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Explanation of Terminology
| Electricity |
| This is the cost of the electricity supplied to you during this billing period and is the part of the bill that is subject to competition. |
| Delivery |
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These are the costs of delivering electricity from generating stations across the Province to Alectra Utilities (formerly Guelph Hydro) then to your home or business. This includes the costs to build and maintain the transmission and distribution lines, towers and poles and operate provincial and local electricity systems. A portion of these charges are fixed and do not change from month to month. The rest are variable and increase or decrease depending on the amount of electricity that you use. The delivery charge also includes costs relating to electricity lost through distributing electricity to your home or business. Alectra Utilities (formerly Guelph Hydro) collects this money and pays this amount directly to suppliers. When electricity is delivered over a power line, it is normal for a small amount of power to be consumed or lost as heat. Equipment, such as wires and transformers, consumes power before it gets to your home or business. |
| Global Adjustment |
| The Global Adjustment is an adjustment for the difference between the rates paid to regulated and contracted generators and the market price. This will be either a credit or a charge depending on the prices for electricity in the Independent Electricity System Operator (IESO) spot market. Global Adjustment is applicable to large commercial consumers and consumers having a retailer agreement. |
| Power Factor Charge |
| Power Factor is a measure of how effectively your equipment converts electric current into useful power output, such as heat, light or mechanical motion. Low power factor, or less effective use of electric current, will be an added cost to your bill. There are two kinds of power: usable power called kilowatts (kW), and reactive power called kiloVAR (kVAR). The ratio of your usable power consumption to your reactive power consumption determines your power factor. When your power factor drops below 90%, a power factor surcharge is applied to cover the cost of supplying additional reactive power. |
| Regulatory Charges |
| Regulatory Charges are the costs of administering the wholesale electricity system and maintaining the reliability of the provincial grid and include costs associated with funding Ministry of Energy conservation and renewable energy programs. |
Alectra Utilities (formerly Guelph Hydro) Portion of Your Electricity Bill
In addition to collecting fees for our services, Alectra Utilities (formerly Guelph Hydro) collects money on behalf of several other players in Ontario's electricity sector.
In fact, only 21% of the electricity portion of an average residential bill is kept by Alectra Utilities (formerly Guelph Hydro) to run our operations. This is included in the Delivery section of your bill.
Rates
Effective December 30, 2024, Residential rates for Guelph and Rockwood may be found here.