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22 - The Oakville Beaver, Wednesday February 21, 2007 www.oakvillebeaver.com Ontario Energy Board Commission de l énergie de l'Ontario NOTICE OF APPLICATION AND WRITTEN HEARING FOR AN ELECTRICITY DISTRIBUTION RATE CHANGE AND NOTICE OF COMBINED PROCEEDING AND HEARING RELATING TO SMART METERS Oakville Hydro Electricity Distribution Inc. EB-2007-0563 Oakville Hydro Electricity Distribution Inc. has filed an application with the Ontario Energy Board (the "Board"), received on January 26, 2007 under section 78 of the Ontario Energy Board Act, 1998, S.O. 1998, c.15 (Schedule B). The Board has assigned the application File No. EB-2007-0563. This Notice contains important information about participation in the hearing associated with the applicant's rate change application ("rate proceeding") and about participation in a combined proceeding relating to rate adjustments for smart meters ("smart meter combined proceeding"). Oakville Hydro Electricity Distribution Inc. has applied to the Board to change its distribution rates. The application has been filed on the basis of the guidelines set out in the December 20, 2006 "Report of the Board on Cost of Capital and 2nd Generation Incentive Regulation for Ontario's Electricity Distributors", available from the Board as described under "Need More Information?" below. The standard electricity bill for residential and small general service customers has four line items: Electricity; Delivery, Regulatory and Debt Retirement Charge. The rate change application affects only the Delivery line of that bill. If approved, a typical residential customer consuming 1,000 kWh per month would experience an approximate decrease of 0.2 % in the electricity bill. A small general service customer consuming 2,000 kWh per month and having a monthly demand of 50 kW or lower would experience an approximate decrease of 0.1%. Oakville Hydro Electricity Distribution Inc. may apply for a specific rate adjustment related to smart meters. This adjustment is referred to as a "smart meter adder", and represents temporary advance funding to facilitate the acquisition and installation of smart meters through the 2007 rate year. If a smart meter adder is applied for, the percentage decreases in the electricity bill referred to above do not include the amount of Oakville Hydro Electricity Distribution Inc.'s smart meter adder. The prudence of the amount requested by Oakville Hydro Electricity Distribution Inc. for its smart meter adder will not be examined as part of the rates proceeding. It will be dealt with in a separate process at a later date. As a starting point to that future process, certain general principles will be the subject of a combined proceeding for which a hearing will be held after May 1, 2007. The combined proceeding will involve a number of electricity distributors, and may include or consider Oakville Hydro Electricity Distribution Inc.'s smart meter adder. Further information about the treatment of smart meter adders and the nature and scope of the combined proceeding may be found in the January 29, 2007 "Report of the Board on 2nd Generation Incentive Regulation for Ontario's Electricity Distributors: Addendum for Smart Metering Rates", available from the Board as described under "Need More Information?" below. How to see Oakville Hydro Electricity Distribution Inc.'s Pre-filed Evidence y y Copies of the application are available for inspection at the Board's offices in Toronto and on its website, and at the Oakville Hydro Electricity Distribution Inc. offices and on its website, if available. How to Par ticipate in the Rate Proceeding p g The Board intends to proceed with Oakville Hydro Electricity Distribution Inc.'s rate change application by way of written hearing unless a party satisfies the Board that there is good reason for holding an oral hearing. If you object to a written hearing in this matter, you must provide written reasons why an oral hearing is necessary. Any objections to a written hearing must be received by the Board and copied to the applicant at the addresses below no later than 10 days from the date of publication of this Notice or, if you have been served this Notice directly, no later than 10 days from the date of service. The Board will not award costs in this matter.