BC Hydro rates going up 28% over five years

The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill

Energy Minister Bill Bennett and BC Hydro CEO Charles Reid outline 10-year plan for BC Hydro in Victoria Monday.

VICTORIA – The first of a series of BC Hydro rate increases takes effect in April 2014, adding $8 a month to the average residential power bill.

Rate increases of nine per cent next year and six per cent in 2015 are the highest of a series of increases over five years announced Monday by Energy Minister Bill Bennett. The B.C. Utilities Commission will be directed to set rate increases that total up to 28 per cent over the next five years, then determine what rates are needed for the following five years, Bennett said.

Commercial rates are going up the same amount.

Bennett acknowledged that rate increases are being kept low by using a “rate smoothing” account that defers more than $1 billion of the utility’s debt. That account won’t begin to be paid down until after 2020.

BC Hydro CEO Charles Reid said the latest rate increases are driven mainly by a large increase in capital spending, including seismic refits of old dams at Campbell River and Ruskin, turbine expansions at two Kootenay power dams and other upgrades. BC Hydro’s “big build” era of 1973 to 1982 produced rate increases totalling 113 per cent.

BC Hydro cited an annual survey by Hydro Quebec that shows BC Hydro customers currently pay the third lowest rates in North America. Montreal and Winnipeg customers pay less, and Seattle and Miami residents pay slightly more.

NDP energy critic John Horgan said Bennett avoided the impact of private power purchases on BC Hydro’s rate increases.

“We’re going to have increased debt for the next five years,” Horgan said. “They’re going to continue to take a dividend from a company that can’t afford to pay one, and the consequences for people are going to be higher costs.”

Bennett said the 10-year plan calls for the government to “wean itself off” dividends from the utility, but the five years of reductions don’t start until 2018.

The government has instructed BC Hydro to shut down the gas-fired Burrard Thermal generating station in Port Moody by 2016, saving an estimated $14 million a year. The forecast electricity surplus over the 10-year plan allows that, but the facility will continue to be staffed for its grid stability function, Reid said.

 

Just Posted

Site C dam goes ahead, cost estimate now up to $10.7 billion

Premier John Horgan says Christy Clark left him no other choice

Girls provincial volleyball hosted at NVSS

Viqueens and locals treat visitors like royalty

Snowbirds, F-18s, Skyhawks at 2018 Vanderhoof Airshow!

Demonstration teams confirmed at Council of Airshows convention

Some visitors to Northern Health facilities asked to wear a surgical mask

The new flu policy is in effect at all Northern Health facilities

Climate change could help producers in northern B.C.

Agriculture coordinator brings excitement and vision to the region

VIDEO: New series takes in-depth look at sexual harassment in B.C.

Black Press takes a hard look at sexual harassment in B.C.

B.C. dog owners warn about chain collars after puppy almost strangled

Young Rottweiler pup couldn’t breathe after another dog caught tooth on his collar

Accused NYC subway bomber expected to face federal charges

Akayed Ullah, 27, was charged Tuesday with terrorism and weapons related charges

Strategy announced for Indigenous cancer care

Various stakeholders have come together to provide a road map from prevention to survivorship

Environmental groups slam NDP decision to continue with Site C

Construction industry, meanwhile, is cautiously optimistic about how the project will look

B.C. Conservatives applaud Site C decision

B.C. Conservatives happy with government decision to proceed

Hwy. 1 avalanche improvements promise less delays

B.C.’s new remote avalanche-control systems near Revelstoke are ready for avalanche season

2017 word of the year: Feminism

Merriam-Webster’s word of the year for 2017: ‘Feminism’

200 Russians to compete in Olympics as neutrals

The Russian Olympic Committee expects 200 to compete in South Korea

Most Read