Smart Meter General Information

1. Smart meters - An integral part of Ontario's energy plan.
2. Why has the province mandated the use of smart meters?
3. Why is Horizon Utilities installing smart meters?
4. What is a smart meter?
5. What will my smart meter do now and what will it do in the future?
6. What is the value of having a smart meter?
7. When will my smart meter become fully functional?
8. Will a smart meter save me money?
9. When will I switch to Time-of-Use Rates?
10. What does a smart meter look like?
11. Is everyone getting a smart meter?
12. Why is it important for me to know how much electricity I use and when I use it?
13. Will I be able to monitor and track my electricity use?
14. Can I volunteer to get a smart meter now?
15. I don't want to have a smart meter installed. Can I refuse?
16. When will I get my smart meter if my home is not on the smart meter installation map on the Horizon website?
17. Will I still receive estimated bills?
18. What are other utilities in Ontario doing?
19. What happens with the information collected from the smart meter?
20. Will my first bill after the meter replacement looks any different?
21. How much will smart meters cost?
22. What are time-of-use rates?
23. How will time-of-use (TOU) pricing work?
24. What are the cost savings and environmental benefits of smart meters?
25. Why is it so much more expensive to use electricity during weekdays?
26. Since my usage data will be sent automatically, will it remain secure and confidential?
27. Can Horizon Utilities access my property to change the meter?
28. I now have my smart meter installed but understand that I cannot manage my bill by adjusting my consumption until TOU rates are introduced?
29. What happens after a smart meter is installed?

Smart meters - An integral part of Ontario's Energy Plan
To help create a conservation culture in Ontario and make the Province a North American leader in energy efficiency, the Government of Ontario has taken action to facilitate a number of key initiatives including the:

• Installation of smart electricity meters in 800,000 homes and small businesses by December 31, 2007
• Installation of smart electricity meters in all homes and small businesses throughout Ontario by 2010
• Introduction of flexible, time-of-use pricing for electricity
• Setting of a target of a five per cent reduction in Ontario's energy consumption by 2007

Why has the province mandated the use of smart meters?
It is estimated that over the next twenty years, Ontario will need to refurbish, rebuild, replace, or conserve 25,000 megawatts (MW) worth of generating capacity — more than 80% of Ontario's current electricity generating capacity — at an estimated cost of $70 billion. Producing more electricity is only part of the answer. Conservation and demand management will help us make the best use of our existing electricity resources and slow our growth in demand. There are tremendous opportunities to reduce the supply-demand gap through the wise use of electricity — and smart meters together with time-of-use rates will help encourage us all to think about how and when we use electricity.

Why is Horizon Utilities installing smart meters?
Horizon Utilities is supporting the Government of Ontario's initiative to install smart meters in all homes and businesses by 2010.

What is a smart meter?
Currently, most homes are equipped with a meter that measures how much electricity was used in a billing period, typically two months. With these meters, customers do not have any way of tracking their electricity consumption.

A "smart meter" is the name now commonly used for a new type of electricity meter. The electronics in the meter are what make it "smart."

Instead of simply measuring how much electricity consumers use over the course of a billing period, a computer chip inside the smart meter measures and records how much electricity is used during each hour of the day. Once time-of-use rates come into effect, consumers with smart meters will be charged different amounts for the electricity consumed during different time periods throughout the day.

The goal in using smart meters is to help raise consumer awareness about the cost of electricity. Time-of-use rates will provide an incentive to encourage Ontario residents to shift their electricity use away from peak demand periods when the price is high to other times during the day when the demand for power is not as high and prices are lower.

What will my smart meter do now and what will it do in the future?
The installation of the smart meter is the first step on the road to building the smart metering system. Initially, smart meters will perform exactly like conventional electricity meters. In the future, once the related smart metering systems are operational and time-of-use rates become effective, the smart meter system will provide a number of significant benefits.

What is the value of having a smart meter?
Currently, there is no incentive for consumers to shift their electricity usage to off-peak hours of the day since the price charged to consumers is the same no matter when the power is used.

When Ontario introduces time-of-use rates for electricity at some point of time in the future, there will be different electricity rates for off-peak, mid-peak and on-peak periods. With a smart meter installed, consumers will have the benefit of being able to manage their energy costs by shifting the time they use electricity away from more expensive on-peak hours to times when electricity costs are not so high*. For example, low electricity rates in the evening and on weekends will provide an incentive for consumers to turn on their dishwashers before going to bed or use their electric lawn mowers on weekends.

*Consumers who purchase power from an electricity retailer will continue to pay the rate(s) stipulated in the contract.

When will my smart meter become fully functional?
Your smart meter will become fully functional when the related systems (communications and billing infrastructure, etc.) are in place and time-of-use rates come into effect. Some of the smart meter systems are the responsibility of Horizon Utilities and others are the responsibility of the provincial government.

Will a smart meter save me money?
Not by itself. A smart meter is merely a tool used for collecting data. It is the actions that consumers take based on this information that will make the difference. If people are able to shift some of their energy usage from on-peak to mid-peak or off-peak hours, and they are being billed using time-of-use rates, they should save some money.

When will I switch to time-of-use rates?
The Ontario Energy Board has not yet established a date when mandatory time-of-use rates will come into effect, but we will notify you well in advance of this date.

What Does a Smart Meter Look Like?
A smart meter is the same size and general shape as a traditional electricity meter. It fits into a standard meter base.

Is everyone getting a smart meter?
Yes. The Ontario government has established targets for the installation of 800,000 smart meters by December 31, 2007. All residents and small businesses in Ontario will have a smart meter by 2010.

Why is it important for me to know how much electricity I use and when I use it?
Today, we pay the same price for electricity during all hours of the day because our rates are based on averaging out the more expensive (daytime) and cheaper (nighttime) prices of electricity. This is simply because our existing meters can't report when it was used. In the future, electricity prices will be different at different times of the day to more closely reflect the market price of electricity. When demand for electricity is low like in the late evening and on weekends, the cost of electricity per kilowatt-hour will be less, and when demand is high, like in the late afternoon and early evening, it will cost more.

Will I be able to monitor and track my electricity use?
Yes. In the future, you will be able to access your electricity use through the internet and telephone. The current plan calls for your previous day's data to be ready for viewing by 8:00 a.m. the following day and for 13 months of history to be accessible to you.

Can I volunteer to get a smart meter now?
We are very encouraged by the level of interest and enthusiasm of our customers to adopt the smart meter technology. However, in order to maximize the efficiency of the smart meter deployment across the province, customers will not be able to select when they receive a smart meter

I don't want to have a smart meter installed. Can I refuse?
No. The Ontario government has mandated everyone in the province to have a smart meter by 2010.

When will I get my smart meter if my home is not on the smart meter installation map on the Horizon website?
The Ontario government's target is to have smart meters installed in all Ontario homes and small businesses by 2010. Horizon Utilities has over 231,000 meters to install. We started by installing 7,800 meters in 2005/2006. If you do not receive a smart meter this year, rest assured you'll receive one by 2010.

Will I still receive estimated bills?
No. Since smart meters automatically transmit meter reads, it will no longer be necessary to estimate bills.

What are other utilities in Ontario doing?
In support of the Ontario Government's smart meter initiative, all of Ontario's utilities will be installing smart meters to meet the 2010 deadline

What happens with the information collected from the smart meter?
The information collected from the smart meters will be transmitted to Horizon Utilities where the data is used for testing purposes. This information is treated in a secure and confidential manner throughout the process. Attached is a diagram that outlines how smart metering in Ontario will work.

Will my first bill after the meter replacement looks any different?
Yes, it will be a longer bill as it will display two sets of electricity usages - first for the meter that was replaced and second for the new smart meter. This will appear on the first bill after the installation of your smart meter only; after that your bill will look the same.

How much will smart meters cost?
The cost of smart meters is being factored into the company's Distribution rates the same way that traditional hydro meters and the rest of our infrastructure costs have always been and will be recovered over 15 to 18 years, which is the expected life of the smart meters. All utilities across Ontario will be recouping the costs for smart meters in this way.

In May 2006, Horizon Utilities received approval from the Ontario Energy Board to include a $0.39 charge per metered customer per month in the distribution rates to cover initial start-up costs for smart meters. The Ontario Energy Board subsequently approved a rate increase effective May 1, 2007, to increase the charge for smart meters included in the distribution rates to $0.82 per metered customer per month. These funds cover the cost of installing 50,000 smart meters in 2007. Horizon Utilities currently does not have an approved rate for smart meters for 2008 and beyond.

What are time-of-use rates?
Time-of-use rates are electricity prices that vary by time of day and more closely reflect the wholesale price of electricity. The Ontario Energy Board has established time-of-use periods and prices in preparation for the implementation of smart meters but has not yet set a date when these rates will become mandatory. We will let you know well in advance of when time-of-use rates come into effect.

Ontario Energy Board Time-of-Use Period and Pricing Chart as of November 1, 2008 (not yet mandatory)

 Click here for more information on Time-of-Use pricing.

How will time-of-use (TOU) pricing work?
The ability to measure when electricity is used means different prices can be applied at different times of the day, or days of the week. With time-of-use pricing, you'll have new options for managing your electricity costs. If everyone makes a few small changes around how they use electricity, it will also have a positive impact on both the environment and Ontario's electricity system.

 Click here for more information on Time-of-Use pricing.

What are the cost savings and environmental benefits of smart meters?
When we're all using a lot of electricity at the same time, we create a "peak demand" period. Supplying electricity at those times has a range of impacts. Higher demand often means higher market prices because having generating plants that stand ready to meet peak demand and only operate infrequently is expensive and these plants are usually the less attractive forms of generation that are harder on the environment. By smoothing out the peaks in demand, we can reduce the amount Ontario needs to invest in additional power generating plants, transmission lines, and distribution facilities.

Why is it so much more expensive to use electricity during weekdays?
When everyone is using a lot of power at the same time a "peak demand" is created. Higher demand means higher market prices as more expensive types of generation are run to meet the demand. It can also mean importing electricity from more expensive jurisdictions on days when our own generation is not enough. Therefore, it makes sense for us to work collectively to reduce our usage at peak times to smooth out the peak.

Since my usage data will be sent automatically, will it remain secure and confidential?
Yes, Ontario's electricity distributors are required by law to ensure that smart meters and associated communication networks are equipped with security features to prevent unauthorized access. We must also comply with federal laws regarding the privacy, protection and disclosure of personal information.

Can Horizon Utilities access my property to change the meter?
Yes, Ontario's Electricity Act (section 40) grants the right to all electricity distributors to access a customer's property at any time to replace the meter.

I now have my smart meter installed but understand that I cannot manage my bill by adjusting my consumption until TOU rates are introduced?
While it's true you are not being billed at TOU rates at the present time, you can start reducing your electricity consumption right now by following some or all of the examples below.

• Replace your incandescent light bulbs with compact fluorescent light bulbs which use 75% less power and last much longer.
• Dry clothes outdoors
• Use a programmable thermostat. Set your air conditioning at 25° Celsius in the summer and your heating at 20° Celsius in the winter.

What happens after a smart meter is installed?
Although installed smart meters will begin recording hourly energy usage almost immediately, for the time-being, there will be no change to the way in which customers will be billed for their electricity consumption.

When the Ontario government decides to implement time-of-use rates, all customers who have a smart meter installed and who are not purchasing power through an energy retailer, will be billed according to the new rates for the off-peak, mid-peak and on-peak time periods. There is no word at the moment when this change will happen but customers with installed smart meters will be notified prior to it going into effect.