Time-of-use rates for those who buy their electricity from Rideau St. Lawrence Distribution Inc. will not be going into effect this month, as was previously expected.
In fact, it appears quite possible that the change won’t take place until March 2012.
Originally, the local hydro utility expected to have their 2012 Electricity Distribution Rate Application filed by December 2011.
However; according to Chief Financial Officer Allan Beckstead, Rideau St. Lawrence contacted the Ontario Energy Board on Monday to confirm that they “are not moving ahead” with the application. “It just does not make sense,” he said.
In explaining the reasoning behind the decision, Beckstead said, “it’s a deep subject. It’s tied in with the province’s Meter Data Management and Repository (MDM/R) and the standards.”
Rideau St. Lawrence has decided to wait until the MDM/R is finished testing and everything can be done properly and in compliance with all rules and regulations.
When asked about the reasoning behind the Time-of-use rates, Beckstead explained that the province’s intention is “to provide a more stabilized load for generation. It costs a lot to have it on stand-by.”
In terms of cost to customers, Beckstead couldn’t say anything for certain. He did, however; offer the following: “From the majority of articles that I’ve read, if you don’t change anything you might see a $2 increase per bill.”
According to Beckstead, Time-of-use rates are expected to “probably” be implemented sometime in March.
However, he also added: “We don’t really see it as an advantage to our customers so we’re not in a hurry to get there.”
Rideau St. Lawrence Distribution Inc. services South Dundas, Prescott, Cardinal, and Westport.