TORONTO, May 15 /CNW/ - Today the Ontario Energy Board (the Board) issued its Decision on an application by Toronto Hydro-Electric System Limited (Toronto Hydro) for electricity distribution rates 2008, 2009 and 2010.

Distribution rates are set to recover the cost to deliver electricity to consumers and reflect an individual utility's cost of service. Utilities apply to have their proposed rates to deliver electricity reviewed by the Board through a public process to determine what costs can be passed on to consumers. Distribution rates are reflected in the "Delivery" line of consumers' bills.

Toronto Hydro applied for three sets of rates for each of the years 2008 through 2010. The Board found that it would approve rates for 2008 and 2009 only. In its Decision, the Board considered Toronto Hydro's extensive capital plans for things like sustaining the distribution system, information technology and smart meters, as well as operating maintenance and administration costs.

The Board also directed Toronto Hydro to file a draft rate order, reflecting the findings in this Decision, and a schedule of proposed final distribution rates for 2008.

Bill impacts resulting from 2008 distribution rate decisions will be announced in the coming weeks after the utilities have submitted draft rate schedules to the Board reflecting today's decision. The Board will announce the rate impacts when it approves and issues final rate orders to the utilities.

A table of the estimated bill impacts on residential consumers will be available once any potential adjustments to the RPP are determined and as specific rate orders for individual utilities are issued by the Board. This table will be published on the Board's website www.oeb.gov.on.ca.

For more information please refer to the 2008 Electricity Distribution Rates Backgrounder on the OEB website site at http://www.oeb.gov.on.ca/documents/communications/pressreleases/2008/backgrounder_2008_EDR.pdf.

The Ontario Energy Board regulates the province's electricity and natural gas sectors in the public interest. It envisions a viable and efficient energy sector with informed consumers served by responsive regulatory processes that are effective, fair and transparent. For more information on the Board, please visit our web site at www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or toll-free at 1-877- 632-2727.