The Ontario Energy Board has dismissed an application by Toronto Hydro to increase rates by $5 a month on Thursday.
The Board says that Toronto Hydro did not make a case that it is under financial stress.
Toronto Hydro argues it needs $1.5 billion to repair aging infrastructure.
Toronto Hydro says that without the funding the city could be subject to longer and more frequent blackouts.
"This will likely result in deteriorating service, an increase in power outages, an increased risk to public safety, slower call centre response times, as well as the likelihood of major workforce downsizing," the company stated in a release on Thursday.
The board of directors for Toronto Hydro was meeting late Thursday to review the board's decision.
With files from CTV Toronto's Paul Bliss
