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

UPDATE: RCMP confirm one man dead after shooting in Cache Creek

Residents on edge as incident unfolded Monday night

Woman killed in head-on crash near Vanderhoof

RCMP say driver crossed the centre line and hit a loaded fuel tanker truck

‘Tripod’ delays access to Unist’ot’en camp

Social media rumours of cultural significance quashed, meaning police “exclusion zones” should end.

Hereditary chiefs negotiate injunction agreement

Wet’suwet’en hereditary chiefs abide by interim injunction, but gate stays up. Still opposed.

Unist’ot’en open gate

The camp is complying with the temporary injunction allowing natural gas pipeline workers through.

UK lawmakers reject Brexit deal in 432-202 vote

House of Commons votes against the deal struck between Britain’s government and the EU

Millennial Money: Don’t let Instagram envy get you into debt

A full 48 per cent of U.S. households have credit card debt

Jury debates fate of man accused of killing 12-year-old B.C. girl 40 years ago

Police allege Garry Handlen told a cop how he abducted, sexually assaulted and strangled Monica Jack in May 1978

Letters on way to all homeowners in B.C. speculation tax communities

Property owners have to register to avoid vacant-home tax

New orca calf in Salish Sea ‘healthy and active’

Birth cause for celebration but things still dire genetically, expert says

Good Samaritan rescues cat found in heaps of garbage at B.C. landfill

The cat was abandoned and left to die at the Foothills Boulevard Regional Landfill, the BC SPCA says

Vancouver, Victoria, Kelowna home to Canada’s most expensive rentals: report

According to PadMapper, units in larger B.C. cities cost $1,300 to more than $3,000

B.C. home sales drop 25% in 2018

The B.C. Real Estate Association points to the federal government’s mortage stress test

Most Read