and the final column compares the
harmonized rates to the current rates.
Residential Customer using 1000 kWh per month
Service Territory Stand -Alone
Utility
Compared to
Current Rates
Stratford
Seaforth
Zurich
St. Marys
Hensall
Brussels
Dashwood
3.5%
-0.7%
0.9%
1.3%
-0.1%
1.2%
0.1°%°
general Service Customer using 2000 kWh per month
Service Territory
Stratford
Seaforth
Zurich
St. Marys
Hensall
Brussels
Dashwood
Stand -Alone
Utility
Compared to
Current Rates
4.5%
5.2%
0.5%
-0.2%
-1.3%
-0.5%
-0.2%
Impact of
Harmonized Rate
Proposal
0.0%
0.2%
1.2%
0.0%
0.6%
-0.2%
Impact of
Harmonized Rate
Proposal
-0.2%
-12.6%
5.2%
4.4%
7.8%
-1.1%
0.2%
Proposed
Harmonized Rates
Compared to
Current Rates
3.5%
-0.5%
2.1%
1.3%
0.5%
0.6%
0.0%
Proposed
Harmonized Rates
Compared to
Current Rates
4.3%
-8.0%
5.7%
4.2%
6.4%
-1.6%
0.0%
Due to rate restructuring, individual customer impacts may be higher or lower depending on a customer's electricity
consumption.
How to Participate
It you wish to participate in this proceeding you must, within 14 calendar days of the publication of this Notice, file a letter
with the Board stating whether you wish to intervene, observe, or comment on Phase One, or subsequent phases of this
proceeding.
For information in how to intervene in, observe or comment on the submissions, please contact the Board's Customers
Service Centre at 1-877-632-2727 or by e-mail at Boardsec@oeb.gov.on.ca. Please reference Board file number RP -2000-
0253. You may also visit the frequently asked questions (FAOS) section of the Board's Web site at www,oeb.gov.on,Ca
Raring
If no person intervenes and requests a hearing, the Board intends to determine the application without a hearing. If any
person requests a hearing, the Board intends to proceed by way of a written hearing unless the applicant or any intervenor
satisfies the Board that there is good reason not to proceed by way of a written hearing. A request for a hearing must be
made within 14 calendar days of the publication of this Notice.
How To See The Applicant's Pre -filed Evidence
Copies of the submissions of Festival Hydro Inc. are available for inspection al the Board's offices, and at the office of
the Utility in Stratford. If you intend to intervene in the proceeding, the Utility upon request is required to give you a copy of
its submissions with respect to that phase of the proceeding in which you intend to intervene.
IMPORTANT
IF YOU DO NOT FILE A LETTER OF INTERVENTION OR A LETTER OF COMMENT, OR IF YOU DO NOT FILE
WRITTEN SUBMISSIONS OR PROVIDE REASONS FOR NOT HOLDING A WRITTEN HEARING, THE BOARD MAY
PROCEED WITHOUT YOUR PARTICIPATION AND YOU WILL NOT BE ENTITLED TO ANY FURTHER NOTICE OF THE
PROCEEDING.
Addresses
Ontario Energy Board
P.O. Box 2319
2300 Yonge Street
26th Floor
Toronto, Ontario
M4P 1E4
Attn: Mr. Paul B. Pudge
Board Secretary
1-888-632-6273 (Toll Free)
416-440-7656 (Fax)
DATED at Toronto June 21, 2001
ONTARIO ENERGY BOARD
Festival Hydro Inc.
187 Erie Street
P.O. Box 397
Stratford, Ontario
N5A 6T5
Attn: P.G. Switzer
President
Telephone: 519-271-4700
Fax: 519-271-7204
Peter •'Dell
Assist t Board Secretary
Inside look...at volunteering
More youth needed,
says Volunteer Huron
From Page 1
might know the sports to
come out and help.
"It is tough," he said,
adding it gets even harder
when there are travel teams,
a situation minor soccer is
not facing this year.
When teams play in travel
leagues, Nesbitt said it's hard
to even get parents to
volunteer.
"Hockey's becoming even
worse. You have to have a
police check. There's so
much red tape," said Nesbitt.
Seaforth Minor Hockey
president Gerry McLaughlin
refused to comment on the
volunteer situation within the
local hockey program.
But Ritsema said red tape
can be a deterrence to
recruiting volunteers.
Becoming a volunteer now
is more like applying for a
job.
Ritsema works within the
Alzheimer's Society which
carefully screens its potential
volunteers who have to fill
out application forms as part
of the process.
"Volunteerism is becoming
more professional," she said,
adding organizations such as
the Alzheimer's Society, that
use volunteers, have to have
policies governing how
volunteers are used and what
they can do.
"We screen them, we train
then and we motivate them,"
she said of the process that is
similar to hiring an
employee.
While she said it can be a
deterrence to some people
interested in volunteering,
she also said it can be good
to have a more formal
process to help keep it all
professional.
"It's important to recruit
the right people for your
organization," said Ritsema.
She said people understand
this is "a changing world"
and background checks are
important for everyone's
safety now.
She also said the people
who do choose to volunteer
usually do it to give
something back to their
communities but she also
said, with the professional
Scott Hilgendorff photo
Anita Kreutzwiser has been a hospital volunteer for three
years. As young person in the community, she has found her
efforts to help patients at the hospital a rewarding experience.
attitudes that go along with it
now, volunteering is great for
building a resume.
She said this can be
particularly important for
young people, a resource
volunteer organizations
having
trouble
tapping into.
"I think
the challenge
is getting our
young
people
involved. A
large portion
of our
volunteers
are elderly or
retired," she
said.
are
potential career
opportunities.
She hopes the provincial
government's recent mandate
that all students must
contribute 40 hours of
volunteer service before they
can graduate
high school
will. help
encourage
some youth to
continue to
participate.
As the
current
volunteer
population
continues to
age and
demands for
volunteers
Quoted
'I think the
challenge is
getting our
young people
involved,' --
Cathy Ritsema,
Volunteer Huron
"It says a
lot on a resume and gives
them a flavour of what is out
there," she said of the
importance for young people
to get involved.
As it becomes more
professional, Ritsema said
volunteering can help young
people, or anyone, develop
new skills and check out
increases as
overnment services are cut.
Ritsema hopes a younger
generation will begin to see
the importance of
volunteering through the
high school requirement and
begin to till the void..
"The word out there is, we
need more volunteers." said
Ritsema.
Volunteer Betty Glanville
takes a break to be with family
and avoid getting burned out
By Scott Hilgendorff
Expositor Editor
Betty Glanville wouldn't call herself a
victim of volunteer burnout.
Shc scaled back her efforts before that
could happen.
"Sometimes you've got to do that to get
reorganized," shc said.
While running a 550 acre farm and doing
custom farm work with her husband Ken,
Betty is described as a
phenomenal volunteer by
Seaforth Agricultural Society
president Gord Glenn.
"If there's an extra hour in
the day, she finds time to use
it." said Glenn. "I just have the
highest appreciation for
everything she has done
there."
The agricultural society is
where Betty has done most of
her scaling hack.
She no longer serves as a
society director or as president
of the fall fair's homecraft
September's annual fall fair. She has already
been pounding the pavement in search of
prize donations for this year's winners.
Sundays, she works in the nursery at
Cavan United Church. volunteers in a John
Deere club running a souvenir booth at a
show in Drayton and earlier this month
helped sell tickets and prepare food for the
1,500 people who came to the Kinhurn
Forresters' annual barbecue.
"I enjoy it immensely. You meet so many
people." said Betty. "Being a
volunteer gives you an
outlook on the community."
Being a volunteer can also
he demanding.
Until last year. the fall fair
was traditionally held in
October. during harvest. one
of the busiest times of year
for a farmer.
"I've conte home from the
fair to run the grain huggy."
said Glanville. "We put in
long days."
Despite the demands. Betty
said, "I like to he involved.
Quoted
'If there's an .
extra hour in
the day, she
finds time to
use it,'--
Gord Glenn, Seaforth
Agricultural Society
president.
division and is not helping out
at this weekend's tractor elimination draw
and dance, one of the society's largest events
that attracts hundreds of people from across
the province.
"I 'stopped before I did get burned out,"
said Betty, who knew this summer was going
to he filled with family events from an 80th
birthday for Ken's mother to showers and
other family gatherings.
"I wanted to be a part of it," said Betty,
recognizing that if she stayed as heavily
involved with the agricultural society as she
normally is, she wouldn't be able to enjoy a
summer with her family.
And Betty enjoys being a volunteer so
much shc still maintains a long list of
volunteer duties despite concerns about
burning out.
"I still enjoy the agricultural society very
much," she said, with plans to continue
helping with thc homecraft exhibits at this
You get a lot out of the
community if you put something hack in.
Every person should do at (east one small
voluntccr job."
She said it's important to teach children to
voluntccr to help ensure there will be a new
generation of people who know the
significant impact their help can have on
their communities.
"You learn so much about your community
and thc people involved." she said.
"I don't think thc younger ones know how
many people it takes to get soccer and
hroomhall to happen," she said. drawing
from experience as a former minor baseball
voluntccr.
Shc said volunteers are needed everywhere
including thc agricultural society, which
hosts several large events in the community
including the fair, tractor draw and farm toy.
doll show and craft sale.