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.

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Chilliwack-Kent 2020 provincial election candidates, clockwise from bottom left, Kelli Paddon (NDP), Eli Gagne (Libertarian), Jeff Hammersmark (Green), Jason Lum (Independent), and Laurie Throness, who began the campaign as a BC Liberal but left the party on Oct. 15.
Advance voting nears 5,000 in Chilliwack-Kent

More than 380,000 voters have voted in advance across B.C.

Owen Charpentier, 21, is charged with the Oct. 22, 2019 second-degree murder of Keith Baldwin in Chilliwack. (File)
Pre-trial dates set for Chilliwack man charged with Keith Baldwin’s murder

Owen Dale Charpentier accused in the fourth homicide of 2019 next in court June 2021

The 2020 Rotary Club of Chilliwack Book Sale is moving from Chilliwack Mall to Heritage Park to allow more room for physically-distanced shopping. (Jenna Hauck/ The Progress)
Rotary Book Sale moves from Chilliwack Mall to Heritage Park

The hugely-popular book sale is going ahead Oct. 25-31 with pandemic protocols in place

Organizers of the Fraser Valley Bald Eagle Festival have decided to end the event after more than 20 years. / Bob Friesen File Photo
Fraser Valley Bald Eagle Festival cancelled – for good

Organizers say the event was so popular that too many people were attending to be sustainable

Massimo Rizzo (Penticton Vees, BCHL), middle, tries to out-maneuver two Team Canada East players during a preliminary game at the 2018 World Junior A Challenge. Team Canada West won the all-Canadian matchup 6-1.
Photo courtesy of Matthew Murnaghan/Hockey Canada Images
Chilliwack Chiefs acquire Massimo Rizzo from Coquitlam Express

Chiefs hockey boss Brian Maloney has high expectations this season, and this trade is a sign of that

With local MLA Adam Olsen looking on, BC Greens leader Sonia Furstenau said a Green government would convert BC Ferries into a Crown corporation Wolf Depner/News Staff)
Green leader Sonia Furstenau promises to convert BC Ferries back into Crown corporation

Promise comes Monday afternoon with five days left in campaign

The RCMP helicopter. (File photo)
Suspect escapes after police pursuit through Surrey, Langley, Abbotsford

Police chase involved two stolen vehicles, including one taken in Mission

IIO Chief Civilian Director Ron MacDonald. (File photo: Tom Zytaruk)
Police watchdog concludes Mounties didn’t shoot Surrey teen at strip mall

IIO finds tragic death of teenager ‘not the result of any actions or inactions’ by the Surrey RCMP

A passer-by walks past a COVID-19 testing clinic in Montreal, Friday, Oct. 16, 2020. THE CANADIAN PRESS/Ryan Remiorz
Canada ‘yet to see’ deaths due to recent COVID surge as cases hit 200,000

Much of the increase in case numbers can be attributed to Ontario and Quebec

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

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

Police confirm human remains were found in a recycling bin in Vancouver on Oct. 18, 2020. (Black Press Media file photo)
Human remains found in recycling bin floating near Vancouver beach

Police asking nearby residents to see if their recycling bin has gone missing

Emergency crews shut down White Rock’s Five Corners district on Feb. 19, 2020 after an altercation left an elderly man in critical condition. (File photo)
Trial dates set in White Rock manslaughter case

Proceedings against Ross Banner, 71, set for June 2021 in Surrey Provincial Court

Most Read