Sudbury

Energy Minister defends Fair Hydro Plan after Hydro One applies for rate boost

Ontario Energy Minister Glenn Thibeault says Hydro One customers shouldn't be concerned about a rate increase any time soon. Earlier this week, Hydro One applied to the Ontario Energy Board for an increase in its distribution rates. But Thibeault says this doesn't necessarily mean a rate increase.

'It's an application, it's not a rate increase,' says Glenn Thibeault

Ontario Energy Minister, Glenn Thibeault says Hydro One's application doesn't necessarily mean a rate increase. (Peter Power/Canadian Press)

Ontario Energy Minister Glenn Thibeault says Hydro One customers shouldn't be concerned about a rate increase any time soon.

Earlier this week, Hydro One applied to the Ontario Energy Board for an increase in its distribution rates. This could cause customers to pay an increase of $2 per month over the next five years.

But Thibeault says the application does not necessarily mean rates will rise.

"It's an application, it's not a rate increase," says Thibeault.

"It's only a decrease — we passed the Fair Hydro Plan. Especially for Hydro One customers, they're going to see a 40 to 50 per cent reduction."

Thibeault says the application still has to be reviewed by the Ontario Energy Board.

"If you look at the OEB's decisions in the past, they've been very clear that they're always going to keep the interest of rate payers first and foremost, and they've denied applications."

A public hearing on the matter will take place, but a date or location has not been announced. Intervenors have until June 14 to make a request to appear at the hearing.

With files from Casey Stranges and Robin De Angelis