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

Early morning crash on Royal Oak overpass

Emergency crews remain on scene and traffic expected to be affected

‘Good Samaritan’ honoured for saving man from capsized canoe

BC Ambulance Service said Rob Clifford’s actions saved man’s life in December 2017 incident

Canada has enough pipelines to get the moon

Pipelines totalling 840,000 kilometres run across Canada

Canadian university profs are getting older and working longer

New statistics also show more women in Canadian university faculties

Christmas craft beer show coming to Victoria

50 breweries will be featured in the third annual Christmas Craft Beer Show

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Two B.C. police officers, held in Cuba for months, cleared of sex assault allegations

Port Moody Const. Jordan Long and Vancouver Const. Mark Simms have been in Cuba since March

Greater Victoria Crime Stoppers wanted list for the week of Nov. 14

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Chef claims $1-million with lottery ticket purchased in Ladysmith

A Vancouver woman is $1-million richer after purchasing a winning Lotto Max… Continue reading

Sunrise ceremony at B.C. legislature honours Louis Riel

Nov. 16 marks the 133th anniversary of the Métis leader’s death

California wildfire death toll hits 63

Sheriff says hundreds still missing in nation’s deadliest wildfire

Harsh storms have nearly tripled power outages in last five years, BC Hydro says

More frequent and severe storms have damaged Hydro’s electrical systems since 2013

Trudeau to meet key Pacific trade partners at APEC leaders’ summit

Canada became one of the first six countries to ratify the CPTPP

Judge orders White House to return press pass to CNN’s Acosta

U.S. District Court Judge will decide on White House press credentials of CNN reporter Jim Acosta

Most Read