Hydro bills could be going up across Essex County, with blame placed on severe storms

E.L.K Energy cites storm-related costs as a major reason for seeking a rate increase. July 26, 2023. (Travis Fortnum/CTV News Windsor)

E.L.K. Energy intends to file an application to the Ontario Energy Board for a rate increase — citing increased costs related to storm damage and a desire to boost reliability.

If approved, the hike could see residents in Belle River, Comber, Cottam, Essex, Harrow, and Kingsville paying an extra $4 a month.

“We’re asking for a little bit more money so we can invest that money back in our system,” said Essex Mayor Sherry Bondy, who chairs E.L.K’s Board of Directors.

Bondy said a severe ice storm that blew through in February cost the utility about $150,000 alone — with the impact of severe storms of the summer still being tallied.

“E.L.K. is a small utility,” Bondy said. “It all adds up and, unfortunately, it’s not built into our current rate system.”

When a storm hits, E.L.K. has to cover the cost of any overtime for staff working to restore power, as well as pay for any crews from nearby utilities who come in to help and any infrastructure costs (i.e. replacing poles, etc.).

Residents say they’ve incurred their own costs through recent wild weather.

“My car was a write off, my basement was completely totalled, and I don’t have coverage from my insurance to cover it all,” said Harrow resident Meaghan Meloche.

Meloche, a mother of five, says the current cost of living makes finding an extra $4 a month - or $48 annually - seem like an impossible task.

“We scrape by as it is,” she said. “We both have very good paying jobs and there’s really no reason for us to be scraping by and we do, like it’s hard to put food on the table, never mind higher hydro bills.”

CTV News reached out to other nearby hydro providers Essex Power, Enwin Powerlines, and Entegrus Powerlines to see if they would be seeking a similar rate hike — however no comment was provided by the time this story was published.

The OEB allows providers to apply for rate hikes related to costs incurred by storm damage or natural disasters as a “Z-factor” claim.

A statement from E.L.K said there are a number of requirements an energy distributor must include in its application, including showing that the cost associated with the event was "material and significant and beyond what it is currently collecting through rates."

The distributor must also prove they utilized the most cost-effective options to manage the event and the OEB will conduct a review to verify. 

If the OEB decides to hold a hearing, it will direct E.L.K to publish a notice of application. Interested customers can then file letter of comment or seek formal intervener status in the proceedings.