Glossary of Terms

Medium and Large Business

Medium and Larger Commercial Customers

If you are a small business (less than 50kW demand or 250,000 kWh consumption annually) please see the Residential and Small Commercial Customers Glossary of Terms.

 Electricity

Delivery

Regulatory Charges

Debt Retirement Charge (DRC)

Global Adjustment


 

Electricity

The cost for the electricity you used during the billing period.

  • Higher volume consumers (medium and larger businesses) who buy their electricity from Waterloo North Hydro pay hourly or weighted average market prices. Market prices are set hourly by the Independent Electricity System Operator. You will also have to pay your share of the Global Adjustment for each month.
  • Customers who have signed an retail contract with an electricity retailer will pay a contract rate. Retail contracts are often for a fixed price over a set number of years. You will also have to pay your share of the Global Adjustment for each month.
  • Rates
    • Accounts with interval type meters (records hourly consumption) pay a market hourly rate + or *. (HOEP). Visit IESO web site at www.ieso.ca for current and historical hourly (HOEP) rates
    • Accounts without interval meters pay a weighted average market rate+. Contact Waterloo North Hydro for details.

 


 

Delivery

The cost of delivering electricity from generating stations across the Province to your home or business via the high voltage (transmission) and low voltage (distribution) electricity systems. All the charges on this line of the bill are approved by the ONTARIO ENERGY BOARD. Some of the charges are fixed at a set amount per month. Others are variable and increase or decrease depending on the amount of electricity you have used. Delivery charges include:

  • Customer Service Charge: A fixed monthly charge intended to allow Waterloo North Hydro to recover the costs associated with meter reading, billing, customer service and account maintenance, and general utility operations.
  • Distribution Charge: A variable per kilowatt (kW) charge based on the peak monthly demand intended to allow Waterloo North Hydro to recover the cost of building and maintaining its low-voltage distribution system, including overhead and underground distribution lines, poles, and transformer stations.
  • Transmission Charge: A variable per kilowatt (kW) charge based on the peak monthly demand collected by Waterloo North Hydro and intended to allow Hydro One to recover the cost of operation and maintenance of the high-voltage transmission system that carries electricity from generating stations to Waterloo North Hydro.
  • Ontario Energy Board Regulated Rate Riders: Variable per kilowatt (kW) rate collected by Waterloo North Hydro to recover or refund the accumulated difference between wholesale market costs paid by Waterloo North Hydro and those paid by customers. Wholesale charges paid by Waterloo North Hydro are simply passed through to customers; there however can be a small accumulated difference based on a rate differential between the two.
  • Loss Adjustment: When electricity is delivered over a power line, it is normal for a small amount of power to be consumed, or lost, as heat. In calculating your electricity costs for the billing period, Waterloo North Hydro multiplies your cost of electricity by an ONTARIO ENERGY BOARD approved adjustment factor that accounts for those losses.
    • + Line Loss Adjustment of 1.0404 applied to charges indicated with a + for Medium Commercial
    • * Line Loss Adjustment of 1.0050 applied to charges indicated with a * for Larger Commercial

 

Regulatory Charges

This charge includes:

  • Wholesale Market Service Charge: A charge to cover the cost of services provided by the Independent Electricity System Operator (IESO) to operate the wholesale electricity market and maintain the reliability of the high voltage power grid. It also covers the administration costs of the Ontario Power Authority (OPA) and certain costs incurred by Waterloo North Hydro to connect renewable generation. The Wholesale Market Service Charge is set by the ONTARIO ENERGY BOARD to allow these costs to be passed on to consumers.
  • Standard Supply Service - Administration Charge: A charge to cover a portion of Waterloo North Hydro's administrative costs to provide electricity to Standard Service Supply customers that purchase their electricity from the utility (i.e. customers that are not served by a retailer). This charge is set by the ONTARIO ENERGY BOARD and is the same for all utilities across the province.

 

Debt Retirement Charge (DRC)

This charge is set by the Ontario Ministry of Finance and is used by the government to pay down the residual stranded debt of the former Ontario Hydro. The rate is $0.007 per kWh.

  


Global Adjustment

If you purchase electricity from a retailer or based on market pricing, you will see a separate line item on your bill for the "Global Adjustment". The Global Adjustment accounts for differences between the market price of electricity and the regulated or contract prices paid to generators for the electricity they produce. These include nuclear, gas-fired and renewable generators (like wind farms) that have contracts with the Ontario Power Authority (OPA) and generators that have contracts with the Ontario Electricity Financial Corporation (OEFC), as well as Ontario Power Generation's "baseload" generating stations that operate at or near capacity all the time to meet basic demand. The ONTARIO ENERGY BOARD does not set or approve the amounts paid by the OPA or OEFC to contracted generators, but it does set the amounts that are paid to Ontario Power Generation for electricity generated by its baseload facilities.

The Global Adjustment also includes the cost of OPA conservation and demand management programs. Those costs are not subject to ONTARIO ENERGY BOARD approval. Also covered by the Global Adjustment are any ONTARIO ENERGY BOARD-approved costs incurred by utilities to achieve their mandatory conservation and demand reduction targets.

The Global Adjustment is calculated monthly by the IESO. Because a large portion of the Global Adjustment is calculated as the difference between the market price and regulated or contracted generation prices, it can be either a credit or a charge to consumers depending on fluctuations in the market price. However, it has been a charge since 2006. Visit IESO web site at www.ieso.ca for current and historical rates +

Medium Commercial

Price

Published monthly by the IESO for Class B customers

$ per kWh +

Larger Commercial

Price

IESO calculates an amount for Class A customers based on the customers historical peaks coincident with the five annual provincial peaks

 

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