Hydro rebate coming

FORT FRANCES—Fort Frances Power Corp. customers will get a pleasant surprise when they open their hydro bill next month and see a rebate for benefits realized in 2006 under the historical power agreement with the local mill.
FFPC CEO and president Jim Kibiuk said Monday afternoon that the average rebate for a Fort Frances home consuming 1,000 kW/h per month will be about $25-30.
The rebate is calculated at a rate of .002 cents per kilowatt hour (plus GST) based on the uplifted kW/h consumed by all Standard Supply Service Customers (residential and commercial) between Jan. 1 and Dec. 31, 2006.
The rebate will be applied to FFPC customers’ accounts this month—and appear as a credit on their next hydro bill.
Kibiuk stressed the rebate is for FFPC customers only, and stems from historical power agreement between the town and the mill.
Local consumers enrolled with electricity retailers are not eligible to receive the power agreement credit and rebate.
While the 2005 annual power agreement rebate was higher (it was calculated at a rate of .95 cents per kilowatt hour), Kibiuk explained that was because the market price was higher that year.
He added the amount of the rebate is “price of power driven,” meaning the more the price of power goes up, the greater the value of the historical power agreement becomes.
As well, the FFPC in 2006 applied more of the power rebate credit to customers’ bills on a monthly basis, so “the pot of money at the end of the year was substantially less.”
In 2005, less of the power rebate credit was applied on a monthly basis so more of the credit was given out in a lump sum at this time last year.