TORONTO – Ontario’s energy regulator has ordered Hydro One to cut $30 million over two years from its administrative budget, saying ratepayers shouldn’t foot the bill for higher pay for senior staff.
In a recent ruling, the Ontario Energy Board rejected a Hydro One request to increase its administrative costs and spend more on capital projects.
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The OEB decision comes as part of a review of a 2016 rate hike request from Hydro One which, if approved, would see rates jump by 0.5 per cent in 2017 and 4.8 per cent in 2018.
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Hydro One says it will review and respond to the OEB’s orders and rates will be set later this fall by the regulator.
The OEB also rejected a proposal to give all of the tax savings generated by the 2015 initial public offering of the partially-privatized company to shareholders.
The regulator instead mandated shareholders receive 71 per cent of the savings while ratepayers receive the remaining 29 per cent.
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