Hydro Ottawa applying to increase distribution rates over 5 years, with $6 a month increase in 2026

It could cost you more to turn on the lights. Hydro Ottawa is planning to hike rates over the next five years to upgrade its aging infrastructure.

Ottawa residents could be paying more to turn on the lights over the next five years, as Hydro Ottawa plans hundreds of millions of dollars in spending to upgrade aging infrastructure and improve “grid resilience.”

The utility has filed an application to the Ontario Energy Board to increase distribution rates $6.08 a month in 2026, and then between $2.72 and $3.79 a month between 2027 and 2030.

“Hydro Ottawa’s 2026-2030 (Distribution System Plan) outlines an increase in capital investments compared to the previous five-year period, driven by the necessity to modernize and expand the grid to meet evolving community needs and address climate change,” Hydro Ottawa said.

The utility says the plan focuses on four investment priorities: Growth and electrification – powering a growing community, renewing deteriorating infrastructure, grid modernization – enabling the energy transition, and enhancing resilience.

“These priorities, supported by focuses on managing rising costs and investing in the workforce, aim to ensure a reliable and resilient electricity system for the City of Ottawa and the Municipality of Casselman,” Hydro Ottawa said.

Hydro Ottawa will spend $1.195 billion over five years to improve hydro infrastructure, with 55 per cent of the funding going towards “growth and electrification” to power the growing city and “service customers’ changing needs for electricity, including solutions such as new technologies.”

The utility says its investment plan includes enabling energy transition and reducing emissions, responding to rising costs and hiring more workers.

“There is a critical need for growth of the workforce and the addition of new and enhanced skill sets,” the utility says. “The growth is necessary to meet business growth needs and ensure safe and efficient work.”

The Hydro Ottawa submission outlines the average monthly impact for residential and ‘general service’ customers using 2,000 kWh per month.

Residential

• 2026: $6.08 a month (distribution charge of $40.59 a month)
• 2027: $3.79 a month (distribution charge of $44.38 a month)
• 2028: $3.31 a month (distribution charge of $47.69 a month)
• 2029: $2.72 a month (distribution charge of $50.41 a month)
• 2030: $2.74 a month (distribution charge of $53.15 a month)

General service

• 2026: $14.57 a month
• 2027: $8.42 a month
• 2028: $7.50 a month
• 2029: $6.62 a month
• 2030: $5.80 a month

In a statement to CTV News Ottawa, Hydro Ottawa said the proposed rate hike is for “necessary investments” to modernize and strengthen” the utility’s infrastructure.

“Hydro Ottawa is committed to delivering safe and reliable electricity to our customers, especially as we face the challenges of rising demand due to increased electrification and grid resiliency issues caused by extreme weather events,” the utility said.

“To meet these challenges head on, we are prioritizing investments in aging infrastructure and modern technologies. These investments are essential to building a modern, resilient, and cost-effective grid that will meet the future energy needs of our customers, ensuring they have the power they need, when they need it, in a manner that is both sustainable and affordable.”

Last June, Hydro Ottawa CEO Bryce Conrad told councillors there were plans for a “massive investment” in the utility, with the new rate application including spending to meet “customer needs in relation to reliability, resilience, emergency response, electrification and grid modernization.”

• JUNE 2024: Ottawa’s hydro grid ‘more resilient’ today following 2022 derecho

Hydro Ottawa has 364,334 residential and business customers in Ottawa and serves 1,116 sq. km of area.

Residents are invited to provide feedback to the Ontario Energy Board.

Hydro Ottawa’s monthly distribution rate increased $4.92 a month for residential customers in 2024 and $0.16 per month this year.