______________________

John Pickernell

Assistant Board Secretary

Ontario Energy Board

416-440-7605

Fax: 416-440-7656

Website: www.oeb.gov.on.ca

Official Correspondence: BoardSec@oeb.gov.on.ca



Address:

P.O. Box 2319

2300 Yonge Street 27th Floor

Toronto, ON

M4P 1E4

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From: ConsumerRelations
Sent: November 30, 2009 9:18 AM
To: BoardSec
Subject: FW: Letter of Comment RE: comment re Veridian application 2009-0140



RE: 2009-0013349



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From: l bratty [mailto:lbratty@muskoka.com]
Sent: November 25, 2009 4:26 PM
To: ConsumerRelations
Subject: comment re Veridian application 2009-0140



RE: OEB Application 2009 -0140 Veridian



Veridian Connections has made application to the OEB for a significant increase in the delivery rates for Gravenhurst customers. I am opposed to this requested increase.



At present Veridian’s delivery rates are more than those of our neighbouring power system, Lakeland Power. Both Veridian and Lakeland share the same issues, terrain and remote lines going through treed areas, and have the same weather systems. So to argue that an increase in rates is necessary because of the type of area served is not accurate. In addition the 2006 increase received by Viridian allowed them to make the necessary investments to increase the system’s reliability. Any increase in delivery rates will further increase the difference making it even more unjustifiable.



The rationale presented regarding how costs have been allocated over the past 4 years, thereby justifying an increase to Gravenhurst customers and a decrease to the rest of the customers is also not valid. A review of the 1700 page submission shows that Veridian clearly operates as one company. How they choose to allocate costs within the company is an accounting and management decision. This should not be a factor in justifying increases. The company still reports a return on equity to the shareholders at the maximum allowed by the Board. If their costs are rising they should be directed to look at increased efficiencies, decreasing the shareholder return and if any rate increase is justifiable after these items than the rate increase should be allocated equally across the whole customer base.



Thank you



Lola Bratty



P.O. Box 786

Gravenhurst, Ontario

P1P 1V1



705 687 9178



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