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NOVEMBER I4, I973 TERRACE BAY NEWS PAGE 3 TERRACE BAY NEWS PUBLISHERS FRANCIS & DEBORAH HELMINK PUBLISHED EVERY WEDNESDAY at the News Print- ing Plant, Post Office Building, Terrace Bay. OFFICE HOURS - 9 a.m. to 5 p.m. Mon.-Fri. DEADLINE - for all advertisements and news material is NOON Monday for publication in that week's issue. SUBSCRIPTION RATE: $4.00 per year (local) $5.00 per year (out-of-town) Second class mail Registration Number 0867. RISING COSTS FORCE RATE INCREASE Faced with rising costs and the resultant need for additional revenue, Ontario Hydro announced November 5th, that I974 rates will be raised for most users of electricity in the province. Increases in interim rates for municipal utilities, who buy in bulk from Ontario Hydro and in turn supply the majority of Ontario's 2.5 million users, will average 7% per cent. An average increase in revenue of some IO per cent is required from retail customers in rural areas, served directly by Ontario Hydro. Rates to a number of industrial plants also served directly by the provincial utility, will be increased to provide an additional IO per cent in revenue. ; Hydro Chairman George Gathercole said, "The new rates are primarily a reflection of strong inflationary forces. Labour rates next year under contract terms will be up substan- tially while much higher prices for fuel and materials will also push up electricity produc -tion costs." Another factor underlying the new rate structure is the need to provide more capital funds out of current revenue. Over the last few years the proportion from current revenue going toward additional generating and trans- mission facilities has been declining as a result of higher construction costs and the size of the program. As a result more funds must be generated from revenue in order to re- duce the need to borrow capital funds. "As the rates to most municipal customers are set by their local commissions after tak- ing into account their own distribution costs and the cost of power to them, any rate adjus -tments will depend on the financial position of each municipal system and other local cir- cumstances," said Mr. Gathercole. Mr. Gathercole said a number of the 353 local utilities and some industrial customers will obtain relief from the full effects of the increase. For many municipalities the increase will be less than 2 per cent. "This results from the elimination of a charge for standardization of frequency to 60 cycles from 25 cycles which has been in effect for some 25 years. The total cost of this program will be fully amortized by the end of 1973." While the average increase is IO per cent, actual increases will depend on the customer's classification and consumption pattern. Large industrial plants served directly by Ontario Hydro will also have to provide an overall increase of I0 per cent in revenue to meet increasing costs of providing electrical energy to them. Actual rate increases to each industrial customer will depend on use patterns and to some degree the type of service provided. "Municipalities in the former Niagara 25- cycle system will have their increases reduced by $3 a kilowatt next year. Those in Hydro's Eastern and Georgian Bay regions will obtain a reduction of 50 cents a kilowatt in I974." REMBER FURNITURE. WAREHOUSE I20I W.Walsh Street Thunder Bay,Ont. (at end of Walsh St.,near Airport) NEW FURNITURE AT DISCOUNT PRICES Bedroom, Livingroom, Kitchen Furniture, Westinghouse Appliances, Wall-to-Wall Broadloom, Motel Furniture and Bedding FREE DELIVERY in NORTHWESTERN ONTARIO BUSINESS OPPORTUNITY TERRACE BAY, ONTARIO The complete concession located in the Terr=- ace Bay Memorial Recreation Centre, will be available on a lease agreement basis on January 1st, 1974. Concession includes: Snack Bar, small dining area, smoke shop, arena refreshment booth and a four lane bowling alley. Interested persons may obtain further partic- ulars by contacting the Recreation Office, P.0. Box 460, Terrace Bay, Ontario. W.J. Hanley, Clerk-Treasurer, Terrace Bay, Ontario.