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.

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

The intersection of Blueridge Drive and Blue Jay Street is one of three intersections in Abbotsford approved for traffic lights this year. (Google Street View)
Traffic signals approved at 3 Abbotsford intersections

Projects part of $1.45M in road upgrades around community

An apartment building and townhouse project has been proposed at 2236 McCallum Rd. in Abbotsford. The development was given third reading by city council on June 14. (City of Abbotsford)
Apartment-and-townhouse project planned on McCallum Road in Abbotsford

Development across from old hospital site consists of 174 suites and 10 townhouses

Adam Hobbs went missing from a Langley work site on Monday, June 14 and may have gone to Vancouver. (Special to the Langley Advance Times)
Family, RCMP seek Abbotsford man missing from Langley job site

Adam Hobbs lives in Abbotsford and is a minor hockey referee

Police were on scene Monday afternoon (June 14) in the area of George Ferguson Way and Ware Street. (John Morrow/Abbotsford News)
Police called out after reports of possible home invasion in Abbotsford

Incident on Monday afternoon at George Ferugson Way and Ware Street

Migrating sockeye in the Fraser River August 7, 2007. (Fisheries and Oceans Canada)
First Nations, commercial, and recreational harvesters join forces to save Fraser River fish

‘We have to work together to rebuild these stocks while there is still time,’ says delegate

The border crossing on Highway 11 in Abbotsford heading south (file)
VIDEO: Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

St. Joseph's Mission site is located about six kilometres from Williams Lake First Nation. (Photo submitted)
Williams Lake First Nation to search residential school site for unmarked graves

St. Joseph’s Mission Indian Residential School operated from 1886 to 1981

Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Tuesday’s Lotto Max draw went unclaimed. (Photo courtesy of BCLC)
Lotto Max jackpot goes unclaimed again

42 of the 64 Maxmillion prizes of $1 million were won, the majority were sold in Ontario

FILE - This July 6, 2017 file photo shows prescription drugs in a glass flask at the state crime lab in Taylorsville, Utah. (AP Photo/Rick Bowmer, File)
Contaminants in generic drugs may cause long-term harm to DNA: B.C. researcher

Scientist says findings suggest high volume overseas facilities require strict regulation

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., on April 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Labour shortages, closed borders major obstacles to B.C. restaurant, tourism restarts

Industry expert says it won’t start to recover until international travellers can visit

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read