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Hydro Ottawa has been cleared to raise rates by an average of $5.87 per month in 2026, after Ontario’s independent energy regulator turned down a larger five-year increase.
Last month the Ontario Energy Board (OEB) rejected Hydro Ottawa’s proposal to increase the distribution portion of their monthly bills, which the utility wanted to start on Jan. 1, 2026. A key consideration for the board was affordability for customers.
Hydro Ottawa’s initial proposal would have seen the average residential user, or someone using 750 kilowatt hours per month, charged an extra $6.08 per month in 2026 for electricity distribution before taxes and rebates.
That part of the electricity bill would have risen another $3.79 in 2027, $3.31 in 2028, $2.76 in 2029 and $2.78 in 2030.
The increase was expected to partially pay for upgrades and expansions to the city’s grid, as Hydro Ottawa looks to meet soaring demand over the next two decades.
Hydro Ottawa also cited a number of factors for growing operating costs, including serving more customers, spending on technology and cybersecurity, and managing storms and vegetation amid climate change.
The parties involved settled most issues in December.
In its May 12 decision, the energy board said it agrees with submissions from environmental groups, building owners and consumer advocates who took part in the process as intervenors. They described Hydro Ottawa’s proposed increase for operations “excessive, inappropriate and not supported by credible reasons,” the board wrote.
While Hydro Ottawa’s application laid out a five-year plan, as the board requires twice a decade, the June 4 decision only applies to 2026, the OEB told CBC News on June 11.
“By reducing costs where appropriate and approving changes that support reliability, the OEB has ensured that rates remain just and reasonable while maintaining the quality of service customers rely on,” said OEB CEO Carolyn Calwell in a statement.
The OEB said the increase is retroactive to Jan. 1, so another $1.80 a month on average will be added to bills until the end of May 2027 to account for that.
Hydro Ottawa will need to submit a streamlined application for each of the next four years.
