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Hydro One seeks 4.7% hike in transmission revenue for 2020

Hydro One Networks Inc. filed a transmission rate application with the Ontario Energy Board for the test period 2020 to 2022, seeking a revenue requirement of C$1.67 billion for 2020.

The proposed revenue requirement translates into 4.7% year-over-year increase, compared to the 2019 revenue requirement proposed in the company's 2019 application. The average year-over-year increase in the revenue requirement over the three-year test period is expected to be 4.9% per year, the Hydro One Ltd. subsidiary said in the filing.

If approved, a typical residential customer using 750 kWh per month may see an increase of 0.6%, or 77 Canadian cents in their monthly bills in 2020. "Almost half of this increase is attributable to load decline due to government conservation initiatives and lower consumption," the utility said.

Over the course of the period, Hydro One expects to invest C$5 billion to keep its system safe and reliable, as well as to reduce the number of power outages, according to a March 21 news release.

Hydro One's system serves approximately 98% of Ontario by capacity. Its transmission system is comprised of approximately 290 transmission stations and about 29,000 circuit kilometers of high-voltage lines and towers, representing approximately C$13 billion in transmission assets.