Ice storm could force temporary increase in hydro rates

Watch the video above: Cleaning up from the ice storm could force a temporary increase to hydro rates. Sean Mallen reports. 

TORONTO – Hydro bills in Toronto could increase temporarily if Toronto Hydro can’t find the savings needed to offset the cost of cleaning up after the Dec. 21 ice storm.

The utility estimates the costs of restoring power to the close to 300,000 customers who were in the dark following the storm at approximately $1 million per day. After ten days of work, the bill is now hovering around $10 million.

“We need to figure out where that money comes from,” Toronto Hydro spokesperson Tanya Bruckmueller said Thursday. “We’re looking at a couple of options to see if we can find the efficiencies within our own budget but if we don’t then it’s a process that goes before the regulatory board where we would try to recoup some of the costs but ultimately it would be built into rates.”

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The ice storm caused trees to snap and fall, which brought down power lines throughout the city. Hydro crews from neighbouring cities, Manitoba and the United States were brought in to help with the cleanup efforts – and the cost of paying, housing and transporting those extra workers is borne by Toronto Hydro.

WATCH: Jim Harnum, General Manager of Solid Waste Management Services for the City of Toronto, talks about the massive operation needed to remove all downed trees and branches in the city

The other costs include materials, equipment and labour, Bruckmueller said.

“We’re still technically in an emergency right now,” she said. “Now, obviously our costs are significantly lower as we restored the majority of our customers.”

Toronto Hydro estimates that upwards of 300 customers could still be without power, however some of those people have partial power.

Read More: Ice storm clean up could take up to 2 months, cost $75 million

Watch the video below: Toronto Hydro spokesperson Tanya Bruckmueller discusses why a possible temporary rate increase may be necessary

Mayor Rob Ford said he wouldn’t support a tax increase in order to pay for the costs of cleaning up from the ice storm.

“Obviously hydro basically has to find the efficiencies themselves but I think the province will help us out and the rest we’re going to have to find,” he said at a Thursday morning press conference. “I’m not just going to increase taxes because of one storm, that’s a cop out, that’s an easy way of doing it.”

Instead, Ford said the city would have to make “some tough choices” and find “efficiencies” during the budget process in order to pay for the unexpected costs which arose.

– With files from Sean Mallen and The Canadian Press