The local power provider that keeps Ottawa’s lights on is looking to increase what homeowners pay each month, citing critical infrastructure needs as our city grows.
Hydro Ottawa has submitted a rate increase proposal to provincial regulators that would gradually raise distribution rates over five years, with the most significant jump coming in 2026. The company says these increases are necessary to maintain reliable service while supporting increasing electricity demand across the city.
According to documents filed with the Ontario Energy Board (OEB), the typical residential customer would see monthly bills rise by about $6 in 2026 – the largest single-year increase in the proposal. This follows several years of relatively modest increases that hovered around inflation rates.
“We’re facing unprecedented demand growth combined with aging infrastructure,” said Catherine Bell, Hydro Ottawa’s Director of Regulatory Affairs, during a public consultation session last week. “These investments aren’t optional if we want to maintain service reliability.”
The rate application comes as Ottawa experiences rapid population growth and increasing electricity demands from new developments and the electrification of transportation. The utility serves more than 353,000 customers across Ottawa and parts of rural eastern Ontario.
City Councillor Riley Brockington expressed concerns about the timing of these increases. “Residents are already facing higher costs for everything from groceries to housing. Adding more to monthly utility bills will create real hardship for many households,” he told me during an interview at City Hall.
The proposal includes significant investments in grid modernization, including replacing aging equipment and expanding capacity in high-growth areas like Kanata and Barrhaven. About 40 percent of the proposed spending would focus on system renewal projects to replace equipment nearing the end of its useful life.
Consumer advocate groups like the Consumers Council of Canada are reviewing the application carefully. Their spokesperson, Julie Marchese, noted that while infrastructure upgrades are necessary, “the pace and distribution of these costs require careful scrutiny to ensure fairness for all ratepayers.”
For perspective, the average Ottawa household currently pays approximately $130 monthly for electricity, with about $30 of that amount going toward Hydro Ottawa’s distribution charges. The remainder covers electricity supply costs, regulatory charges, and taxes.
The Ontario Energy Board will hold public hearings on the rate application this fall, providing residents an opportunity to voice their opinions. The regulatory body typically takes several months to review such applications before making a decision.
Several community organizations, including the Ottawa Community Housing Corporation, have registered as intervenors in the process. They plan to advocate for enhanced assistance programs for low-income residents who would be disproportionately affected by the increases.
“Energy poverty is a real concern in our community,” explained Maria Santos, Executive Director of the Ottawa Energy Assistance Network. “We need to ensure vulnerable households don’t face impossible choices between keeping the lights on and putting food on the table.”
Hydro Ottawa maintains that even with the proposed increases, their rates would remain among the lowest for comparable urban utilities in Ontario. They’ve also pointed to their reliability record, noting that Ottawa residents experienced fewer and shorter outages than the provincial average over the past five years.
The company has scheduled several neighborhood information sessions throughout September and October to explain the proposal to residents. Details on these sessions can be found on the Hydro Ottawa website.
As someone who’s covered Ottawa’s infrastructure challenges for over a decade, I’ve watched our city struggle with the balance between keeping costs affordable and maintaining essential services. This proposal reflects a broader challenge facing many growing cities – how to fund critical infrastructure without overburdening residents already facing economic pressures.
The OEB is expected to make its decision on the rate application by early 2025, with the first increases potentially taking effect next spring if approved.
