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Windsor

E.L.K Energy applies for rate increase after February ice storm

E.L.K. Energy has applied to the Ontario Energy Board for a rate increase to cover costs incurred during last February's ice storm.

It filed for a "Z-factor" claim after ice crippled the distribution system on February 23. It covers expenses incurred during severe weather.

Windsor Fire and Rescue Services took 230 calls that night, while the 311 call centre had more than 600 requests for service.

Essex Mayor Sherry Bondy, who is also the chair of E.L.K. Energy, said the storm cost E.L.K. Energy $150,000.

"Those are additional expenses that we don't have in our budget," she explained. "When we have an event, we have overtime. We have more equipment. We pay staff to come into our municipality from other areas. This is not an uncommon practice."

E.L.K. Energy is not a large utility. It serves 10,000 customers with 19 staff members.

"When these storms hit, that means we can't put money into asset management unless we apply for a rate increase," said Bondy.

She emphasized the utility has big plans to improve its infrastructure and customer service.

Last year, the Ontario Energy Board awarded E.L.K Energy a rate cut, but Bondy said it was nothing to celebrate.

"E.L.K traditionally has not spent a lot of money on infrastructure," she said. "We do have some making up to do."

That includes hiring more customer service representatives and linespersons, increasing tree trimming, adding trucks to its fleet, installing a new phone system, and even buying a generator to keep the office working during power outages.

Bondy wasn't sure if the utility would apply for a Z-factor rate increase for more recent stormy weather, including last month's thunderstorms that knocked out the power.

"When other companies come into our town and work, sometimes it can take a few months to get the invoices," she said.

The OEB said local distribution companies have six months to "state their intentions to file a Z-factor application."

Enwin filed its annual rate application on August 17, which didn't include a Z-factor request. Essex Powerlines Corp. has not made an application.

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