Investing in London’s Electricity System: What Our 2027 Rate Application Means for Customers

London is growing, and the way we use electricity is changing. More homes and businesses are connecting to the grid, while technologies such as electric vehicles, heat pumps and electric transit are becoming more common.

To keep electricity service safe and reliable today and prepare for what London will need tomorrow, London Hydro is proposing investments to renew equipment, expand capacity and modernize the grid.

As part of this work, we have filed a Cost of Service application with the Ontario Energy Board (OEB) for 2027 rates, along with our plan to maintain and invest in the electricity system from 2027 to 2031.

If approved as filed, a typical residential customer using 750 kWh per month would see an increase of approximately $6.01 on their total monthly bill, effective May 1, 2027. The proposed change relates to London Hydro’s distribution rates, which form part of the Delivery line on customer bills.

Our customers helped shape the plan

Before developing our application, we asked customers what they thought about the investments needed to maintain and prepare London’s electricity system.

More than 12,000 customers participated in our May 2026 engagement survey conducted by Innovative Research. Of those who responded, 70% supported the proposed level of spending or a higher level.

We also heard that affordability matters. In response to that feedback, we refined our plan and reduced the proposed customer impact from approximately $8 per month to $6.01 per month for a typical residential customer.

Why do we need to invest?

Over the next five years, our plan proposes an average annual investment of approximately $37 million for equipment renewal and $20 million for additional capacity and automation, focusing on four key areas:

Replacing equipment at the right time
Maintaining a safe and reliable electricity system is an ongoing process. Every year, London Hydro tests, inspects and evaluates equipment across the system to identify where investment is needed most. We use this information to determine when equipment should be replaced or renewed, based on its condition, performance and likelihood of failure. 

We aim to get the full value from our equipment while prioritizing investments that support a safe, reliable and resilient electricity system. 

Preparing for growth
Ontario’s electricity demand is projected to increase by 65% from 2026 to 2050. London’s electricity system will need to evolve alongside this growth to support new homes, businesses and other developments.

Our plan helps make sure there is enough capacity to meet changing electricity needs across our community. 

Supporting electrification
As more customers choose electric vehicles and heat pumps, and as businesses increasingly electrify their fleets, electricity demand will continue to change. Our system needs to be ready.

Modernizing the grid
New technology and automation can help us connect customers more quickly, identify problems and restore power faster.

Keeping affordability in mind

We know customers are facing financial pressures, and affordability is an important part of our planning. We’re prioritizing the work that is needed most and timing investments carefully to balance today's costs with the longer-term needs of the electricity system.

The cost of materials and equipment has also increased significantly. For example, poles and many types of wire now cost roughly twice what they once did. 

We’ll also continue connecting eligible customers with programs that can help make electricity more affordable, including the Ontario Electricity Support Program (OESP) and Low-income Energy Assistance Program (LEAP).

What happens next?

London Hydro's proposed rates must be reviewed and approved by the Ontario Energy Board, Ontario's independent energy regulator.

The OEB reviews the evidence in rate applications to determine whether proposed costs and rates are reasonable and in the public interest. Customers can review London Hydro's application, submit comments or apply to participate in the OEB's review as an intervenor.

The participation deadline is October 9, 2026.

To learn more about the application or participate in the OEB's review, visit oeb.ca/notice.

Planning for tomorrow

Our plan is designed to keep pace with London’s growth and changing electricity needs while maintaining the safe and reliable service our customers depend on.

We’ll continue to assess where investment is needed, prioritize the work that matters most and listen to our customers along the way.