EnergyOne Canada Electricity Price Protection Value Plan provides Peace of Mind.

Most industry experts agree that the cost of electricity in Ontario will rise over the coming years. Here we outline many factors which currently point to an upward trend in Ontario electricity prices:

Increasing Demand
Ontario currently has a generation capacity of approximately 25,000 megawatts of electricity. On an average day, Ontario demand peaks around 21,000 megawatts. However, on many days (mainly due to hot weather), the demand sometimes exceeds 26,000 megawatts, requiring the Independent Electricity System Operator (IESO) to import electricity from neighbouring jurisdictions - namely the USA.

As our population increases and relies more and more on technology, overall Ontario electricity demand is expected to continue rising. Additionally, the electricity supply does not typically run at 100% of capacity, as nuclear plants are often taken out of service for maintenance, and hydroelectric plants are affected by reduced water levels in the Great Lakes.

Nuclear Facts

• Ontario has 20 of Canada’s 22 nuclear reactors.
• 80% of all electricity generating plants in Ontario will need to be refurbished or replaced in the next 15 – 20 years.
• 441 neclear power reactors are operating in 30 countries.
  
  

Coal Plants Closing
There are currently four coal plants operating in Ontario following the 2005 closure of the Lakeview plant in Toronto. The McGuinty government has committed to close the Lambton, Thunder Bay, and Atikokan plants by the end of 2007, and the Nanticoke plant by the end of 2009, or as soon as possible thereafter. Closing these coal plants will reduce Ontario's supply by 6,438 megawatts. This lost output will have to be replaced by electricity from other sources, including natural gas. Coal is currently one of the least expensive methods of producing electricity.

Many people ask when the best time to lock in at our fixed rates is. Consider the following:

1. Fixed Rates vs. Fluctuating Rates
   When comparing our 5-year fixed rates to your current electricity and gas rates remember that, unlike your curent rates, our 5-year rate is guaranteed not to change for the full term of your contract. So the price you sign up for today will be the same price you will pay until about February 2012.
   
   During this same period, by not locking in, you could be subjected to up to 10 hydro rate increases and 20 natural gas price increases.
   
2. Increasing Electricity Rates
   Most experts believe that electricity rates will rise significantly in the coming years. Locking in to a fixed rate guarantees your low rate, regardless of how high electricity rates may rise in the future. Your local utility cannot provide you with a fixed rate.
   
3. HOEP Rates Fluctuate Daily
   If you are a currently a HOEP customer (most large businesses), the current (market) rate that you are paying varies from hour to hour and there are no guaranteed maximums.
   
4. Regulated Rates are Adjusted Frequently
   If you are currently an RPP customer (residential and small businesses), the current rates are locked-in for only a six month period, and are subject to adjustment based on the actual cost of electricity every six months.

Natural gas rates for gas supplied by Enbridge Gas and Union Gas are subject to change every three months.