Electricity Rates

LOSS FACTOR
When electricity is delivered over a power line, it is normal for a small amount of power to be consumed or lost as heat. Equipment, such as wires and transformers, consumes power before it gets to your home or business. The adjustment factor accounts for these losses.

Monthly Consumption in kilowatt-hours (kWh) x 1.0349 = Loss Factor

GLOBAL ADJUSTMENT

If you pay the market price (called the Hourly Ontario Energy Price), or have signed a retail contract, your electricity bill also includes a line for the Global Adjustment. The Global Adjustment affects the final commodity price you pay.

The Global Adjustment provides both adequate generating capacity and green energy for Ontario. It accounts for differences between the market price and the rates paid to regulated and contracted generators and for conservation and demand management programs. As a result, its value may be positive or negative, depending on the fluctuation of prices in the spot market.

The rate is set to reflect the difference between the market price and:

• The regulated rates paid to Ontario Power Generation’s nuclear and hydroelectric baseload generating stations;
• Payments made to suppliers that have been awarded contracts through the Ontario Power Authority such as new gas-fired facilities, renewable facilities (like wind farms) and demand response programs; and
• Contracted rates administered by the Ontario Electricity Financial Corporation paid to existing generators.

The Global Adjustment may be a positive or negative number, depending on whether the market price is lower or higher than the fixed rates. Note the amount that appears on your bill may be different, taking into account the period of time covered in your bill. For more information visit the website of the Independent Electricity System Operator; and/or click on the link to Global Adjustment.