Hydro One’s Proposed Changes for Electrical Rates

By now all cottagers on Six Mile should have received a letter from Hydro One about plans to eliminate the Seasonal Rate Class electricity charges for properties on Six Mile Lake, and the implications for a projected electrical rate increase to your hydro bill. The SMLCA has been tracking this issue and researching different and sometimes contradictory viewpoints from other groups concerned about this change. In this article we comment on what we all can do to influence this decision.

Hydro One defines a Seasonal Class dwelling as a second residence where the owner resides at the dwelling for less than 8 continuous months per year. Cottage Life reports that there are 147 649 Seasonal Class dwellings (78 000 of these are cottages). Fifty-five percent of these will see rate increases.  A typical customer is going to see a 54 per cent rate increase ($650) according to Hydro One. The current proposal is to phase in the increase starting in 2022 by not more than 10% per year.  Hydro One says that the main reason for the increase is that customers who get moved from the seasonal ratepayer class to the residential rate class will not qualify for some of the subsidies available to normal residential customers.

The Ontario Energy Board (OEB) is currently deciding whether Hydro One’s proposed rate mitigation plan is required and will be holding a public meeting to review Hydro One’s report and plan.  The date of the meeting and the type of meeting (oral or written) has not been decided. The OEB will also hear arguments and questions from individuals and groups at their hearing.

FOCA reports that it is the approximately 78,000 seasonal ‘cottage’ customers moving to the Low Density (R2) class that will see the largest bill impacts, with total bill increases of up to 100%. FOCA advises to check your letter of notification to see if your classification is correct. FOCA encourages everyone to contact there M.P. P. about the negative impact of this change on your household budget using their letter writing app located at..  https://foca.good.do/fair_electricity_pricing/fair-electricity-pricing/?v=69795dd4&fbclid=IwAR1vx8jr_IMej2sPly92ya9XO3o88kvxRS3QdFhCltHXlKEslYo1n9k6rhc . It only takes a moment to input your cottage address and use the online software to automatically find your MPP. They have provided a template message to make it quick and easy. (Pro tip: customize the subject line and first paragraphs to ensure your message gets read!) . FOCA continues to post background on the subject on their website under Electricity webpage.

Most groups agree that there is misinformation and confusion about what is being said and the possible implications. The Balsam Lake Coalition (http://balsamlakecoalition.blogspot.com/) comments that Seasonal Class rates have been up to twice the rates for neighbouring permanent residents and well above the costs to service them. This group has argued against this unfair rate structure for the last 10 years and will be at the Ontario Energy Board public hearing reviewing this proposal and will continue to push for fair and equitable rates for all customers.

The Georgian Bay Association has been working with FOCA on this issue and they believe that approximately 78,000 seasonal clients will see a doubling of their current hydro bills. They believe that 95% of cottagers on Georgian Bay are rated as seasonal clients and will be moved to Hydro’s R2 rating, resulting in a fare increase. The remaining will be moved to the R1 class resulting in a decrease in their billing rate.

Reps from a neigbouring cottage association report that the calculator on the OEB web site does not show an increase in costs when moving from Seasonal to R2. It is intended to measure the difference between time of use and tiered billing, but it is easy to change parameters from seasonal to permanent resident classes. The possible difference is that the Hydro One scenarios mailed to customers did not include the two rate protections (subsidies) that are given to permanent residents in remote areas – the RRRP (Rural or remote rate protection) funded by a surcharge on all customers and the Distribution Rate Protection subsidy from the government of Ontario for customers in low and medium density zones. The OEB decided that assigning customers different billing rates for non-usage related costs based on the number of nights they spend at their property was inequitable. The lines and equipment needs to be maintained regardless of whether you are at your cottage or not. This is an understandable conclusion. However, if Hydro One eliminates the Seasonal Class, but does not subsidize the former seasonal customers in the same manner as permanent residents, then they are continuing to discriminate based on the same parameters.

What can we/you do to influence this proposed plan? You can review Hydro One’s report on the OEB website (www.oeb.ca/notice and reference File # EB-2020-0246). The SMLCA Board of Directors will be writing a letter to the OEB about our concerns and we encourage every member of the SMLCA to do the same.  You can file a letter with the OEB with your comments which will be considered at the meeting. Or, you can use the foca.good.do/fair_electricity_pricing website listed above to quickly create a letter and have your concerns represented at the meeting.

Improved Internet Coverage

SMLCA members are reporting that Elon Musk’s ambitious Starlink Satellite Service is being offered to prospective clients in our area as part of a beta testing program for rural areas in Central Ontario. Cottagers who have pre-registered with Starlink are being offered 100 megabit service (to be increased to 2-300 megabit service) with a $129 deposit. These new registrants hope to enjoy their new cell phone service later this year.

A.E.D.s on Six Mile

Automated external defibrillators (AEDs) are used for sudden cardiac arrest. They check a person’s heart and delivers an electric shock if it has stopped beating normally. The SMLCA has renewed its interest in finding ways of getting these life saving devices on the lake primarily through researching the possibility of securing a group discount for our members and partnering with organizations that promote the use and tracking of these machines. More details to follow.

Six Mile Lake Marina Public Dock

Over the winter the old public dock at the Six Mile Lake Marina was removed and it is being rebuilt this spring. Taylor Docks are constructing a permanent steel pile dock that will be available for use after April 15^th.  In collaboration with the Township of Georgian Bay, Taylor Docks Incorporated has charitably donated a portion of the improvements to the Public Boat Launch for the enhancement and development of the area.

 Summer 2021

Although we all agree it cannot come soon enough, there are differing opinions about how Covid-free we will be and how that will affect our summer plans…especially the regatta. Do your part and hopefully we will all enjoy NORMAL again.