Jeff Outhit
The Record.com
September 29, 2010

WATERLOO — Electric bills in Waterloo, already the highest in the region, are poised to rise higher.

City council’s electric utility is seeking to hike its delivery charge 18.5 per cent next May, in part to continue pouring millions in profits into city coffers.

If approved by the Ontario Energy Board, the increase would add $69 to the annual electric bill of an average residence in Waterloo, Woolwich and Wellesley. This equals an increase of five per cent on a current bill of $1,345, including all charges and taxes.

The proposed increase follows increases in city property taxes, up 12.5 per cent since 2006, and increased water bills, up 54 per cent since 2006.

“It is necessary to maintain our electrical system,” Mayor Brenda Halloran said. “I think people understand that it’s an essential service.”

She’s frustrated the city utility had to wait seven years to seek an increase in delivery charges. The charge has seen only minor adjustments since 2004.

“We’re playing catch-up,” said Albert Singh, vice-president of finance for Waterloo North Hydro.

Schools are likely to oppose the “significant” increase, said Wayne McNally, who coordinates a coalition of 72 school boards that monitor regulated utility rates.

Schools worry they may have to take money from classrooms to pay rising electric bills, McNally said. They are reviewing Waterloo’s application to assess whether the increase is warranted and have asked to participate in approval hearings.

The environmental group Energy Probe has also asked to participate, representing consumers. “I would hope that we’d be able to lower the rate hike, to some extent,” said Lawrence Solomon, executive director of Energy Probe.

He warns that electricity bills are poised to soar as Ontario pursues expensive green power. “We are headed for power rates that are going to double or triple, if the government stays on its current course,” he said. “So what we’ve seen so far in rate applications is only the beginning.”

Waterloo North Hydro has told the provincial energy regulator that its proposed increase will generate $5 million a year that it needs to:

Maintain a reliable system to distribute electricity, serve customers, pay for staff, and promote conservation.

Help pay for a $26-million headquarters under construction in Woolwich Township. It’s to open in Dec. 2011.

Continue providing millions to councils that operate the utility for profits.

Local politicians have taken more than $149 million out of three municipal electric utilities since turning them into profit-making ventures in 2000. This includes $15 million to help pay off RIM Park debt in Waterloo.

“It’s played a major role in keeping property taxes at a reduced rate,” Halloran said. “We’re getting good dividends back.”

If the Waterloo electricity increase is denied “we will do what we can to keep the system running,” Singh said. But he said the utility would struggle in the long term to maintain itself.

Kitchener-Wilmot Hydro increased its delivery charges 8.7 per cent in May, adding $27 to an average electricity bill that has reached $1,295 a year.

Cambridge and North Dumfries Hydro decreased its delivery charges 2.9 per cent in May, shaving $10 from an average bill that’s now $1,279 a year.