CORNWALL, Ontario – Cornwall Electric announced that it is raising its rates by 2.95 per cent as of July 1.
This would be an real dollar increase of $3.95 per month for someone using 1,000kWh monthly.
Jackie Baird, Regional Manager of Cornwall Electric explained that 80 per cent of the cost of a consumer’s electric bill represents the wholesale cost of electricity. Cornwall Electric has a contract with Hydro Quebec to provide electricity to their consumers.
“The long term contract in place with Hydro Quebec is a wholesale contract and it has and continues to allow Cornwall Electric rates to be one of the lowest in surrounding electrical utilities and will continue to provide rate stability of energy prices and reliable electricity well into the future for their customers,” said Baird.
The remaining 20 per cent of a consumer’s bill goes towards covering expenses such as maintenance.
In a statement to the media, Cornwall Electric suggested that consumers work to conserve energy to save costs.
“By conserving energy, customers can manage their monthly electricity costs and at the same time be a part of reducing the impact on the environment. One way to do this is to take advantage of the Affordability Fund Trust (AFT) Program. The program, funded by the government of Ontario, provides households with access to energy saving measures to help reduce their energy bills, free of charge,” the Cornwall Electric statement reads.
Baird explained that the 2.95 per cent increase was lower than the potentially allowed increase for 2020-2021.
“Over the last number of years, Cornwall Electric has maintained fair and reasonable rates pursuant to the terms of its franchise, and rate adjustments have been in line with inflation. During the pandemic, Cornwall Electric is committed to supporting its customers while at the same time addressing the need for the utility to remain financially healthy,” Baird said. “And Cornwall Electric remains focused on making decisions in the best interest of the customers.” She said, “Under the franchise, the Company is allowed to adjust rates for 2020-2021 (by a 4.62% increase). Since the current economic climate is not conducive to implementing the allowed increase at this time, Cornwall Electric is implementing a 2.95% rate increase effective July 1 and will collect the balance of the rate adjustment in 2021 as part of the rate adjustment for that year.”