Lakefront Utilities Inc.’s 2022-2026 Cost of Service Rate Application

Lakefront Utilities Inc. has applied to the Ontario Energy Board to change our electricity distribution rates.

Please review the Ontario Energy Board’s Notice of Hearing to learn more and to find out how you can participate in the Ontario Energy Board’s hearing.

More information can be found at https://www.lakefrontutilities.com/2021/05/18/lakefront-utilities-inc-has-applied-to-increase-its-electricity-distribution-rates/

Lakefront Utilities Inc. (LUI) is currently working on their Cost of Service application to the Ontario Energy Board which will form LUI’s rates, capital projects, investments, etc. for the next 5 years. As part of the application process, LUI is engaging different groups of customers to discuss the application and its possible impacts, as well as to hear their feedback about priorities and concerns in regards to their electric services. These conversations help to ensure that LUI’s application aligns with their customers’ expectations and needs.

Due to the pandemic, Lakefront is hosting several group consultations via Zoom virtual meetings:

• Low Income Customers – Monday, March 1, 2021 @ 10:30am
• Environmental Interest Groups – Tuesday, March 2, 2021 @ 10:30am
• Senior Customers – Wednesday, March 3, 2021 @ 10:30am
• Commercial Businesses – Thursday, March 4, 2021 @ 10:30am
• Industrial Businesses – Friday, March 5, 2021 @ 10:30am
• Shareholders – Closed Meeting

While Lakefront Utilities has contacted customers representing these various groups to attend the consultations, LUI is extending the invitation to their broader customer base should a customer be interested in participating in any of these consultations. The number of participants is limited to encourage active conversation. Anyone interested in participating is asked to email asmith@lusi.on.ca

In 2021, Lakefront Utilities Inc. (LUI) plans to apply to the Ontario Energy Board (OEB) to request approval for a proposed electricity distribution standby rate which will be charged to customers who have installed load displacement generation projects such as combined heat and power systems or other load displacement projects.

Customers install load displacement generation (LDG) systems to effectively offset their facility’s monthly peak demand. Customers moving off-grid may choose not to sever their connection from the grid entirely. Rather, they may elect to preserve grid connection as a secondary source of electricity in the case that their primary source fails. This allows the customer to simultaneously minimize electricity costs in favour of their own load displacement generation, while having the security of being connected to the local grid for backup.

Under the current distribution rate structure, this shift in how some customers use their connection to the local distribution system prevents LUI from recovering their costs while requiring LUI to maintain a distribution system capable of keeping such customers connected. This current structure can lead to customers without LDG subsidizing customers with LDG systems. The purpose of the proposed standby rate is to ensure that the local distribution system remains whole and that customers without LDG or behind the meter generation are not subsidizing customers with LDG or other behind the meter generation.

Customers who have or are considering installing a load displacement project to offset their monthly peak demand and wish to continue to utilize LUI’s distribution system to provide back-up electricity services, may be required to pay a standby rate should the rate be approved during LUI’s rate approval process.

A workbook that reviews the standby rate in greater detail is available on this site under “Documents”. Find it here.

Lakefront Utilities Inc. is interested in hearing customer comments on this proposed rate. Any feedback provided will be carefully considered by LUI and incorporated into LUI’s application to the OEB in April 2021.

The Electric Department of Lakefront Utilities Inc. will be hosting an informal Customer Consultation for electric customers located along Division Street, from Havelock to Covert, and Covert Street to talk about proposed electrical upgrades that could be happening in 2021 and 2022.

In the interest of safety and physical distancing, the Consultations will be hosted by appointment at Lakefront Utilities’ office at 207 Division Street in Cobourg on Monday, December 7th and Tuesday, December 8th. Customers are invited to contact Alexis Smith at asmith@lusi.on.ca or 905-372-2193 ext. 5224 to book a time to meet with our Staff and learn more about the proposed capital work. Staff of Lakefront Utilities will be available to discuss the potential infrastructure upgrades and address any concerns regarding costs, power interruptions, timing, road access, noise, service, etc. Preliminary details of the proposed capital work are attached to this letter.

This event is the third Neighbourhood Consultation scheduled to discuss proposed capital plans for 2022-2026.

The Electric Department of Lakefront Utilities Inc. will be hosting an informal Neighbourhood Consultation for electric customers located along Elgin Street in Cobourg on Tuesday, November 10. In the case of inclement weather, the event will be rescheduled to Thursday, November 12, 2020.

In the interest of public safety, the Consultation will be hosted outside of the Lions Community Centre at 157 Elgin Street East. Parliament Street and Victoria Street customers are invited to stop by between 4:00 pm and 6:00 pm, grab a coffee, and learn more about the proposed capital work that could be happening along Elgin Street between 2022 and 2026. Staff of Lakefront Utilities will have information, drawings and maps on hand to discuss the potential electric infrastructure upgrades and address any concerns regarding costs, power interruptions, road access, noise, service, etc.

The Elgin Street event is the second of three Neighbourhood Consultations scheduled to discuss proposed capital plans for 2022-2026.

The Electric Department of Lakefront Utilities Inc. will be hosting an informal Neighbourhood Consultation for residents of Parliament Street and Victoria Street in Colborne on Thursday, October 29. In the case of inclement weather, the event will be rescheduled to Tuesday, November 3, 2020.

In the interest of public safety, the Consultation will be hosted outside in Victoria Square at the corner of Church Street West and Percy Street in Colborne. Parliament Street and Victoria Street customers are invited to stop by between 4:30 pm and 6:30 pm, grab a coffee, and learn more about the proposed capital work that could be happening in their neighbourhood between 2022 and 2024. Staff of Lakefront Utilities will have information, drawings and maps on hand to discuss the potential electric infrastructure upgrades and address any concerns regarding costs, power interruptions, road access, noise, service, etc.

The Colborne event is the first of three Neighbourhood Consultations scheduled to discuss proposed capital plans for 2022-2026.

Lakefront Utilities Inc. (LUI) applies to the Ontario Energy Board (OEB) every year to approve rates for the following year. These applications are on a five-year cycle, with a detailed Cost of Service review in year 1, followed by inflationary adjustments in years 2 through 5. Much of the Cost of Service application relates to reviewing LUI’s costs and setting its base distribution rates.

Lakefront is committed to meeting the needs of customers through effective customer engagement and ensuring the safe and reliable delivery of electricity through efficient operations, strong fiscal management, ongoing system renewal, and conservation initiatives.

Lakefront is focused on ensuring the electricity network is maintained, renewed, and modernized in ways which are meaningful to its customers. The planned customer engagement activities invite customers to learn about their utility and the industry, tell LUI about things which are important to them, and to prioritize or assess various capital projects and programs, operational plans, and other initiatives.

Lakefront Utilities Inc. strives to exceed customers’ expectations. This is only possible through two-way communication with our ratepayers. LUI urges customers to take a moment to register on this site and subscribe to receive updates as the application progresses. Customers’ continual engagement in this process will ensure LUI’s 5-year plan is inclusive of customers’ priorities as it relates to the local distribution system.

Sincerely,

Adam Giddings, CPA, CA
Director of Regulatory Finance