The letter from Roger Trottier headlined
Hydro One Cheaper in the Feb. 20 edition deserves a
response.
Distribution utilities such as Hydro One or
Sudbury Hydro (GSU) operate on a distribution charge, which
varies from one utility to the next. All other
parts of the bill, with the exception of the
adjustment for losses, are identical.
When comparing customers bills, it is normal
to compare at some average consumption level, for example,
1,000 kw/hrs per month for residential customers. The monthly
distribution charge for this average customer is Hydro One
R1…$36.54 per month and GSU residential…$20.88 per month. In
addition, Hydro One's losses adjustment factor is nearly double
that of GSU's. Over the course of a year, these two factors
(higher rates and losses) result in the Hydro One customers
within CGS paying approximately $5 million more than they would
if they were GSU customers. As well, as most customers know,
GSU is making an annual payment to the CGS of $3.8 million. Any
profits from the Hydro One distribution company go to the
province.
We invite Trottier to visit us and compare
bills.
With respect to the purchase of West
Nipissing's distribution company, GSU is simply increasing the
size of its business and in doing so will be able to increase
payments to our shareholder, the CGS.
Doug Reeves
President and CEO, Greater Sudbury
Utilities