When Todd Smith, the Ontario Minister of Energy announced on April 11th the new ULO electricity rate plan that has the unheard of low overnight rate of $0.024/kWh starting May 1st. I immediately signed up with Toronto Hydro, one of the first to offer the new rate plan. I was surprised its website had no information on the Ultra Low Overnight plan. Their rate plan application form only listed the two existing plans, so I added my own box for ULO, checked it, and sent it by email. I got a response the next day that I should submit the form on May 1st. On May 1st, nothing had been updated, so I resubmitted my modified application form, and I was enrolled.
Although Toronto Hydro had been unprepared, I knew the change would be implemented quickly when it comes from the top. I wanted to be an early ULO adopter not only because I have an electric vehicle (Tesla), but because it will transform the province’s electrification systems. Their website now includes the ULO plan
What is the difference between ULO and TOU Electricity Rate Plans?
Basically, the Ultra Low Overnight (ULO) is a modified Time of Use (TOU) plan tailored for electric vehicle (EV) owners with the following differences in time, days of the week, and rates that exclude the additional charges.
- 1) ULO’s rate plan remains the same throughout the year, whereas TOU’s has higher rates for summer effective May 1st and lower rates for winter on November 1st.
- 2) Only ULO offers the previously unheard-of low rate of $0.024/kWh every day from 11:00 pm to 7:00 am.
- 3) ULO’s on-peak rate of $0.24/kWh is noticeably higher than TOU’s $0.151/kWh, and both are applicable weekdays, but at different times.
ULO’s on- peak time is from 4:00 pm to 9:00 pm, whereas TOU’s is from 11:00 am to 5:00 pm.
- 4) The mid-peak rate of $0.102/kWh is the same for both ULO and TOU on weekdays; but at different times.
ULO’s mid-peak times are from 7:00 am to 4:00 pm and also from 9:00 pm to 11:00 pm, whereas TOU’s mid-peak times are from 7:00 am to 11:00 am, and also from 5:00 pm to 7:00 pm.
- 5) The off-peak rate of $0.074/kWh is the same for both, but is applied to different days of the week, and different times of the day.
ULO’s off-peak days are weekends and holidays from 7:00 am to 11:00 pm whereas TOU’s off-peak days are weekdays from 7:00 pm to 7:00 am, and also all day weekends and holidays.
Why switch to ULO?
If you are an EV owner like me with a split-phase (big round plug) level 2 charging, the ULO plan is a significant money saver. With the TOU plan I was already charging the car battery between 11:00 pm and 7:00 am, but now it’s for $0.024 instead of $0.074 per kWh – three times cheaper. This makes it an even bigger saving to own an EV instead of a gasoline vehicle.
It also makes sense to use the ULO rate for appliances with a split phase as well. If you’re up to it, you can use the dryer, and air-conditioner, and even the oven at this rate, which would further reduce your electricity bill.
For the air conditioner, it makes sense to drop the temperature significantly lower to around 20 C every night at the ULO rate so there is a reservoir of cool air during the heat of the day to avoid the higher rates.
When scheduling the EV charging, thermostat, and other appliances, it’s very important to check the clock is accurate, as well as the day of the week.
Why would the Ontario Energy Board Offer ULO?
It seems the OEB has acknowledged the trend towards electric vehicles is here to stay. They may want to do their part to facilitate this transition, and make some money, too, instead of giving away the electricity generated overnight. They may also take this opportunity to modernize and decentralize their electricity supply mix.
Ontario’s energy model was created to support the auto industry about sixty years ago, which necessitated the building of 19 nuclear reactors that bankrupted Ontario Hydro.. Nuclear requires a constant load, and they’ve been basically giving away the overnight generated electricity for decades.
Although nuclear is still Ontario’s base load, its portion of the electricity supply mix has dropped from 67% in the past ten years to 51% in 2022. The pandemic and the changing economic dynamics would have likely been a money-losing trend for nuclear, which is why the OEB is offering such a low ULO rate -- they can afford to be generous.
Why it makes sense to switch to ULO
The ULO rate electricity rate plan is tailored for EV owners so that they will have a dramatic decrease in cost to operate their vehicle, and also have a much lower monthly bill. It will also creates a rapid adoption by consumers swiitching to ULO.
With the ULO, the OEB will get a more consistent overnight electricity demand resulting in a more balanced electricity useage that is easier to control. This will give Ontario the opportunity to modernize its electricity supply model for the next sixty years that can be much less wasteful, more responsive, more decentralized, and be mostly renewable such as wind and solar.
Sharolyn Mathieu Vettese
President
SMV Energy Solutions
www.smvholdings.com
SMV Energy Solutions provides simple smart solutions that conserve energy.