Ontario Government Rolls Out Time-of-Use Rates

TORONTO - Ontario kicked off the province-wide rollout of time-of-use electricity rates today in Toronto. Ten thousand homes in Toronto will move to the new rates starting this June. By next summer, one million Ontario households will be on time-of-use rates.

Time-of-use rates equip Ontarians with real time information to make smart decisions about how and when they use electricity. The rates reflect the reality that electricity costs the most when demand is highest. By shifting electricity use to low demand times, consumers will save money.

Ontarians will be better able to manage their electricity costs by reducing overall use and by shifting energy-intensive activities, such as doing laundry and running the dishwasher, to later in the evening or on weekends. Shifting use of other discretionary appliances such as air conditioners can also help.

Under the rates, off-peak times occur on evenings and weekends. Currently, evening off peak hours start at 10 pm. Beginning Nov. 1, off-peak times will move to 9 pm, offering Ontario families an additional evening hour at the lowest rate.

As of May 1, the three rates for electricity are (per kilowatt hour):

- On-peak: 9.1 cents

- Mid-peak: 7.6 cents

- Off-peak: 4.2 cents

"Time-of-use pricing is what makes our smart meters 'smart,' by telling us how much electricity we are using throughout the day. With this information, the message is to first, reduce our overall energy use, and second, to shift as much of our electricity use as possible to later in the evening and on weekends because that's when it's cheapest." - George Smitherman, Deputy Premier and Minister of Energy & Infrastructure

- Ontario's rollout of smart meters coupled with time-of-use rates is the largest in the world

- More than 2.4 million smart meters are installed in Ontario; time-of- use pricing is what makes smart meters "smart"

- By June 2011, an estimated 3.6 million customers will be on time-of- use rates

- Exact timing and rollout of time-of-use rates will vary by electricity utility. Consumers with retail electricity contracts will continue to follow the terms of their contracts.

- Rates are reset every six months in May and November, based on Ontario Energy Board projections.

- 40,000 residents in Milton, Newmarket and Chatham-Kent are already on time-of-use rates

For more information on smart meters and time-of-use rates, visit: The Ministry of Energy and Infrastructure at http://www.mei.gov.on.ca.wsd6.korax.net/