Alert
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Published Date
Thursday, October 1, 2026
London is growing, and businesses increasingly depend on an electricity system that can support new development, changing operations and greater electrification. Reliable, high-quality electricity service is important to support businesses as they grow and change.
That’s why we’re planning ahead to maintain the system businesses rely on today while preparing for what’s next.
London Hydro has filed a Cost of Service application with the Ontario Energy Board (OEB) for 2027 distribution rates. Distribution rates cover the cost of providing and maintaining London Hydro’s electricity distribution system and are separate from the cost of the electricity itself.
A Cost of Service application is generally filed every five years and provides an opportunity to review the costs of operating, maintaining and investing in London’s electricity distribution system.
What could this mean for your business?
The impact of the proposed change to the delivery rate will vary by business. Larger commercial and industrial customers have different electricity needs, so there is no single bill impact that applies to all businesses.
Your bill impact will depend on factors such as:
- Rate class
- Total electricity consumption
- Peak demand
- Your operating and load profile
If approved as filed, the proposed delivery rates would take effect May 1, 2027.
What will we be investing in?
Over the next five years, our plan proposes average annual investments of approximately:
- $37 million for equipment renewal
- $20 million for additional capacity and automation
The cost of this work has also increased. Poles and many types of wire now cost roughly twice as much as they once did, while labour, construction and equipment costs have also increased.
These investments will help us maintain and renew the existing system while preparing for changing electricity needs. The plan focuses on growth, electrification, and using new technology to modernize and strengthen the grid.
Preparing for growth
Ontario’s electricity demand is projected to increase by 65% between 2026 and 2050. Planning for additional capacity helps support new connections, business expansion and economic development.
Supporting electrification
Businesses are increasingly considering electric vehicles, fleet charging, electric heating and the electrification of equipment and processes. These changes can affect electricity consumption and peak demand, so our planning needs to keep pace with changing business needs.
Modernizing and strengthening the grid
New technology and automation can help London Hydro monitor system conditions, identify problems and restore power more quickly. We also assess equipment based on its condition, performance and risk to determine when it should be replaced or renewed.
What’s in it for businesses?
The benefits will vary by business, but the plan is intended to support the reliable electricity service and capacity businesses need to operate and grow.
These investments can help provide:
- Greater reliability and resilience through equipment renewal and grid strengthening.
- Faster restoration through automation and improved system visibility.
- Capacity for growth by supporting new connections and facility expansions.
- Readiness for electrification as businesses adopt electric vehicles, heating and other technologies.
What happens next?
London Hydro’s proposed distribution rates must be reviewed and approved by the OEB, Ontario’s independent energy regulator.
The OEB reviews the application and supporting evidence to determine whether the 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:
We are here to help
For questions about our Cost of Service application or how it may affect your company, please don’t hesitate to reach out.
Paul Kilbourne
Manager of Key Accounts
kilbourp@londonhydro.com