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Electricity rates for Hydro Ottawa’s residential customers won’t rise by as much as the utility wanted, following a decision by the province’s energy regulator.
In a decision released Tuesday, the Ontario Energy Board (OEB) rejected Hydro Ottawa’s proposal to increase the distribution portion of their monthly bills by 16 per cent, effective Jan. 1, 2026.
A key consideration for the board was affordability for customers.
“The OEB noted that these outcomes moderate the increase in rates for Hydro Ottawa’s customers without compromising reliability or quality of service,” wrote the board, explaining its decision.
It’s still not entirely clear the exact impact on customer bills, but that will be confirmed in the coming weeks, the energy board wrote.
Process started last year
Hydro Ottawa applied to the board to change its rates more than a year ago, in April 2025.
That initial proposal would have seen residential users charged an extra $6.08 a month in 2026 for electricity distribution. 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 the impacts of managing storms and vegetation with climate change.
The parties involved settled most issues in December. That included Hydro Ottawa’s plan to spend $1 billion over five years on infrastructure and other capital projects, $214 million less than what it originally proposed.
The final decision and order from the Ontario Energy Board that will determine rates on hydro bills, however, only came this week in a 30-page decision.
The utility argued to the board it needed an operational budget of $140 million in 2026 to achieve its goals, an increase from $120.6 million in 2025. Instead, the board has approved Hydro Ottawa spending of $129 million — $11 million less than it wanted.
‘Not supported by credible reasons’
In its 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.
“The OEB agrees and finds that a one-year increase of 16 per cent is significantly above inflation and would not result in a just and reasonable increase for customers,” the decision said.
The board added it received 151 letters and that the majority of customers expressed concern over Hydro Ottawa’s proposed rate increase due to affordability and related issues.
“This increase would only deepen the financial strain on families, seniors, and small businesses already working hard to make ends meet,” reads one letter sent to the regulator.
Some of the extra budget room Hydro Ottawa wanted was to pay for 81 new full-time positions in 2026, which would have been a big jump from the 641 positions on its books in 2025.
The board didn’t find Hydro Ottawa had justified that hiring plan, and suggested it had front-loaded the new jobs rather than gradually increasing staff over five years.
Hydro Ottawa responds
Now that the Ontario Energy Board has issued its decision, Hydro Ottawa says it is working on recalculating the rates and estimated impact on customer bills.
“While we did not receive the full [operating, maintenance, and administration] amount requested, we are currently reviewing the decision to optimize our 2026–2030 operational plans,” Hydro Ottawa spokesperson Josée Larocque wrote in an email.
Larocque said the utility is committed to maintaining a grid that supports the city’s needs while managing its operations within the framework approved by the regulator.
Hydro Ottawa now has until May 21 to file a draft rate order to the board with a proposed tariff of rates and charges that reflects the regulator’s findings.