Hydro One is the single largest electricity distribution company in Ontario, and operates about 97% of Ontario’s total electricity transmission infrastructure. In addition, it is a regulated provider of electricity to roughly 1.5 million customers in the province.
Current Electricity Plans
As a regulated utility company, Hydro One delivers electricity to its customers at rates that are established by the Ontario Energy Board.
The vast majority of Hydro One’s residential customers pay Time-Of-Use rates, which vary according to the time of day, with higher prices during high-demand times, and lower prices during lower-demand times.
A smaller subset of customers pay tiered rates, in which they are charged one rate for the first 600 or 1,000 kWh they use in a month (depending on the season), and a higher rate for each kWh they use beyond that threshold.
History of Hydro One
Hydro One traces its roots to the Hydro-Electric Power Commission of Ontario (commonly called Ontario Hydro, or by the abbreviation HEPC), which was established in 1906 in accordance with the Ontario Power Commission Act. Ontario Hydro’s job at the time was to build transmission lines bridging the gap between Ontario residents and hydroelectric generators at Niagara Falls.
In the 1920s, Ontario Hydro became an electricity distributor, building what was at the time the world’s largest power generating station on the Niagara River. Ontario Hydro continued to grow through the middle of the century, expanding its transmission network and generating capacity by building additional power generation facilities on the Ottawa and St. Lawrence rivers.
Recent Developments
n 1999, in response to the Energy Competition Act, Ontario Hydro was split up into five companies, one of which was Ontario Hydro Services Company. This company, later renamed Hydro One, was designed to function as a commercial provider of energy.
In 2015, Ontario began the process of privatizing the company, publicly offering shares in an IPO in November 2015, and again in April of 2016.
