CORNWALL, Ontario - Get ready for a more expensive electric bill.
Cornwall Electric rates will increase 2.29 per cent July 1, the utility said Monday.
Michael Pescod, regional manager of Cornwall Electric, attributed the increase to the long-term wholesale electricity supply contracts previously negotiated with Hydro Quebec.
A residential customer using 800 kWh per month will see their monthly invoice increase by $2.34.
The long-term wholesale agreements continue to provide security of supply and rate stability.
Cornwall Electric eligible residential and small business customers continue to receive the Ontario Clean Energy Benefit which will save 10 per cent on electricity costs. Also, Cornwall Electric customers are not subject to the debt retirement charge like other in Ontario.
“Like all other utilities in Ontario, the wholesale cost of electricity in Cornwall is passed through to customers," he said. "The long-term contracts with Hydro Quebec provide security of supply and rate stability to December 2019.
“Cornwall Electric rates continue to compare favorably to surrounding electrical utilities."
The wholesale cost of electricity represents approximately 80 per cent of the customer’s total bill. The remaining 20 per cent represents the distribution charges.
These distribution charges pay for Cornwall Electric to deliver power from the Cedars Rapids Transmission lines to customer homes and businesses and to provide for system maintenance and capital equipment replacement.
In 2014, Cornwall Electric’s capital program will invest approximately $4 million in distribution system expansions and capital replacements.
Cornwall Electric supplies electricity to 24,200 customers in the City of Cornwall, South Glengarry, South Stormont, and the Ontario portion of the Mohawk Territory of Akwesasne.