TIME OF USE RATES

Placing the Management of Electricity Costs in the Hands of the Consumer

To create a conservation culture in Ontario and to make the Province a North American leader in energy efficiency, The Government has taken action to facilitate a number of key initiatives, including:

• The introduction of flexible, time-of-use pricing for electricity.
• A targeted reduction in Ontario's energy consumption by five percent.
• A commitment to install a smart electricity meter in 800,000 homes and small businesses
by December 31, 2010.
• The passage of legislation to enable implementation of its smart metering initiative and conservation targets.

To this end, Smart Meters have been installed in virtually all Residences and Small Commercial establishments within Essex Powerlines distribution system as of December 31, 2010.

In Accordance with the OEB's December 2011 Mandatory Time of Use date for Essex Powerlines, Essex Powerlines customers is converting customers to Time-Of-Use (TOU) electricity rates beginning September 2011. Billing inserts have been provided advising of approx. conversion dates with additional information being provided in the first Time-of-use billing.

Time-of-Use Rates, set by the Ontario Energy Board (OEB), typically May 1 and Nov 1 of each year will be applied on electricity usage based on the time of day, or day of the week in which electricity is consumed. The rates set by the OEB are based on demand and production costs. When the demand and costs are high, the rates will be higher, when the costs reduce, so will the rates.

The current energy time bands and rates as set by the OEB are as follow:

Summer (May 1 - Oct 31) and Winter (Nov 1 - April 30)

Summer Weekdays 11am to 5pm / Winter Weekdays 7am to 11am & 5pm to 7pm - On Peak 10.8 cents per kWh

Summer Weekdays 7am to 11 am & 5pm to 7pm / Winter Weekdays 11am to 5pm - Mid Peak 9.2 cents per kWh

Summer Weekdays 7pm to 7am / Winter Weekdays 7pm to 7am - Off Peak 6.2 cents per kWh

Weekends and Statutory Holidays, All Day will be at Off Peak - 6.2 cents per kWh

Please note that the rates quoted above are as of Nov 1st, 2011 and relate to only the electricity cost on your bill. They do not include delivery, regulatory charges or the debt retirement charge.

TOU Time Bands and Rates, places the management of electricity costs in the hands of the individual consumer, at the same time reducing the strain on the electricity system and helping the environment. As an example, doing laundry on the weekend or running your dishwasher after 9 pm in the evening on weekdays will reduce your electricity costs as you will pay the Off Peak Rates.

Essex Powerlines has a Web based Presentment tool in place to allow you to securely view and track your electricity use by the hour, the day after the energy was consumed.

To learn more about how to take advantage of Time-of-Use Prices, manage your electricity costs, reduce the strain on the electricity system and help the environment download Introducing Time-of-Use Rates, a Quick Guide.

To assist in shifting your electricity use to see the difference it can make to your bill, visit 10 Smart Meter Lane.